Shares of MongoDB (MDB 0.13%) are down 7.8% as of 1:45 p.m. ET Wednesday despite an impressive quarterly report from the NoSQL database platform provider.
For MongoDB's fiscal third quarter ended Oct. 31, 2023, revenue grew 30% year over year to $432.9 million, translating to adjusted (non-GAAP) net income of $79.1 million, or $0.96 per share. By comparison, most analysts were modeling earnings of $0.50 per share on revenue of $404 million.
NASDAQ: MDB
Key Data Points
MongoDB Atlas continues to shine
Within MongoDB's top line, revenue from MongoDB Atlas -- its fully managed cloud database platform -- grew 36% year over year to comprise 66% of total quarterly revenue. MongoDB saw continued momentum in customer growth as well, with its total number of customers up 18.7% year over year to over 46,400. The number of customers generating annual recurring revenue of at least $100,000 grew 28% year over year to 1,972.
"We are pleased by our success in winning new workloads from both new and existing customers across verticals, geographies, and customer segments," stated MongoDB CEO Dev Ittycheria. "MongoDB has clearly established itself as an indispensable part of the tech stack of any organization focused on building durable competitive differentiation through software development."
MongoDB also reached a significant milestone by achieving cash-flow positivity; the company generated cash flow from operations of $38.4 million, and free cash flow of $35 million this quarter, swinging from negative free cash flow of $8.4 million in the same year-ago period.
What's next for MongoDB stock?
For the current fiscal fourth quarter ending in January, MongoDB expects revenue of $429 million to $433 million, and adjusted net income per share of $0.44 to $0.46. Both ranges were comfortably above consensus estimates for fiscal Q4 earnings of $0.37 per share on revenue closer to $414 million.
Finally, MongoDB also raised its full fiscal-year outlook to call for revenue of $1.654 billion to $1.658 billion (up from $1.596 billion to $1.608 billion before), and adjusted net income per share of $2.89 to $2.91 (increased from $2.27 to $2.35 previously).
For perspective, even after today's pullback MongoDB stock is still up 176% over the past year, including a roughly 110% rally so far in calendar year 2023. Perhaps this pullback is more of a healthy pause, then, that could help MongoDB stock gather a solid base before it resumes its rally. Given its solid beat-and-raise performance today, I'm perfectly content continuing to hold my shares.
