MongoDB Inc (NASDAQ: MDB) has confirmed the release date for its quarterly earnings report, which will be on Tuesday, March 8, 2022, after market close.
What to look for: during the third quarter, the company indicated that the number of subscribers is increasing as more customers choose MongoDB to create modern apps for businesses. The company stated that their customers' expansion was a major driver for results. When the company releases Q4 results, investors will be looking at how the company grows this metric.
Earnings: Stockearning’s Estimated EPS estimate for Q4 2022 is expected to be $1.26 per share. In the last quarter, the company reported earnings of $0.11 per share, topping consensus estimates of $0.38 per share. Historical EPS performance shows that in the last 12 quarters, the company has topped estimates 11 times (64%) and missed six times (35%).
Revenue: The company reported revenue growth of 50% in Q3 2022 to $227 million. At the end of the quarter, the company had 31,000 customers. Subscription revenue increased 51% to $21.9 million, while service revenue was $9 million representing a YoY increase of 35%.
Stock movement: MDB shares have gained Lost 11.1% since the company released its last earnings release. Interestingly, following the earnings release, the company’s shares have been DOWN 10 times in the past 17 quarters. So, the historical price reaction suggests a 58% probability of the share price going DOWN following the earnings release. According to the Stockearning algorithm, the predicted volatility on the first day is +/-8%, while the predicted volatility on the seventh day is +/-12%.
What analysts are saying: RBC Capital analyst Rishi Jaluria commenced coverage on MongoDB with a Buy rating and price target of $505. According to the analyst, the current downturn presents a "unique opportunity," with the company trading at 18 times estimated 2023 sales, a discount to the 23x multiple suggested by his price target. The value represents a premium to rivals, according to Jaluria, but he believes it is justified due to MongoDB's long-term leadership in next-generation databases, "huge and fast-growing" total potential market, and "strong" secular tailwinds.
Mizuho analysts Matthew Broome slashed his price target on MDB from $490 to $400 and maintained a hold rating on the shares. Software demand has been solid, according to the analyst, with the digital transition and/or security initiatives "driving the way." However, the analyst lowered price targets for "high-growth software vendors" to represent the increasing rate environment during the last few months.
Tigress Financial analyst Ivan Feinseth commenced coverage on MDB with a Buy rating and price target of $630. MongoDB continues to see excellent revenue growth patterns, according to Feinseth, thanks to the popularity of its Atlas database-as-a-service product and ongoing product advancements. According to the analyst, MongoDB's subscription-based business model will fuel a continued acceleration in momentum, resulting in an increased return on capital. His price target reflects a possible return of roughly 40% from current levels.
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