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Cloud software provider MongoDB (NASDAQ:MDB) is slated to report first-quarter results on Thursday after the close of trading and the quarterly figures could put Wall Street’s estimates to “shame,” according to investment firm Monness, Crespi, Hardt.
Analyst Brian White, who rates MongoDB (MDB) shares neutral, is expecting the company to earn 47 cents per share on $372M in revenue, well above the consensus estimate of 19 cents and $347.04M.
“We believe Street estimates defy logic, presenting the opportunity for MongoDB to handily trounce analyst projections,” White wrote in an investor note.
White added that MongoDB (MDB) has “proven adept” to calling out caveats to make sure estimates are “ultralow,” but Wall Street has not yet caught on.
“Even in this challenging economy, the Street’s [fiscal first-quarter] estimate of a 4% [quarter-over-quarter] sales decline appears unreasonably pessimistic,” White explained.
The analyst added that MongoDB’s (MDB) Atlas database has seen its growth slow, but it’s still expected to “handily outpace” the company’s overall sales performance. Atlas now accounts for roughly 65% of the company’s overall sales, with more than 39,300 customers and 50% year-over-year revenue growth.
Looking ahead, White is expecting fiscal second-quarter revenue guidance to be $401M and earnings per share of 57 cents, while full-year sales are forecast to be around $1.705B.
The company itself expects full-year sales to be between $1.48B and $1.51B.
In addition, White noted that MongoDB (MDB) has started to slow down hiring, as it expects to increase headcount in fiscal 2024 by single digit percentages, compared to a roughly 30% gain last year.
“In our view, MongoDB is well positioned to benefit from secular trends around next-gen databases, the cloud, and digital transformation,” White wrote.
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