MongoDB (MDB) to Report Q1 Earnings: What’s in the Offing?

MongoDB's (MDB) first-quarter fiscal 2023 results are expected to reflect the growing adoption of its cloud-based platform, Atlas. Read More...

MongoDB MDB is set to report first-quarter fiscal 2023 results on Jun 1.

For first-quarter fiscal 2023, MongoDB expects revenues between $263 million and $267 million. The Zacks Consensus Estimate for revenues is currently pegged at $265.3 million, indicating growth of 46.05% year over year.

Non-GAAP loss from operations is anticipated in the range of $2-$5 million. Non-GAAP net loss per share is estimated between 8 cents and 12 cents per share. For the quarter, the consensus mark for loss has moved up by a penny to 10 cents per share in the past 30 days.

Let’s see how things have shaped up for MongoDB for the upcoming announcement.

MongoDB, Inc. Price and EPS Surprise

MongoDB, Inc. Price and EPS Surprise

MongoDB, Inc. Price and EPS Surprise

MongoDB, Inc. Price and EPS Surprise

MongoDB, Inc. price-eps-surprise | MongoDB, Inc. Quote

Factors to Consider

MongoDB’s fiscal first-quarter performance is expected to have benefited from robust subscription revenues. Growing customer adoption of its proprietary cloud-based platform, Atlas, is expected to have been a major driver.

In fourth-quarter fiscal 2022, MongoDB’s Atlas revenues soared 85% year over year, contributing 58% to total revenues, driven by the exceptionally high in-quarter expansion of existing customers. Atlas had more than 31,500 customers at the end of the last reported quarter and added 2,000 customers sequentially.

Partnerships with hyperscale vendors like Amazon’s AMZN cloud division, Amazon Web Services (AWS), Alphabet’s GOOGL Google Cloud Platform and Microsoft’s MSFT Azure are likely to have enhanced the platform’s growth opportunities.

The hyperscale providers not only help in the scalability and interoperability of the platforms but also provide enormous investment into tools and intellectual property, making it cheaper to access and use the cloud, to extend and build out the customer’s capabilities.

This Zacks Rank #3 (Hold) company announced the expansion of a multi-year strategic collaboration agreement with AWS in the fiscal first quarter. As part of this six-year agreement, MongoDB and Amazon Web Services have committed to a broad range of initiatives to make it easier for joint customers to advance their cloud adoption journey. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The direct integration of MongoDB Atlas with Google Cloud Console and Marketplace, provides integrated billing and support to customers of both companies. Google Cloud now features MongoDB Atlas in the database portion of its console, further increasing visibility and velocity with developers.

MongoDB also expanded its relationship with Microsoft, as part of which, MongoDB Atlas is available on Microsoft Azure Marketplace. Per the agreement, MongoDB is part of Microsoft’s strategic Partner Reported ACR co-sell program.

However, a higher percentage of Atlas in the revenue mix is expected to have been an overhang on gross margins. Additionally, the bottom-line performance is expected to have been affected by higher investments related to sales & marketing and research & development.

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