MongoDB (MDB) stock jumped more than 14% late Monday after the database software company reported fiscal third-quarter results that easily surpassed Wall Street’s forecasts.
MongoDB said that it earned an adjusted $1.32 per share for the October-ended quarter, up 14% from a year earlier. That easily beat the 81 cents per share that analysts polled by FactSet were forecasting. Sales increased 19% to $628 million, compared to analyst estimates of $594 million.
“MongoDB delivered strong third quarter results that exceeded the high-end of our guidance driven by continued strength in Atlas, which saw growth accelerate to 30% year-over-year,” MongoDB Chief Executive CJ Desai said in a news release. “We also delivered meaningful margin outperformance as we executed on our plan to drive profitable growth. Reflecting this strength, we are raising our guidance on the top and bottom line for the rest of the year.”
Desai took over as chief executive and president last month. Dev Ittycheria retired from both roles after 11 years leading the database software company. Desai previously served as president of product and engineering at Cloudflare (NET). He was also chief operating officer at ServiceNow (NOW).
MongoDB had already told investors that it expected to exceed its sales and adjusted earnings guidance, offering the upbeat earnings preview in the same news release where it announced Desai’s appointment on Nov. 3.
For the current quarter, MongoDB’s fiscal Q4, the company said it expects sales of $667.5 million, based on the midpoint of its guidance. Prior to the company posting its results, analysts were modeling $626 million in January-quarter sales for MongoDB.
On the stock market today, MongoDB stock gained 14.8% to 377.60 in after-hours trading.
More earnings coverage to come.
MongoDB Stock Part Of IBD 50
MongoDB provides document-based database software that specialize in handling “unstructured” forms of data. Investors tend to focus on growth for its cloud database software offering, called Atlas. MongoDB was recently profiled for Investor’s Business Daily’s The New America section.
Prior to earnings, MongoDB fell 1.5% during Monday’s regular session. Shares have gained more than 40% year-to-date, however.
The company’s stock rallied following its fiscal second-quarter results on Aug. 26. Those gains wiped away struggles from earlier in the year. However, MongoDB has pulled back in recent trading from a 52-week high of 385.44 in early November.
Coming into the report, MongoDB stock had an IBD Composite Rating of 97 out of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
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