MongoDB stock skyrockets 25% on AI, cloud database platform growth
MongoDB Shares rose 25% on Tuesday after the company beat Wall Street’s third-quarter expectations and raised interest rates. to guess The cloud database platform has attracted customers’ attention.
The database software provider reported adjusted earnings of $1.32 per share on revenue of $628 million. That was above the adjusted 80 cents per share and revenue of $592 million expected by analysts surveyed by LSEG. Revenues increased 19 percent compared to last year.
MongoDB said its Atlas platform grew 30% from a year ago and accounted for 75% of total revenues in the quarter. The company said it finished the period with more than 60,800 Atlas customers, and the platform’s revenues are expected to grow by 27% in the current period.
“Q3 was an outstanding quarter driven by our continued go-to-market execution and the broad-based demand we saw in the business,” CEO Chirantan “CJ” Desai said in his first earnings call while leading the company.
Dev Ittycheria, who ran the company for 11 years and took it public, resigned in November.
Desai believes the company is approaching a “once-in-a-lifetime” opportunity as AI, cloud and data trends reach a “true tipping point.” He told investors he plans to focus on building customer relationships and innovation in the coming months.
Citing these headwinds, MongoDB strengthened its full-year guidance on Atlas growth and headwinds from continued AI demand. The company expects revenue of $2.434 billion to $2.439 billion, up from the previous estimate of $2.34 billion to $2.36 billion.
Analysts at Bernstein raised their price target on the shares to $452, expecting the stock to continue benefiting from rising growth as other software companies struggle.
“We expect the benefits of strong consumption demand, potential upside from artificial intelligence, and easing in the interest rate environment to drive continued rating upgrades in the near term,” they wrote.
Shares have gained more than 40 percent this year.
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