The company plans to continue to invest heavily to grow its business to take advantage of the opportunity from the database software market, which is large and growing, rather than optimizing for profitability or cash flow in the near term. MongoDB has made substantial investments in developing its platform and expanding its sales and marketing footprint.
MongoDB has been keen on growing its customer base and continues to invest heavily in the sales and marketing efforts for driving customer acquisition. The company believes that its existing customers are likely to continue their subscriptions due to the economic attractiveness of its subscription-based model.
Analysts expect the company to report a loss of $0.28 per share on revenue of $99.79 million for the third quarter. In comparison, during the previous year quarter, MongoDB posted a loss of $0.30 per share on revenue of $60.25 million. The company has surprised investors by beating analysts’ expectations in all of the past four quarters.
For the second quarter, MongoDB reported a wider loss due to higher costs and expenses despite a 67% growth in the top line. Subscription revenue rose 71% year-over-year and services revenue grew 15%. MongoDB Atlas’ revenue comprised 37% of total revenue and increased by 240% year-over-year. At quarter-end, the company had over 15,000 customers.
For the third quarter of 2020, MongoDB expects revenue in the range of $98-100 million and adjusted loss per share in the range of $0.29-0.27. For the fiscal year 2020, the company expects revenue in the range of $390-395 million and adjusted loss per share in the range of $1.11-1.06.