MongoDB Surges on Projecting Strong Demand from Developers
By Dhirendra Tripathi
Investing.com – MongoDB (NASDAQ:MDB) stock climbed 12% in premarket trading Wednesday after the company issued a strong guidance, banking on demand from developers for its open-source database platform used in making apps.
The company also surpassed $1 billion in annualized revenue for the first time.
For its financial year 2023, the company is projecting revenue to be in between $1.15 billion and $1.18 billion, a growth of over 76% at the top end after a 48% growth in 2022.
Customer growth was strong in the fourth quarter and the company closed January with a base of over 33,000.
Partnerships with hyperscalers like cloud vendors Amazon Web Services (NASDAQ:AMZN), Alphabet-owned Google (NASDAQ:GOOGL), and Microsoft's Azure (NASDAQ:MSFT) carried strong momentum, according to the company. Hyperscalers refers to big spenders on technology.
“We are seeing strong alignment and great field execution in our AWS partnership, especially around larger deals and migrations from on-premise to cloud. Google Cloud is also now featuring MongoDB Atlas in the database portion of their console, further increasing visibility and velocity with developers,” the company said.
Atlas (NYSE:ATCO) is a cloud version of MongoDB’s flagship database platform. Owing to company’s long push for Atlas as a subscription-based model, it now accounts for the majority of MongoDB’s revenue.
Total revenue in the fourth quarter jumped 56% to cross $266 million. Subscription revenue topped $258 million, up 58%. Adjusted net loss in the quarter was down to almost a third at $6.3 million.
In the current quarter, the company sees revenue at $265 million at center of its guidance range.
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