Posted on Wednesday, Jun 10th 2020
According to a Research and Markets report, the global Database as a Service market is estimated to grow at 16% CAGR to reach $24.8 billion by 2025 from $12 billion in 2020. The recent market turmoil would have changed these forecasts. But despite the turmoil, MongoDB (Nasdaq: MDB) continues to soar. MongoDB’s stock has climbed 53% since the start of the year.
MongoDB recently reported its first quarter results with revenues growing 46% over the year to $130.3 million, ahead of the market’s forecast of $119.5 million. Net loss of $54 million grew from a loss of $33.2 million reported a year ago. Adjusted loss of $0.13 per share was also ahead of the Street’s forecast of a loss of $0.25 per share.
By segment, Subscription revenues grew 49% to $124.9 million, and services revenues grew 1% to $5.5 million.
For the second quarter, MongoDB expects revenues of $125-$127 million with a net loss of $0.41-$0.38 per share. It expects to end the year with revenues of $520-$530 million and a net loss of $1.34-$1.21 per share. The market was looking for revenues of $118.66 million for the quarter with a net loss of $0.38 per share and revenues of $514.27 million with a net loss of $1.31 per share.
MongoDB has reacted well to the recent Covid-19 driven turmoil. In spite of global travel restrictions and remote working conditions, the company believes that it will see very little negative impact. According to MongoDB, the recent crisis has accelerated the need for organizations to migrate towards digital transformation and cloud migration. It continues to invest in its business to cater to these opportunities.
Savings that the company is generating through reduction of travel and event-related activities are now being reinvested within digital marketing. The current crisis has resulted in companies lowering their advertising rates, in some cases by as much as 30%. MongoDB is
using the reduced rates to increase its investment in digital marketing and to expand upon recent strength in self-serve customer new additions.
Similarly, with the job market in a precarious position, instead of cutting down on hiring, MongoDB is investing in its R&D hiring. It is adding engineering talent and has advanced the R&D hiring originally targeted for fiscal 2022 into the current year to accelerate its product roadmap.
MongoDB also launched several enhancements to help its customers and the developer community.
Its marketing, developer relations and finance teams collaborated to launch a free Atlas credits programs for all developers looking to build applications to track and stop the spread of the virus. Since the release, it has launched 180 new initiatives on its platform. It helped build covidnearyou.org, a crowdsourced solution to create maps to help citizens and public health agencies identify hotspots for the pandemic. Built on Atlas, the solution has reported more than 1 million personal health updates.
Its stock is currently trading at $201.7 with a market capitalization of $11.7 billion. It touched a 52-week high of $243.92 last month. It was trading at a 52-week low of $93.81 in March this year. The stock had listed in October 2017 at $24.
Photo Credit: Garrett Heath/Flickr.com This segment is a part in the series : Cloud Stocks . Smartsheet Acquiring Bootstrapped Startups to Drive Growth . Bootstrapped Unicorn Atlassian is Acquiring Capital Efficient Startups . Netflix Price Hike Ruffles Competition . How Will Carbon Black Differentiate? . ServiceNow Grows Through Addition of Capital-Efficient Startups . Zendesk and Freshworks Follow Different Acquisition Strategies . Tableau Grows Through Small Acquisitions . Open Platform Strategy Stands Intuit in Good Stead . Will GoDaddy Follow the PaaS Route? . Adobe Delivers Via PaaS More »» . A Look at Oracle’s 2018 M&A Activity . What Apps Will Drive More Traction for Cloudera? . Slack's App Focus Will Be Key to Post-IPO Success . IBM Counts on its Cloud and Platform for the Turnaround . Atlassian Acquires From its PaaS Marketplace . What Should SAP Acquire to Triple its Value by 2023? . Expect ServiceNow to Acquire From App Marketplace . Should