Will Atlas Help Keep Competitors Away From MongoDB?

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The stock market has had a turbulent last quarter, but Billion Dollar Unicorn MongoDB (Nasdaq: MDB) seems immune to the fluctuations. Since listing on the Nasdaq in October 2017, the database services provider has seen its stock more than triple. Recent results suggest that the growth is not slowing down soon.

MongoDB’s Financials

MongoDB recently announced third-quarter results that saw revenues grow 57% over the year to $65 million. Subscription revenues grew 59% to $60.1 million and Services revenues grew 36% to $4.9 million. For the quarter, net loss grew from $24.2 million a year ago to $31.3 million. Non-GAAP net loss fell from $0.44 per share a year ago to $0.30 per share. The results were significantly better than the Street’s forecast of revenues of $60.25 million for the quarter with an adjusted loss of $0.40 per share.

For the current quarter, it expects revenues of $73-$74 million with a non-GAAP net loss of $0.39-$0.40 per share. It expects to end the current year with revenues of $243.7-$244.7 million and an adjusted net loss of $1.53-$1.52 per share. The Street was looking for revenues of $64.4 million for the quarter with a net loss of $0.38 per share and revenues of $229.7 million for the year with a net loss of $1.62 per share.

MongoDB’s Atlas Expansion

MongoDB had launched its cloud-database-as-a-service offering Atlas in 2016. Since its launch, the service has seen rapid adoption among both enterprise and other customers. During the quarter, MongoDB saw revenues from Atlas grow 300% over the year to $14.3 million or about 22% of the company’s revenues. A year ago, it accounted for a more modest 8% share.

To continue to attract more customers to the platform, MongoDB has been adding several features and updates. Some of the recently launched features will help Atlas customers see higher throughput clusters and improve their real-time workload processing. With the improved support for cross-region VPC peering, Atlas will be able to communicate with the customers’ virtual private cloud across regions via private networking. Customers can now connect data between disparate data and database nodes without utilizing the public Internet, thus improving security and performance.

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Disclaimer: More investigation and analysis of Unicorn companies can be found in my latest Entrepreneur Journeys book, Billion ...

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