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MongoDB's (MDB) Loss Narrows in Q1, Revenues Increase Y/Y

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MongoDB (MDB - Free Report) incurred first-quarter fiscal 2021 adjusted loss of 13 cents per share, narrower than the Zacks Consensus Estimate of a loss of 25 cents as well as the year-ago loss of 22 cents.

Moreover, revenues of $130.1 million surged 45.5% year over year and also comfortably surpassed the consensus mark by 9.4%.

MongoDB’s revenues for the fiscal first quarter benefited from higher subscription revenues, much similar to its Zacks Internet-Software industry peers like Smartsheet (SMAR - Free Report) , Cloudera and Zuora (ZUO - Free Report) .

Notably, Smartsheet’s, Cloudera’s and Zuora’s subscription revenues accounted for 90.3%, 88.9% and 77% of their respective first-quarter fiscal 2021 revenues. While Smartsheet’s subscription revenues jumped 53% year over year, Cloudera’s and Zuora’s grew 20.8% and 20% each.

MongoDB’s subscription revenues contributed to 95.8% of revenues and totalled $124.6 million, up 48.3% year over year. Moreover, this Zacks Rank #3 (Hold) company’s services revenues inched up 1.5% year over year to $5.5 million, representing 4.2% of revenues. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 

MongoDB, Inc. Price, Consensus and EPS Surprise

MongoDB, Inc. Price, Consensus and EPS Surprise

MongoDB, Inc. price-consensus-eps-surprise-chart | MongoDB, Inc. Quote

 

User Base Jumps

MongoDB added 1,400 customers sequentially to surpass 18.4K at the end of the quarter under review.

The company’s Atlas revenues soared 75% year over year, accounting for 42% of the company’s top line. Atlas had more than 16,800 customers at the end of the reported quarter, adding 1,400 customers sequentially.

Net AR expansion rate remained above 120%. The company had 780 customers in the quarter with at least $100,000 in ARR and annualized MRR, up from 598 reported in the year-ago quarter.

Operating Details

In the reported quarter, gross margin expanded 330 basis points (bps) on a year-over-year basis to 73.5%.

While research and development (R&D) expenses climbed 30.4% to $30.6 million, sales and marketing (S&M) expenses ascended 42.1% to $57.5 million. Moreover, general and administrative (G&A) expenses augmented 29.9% to $14.9 million.

However, as percentage of revenues, R&D expenses decreased 270 bps to 23.5%. G&A expenses declined 140 bps to 11.5%. Moreover, as percentage of revenues, S&M decreased 110 bps on a year-over-year basis to 44.2%.

Loss from operations narrowed to $7.4 million from the year-ago loss of $12.1 million.

Balance Sheet & Cash Flow

As of Apr 30, 2020, MongoDB had $977.5 million in cash, cash equivalents and short-term investments compared with $987 million as of Jan 31, 2020.

In the reported quarter, the company used $5.9 million of cash from operations and $1.5 million in capital expenditures. Free cash outflow was $8.5 million against free cash flow of $2.8 million in the year-ago period.

Guidance

For second-quarter fiscal 2021, MongoDB expects revenues between $125 million and $127 million. The Zacks Consensus Estimate is pegged at $118.9 million, implying 19.4% growth from the figure reported in the year-ago quarter.

Higher percentage of Atlas in revenue mix is expected to erode gross margin, at least in the near term.

Non-GAAP loss from operations is anticipated to be $22-$24 million.

Non-GAAP net loss is predicted between 38 cents and 41 cents per share. The consensus mark is pegged at a loss of 38 cents.

For fiscal 2021, MongoDB expects revenues between $520 million and $530 million (indicating a narrowed outlook from the previous guided range of $510-$530 million).

Coronavirus is anticipated to negatively impact MongoDB’s second-half fiscal 2021 results more materially than previously. The company now expects the pandemic to hurt revenues to a greater degree than its past projection of $15-$25 million.

The Zacks Consensus Estimate for fiscal 2021 revenues is pegged at $514.3 million, implying 22% growth from the figure reported a year earlier.

Non-GAAP loss from operations is estimated to be $70-$78 million.

Non-GAAP net loss is predicted between $1.21 and $1.34 per share. The consensus mark is pegged at a loss of $1.31.


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