MongoDB (MDB) To Report Q4 Earnings: What's In The Offing?

MongoDB (NASDAQ:MDB) is set to report fourth-quarter fiscal 2020 results on Mar 17.

For the quarter, the company expects revenues between $109 million and $111 million. Non-GAAP loss is anticipated between 27 cents and 29 cents per share.

The Zacks Consensus Estimate is currently pegged at a loss of 28 cents, unchanged over the past 30 days. The consensus mark for revenues currently stands at $110.4 million, indicating growth of 29.1% from the year-ago reported figure.

Notably, the company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 19.5%.

MongoDB, Inc. Price and EPS Surprise

MongoDB, Inc. price-eps-surprise | MongoDB, Inc. Quote

Let’s see how things are shaping up for this announcement.

Factors to Watch

MongoDB’s fourth-quarter fiscal 2020 results are likely to benefit from robust subscription revenues, driven by a solid customer adoption of Atlas.

Notably, in the last reported quarter, Atlas revenues skyrocketed more than 185% year over year, accounting for 40% of revenues. Atlas had more than 14,200 customers at the end of the fiscal third quarter.

Moreover, partnerships with the likes of Alphabet’s (NASDAQ:GOOGL) Google Cloud Platform (GCP) division, Alibaba’s (NYSE:BABA) data intelligence platform, Alibaba Cloud, and Microsoft (NASDAQ:MSFT) are likely to have enhanced the platform’s growth opportunities.

However, MongoDB’s top-line result for the fiscal fourth quarter is expected to reflect stiff year-over-year comparison for Atlas revenues.

Moreover, a higher percentage of Atlas in the revenue mix is expected to have been an overhang on gross margins. Additionally, the bottom-line number is expected to reflect on hefty investments in sales & marketing and research & development.

Key Q4 Developments

On Dec 3, 2019, MongoDB announced several new features for Atlas, making it a seamless affair for users who deploy and run the service on Amazon (NASDAQ:AMZN) Web Services (AWS). These include addition of security features to Atlas. Moreover, new integrations with popular AWS tools, such as AWS CloudFormation and Amazon EventBridge make Atlas user-friendly for customers.

Zacks Rank

MongoDB currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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