Reflecting On Data Storage Stocks’ Q2 Earnings: DigitalOcean (NYSE:DOCN)
Let's dig into the relative performance of DigitalOcean (NYSE:DOCN) and its peers as we unravel the now-completed Q2 data storage earnings season.
Data is the lifeblood of the internet and software in general, and the amount of data created is accelerating. As a result, the importance of storing the data in scalable and efficient formats continues to rise, especially as its diversity and associated use cases expand from analyzing simple, structured datasets to high-scale processing of unstructured data such as images, audio, and video.
The 5 data storage stocks we track reported a mixed Q2; on average, revenues beat analyst consensus estimates by 2.81% while next quarter's revenue guidance was 0.22% below consensus. There has been a stampede out of expensive technology stocks as higher interest rates encourage investors to value profits over growth, and data storage stocks have not been spared, with share prices down 18.6% on average, since the previous earnings results.
Weakest Q2: DigitalOcean (NYSE:DOCN)
Started by brothers Ben and Moisey Uretsky, DigitalOcean (NYSE: DOCN) provides a simple, low-cost platform that allows developers and small and medium-sized businesses to host applications and data in the cloud.
DigitalOcean reported revenues of $169.8 million, up 26.8% year on year, falling short of analyst expectations by 0.06%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and underwhelming revenue guidance for the next quarter.
DigitalOcean delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. The stock is down 53.3% since the results and currently trades at $21.84.
Read our full report on DigitalOcean here, it's free.
Best Q2: MongoDB (NASDAQ:MDB)
Started in 2007 by the team behind Google’s ad platform, DoubleClick, MongoDB offers database-as-a-service that helps companies store large volumes of semi-structured data.
MongoDB reported revenues of $423.8 million, up 39.6% year on year, outperforming analyst expectations by 8.42%. It was a very strong quarter for the company, with an impressive beat of analysts' revenue estimates and optimistic revenue guidance for the next quarter.
MongoDB achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The company added 94 enterprise customers paying more than $100,000 annually to a total of 1,855. The stock is down 8.75% since the results and currently trades at $348.08.
Is now the time to buy MongoDB? Access our full analysis of the earnings results here, it's free.
Couchbase (NASDAQ:BASE)
Formed in 2011 with the merger of Membase and CouchOne, Couchbase (NASDAQ:BASE) is a database-as-a-service platform that allows enterprises to store large volumes of semi-structured data.
Couchbase reported revenues of $43.1 million, up 8.41% year on year, exceeding analyst expectations by 3.42%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and full-year revenue guidance missing analysts' expectations.
The stock is down 10.9% since the results and currently trades at $14.71.
Read our full analysis of Couchbase's results here.
Snowflake (NYSE:SNOW)
Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake (NYSE:SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.
Snowflake reported revenues of $674 million, up 35.5% year on year, surpassing analyst expectations by 1.77%. It was a slower quarter for the company, with its net revenue retention rate in jeopardy.
The company added 29 enterprise customers paying more than $1m annually to a total of 402. The stock is down 4.64% since the results and currently trades at $148.64.
Read our full, actionable report on Snowflake here, it's free.
Commvault Systems (NASDAQ:CVLT)
Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ: CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention, and compliance.
Commvault Systems reported revenues of $198.2 million, flat year on year, in line with analyst expectations. It was a mixed quarter for the company,
Commvault Systems had the slowest revenue growth among its peers. The stock is down 15.1% since the results and currently trades at $66.2.
Read our full, actionable report on Commvault Systems here, it's free.
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The author has no position in any of the stocks mentioned
