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MongoDB (MDB - Free Report) reported first-quarter fiscal 2023 adjusted earnings of 20 cents per share, which beat the Zacks Consensus Estimate by a whopping 300%. The company had reported a loss of 6 cents per share in the year-ago quarter.
Revenues of $285.4 million surged 57.1% year over year and surpassed the consensus mark by 7.59%.
MongoDB’s subscription revenues accounted for 96.2% of revenues and totaled $274.6 million, up 57.3% year over year. Services revenues surged 53.5% year over year to $10.9 million, contributing 3.8% to revenues.
MongoDB shares were up 6.31% in after-hours trading following the first-quarter results. MongoDB shares are down 54.4% year to date compared with the Zacks Computer and Technology sector’s decline of 24.6% over the same time frame.
User Base Up
MongoDB added 2,200 customers sequentially to reach 35,200 at the end of the quarter under review. Of this, more than 4,800 were direct-sales customers.
The company’s Atlas revenues soared 82% year over year, contributing 60% to total revenues. Atlas had more than 33,700 customers at the end of the reported quarter, adding 2,200 customers sequentially.
MongoDB ended the quarter with 1,379 customers (with at least $100K in ARR) compared with 1,057 in the year-ago quarter.
Non-GAAP Operating Details
Gross profit in the first quarter surged 62.9% year over year to $214.3 million.
In the reported quarter, gross margin expanded 270 basis points (bps) on a year-over-year basis to 75.1%. The year-over-year margin improvement was primarily driven by improved efficiencies.
Research and development (R&D) expenses climbed 38.1% year over year to $57.3 million. Sales and marketing (S&M) expenses increased 53.3% to $115.7 million. Moreover, general and administrative (G&A) expenses increased 37% to $23.8 million.
As a percentage of revenues, R&D expenses contracted 280 bps to 20.1%. G&A expenses declined 120 bps to 8.3%. As a percentage of revenues, S&M expenses declined 100 bps on a year-over-year basis to 40.5%.
Operating income, on an adjusted basis, was $17.5 million against the year-ago quarter’s loss of $2.8 million.
Balance Sheet & Cash Flow
As of Apr 30, 2022, MongoDB had $1.83 billion in cash, cash equivalents, short-term investments and restricted cash, unchanged sequentially.
Cash flow from operating activities was $11.6 million at the end of fiscal first quarter. The company spent $2.5 million of cash for capital expenditure and $0.6 million of cash in principal repayments of finance leases. Free cash flow was $8.4 million at the end of the reported quarter.
Key Q1 Highlights
MongoDB is benefiting from a strong partner base that includes the likes of Amazon (AMZN - Free Report) and Alphabet (GOOGL - Free Report) .
During the reported quarter, MongoDB announced a new multi-year, strategic collaboration agreement with Amazon cloud arm AWS to make it easier for joint customers to advance their cloud adoption journey.
The company also launched MongoDB Atlas Pay-as-you-go option on Alphabet's Google Cloud, which can be launched directly from the Google Console.
Guidance
For second-quarter fiscal 2023, MongoDB expects revenues between $279 million and $282 million. Unfavorable macro-economic environment is expected to hurt revenues in the range of $4-$5 million.
Non-GAAP loss from operations is anticipated in the range of $18-$16 million. Non-GAAP net loss is estimated between 31 cents and 28 cents per share.
For fiscal 2023, MongoDB now expects revenues between $1.172 billion and $1.192 billion (up from the previous guidance range of $1.151-$1.181 billion). Unfavorable macro-economic environment is expected to hurt revenues in the range of $30-$35 million.
Non-GAAP net loss is expected between 31 cents and 16 cents per share.
Zacks Rank & Stocks to Consider
Currently, MangoDB carries a Zacks Rank #3 (Hold).
A better-ranked stock from the same sector is Samsara (IOT - Free Report) . This Zacks Rank #2 (Buy) stock is scheduled to release first-quarter fiscal 2023 results on Jun 2.
