Nucor earnings beat by $0.08, revenue fell short of estimates
On Thursday, William Blair reaffirmed its Outperform rating on MongoDB shares (NASDAQ:MDB), following the company’s impressive fourth-quarter performance. MongoDB exceeded revenue expectations by $27.8 million, demonstrating a 20% increase from the previous year and surpassing consensus estimates by 5.3%. With a market capitalization of $19.67 billion and a robust gross profit margin of 73.32%, the company’s success was attributed to several factors, including the acquisition of new workloads, particularly from existing Atlas (NYSE:ATCO) customers, and the performance of Enterprise Advanced (EA) which was bolstered by a number of significant multiyear deals. According to InvestingPro data, MongoDB maintains a strong financial position with more cash than debt on its balance sheet.
MongoDB’s non-GAAP operating margin reached 20.5%, comfortably beating consensus forecasts by 932 basis points. This represents an approximate 550 basis point improvement from the same period last year. The increase in operating margin was partly due to reduced hiring, which contributed to lower operational costs. InvestingPro analysis reveals the company maintains excellent liquidity with a current ratio of 5.2, indicating strong operational efficiency. Subscribers can access 8 additional key ProTips and comprehensive financial metrics in the Pro Research Report.
Despite the overall positive results, MongoDB’s Net Revenue Retention (NRR) rate was approximately 118%, which is slightly below the company’s target of 120% or higher. Management indicated that while the acquisition of new workloads remained robust, the rate at which existing customers expanded their usage showed signs of moderation.
The company’s strong quarterly results reflect MongoDB’s ability to secure new business and deliver solid performance, even as it navigates the challenges of customer expansion rates. MongoDB’s stock rating remains positive with William Blair, signaling confidence in the company’s growth trajectory and operational efficiency.
In other recent news, MongoDB reported fourth fiscal quarter revenues of $548 million, a 20% year-over-year increase, surpassing the consensus estimate of $519 million. Despite this positive performance, MongoDB’s revenue guidance for fiscal year 2026 projects only a 12.6% year-over-year growth, falling short of the consensus expectations of 18%. This has led several analyst firms to adjust their price targets for MongoDB. Mizuho (NYSE:MFG) Securities reduced its price target to $250, maintaining a Neutral rating, while Needham lowered its target to $270 but kept a Buy rating. Cantor Fitzgerald also revised its target to $332, maintaining an Overweight rating, and expressed optimism about MongoDB’s Atlas platform. Piper Sandler adjusted its target to $280, citing growth concerns but remained positive on the Atlas segment. Canaccord Genuity set its target at $320, emphasizing MongoDB’s potential in AI applications. These adjustments reflect varying perspectives on MongoDB’s growth prospects, particularly concerning its Atlas platform, which is expected to be a key revenue driver moving forward.
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