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

Zacks Equity Research

MongoDB MDB is set to report first-quarter fiscal 2021 results on Jun 4.

For the quarter, the company expects revenues between $119 million and $121 million. The coronavirus outbreak is expected to affect first-quarter revenues by $1-$2 million.

Moreover, non-GAAP loss is anticipated between 22 cents and 25 cents per share.

The Zacks Consensus Estimate is currently pegged at a loss of 25 cents, unchanged over the past 30 days. The company reported a loss of 22 cents per share in the year-ago quarter.

Further, the consensus mark for revenues currently stands at $119.1 million, indicating growth of 33.3% from the year-ago reported figure.

Notably, the company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 8.3%.
 

MongoDB, Inc. Price and EPS Surprise

MongoDB, Inc. Price and EPS Surprise

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

 

Let’s see how things have shaped up for this announcement.

Factors to Watch

MongoDB’s first-quarter fiscal 2021 results are likely to reflect the negative impact of the coronavirus outbreak. Moreover, a higher percentage of Atlas in the revenue mix is expected to have been an overhang on gross margins. Additionally, the bottom line is expected to reflect on hefty investments in sales & marketing and research & development.

Nevertheless, subscription revenues are expected to have remained robust, courtesy of the solid customer adoption of Atlas.

Notably, in the last reported quarter, Atlas revenues skyrocketed 80% year over year, accounting for 41% of revenues. Atlas had more than 15,400 customers at the end of fourth-quarter fiscal 2020.

Moreover, partnerships with the likes of Amazon Web Services (AWS), Alphabet’s GOOGL Google Cloud Platform (GCP) division, Alibaba’s BABA data intelligence platform, Alibaba Cloud and Microsoft MSFT are likely to have enhanced the platform’s growth opportunities.

Further, owing to integration with popular AWS tools, such as AWS CloudFormation and Amazon EventBridge, Atlas has become more user-friendly. This, in turn, is likely to have driven its user base in the to-be-reported quarter.

Markedly, Google Cloud named MongoDB, which currently has a Zacks Rank #2 (Buy), as the 2019 Google Cloud Technology Partner of the Year for Marketplace. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Additionally, the top line is expected to have benefited from the availability of the MongoDB Modernization Toolkit, which was launched in partnership with Informatica and Hitachi Vantara Pentaho. The toolkit enables enterprises’ smooth shift from legacy databases like Oracle.


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