Alarm.com Follow a PaaS Strategy? . How Upwork Can Leverage the Virtual Company Trend . Qualys Scouting For Acquisitions . Should SAP Acquire Zendesk or Freshworks? . HubSpot Counts on its API Strategy . SurveyMonkey Eyes Acquisitions for Growth . Workday Wants to Disrupt Cloud Computing Using Machine Learning . Einstein and Open-Source Platform Lead the Charge for Salesforce . DocuSign Prepares to Beat Rival Adobe . Veeva Soars, But Dassault Acquires Medidata for $5.8 Billion . Tableau Acquisition Signals Massive Analytics Push for Salesforce . Oracle Joins Hands with Microsoft to Take on Amazon . GoDaddy is Making Strategic Acquisitions for the Next Level of Growth . Alteryx Sees Strong Momentum . Adobe Leveraging Magento and Marketo to Deliver Blockbuster Performance . Is Slack Overvalued? . How Will Cloudera Address the Competition? . Zoom is Not Bothered by Cisco or Microsoft . Domo Counts on Enterprise Revenue for Growth . 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Microsoft’s Partnership with Tom Siebel’s C3 AI is Intriguing . ServiceNow Well-Positioned for Digital Transformation . Analysis of Shopify’s Long Term Strategy . HubSpot Rethinks Pricing Model to Support Businesses . Akamai Investing in 5G Security Solutions . Twilio Should Provide Developer Marketplace Revenue Metrics . How can Alteryx Improve its PaaS Strategy? . Partnerships Ringing in Growth for RingCentral . Five9 Focuses on AI-based Contact Centers . Nutanix Builds a Kubernetes PaaS . Workday and Anaplan Executing Well Amid Pandemic . BlackLine Expands in Order-to-Cash Market . Zoom Investing in Security . Splunk is on a Shopping Spree . Veeva Sees Customer Momentum . Palo Alto Networks Has Missed the Window to Buy Zscaler . Can Okta Keep the Momentum Going? . Adobe Acquires to Address Growing Market Opportunity . nCino's AI Products Help it Soar . Analysis of Pure Storage’s Portworx Acquisition . Analysis of Coupa's LLamasoft Acquisition . 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ON24 Goes Public with $42B TAM as Covid Puts Webinars and Virtual Events Front and Center . Amazon After Jeff Bezos . ServiceNow Firing on All Cylinders But One . Snowflake Focuses on Developer Community for Growth . Is SAP Acquiring Alteryx? . Qualys Focuses on SaaS App Security . SurveyMonkey Remains Focused on APIs, ISV PaaS Still Missing . Domo Needs to Open up About PaaS Metrics . Like Wix, GoDaddy Needs to Focus on PaaS . Datadog on an Acquisition Spree . Twilio Soars, Focuses on Social Initiatives . HubSpot Expands Content Offering Through Acquisition . Zendesk Adds Products, While Freshdesk Keeps Acquiring . Shopify and BigCommerce Building API-based Ecosystems . RingCentral Acquires and Adds Partners, But PaaS is Still Missing . Acquisitions and Product Upgrades are the Mantra for Palo Alto Networks . Salesforce can Transform Slack PaaS, But Acquisition Still Pending . After Acquisitions, Five9 Focuses on Channel and Network Partnerships . Workday Drives Enterprise Use Cases Through PaaS, as Anaplan Taps Into Consultants . C3.ai Should Do ISV Focused PaaS . Splunk on the Right Track with Cloud and PaaS . Veeva Sets an Example, Transitions to a Public Benefit Corporation . BlackLine is Targeting A/R Automation Market . Okta Targets $25B Customer Identity Market with Acquisition . Teradata Trying to Reinvent Itself on the Cloud . Dropbox Acquires, But Competition Remains Stiff . Smartsheet Focuses on Partners, and not on ISVs . MongoDB has Huge Room to Grow in $97B Market . Cloud and Platform Expansion Continues at Nutanix . Rapid7 Targets $1B ARR by 2025 . DocuSign Exploring Unprecedented Digital Signature Offerings . Tenable Continues its Acquisition Spree . SolarWinds Attack Driving Zscaler's Stellar Performance . Zoom Should Report Developer Ecosystem Metrics . DigitalOcean Goes Public with a Strong ISV PaaS Strategy . Dynatrace Competing with Rivals by Simplifying DevOps . Talend Becomes a Private Firm, Once Again . Everbridge Focuses on the Government Sector . Analysis of Fastly’s Signal Sciences Acquisition . Cloudera Focuses on Machine Learning for Verticals . Medallia Acquires to Expand Digital Experience Analytics