MongoDB Inc. (MDB) delivered the kind of earnings report that makes analysts reach for their calculators to revise their models upward. Shares rocketed over 24% Tuesday after the database company didn't just beat expectations—it demolished them.
The Numbers That Matter: MongoDB posted third-quarter revenue of $628.31 million, up 19% year-over-year and comfortably ahead of the $591.52 million analysts were expecting. But the real surprise came on the bottom line, where adjusted earnings hit $1.32 per share versus the 80-cent consensus. That's not a beat, that's a blowout.
The company added 2,600 new customers during the quarter, pushing its total customer base past 62,500. Subscription revenue climbed 19%, services revenue rose 12%, and free cash flow came in at $140.1 million. MongoDB ended the quarter sitting on $2.3 billion in cash and short-term investments, giving it plenty of dry powder.
"MongoDB delivered strong third quarter results that exceeded the high-end of our guidance driven by continued strength in Atlas, which saw growth accelerate to 30% year-over-year. We also delivered meaningful margin outperformance as we executed on our plan to drive profitable growth," said CJ Desai, president and CEO of MongoDB.
Looking Ahead: The forward guidance is where things get really interesting. For the fourth quarter, MongoDB expects revenue between $665 million and $670 million—well above the $625.12 million consensus—with adjusted earnings of $1.44 to $1.88 per share versus the 93-cent estimate.
The company also bumped up its full-year outlook significantly. Revenue guidance now sits at $2.43 billion to $2.44 billion, up from the previous range of $2.34 billion to $2.36 billion. Full-year adjusted earnings jumped to $4.76 to $4.80 per share from $3.64 to $3.73 per share. Analysts had been modeling $2.36 billion in revenue and $3.71 per share in earnings for the year.
Wall Street Weighs In: The analyst community responded with enthusiasm, maintaining bullish ratings while lifting price targets across the board. Cantor Fitzgerald kept its Overweight rating and raised its target from $406 to $454. RBC Capital stuck with Outperform and moved its target from $405 to $450. BofA Securities maintained its Buy rating and hiked the target from $440 to $480.
Bernstein held its Outperform rating while bumping the price target from $338 to $452—a substantial jump. Wells Fargo kept its Overweight rating and raised the target from $430 to $450, while DA Davidson maintained its Buy rating and lifted the target from $415 to $465.
Price Action: MongoDB shares traded up 24.86% at $410.62 on Tuesday.
