Mongodb Inc (NASDAQ:MDB) stock fell 6.93% (As on December 6, 11:27:10 AM UTC-4, Source: Google Finance) after the company crushed Wall Street’s forecasts on earnings and revenue and offered strong guidance in its latest financial report. Subscription revenue was $418.3 million, an increase of 30% year-over-year, and services revenue was $14.6 million, an increase of 13% year-over-year. Non-GAAP gross profit was $335.3 million, representing a 77% non-GAAP gross margin, compared to a non-GAAP gross margin of 74% in the year-ago period. Non-GAAP income from operations was $78.5 million, compared to a non-GAAP income from operations of $19.8 million in the year-ago period. Non-GAAP net income was $79.1 million, based on 82.7 million diluted weighted-average shares outstanding. This compares to a non-GAAP net income of $18.7 million, in the year-ago period. As of October 31, 2023, MongoDB had $1.9 billion in cash, cash equivalents, short-term investments and restricted cash. During the three months ended October 31, 2023, MongoDB generated $38.4 million of cash from operations, used $2.1 million of cash in capital expenditures and used $1.4 million of cash in principal repayments of finance leases, leading to free cash flow of $35.0 million, compared to negative free cash flow of $8.4 million in the year-ago period.
MDB in the third quarter of FY 23 has reported the adjusted earnings per share of 96 cents, beating the analysts’ estimates for the adjusted earnings per share of 51 cents. The company had reported the adjusted revenue growth of 30 percent to $432.9 million in the third quarter of FY 23, beating the analysts’ estimates for revenue of $406 million.
As for earnings, the company is targeting a range of 44 to 46 cents per share, ahead of the consensus estimate of 37 cents.
In addition, MongoDB is raising its full-year revenue target to $1.654 billion to $1.658 billion, up from a previous range of $1.596 billion to $1.608 billion. The company now forecasts full-year earnings $2.89 to $2.91 a share, up sharply from the previous forecast of $2.27 to $2.35 a share, and well ahead of the Street’s target of $2.34.
Meanwhile, the company introduced additional generative AI capabilities, including four new AI-powered capabilities built into MongoDB Relational Migrator, MongoDB Compass, MongoDB Atlas Charts, and MongoDB Documentation that accelerate developer productivity and application modernization. MongoDB expanded its collaboration with cloud hyperscalers, including a new integration between MongoDB Atlas and Amazon Bedrock. In addition, MongoDB is now integrated with coding assistant tools Amazon CodeWhisperer and Microsoft Copilot to help streamline AI-powered development.