Mongodb Stock Soars 16% After Firm Tops Q2 Estimates, Raises Guidance: Retail Sentiment Hits One-Year High

Shares of software firm Mongodb Inc (MDB) surged 16% on Friday after it reported upbeat second-quarter results and raised its full-year guidance. The stock was among the top 10 trending tickers on Stocktwits on Friday.

Adjusted earnings per share (EPS) came in at $0.70 versus an estimate of $0.49 while revenue rose 13% year-over-year (YoY) to $478.10 million compared to an estimate of $464.10 million.

However, the company’s operating loss widened to $71.4 million from $49 million in the year-ago period. Net loss, too, widened to $54.50 million from $37.60 million in the same period a year ago.

The firm has been witnessing a steady increase in customers. Total customers increased to over 50,700 as of end-July 2024 compared to over 45,000 in the same period a year ago.

Following the announcement, retail sentiment on Stocktwits shifted into the ‘extremely bullish’ territory (94/100) from ‘neutral’ a day ago, hitting a one-year high. The move was accompanied by ‘extremely high’ message volume.

CEO Dev Ittycheria said the Q2 performance was driven by strong new workload acquisition and better-than-expected Atlas consumption trends. Mongodb Atlas revenue rose 27% YoY and contributed to 71% of the firm’s total Q2 revenue.

The firm raised its full-year guidance with revenue now expected in the range of $1.92 billion to $1.93 billion versus a prior guidance of $1.88 billion to $1.90 billion. Non-GAAP income from operations is expected in the range of $187 million to $195 million, compared to its earlier guidance of $168 million to $183 million.

Mongodb now expects non-GAAP net income per share in the range of $2.33 to $2.47 versus an earlier guidance of $2.15 to $2.30.

Meanwhile, Truist Financial has reportedly raised its price target on the stock to $320 from $300. Bullish Stocktwits users are also expecting the shares to march toward $300 soon.

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