MongoDB treads around record high as it heads towards Q4 earnings

Software company MongoDB is set to report fourth-quarter results on March 13, Wednesday, after the regular trading hours. Analysts expect the company to post net revenue of $73.73 million, up 63% year-over-year, helped by higher demand for its products.

The general purpose database platform operator had recently released several new products including MongoDB Mobile, and enhancements to the serverless platform, MongoDB Stitch, which will help lift the top line in Q4. Separately, market observers expect MongoDB’s purchase of mLabs in the third quarter to contribute its own share to the revenue.

Investors will also be looking at the growth trajectory of subscription revenues. During the last reported quarter, subscription revenue had jumped a good 59% due to strong demand from both new and existing customers.

Net loss is expected to see a slight improvement to 38 cents per share from 40 cents per share a year ago, as the company continues to be hurt by higher costs and operating expenses.

During the third quarter, the management had forecast Q4 revenue in the range of $73 million to $74 million and adjusted loss in the range of $0.39 to $0.38 per share.

MDB shares have soared over 150% in the trailing 52 weeks on the back of solid operational performance. The stock has more-than-quadrupled since its initial public offering in October 2017 and is trading near an all-time high.

The stock has a 12-month average price target of $90.71, suggesting a 9% downside from the last close.

In Q3

MDB shares gained over 4% after the company reported third-quarter results that exceeded street estimates and provided better-than-expected guidance. Adjusted loss narrowed to $0.30 per share from $0.44 per share as total revenue jumped 57% to $65 million.

In the software space, Coupa (COUP) is scheduled to report quarterly results on Monday and Adobe (ADBE) will publish results on Thursday. Okta (OKTA) reported fourth-quarter results last week. Though the results surpassed expectations, the stock declined on weak outlook.