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MongoDB shares jump as revenue growth accelerates

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Dev Ittycheria, CEO of MongoDB

Adam Jeffery | CNBC

Shares of database software maker MongoDB were up as much as 18% in extended trading on Monday after issuing fiscal third-quarter results.

Here’s how the company did:

Earnings: Loss of 11 cents per share, adjusted, vs. a loss of 38 cents per share as expected by analysts, according to Refinitiv.Revenue: $226.9 million, vs. $205.2 million as expected by analysts, according to Refinitiv.

Revenue grew 50% year over year in the quarter that ended Oct. 31, compared with 44% growth in the prior quarter, according to a statement. Revenue from the company’s Atlas cloud database service grew 84%, compared with 83% growth in the previous quarter.

But the company’s total net loss widened to $81.3 million from $72.7 million in the year-ago quarter, with sales and marketing expenses totaling more than half of quarterly revenue. Competitors include top cloud providers such as Amazon and Microsoft, as well as database incumbents such as IBM and Oracle.

MongoDB raised its guidance for the full 2022 fiscal year. It now expects an adjusted net loss per share of 74 cents to 71 cents on $846.3 million to $849.3 million in revenue, compared with a loss of $1.20 to $1.13 on $805.0 million to $811.0 million in revenue. Analysts had expected a loss of $1.13 per share and $813.0 million in revenue.

Travel, events and other business expenses came in lower than the company had predicted as the Covid pandemic continued during the quarter, Michael Gordon, MongoDB’s operating and finance chief, said on a conference call with analysts.

Many large Atlas cloud customers renewed contracts early, boosting deferred revenue in the quarter, Gordon said.

Coinbase is moving more workloads to the Atlas service, said MongoDB CEO Dev Ittycheria. The cryptocurrency exchange operator had “some pretty unique requirements when it comes to performance and scale,” he said. “As you can imagine, in their market, they have a lot of periods where they have some intense trading days.”

WATCH: MongoDB CTO on software company benefits, remote and hybrid work solutions

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