According to a Research and Markets report, the global Database as a Service market is estimated to grow at 16% CAGR to reach $24.8 billion by 2025 from $12 billion in 2020. The recent market turmoil would have changed these forecasts. But despite the turmoil, MongoDB (Nasdaq: MDB) continues to soar. MongoDB’s stock has climbed 53% since the start of the year.

MongoDB’s Financials

MongoDB recently reported its first quarter results with revenues growing 46% over the year to $130.3 million, ahead of the market’s forecast of $119.5 million. Net loss of $54 million grew from a loss of $33.2 million reported a year ago. Adjusted loss of $0.13 per share was also ahead of the Street’s forecast of a loss of $0.25 per share.

By segment, Subscription revenues grew 49% to $124.9 million, and services revenues grew 1% to $5.5 million.

For the second quarter, MongoDB expects revenues of $125-$127 million with a net loss of $0.41-$0.38 per share. It expects to end the year with revenues of $520-$530 million and a net loss of $1.34-$1.21 per share. The market was looking for revenues of $118.66 million for the quarter with a net loss of $0.38 per share and revenues of $514.27 million with a net loss of $1.31 per share.

MongoDB’s Growth

MongoDB has reacted well to the recent Covid-19 driven turmoil. In spite of global travel restrictions and remote working conditions, the company believes that it will see very little negative impact. According to MongoDB, the recent crisis has accelerated the need for organizations to migrate towards digital transformation and cloud migration. It continues to invest in its business to cater to these opportunities.

Savings that the company is generating through reduction of travel and event-related activities are now being reinvested within digital marketing. The current crisis has resulted in companies lowering their advertising rates, in some cases by as much as 30%. MongoDB is using the reduced rates to increase its investment in digital marketing and to expand upon recent strength in self-serve customer new additions.

Similarly, with the job market in a precarious position, instead of cutting down on hiring, MongoDB is investing in its R&D hiring. It is adding engineering talent and has advanced the R&D hiring originally targeted for fiscal 2022 into the current year to accelerate its product roadmap.

MongoDB also launched several enhancements to help its customers and the developer community. Its marketing, developer relations and finance teams collaborated to launch a free Atlas credits programs for all developers looking to build applications to track and stop the spread of the virus. Since the release, it has launched 180 new initiatives on its platform. It helped build covidnearyou.org, a crowdsourced solution to create maps to help citizens and public health agencies identify hotspots for the pandemic. Built on Atlas, the solution has reported more than 1 million personal health updates.

Its stock is currently trading at $201.7 with a market capitalization of $11.7 billion. It touched a 52-week high of $243.92 last month. It was trading at a 52-week low of $93.81 in March this year. The stock had listed in October 2017 at $24.

Photo Credit: Garrett Heath/Flickr.com