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Investing.com -- MongoDB (NASDAQ:MDB) shares soared roughly 30% in premarket trading on Wednesday after the company beat Wall Street expectations for second-quarter results and issued third-quarter and full-year guidance above analyst estimates as well.
“MongoDB delivered strong second quarter results across the board, highlighted by Atlas revenue growth accelerating to 29%,” said CEO Dev Ittycheria.
“We also delivered meaningful margin outperformance as we executed on our plan to drive profitable growth. Reflecting this strength, we are raising our guidance on the top and bottom line for the rest of the year."
The company reported Q2 earnings of $1 per share, above estimates of 67 cents.
It posted revenue of $591.4 million, comfortably beating expectations of $553.94 million.
In the current quarter company is expected to earn per share profit in the range of $0.76 -$0.79. While revenue is expected to be between $587 million and $592 million. Both above consensus of $0.73 and $583.7 million.
Annual earnings guide is between $3.64 and $3.73 per share.
Following the results, Mizuho analysts raised their price target on MongoDB shares to $250 from $210 but maintained a Neutral rating.
"We maintain our Neutral stance until we see evidence of a sustainable growth acceleration and assess whether AI is becoming a material revenue driver," they said. "We expect more detail on long-term strategy and positioning at the upcoming investor session at MondoDB.Local in NYC on September 17th."
Similarly, BMO Capital Markets said they believe the upcoming investor day "can serve as a catalyst by increasing investor confidence in the durability of Atlas growth and alleviating competitive concerns vs large total addressable market (TAM)."
BMO lifted its target price to $315 on MongoDB.
(Pratyhush Thakur contributed to this report.)