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MongoDB (MDB) to Report Q2 Earnings: What's in the Offing?

Zacks Equity Research

MongoDB MDB is set to report second-quarter fiscal 2020 results on Sep 4.

In the first quarter of fiscal 2020, the company reported adjusted loss of 22 cents per share, narrower than the Zacks Consensus Estimate of a loss of 24 cents and also the year-ago quarter’s loss of 37 cents.

Revenues of $89.4 million soared 73.8% year over year and comfortably surpassed the consensus mark of $83 million.

For second-quarter fiscal 2020, MongoDB expects revenues between $90 million and $92 million. Non-GAAP loss is anticipated between 29 cents and 27 cents per share.

The Zacks Consensus Estimate is currently pegged at a loss of 28 cents, unchanged over the past 30 days. The consensus mark for revenues currently stands at $91.3 million, indicating growth of 58.8% from the figure reported in the year-ago quarter.

MongoDB, Inc. Price and EPS Surprise

MongoDB, Inc. Price and EPS Surprise

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

Factors to Impact Q2 Results

MongoDB’s second-quarter fiscal 2020 results are likely to benefit from robust growth in subscription revenues. Further, growing customer adoption of its proprietary cloud-based platform Atlas is a key driver.

Notably, in the last reported quarter, Atlas revenues skyrocketed more than 340% year over year, accounting for 35% of revenues. Atlas had more than 12,300 customers at the end of the fiscal second quarter compared with more than 11,400 sequentially.

During the fiscal second quarter, the company added MongoDB Atlas Data Lake and MongoDB Atlas Full-Text Search, which are likely to boost customer uptake.

The company’s recent partnership with Alphabet GOOGL division Google Cloud Platform (GCP) makes us more optimistic this earnings season. Atlas’ direct integration within the GCP Console is likely to drive its sales opportunities.

However, higher percentage of Atlas in revenue mix is expected to be an overhang on gross margins. Further, additional expenses associated with the Realm acquisition are likely to keep margins under pressure.

Moreover, intensifying competition from players like Oracle ORCL, IBM, Microsoft MSFT and SAP persists as a key concern.

MongoDB currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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