{"id":21498,"date":"2022-12-06T23:47:22","date_gmt":"2022-12-06T23:47:22","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/06\/mongodbs-stock-soars-as-cloud-consumption-trends-power-strong-revenue-growth\/"},"modified":"2022-12-06T23:47:22","modified_gmt":"2022-12-06T23:47:22","slug":"mongodbs-stock-soars-as-cloud-consumption-trends-power-strong-revenue-growth","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/06\/mongodbs-stock-soars-as-cloud-consumption-trends-power-strong-revenue-growth\/","title":{"rendered":"MongoDB’s stock soars as cloud consumption trends power strong revenue growth"},"content":{"rendered":"

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Shares of database firm MongoDB Inc.<\/a> soared in extended trading today on the back of stellar third-quarter financial results that easily beat Wall Street\u2019s expectations, as well as guidance suggesting another strong quarter to come.<\/p>\n

The company reported<\/a> earnings before certain costs such as stock compensation of 23 cents per share, miles ahead of Wall Street\u2019s forecast of a 17-cent-per-share loss. It was also a big improvement on the three-cent-per-share loss the company posted one year earlier. Revenue for the quarter rose 47%, to $333.6 million, beating\u00a0 analysts\u2019 target of $318 million by some distance too.<\/p>\n

All told, MongoDB reported a net loss of $84.8 million for the period, up ever so slightly from the $81.3 million loss it recorded a year earlier.<\/p>\n

MongoDB\u2019s forecast was just as impressive, with the company calling for fourth-quarter earnings of between six and eight cents per share on revenue of $334 million to $337 million. That suggests another earnings beat to come, with Wall Street targeting a fourth-quarter loss of 12 cents per share on sales of\u00a0 $318 million. The market reaction was phenomenal, as MongoDB\u2019s stock jumped more than 26% in after-hours trading on the back of the report.<\/p>\n

MongoDB President and Chief Executive Dev Ittycheria (pictured) said that the company benefited from \u201cimproved Atlas consumption trends and continued strength in new business activity.\u201d<\/p>\n

Ittycheria was referring to MongoDB Atlas, the cloud-native version of the open-source MongoDB database that is considered to be one of the most powerful document-oriented datastores around, ideal for all kinds of data-hungry applications. The company\u2019s offerings, which also include a mobile database known as MongoDB Realm, have proved to be popular with developers because the software is easy to use and can store data in many different types of formats.<\/p>\n

MongoDB is undoubtedly benefiting from cloud adoption, as MongoDB Atlas revenue jumped by 61% from a year earlier, accounting for 63% of the company\u2019s total sales. Subscription revenue rose 47%, to $320.8 million, while services revenue rose 43%, to $12.9 million. The company also boasted of \u201cstrong customer growth,\u201d saying it ended the quarter with over 39,100 paying customers.<\/p>\n

\u201cOur performance reinforces the strategic importance of MongoDB\u2019s developer data platform in enabling our customers to use software and data to transform their businesses,\u201d Ittycheria added.<\/p>\n

In an interview on theCUBE<\/a>, SiliconANGLE Media\u2019s video studio, ahead of Amazon Web Services Inc.\u2019s re:Invent last week, Ittycheria explained how his company\u2019s growth is being powered by the increasing importance of developers in a world where every enterprise has become a software company. The CEO explained that developers have effectively become a proxy for innovation, because it\u2019s code that powers digital transformation above all else.<\/p>\n

\u201cDevelopers have amassed an enormous amount of power and influence,\u201d Ittycheria said. \u201cEvery company is becoming a software company, because it all starts with software. Software enables, defines or creates almost every company\u2019s value proposition.\u201d<\/p>\n

Here\u2019s Ittycheria\u2019s interview in full:<\/p>\n