MongoDB Inc. (NASDAQ: MDB) Monday said its third-quarter loss widened, despite a 52% growth in revenues. The results, meanwhile, topped the Street view. The management provided guidance for the fourth quarter and raised fiscal-2020 revenue outlook, driving the stock up during the extended trading session.
The company reported an adjusted loss of $0.26 per share for the October-quarter, compared to a loss of $0.13 per share last year. Analysts were looking for a wider loss. Net loss widened to $42.4 million or $0.75 per share from $22.5 million or $0.43 per share in the third quarter of 2019.
Revenue up 52%
There was a 52% growth in revenues to $109.4 million, which also came in above the market’s prediction. Subscription revenue climbed 56% year-over-year, while services revenue advanced 8%. MongoDB had more than 15,900 customers as of October 31, 2019. The results benefited from innovations in the data platform and sophisticated go-to-market efforts.
Related: Slack Technologies Q3 loss narrows on higher revenues
“MongoDB’s terrific third-quarter results are the latest example of how the powerful combination of our modern data platform and sophisticated go-to-market efforts are driving increased adoption by both new and existing customers,” said CEO Dev Ittycheria.
Outlook
For the fourth quarter of 2020, MongoDB expects revenues of $109-$111 million and adjusted loss per share in the range of $0.29 to 0.27. The company, meanwhile, revised up its fiscal 2020 revenue guidance to the range of $407.2 million to $409.2 million. Full-year loss per share is estimated to be between $1.04 and $1.02.
High Spending
MongoDB has been spending heavily on initiatives to ramp up the platform while expanding its sales and marketing footprint. The efforts have helped the company retain and grow its subscription base. There has been a steady growth in customer adoption in the proprietary cloud-based platform.
Also see: MongoDB Q2 2020 Earnings Conference Call Transcript
After reaching a fresh peak mid-year, MongoDB’s shares lost momentum and traded slightly above the $130-mark ahead of the quarterly report. The stock, which rose 45% in the past twelve months, gained sharply during Monday’s after-hours session, following the announcement.