MongoDB, Inc. (NASDAQ: MDB) stock rose over 3.5% on September 3rd, 2020 pre-market session (Source: Google finance) post second quarter of FY21 performance and better outlook. The firm delivered a revenue rise of 39% yoy to $138.3 million driven by subscription revenue rising 41% year-over-year. Atlas revenue surged 66% on a yoy basis, accounting 44% of revenue. Major driver for the stock rise today is that the negative impact of COVID-19 on new business during the second quarter was less than we had expected. Atlas customers trend has been improving since the second quarter after seeing a heavy impact in the first quarter, reviving management confidence. The firm made deals with all 3 major cloud providers, a major cloud provider built a security solution on MongoDB offering rich visibility, control over data traffic and sophisticated analytics to identify and combat cyber threats across their cloud services.
The firm rose customer base by over 1,800 customers sequentially, leading to total customer count to over 20,200, rising from 15,000 in prior corresponding period. For the full fiscal year 2021, the firm is improving the revenue guidance to $549 million to $554 million. Profitability expectations are forecasted at non-GAAP loss from operations to be $71 million to $66 million and non-GAAP net loss per share to in the range of $1.29 to $1.21.
Net AR expansion rate was above 120%, despite the impact of the macroeconomic environment. The firm had 118 customers, with at least $100,000 in ARR and annualized MRR, rising from 622 in the prior corresponding period. Gross profit in the second quarter was $99.7 million, representing a gross margin of 72% slightly falling against the last quarter’s 73% but flat against the prior corresponding period. The firm sees gross margin pressure from Atlas which contributes major revenue. Operating loss was $10.2 million or a negative 7% operating margin for the second quarter against negative 15% margin in the year ago period. Net loss improved to $0.22 per share from a loss of $0.26 per share in pcp.