MongoDB shares jump more than 20% after database company beats expectations and raises guidance

Shares of MongoDB rose as much as 22% in extended trading Thursday after the database software maker posted explosive first-quarter earnings and raised its full-year guidance.

Earnings: 56 cents per share adjusted, versus 19 cents per share as expected by analysts, according to Refinitiv.

Income: $368 million, versus the $347 million analysts expected, according to Refinitiv.

MongoDB’s revenue rose 29% year over year in the quarter ended April 30, according to a statement. Net loss for the quarter was $54 million, or 77 cents per share, compared with $77 million, or $1.14 per share, in the year-ago quarter, even as the company increased spending on sales and marketing and research and development.

The company added 2,300 customers in the quarter, bringing its total to 43,100, which was above the StreetAccount consensus of 42,430.

China Mobile has moved a service to share payment information with customers from Oracle to MongoDB, resulting in an 80 percent increase in performance and a reduction in the number of core servers from 50 to 12, CEO Dev Ittycheria said on a conference call with analysts.

Innovation remains a priority in organizations, Iticherry said. But he also said that “it’s clear that customers continue to scrutinize their technology investments and need to decide which technologies are must-haves versus what’s just a nice-to-have.”

During the quarter, MongoDB extended its partnership with Alibaba through 2027. The agreement has “resulted in 8x consumption growth” since its launch in 2019, MongoDB said in a statement.

In terms of guidance, management called for fiscal second-quarter earnings of 43 cents to 46 cents per share on revenue of $388 million to $392 million. Analysts polled by Refinitiv had expected 14 cents in adjusted earnings per share and $362 million in revenue.

MongoDB raised its fiscal 2024 forecast for both revenue and earnings. Guidance calls for $1.42 to $1.56 in adjusted earnings per share on $1.522 billion to $1.542 billion in revenue, which would represent 19.5% growth. In March, MongoDB said it expected full-year adjusted earnings per share of 96 cents to $1.10 on revenue of $1.48 billion to $1.51 billion. Analysts had expected adjusted earnings of $1.03 per share and $1.51 billion in revenue.

Before the after-hours move, MongoDB shares had risen 49% so far this year, compared with a gain of about 10% for the S&P 500.

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