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MongoDB (MDB) Q1 Beat Earnings Estimates, Revenues Jump Y/Y
MongoDB (MDB - Free Report) reported first-quarter fiscal 2023 adjusted earnings of 20 cents per share, which beat the Zacks Consensus Estimate by a whopping 300%. The company had reported a loss of 6 cents per share in the year-ago quarter.
Revenues of $285.4 million surged 57.1% year over year and surpassed the consensus mark by 7.59%.
MongoDB’s subscription revenues accounted for 96.2% of revenues and totaled $274.6 million, up 57.3% year over year. Services revenues surged 53.5% year over year to $10.9 million, contributing 3.8% to revenues.
MongoDB shares were up 6.31% in after-hours trading following the first-quarter results. MongoDB shares are down 54.4% year to date compared with the Zacks Computer and Technology sector’s decline of 24.6% over the same time frame.
User Base Up
MongoDB added 2,200 customers sequentially to reach 35,200 at the end of the quarter under review. Of this, more than 4,800 were direct-sales customers.
MongoDB, Inc. Price, Consensus and EPS Surprise
MongoDB, Inc. price-consensus-eps-surprise-chart | MongoDB, Inc. Quote
The company’s Atlas revenues soared 82% year over year, contributing 60% to total revenues. Atlas had more than 33,700 customers at the end of the reported quarter, adding 2,200 customers sequentially.
MongoDB ended the quarter with 1,379 customers (with at least $100K in ARR) compared with 1,057 in the year-ago quarter.
Non-GAAP Operating Details
Gross profit in the first quarter surged 62.9% year over year to $214.3 million.
In the reported quarter, gross margin expanded 270 basis points (bps) on a year-over-year basis to 75.1%. The year-over-year margin improvement was primarily driven by improved efficiencies.
Research and development (R&D) expenses climbed 38.1% year over year to $57.3 million. Sales and marketing (S&M) expenses increased 53.3% to $115.7 million. Moreover, general and administrative (G&A) expenses increased 37% to $23.8 million.
As a percentage of revenues, R&D expenses contracted 280 bps to 20.1%. G&A expenses declined 120 bps to 8.3%. As a percentage of revenues, S&M expenses declined 100 bps on a year-over-year basis to 40.5%.
Operating income, on an adjusted basis, was $17.5 million against the year-ago quarter’s loss of $2.8 million.
Balance Sheet & Cash Flow
As of Apr 30, 2022, MongoDB had $1.83 billion in cash, cash equivalents, short-term investments and restricted cash, unchanged sequentially.
Cash flow from operating activities was $11.6 million at the end of fiscal first quarter. The company spent $2.5 million of cash for capital expenditure and $0.6 million of cash in principal repayments of finance leases. Free cash flow was $8.4 million at the end of the reported quarter.
Key Q1 Highlights
MongoDB is benefiting from a strong partner base that includes the likes of Amazon (AMZN - Free Report) and Alphabet (GOOGL - Free Report) .
During the reported quarter, MongoDB announced a new multi-year, strategic collaboration agreement with Amazon cloud arm AWS to make it easier for joint customers to advance their cloud adoption journey.
The company also launched MongoDB Atlas Pay-as-you-go option on Alphabet's Google Cloud, which can be launched directly from the Google Console.
Guidance
For second-quarter fiscal 2023, MongoDB expects revenues between $279 million and $282 million. Unfavorable macro-economic environment is expected to hurt revenues in the range of $4-$5 million.
Non-GAAP loss from operations is anticipated in the range of $18-$16 million. Non-GAAP net loss is estimated between 31 cents and 28 cents per share.
For fiscal 2023, MongoDB now expects revenues between $1.172 billion and $1.192 billion (up from the previous guidance range of $1.151-$1.181 billion). Unfavorable macro-economic environment is expected to hurt revenues in the range of $30-$35 million.
Non-GAAP net loss is expected between 31 cents and 16 cents per share.
Zacks Rank & Stocks to Consider
Currently, MangoDB carries a Zacks Rank #3 (Hold).
A better-ranked stock from the same sector is Samsara (IOT - Free Report) . This Zacks Rank #2 (Buy) stock is scheduled to release first-quarter fiscal 2023 results on Jun 2.
IOT shares have been down 59.4% year to date. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.