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MongoDB (MDB) Q4 Loss Narrower Than Expected, Revenues Rise

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MongoDB MDB incurred fourth-quarter fiscal 2022 adjusted loss of 9 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 23 cents per share. The figure also improved from a loss of 33 cents per share reported in the year-ago quarter.

Revenues of $266.5 million surged 55.8% year over year and surpassed the consensus mark by 9.6%.

MongoDB’s subscription revenues contributed 96.9% to revenues and totaled $258.2 million, up 57.5% year over year. Services revenues rose 17.2% year over year to $8.3 million, contributing 3.1% to revenues.

MongoDB, Inc. Price, Consensus and EPS Surprise

MongoDB, Inc. Price, Consensus and EPS Surprise
MongoDB, Inc. Price, Consensus and EPS Surprise

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

User Base Up

MongoDB added 2,000 customers sequentially to reach 33,000 at the end of the quarter under review. Of this, more than 4,400 were direct-sales customers.

The company’s Atlas revenues soared 85% year over year, contributing 58% to total revenues. The fourth quarter's strong Atlas revenue performance was driven by the exceptionally high in-quarter expansion of existing customers. Atlas had more than 31,500 customers at the end of the reported quarter, adding 2,000 customers sequentially.

MongoDB ended the quarter with 1,307 customers, with at least $100,000 in annual recurring revenue (ARR) and annualized monthly recurring revenue (MRR), compared with 975 in the year-ago quarter.

Non-GAAP Operating Details

Gross profit in the fourth quarter rose 59.5% year over year to $196.6 million.
In the reported quarter, gross margin expanded 170 basis points (bps) on a year-over-year basis to 73.8%.

Research and development (R&D) expenses climbed 44.8% to $55.5 million. Sales and marketing (S&M) expenses increased 43.5% to $116.3 million. Moreover, general and administrative (G&A) expenses increased 31.3% to $26.1 million.

As a percentage of revenues, R&D expenses contracted 160 bps to 20.8%. G&A expenses declined 180 bps to 9.8%. As a percentage of revenues, S&M expenses declined 380 bps on a year-over-year basis to 43.6%.

Loss from operations decreased to $1.3 million from the year-ago quarter’s loss of $16 million.

Balance Sheet & Cash Flow

As of Jan 31, 2022, MongoDB had $1.8 billion in cash, cash equivalents, short-term investments and restricted cash compared with $1.8 billion as of Oct 31, 2021.

During the three months ended Jan 31, 2022, MongoDB used $22.3 million of cash from operations, $3.6 million of cash in capital expenditures and $1.9 million of cash in principal repayments of finance leases, leading to a positive free cash flow of $16.8 million against a negative free cash flow of $20.7 million in the year-ago period.

Key Q4 Highlights

During the reported quarter, the company rolled out MongoDB 5.2. It is the company’s latest quarterly release, which includes improvements to query functionality, enhancements to time series collections, and new capabilities allowing the execution of more sophisticated analytic queries directly against live operational and transactional data.

The company continued its momentum in partnerships with hyperscale cloud vendors (AWS, Google Cloud, Azure), resulting in 80%+ growth in deals sourced by the cloud vendors in the fourth quarter. Notably, Google Cloud is now featuring MongoDB Atlas in the database portion of their console, further increasing visibility and velocity with developers.

Guidance

For first-quarter fiscal 2023, MongoDB expects revenues between $263 million and $267 million.

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 fiscal 2023, MongoDB expects revenues between $1.151 billion and $1.181 billion.

Non-GAAP loss from operations is estimated to be in the range of $7-$22 million. Non-GAAP net loss per share is expected between 29 cents and 51 cents per share.

Zacks Rank & Stocks to Consider

Currently, MangoDB carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Zacks Computer and Technology sector are Apple AAPL and Advanced Micro Devices AMD, each sporting a Zacks Rank #1 (Strong Buy) and Model N MODN, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Apple has an Earnings ESP of +3.93%.

AAPL has returned 31.2% in the past year compared with the Zacks Computer - Mini computers industry’s rise of 33.2% and the Computer and Technology sector’s decline of 2.1%.

Advanced Micro Devices has an Earnings ESP of +1.46%.

AMD is up 36.1% in the past year compared with the Zacks Electronics - Semiconductors industry’s return of 13.6% and the Computer and Technology sector’s decline of 2%.

Model N has an Earnings ESP of +5.0%.

MODN is down 37.6% in the past year against the Zacks Internet - Software industry’s decline of 52.2% and the Computer and Technology sector’s rise of 2% in the past year.


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