MongoDB reports Q2 revenue growth of 30%, shares fall
MongoDB reported second-quarter revenue of $771.8 million, up about 30% year on year, and non-GAAP EPS of $1.90, both above consensus. Shares fell 10.82% to $387.25 as analysts cited Atlas growth and AI demand.
Shares of MongoDB Inc (NASDAQ: MDB ) tanked in early trading on Wednesday, despite the company reporting upbeat second-quarter results.
Here are some key analyst takeaways: RBC Capital Markets analyst Rishi Jaluria maintained an Outperform rating, and reduced the price target from $515 to $465.
Rosenblatt Securities analyst Blair Abernethy reiterated a Buy rating and raised the price target from $395 to $445.
DA Davidson analyst Rudy Kessinger maintained a Buy rating and price target of $465.
Check out other analyst stock ratings.
RBC Capital Markets: MongoDB reported strong quarterly results, with beats across all metrics, Jaluria said in a note.
Revenue grew around 30% year-on-year to $771.8 million and non-GAAP earnings came in at $1.90 per share, topping consensus estimates of $735.3 million and $1.61 per share, respectively, he added. "The launch of search and vector search on EA saw immediate demand as customers bring AI capabilities into a self-managed environment," the analyst wrote.
Management guided to fiscal 2027 revenue, non-GAAP operating margin and non-GAAP earnings ahead of consensus estimates, he further stated.
Rosenblatt Securities: MongoDB reported solid results with revenue growth of 30% driven by "strong core customer cloud-based Atlas consumption growth," Abernethy said.
Atlas now contributed around 73% of the company’s total revenue, he added.
The non-Atlas business outperformed, growing 36% year-on-year, due to widespread strength, the analyst stated. "Mongo’s core enterprise customers are continuing to modernize their applications and increasingly see MongoDB as a strategic technology decision as they prepare their data estates for AI," he further wrote.
DA Davidson: MongoDB’s stock came under pressure following the second-quarter print, due to "hyperfixation" on Atlas growth, Kessinger said.
Although Atlas growth decelerated to 28.9% year-on-year from 29.4% in the previous quarter, this was still at the high end of the potential upside range that management had indicated, he added.
Non-Atlas subscriber revenue growth was very strong at 36% year-on-year, with new AI functionality having a positive impact and "making sustained double-digit non-Atlas ARR growth seem increasingly durable," the analyst wrote.
Management’s guidance raise for the second half of the year was "mostly Atlas driven," he further stated.
MDB Price Action: Shares of MongoDB had declined by 10.82% to $387.25 at the time of publication on Wednesday.
Read Also: These Analysts Revise Their Forecasts On MongoDB After Q2 Results Image: Shutterstock