MongoDB Stock Darts Higher After Q3 Earnings: Here's Why

MongoDB Inc (NASDAQ:MDB) shares are soaring Tuesday after the company smashed earnings estimates for the third quarter and lifted its full-year outlook. Several analysts raised price targets in response to the report.

• MDB stock is challenging resistance. Get the details here.

What To Know: MongoDB posted revenue of $628.31 million, up 19% year-over-year and above estimates of $591.52 million, according to Benzinga Pro. Adjusted earnings came in at $1.32 per share, beating expectations of 80 cents.

Subscription revenue rose 19%, services revenue increased 12% and the company added 2,600 new customers, bringing its total customer count to more than 62,500. MongoDB also generated $140.1 million in free cash flow and ended the quarter with $2.3 billion in cash and short-term investments.

“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.

For the fourth quarter, MongoDB expects $665 million to $670 million in revenue versus estimates of $625.12 million, and adjusted earnings of $1.44 to $1.88 per share versus estimates of 93 cents.

The company also raised its full-year revenue guidance to $2.43 billion to $2.44 billion, up from $2.34 billion to $2.36 billion, and now sees adjusted earnings of $4.76 to $4.80 per share, up from $3.64 to $3.73 per share. Analysts had been forecasting full-year revenue of $2.36 billion and full-year adjusted earnings of $3.71 per share.

Analyst Reactions: Multiple analysts maintained positive ratings and raised price targets following the print. Here’s a look at some of the most bullish reactions to the company’s quarter.

• Cantor Fitzgerald maintained an Overweight and raised the price target from $406 to $454.

• RBC Capital maintained an Outperform and raises the price target from $405 to $450.

• BofA Securities maintained a Buy and raised the price target from $440 to $480.

• Bernstein maintained an Outperform and raised the price target from $338 to $452.

• Wells Fargo maintained an Overweight and raised the price target from $430 to $450.

• DA Davidson maintained a Buy and raised the price target from $415 to $465.

MDB Price Action: MongoDB shares were up 24.86% at $410.62 at the time of publication on Tuesday, according to Benzinga Pro.

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