MongoDB (NASDAQ:MDB) stock jumped about 30% in premarket trading Wednesday after the database company exceeded second-quarter expectations and provided third-quarter and full-year guidance above analyst forecasts.
“MongoDB delivered strong second quarter results across the board, highlighted by Atlas revenue growth accelerating to 29%,” said CEO Dev Ittycheria.
“We also delivered meaningful margin outperformance as we executed on our plan to drive profitable growth. Reflecting this strength, we are raising our guidance on the top and bottom line for the rest of the year.”
For Q2, MongoDB posted earnings of $1 per share, surpassing consensus estimates of 67 cents. Revenue came in at $591.4 million, comfortably ahead of the projected $553.94 million.
Looking ahead, the company expects Q3 earnings per share to range from $0.76 to $0.79, with revenue forecasted between $587 million and $592 million, both above the consensus of $0.73 and $583.7 million. The full-year EPS guidance is set between $3.64 and $3.73 per share.
Following the earnings release, Mizuho analysts raised their price target for MongoDB stock to $250 from $210, while maintaining a Neutral rating. “We maintain our Neutral stance until we see evidence of a sustainable growth acceleration and assess whether AI is becoming a material revenue driver,” they said. “We expect more detail on long-term strategy and positioning at the upcoming investor session at MondoDB.Local in NYC on September 17th.”
BMO Capital Markets also highlighted the upcoming investor day as a potential catalyst. The firm noted it “can serve as a catalyst by increasing investor confidence in the durability of Atlas growth and alleviating competitive concerns vs large total addressable market (TAM).” BMO raised its target price on MongoDB shares to $315.
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