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MongoDB (MDB) to Report Q3 Earnings: What's in the Offing?

Zacks Equity Research

MongoDB MDB is set to report third-quarter fiscal 2020 results on Dec 9.

For the quarter, the company expects revenues between $9 million and $100 million. Non-GAAP loss is anticipated between 27 cents and 29 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 $99.7 million, indicating growth of 53.5% from the figure reported in the year-ago quarter.

Notably, the company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 23.9%.

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 are shaping up for this announcement.

Factors to Watch

MongoDB’s third-quarter fiscal 2020 results are likely to have benefited from robust subscription revenues. Growing customer adoption of its proprietary cloud-based platform, Atlas, is expected to have been a major driver.

Notably, in the last reported quarter, Atlas revenues skyrocketed more than 240% year over year, accounting for 37% of revenues. Atlas had more than 13,200 customers at the end of the fiscal second quarter compared with more than 12,300 at the end of first-quarter fiscal 2020.

Moreover, the partnership with Alphabet GOOGL division Google Cloud Platform (GCP) is likely to have enhanced the platform’s growth opportunities.

However, a higher percentage of Atlas in the revenue mix is expected to have been an overhang on gross margins. Additionally, the bottom-line performance is expected to reflect higher investments related to sales & marketing and research & development.

Key Q3 Developments

On Oct 30, MongoDB announced a partnership with Alibaba’s BABA data intelligence platform, Alibaba Cloud, to offer customers an authorized MongoDB-as-a-service solution.

Moreover, during the quarter, MongoDB announced an expanded partnership with Microsoft MSFT, per which Atlas will be made available on Microsoft Azure Marketplace.

Further, Infosys in collaboration with MongoDB announced a new API Speed Layer solution for customers. The new solution combines the capabilities of the Infosys Microservices Acceleration Platform with Atlas.

Zacks Rank

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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