Yahoo Finance MongoDB (MDB) Q1 Earnings Beat Estimates, Revenues Jump Y/Y
MongoDB MDB reported first-quarter fiscal 2025 adjusted earnings of 51 cents per share, beating the Zacks Consensus Estimate of 38 cents. The company had reported adjusted earnings of 56 cents per share in the year-ago quarter.
Revenues of $450.6 million jumped 22% year over year and surpassed the consensus mark by 2.76%.
MongoDB’s subscription revenues accounted for 96.9% of total revenues and were $436.9 million, up 23.2% year over year. Services revenues increased 0.7% year over year to $13.7 million, contributing 3.1% to total revenues.
MongoDB, Inc. Price, Consensus and EPS Surprise
MongoDB, Inc. price-consensus-eps-surprise-chart | MongoDB, Inc. Quote
Increased User Base
MongoDB added 1,400 customers sequentially and reached 49,200 at the end of the quarter under review. Of this, more than 7,100 were direct-sales customers.
The company’s Atlas revenues soared 32% year over year, contributing 70% to total revenues. Atlas had more than 47,700 customers at the end of the reported quarter, adding 1,400 customers sequentially.
MongoDB ended the quarter with 2,137 customers (with at least $100K in ARR) compared with 1,761 in the year-ago quarter.
Non-GAAP Operating Details
Gross profit in the fiscal first quarter jumped 20.7% year over year to $337.8 million. In the reported quarter, gross margin contracted 100 basis points (bps) on a year-over-year basis to 75%.
Research and development (R&D) expenses climbed 23.3% year over year to $85.7 million. Sales and marketing (S&M) expenses increased 25.1% to $177.2 million. Moreover, general and administrative (G&A) expenses surged 68.1% to $42.1 million.
As a percentage of revenues, R&D expenses expanded 10 bps to 19%. G&A expenses expanded 250 bps to 9.3%. As a percentage of revenues, S&M expenses expanded 90 bps on a year-over-year basis to 39.3%.
Operating income, on an adjusted basis, was $32.8 million compared with $43.7 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Apr 30, 2024, MongoDB had $2.1 billion in cash, cash equivalents, short-term investments and restricted cash. During the three months ended Apr 30, 2024, MongoDB generated $63.6 million of cash from operations and used $0.5 million of cash in capital expenditures and $2.1 million of cash in principal repayments of finance leases, leading to free cash flow of $61.0 million compared with $51.8 million reported in the year-ago period.
As of Jan 31, 2024, MongoDB had $2 billion in cash, cash equivalents, short-term investments and restricted cash. During the three months ended Jan 31, 2024, the company generated $54.6 million of cash from operations and used $2.7 million of cash in capital expenditures and $1.4 million of cash in principal repayments of finance leases, leading to a free cash flow of $50.5 million compared with $23.8 million reported in the year-ago period.
Guidance
For second-quarter fiscal 2025, MongoDB expects revenues between $460 million and $464 million.
Non-GAAP income from operations is anticipated in the range of $35-$38 million. Non-GAAP net income is estimated in the band of 46-49 cents per share.
For fiscal 2025, MongoDB expects revenues between $1.88 billion and $1.9 billion.
Non-GAAP net income per share is expected in the band of $2.15-$2.3 per share.
Zacks Rank & Key Picks
MDB carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks from the broader Computer and Technology sector are Micron Technology MU, SecureWorks SCWX and Planet Labs PBC PL, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Micron Technology have jumped 48% year to date. MU is set to report third-quarter fiscal 2024 results on Jun 26.
Shares of SecureWorks have plunged 19.6% year to date. SCWX is scheduled to release first-quarter fiscal 2025 results on Jun 6.
Shares of Planet Labs PBC have lost 21.9% year to date. PL is scheduled to release first-quarter fiscal 2025 results on Jun 6.
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