Earnings preview: What to look for when MongoDB reports Q2 results

MongoDB Inc. (NASDAQ: MDB) is scheduled to report its second quarter 2020 earnings results on Wednesday, September 4, after regular hours. Analysts expect the company to report a loss of $0.28 per share on revenue of $91.6 million.

In the second quarter, revenues are expected to increase over 50% helped by an expansion in the customer base as well as growth in subscription revenue, aided by strong demand for its database platform. The topline results are also expected to benefit from new products like MongoDB Mobile and strong revenue in Atlas.

MongoDB faces competitive threats from Amazon’s (NYSE: AMZN) DocumentDB database and the former has been trying to diversify its portfolio by acquiring companies like mLabs and Realm. The availability of MongoDB’s cloud database in more than 60 regions is an advantage for the company.

In the first quarter of 2020, MongoDB reported better-than-expected results. Revenues rose 78% to $89.4 million while adjusted loss per share narrowed to $0.22 from $0.37 a year ago. Subscription revenues rose 82% year-over-year. The company had 14,200 customers at quarter-end.

Also see: MongoDB Q1 2020 Earnings Conference Call Transcript

For the second quarter, MongoDB has guided for revenues of $90-92 million and adjusted losses between $0.27 and $0.29 per share. For the full year, the company expects revenues of $375-381 million and adjusted loss per share of $1.11 to $1.04.

MongoDB’s shares have gained 88% thus far this year and 10% in the past three months. The majority of analysts have rated the stock as Buy and it has an average 12-month price target of $167.30.

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