Databases are in fashion, which means MongoDB Inc.’s hot streak is still going strong, as the company reported another profit beat in its second-quarter results today.
During the quarter, the business recorded a loss of 24 cents per share before certain expenditures such as stock compensation on sales of $198.7 million, up 44 percent from the previous year. Wall Street had to expect a larger loss of 41 cents per share on revenue of only $182.4 million, so it was a pleasant surprise.
Investors were ecstatic, as MongoDB’s stock had risen by more than 24% at the time of writing.
MongoDB’s rapid growth, according to Dev Ittycheria (pictured), underscores nearly every company’s desire to adopt a contemporary application data platform that helps them speed the pace of digital innovation.
“With new product features like Atlas Serverless, Live Resharding, Versioned API, and native time series support, MongoDB 5.0 is the latest example of how we handle a growing set of essential business challenges for customers,” he said.
Subscription revenues drove the majority of MongoDB’s revenue increase, accounting for $191.4 million of the total, up 44 percent. Services revenue increased by 27% year over year to $7.4 million.
The open-source MongoDB database is sold in an enterprise-grade version by MongoDB. It’s utilized for a variety of data-hungry applications and is regarded as one of the most powerful document-oriented databases available. MongoDB is popular among developers because it is believed to be simple to use and can store data in a variety of forms.
MongoDB Atlas, a customized version of MongoDB for clients who wish to operate it on the cloud, as well as MongoDB Realm, a mobile version, have all been developed by the firm. As the firm converts to a subscription-based software-as-a-service business model, MongoDB Atlas adoption has surged, and it has now become the company’s flagship platform.
MongoDB Atlas sales increased by 83 percent year over year, indicating demand from big corporate clients, according to the firm. Customer adoption is also rapidly increasing. MongoDB revealed that cumulative database downloads surpassed 200 million in the third quarter, with 75 million of them occurring in the previous 12 months.
SiliconANGLE spoke with Holger Mueller, an analyst at Constellation Research Inc. MongoDB is an excellent example of the requirement for a vendor-managed, cloud-based service that works across all major public cloud infrastructure platforms.
“MongoDB is on fire right now, expanding by more than 40%,” he added. “MongoDB Atlas, in particular, is on a roll, demonstrating that businesses want managed cloud databases. The main concern is that MongoDB lost more money than a year ago. Investors aren’t too concerned because the company’s sales is outpacing its losses. MongoDB’s management faces a new challenge: driving the firm to a black zero.”
The good times, according to MongoDB, are poised to continue. It expects sales of $202 million to $204 million in the third quarter, above Wall Street’s average projection of $198.3 million. It upped its full-year revenue estimate to between $805 million and $811 million, representing a 37 percent increase in sales year over year.