Shares in MongoDB Inc. rose in late trading after the database software company smashed earnings expectations.
For the fiscal first quarter ended April 30, MongoDB reported a profit before costs such as stock compensation of $15.2 million, or 20 cents per share, reversing a loss of $3.9 million, or six cents per share, in the same quarter last year. Revenue jumped 57% from a year ago, to $285.4 million.
Analysts had expected an adjusted loss of 10 cents per share on revenue of $267.1 million.
Subscription revenue in the quarter also rose 57% year-over-year, while gross profit was $207.2 million, representing a 74% gross margin, compared with 70% in the year-ago period. As of the end of April, MongoDB had $1.8 billion in cash, cash equivalents, short-term investments and restricted cash.
Highlights in the quarter included MongoDB signing a new multiyear strategic collaboration agreement with Amazon Web Services Inc. The six-year extension seeks to advance the adoption of its cloud database MongoDB Atlas through developer enablement and training, an increased focus on free trials and integrated go-to-market activities.
The company also launched the MongoDB Atlas pay-as-you-go option on Google Cloud. The new version is designed to give developers a more simplified subscription experience to adopt MongoDB on Google LLC’s cloud infrastructure platform.
As noted when the service was launched in April, the offering simplifies adoption as customers only pay for the resources they use, with no upfront commitments and the ability to scale up as needed. MongoDB pitches the option as a model that better aligns with how companies are building modern applications, especially startups.
“MongoDB began fiscal 2023 with terrific first-quarter results, highlighted by revenue growth of 57% year-over-year, driven primarily by 82% Atlas growth,” Dev Ittycheria, president and chief executive officer of MongoDB, said in a statement. “MongoDB enables developers to build mission-critical applications that drive better user experiences, enable new capabilities and improve operational efficiency, and our Q1 results give us increased confidence in our ability to capture the large market opportunity over the long term.”
Looking forward, MongoDB is predicting an adjusted second-quarter loss of 28 to 31 cents a share on revenue of $279 million to $282 million. Analysts had expected revenue of $277.85 million.
For the full fiscal year 2023, the company expects an adjusted loss per share of 16 to 31 cents on revenue of $1.172 billion to $1.192 billion.
Investors liked the figures. MongoDB shares rose almost 7% after the bell.