MongoDB cloud company revenue is growing, but quotes are declining

The quotes of cloud provider MongoDB Inc. (MDB) fell by more than 25% to $241.11 at the auction on September 1, even though the company exceeded the expectations of Wall Street analysts regarding quarterly sales. MongoDB develops and delivers non-relational database (NoSQL) technologies suitable for distributed network computing systems. The company sells SaaS system services under the Atlas brand. MongoDB’s revenue grew 53% year-on-year in the last quarter, indicating an uncertain macroeconomic situation. In particular, MongoDB has attracted more than 37,000 new customers, and previous customers’ activity and sales cycles have not changed. 

The level of interest in one of the company’s primary products — the Mongo Atlas platform — remains steady. Sales of services of this platform increased by 73% year-on-year, representing a slight slowdown compared to the 82% growth in the same quarter a year earlier, but entirely predictable, as many technology companies report a decline in revenue year-on-year. At the same time, MongoDB continues to gain market share due to the transition of customers from traditional database service providers such as Oracle. 

In particular, it is about the arrival of two large corporations on the MongoDB platform without mentioning their names. Analysts’ overreaction to MongoDB’s quarter results is due to increased losses in the past quarter and the fact that the company confirmed continued investment in long-term growth opportunities. MongoDB management raised its full-year revenue forecast from $1.196 billion to $1.206 billion. For comparison, the previous estimates assumed revenue growth to a maximum of $1.192 billion. The company predicts that demand for Atlas will remain high until the end of the year.