MongoDB tops third quarter expectations

MongoDB CEO Dev Ittycheria said the company has refined its go-to-market efforts to increase adoption of its Atlas database.

MongoDB delivered better-than-expected third quarter financial results on Monday, but growth across its subscription and services revenue was down compared to previous quarters. 

The managed database player reported a Q3 net loss of $42.4 million, or 75 cents per share. On a non-GAAP basis, earnings came to a loss of 26 cents per share on revenue of $109.4million, up 52% year-over-year. 

Wall Street was expecting a loss of 28 cents per share on revenue of $99.79 million. 

Elsewhere, MongoDB said subscription revenue was $103.8 million, an increase of 56% year-over-year, and services revenue was $5.6 million, an increase of 8% year-over-year. Last quarter, subscription revenue was up 71% year-over-year and services revenue was up 15% year-over-year.

Nonetheless, MongoDB CEO Dev Ittycheria said the company has refined its go-to-market efforts to increase adoption of its Atlas database in new and existing adoption. 

"The rapid growth of Atlas, which now comprises 40% of our business, is a clear demonstration that customers of all sizes recognize the value and flexibility of a managed cloud database-as-a-service," Ittycheria said. "As we look ahead, Atlas's growing scale provides a tremendous opportunity to develop even closer relationships with our customers and enhance our value proposition. Our focus is to continue delivering new innovations on our data platform while ensuring our go-to-market efforts make it increasingly easy for customers to consume Atlas."

In terms of guidance, MongoDB said it expects fourth quarter net loss per share in the range of 29 cents to 27 cents, with revenue from $109 million to $111 million. Analysts expect EPS of a loss of 30 cents and revenue of $105.48 million. Shares of MongoDB were up over 6% after hours.

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