Shares of MongoDB Inc (NASDAQ:MDB) tanked in early trading on Friday, despite the company Thursday reporting upbeat first-quarter results.
Here are some key analyst takeaways:
- Needham analyst Mike Cikos maintained a Buy rating, while raising the price target from $300 to $400.
- RBC Capital Markets analyst Rishi Jaluria reiterated an Outperform rating and price target of $395.
- Cantor Fitzgerald analyst Thomas Blakey reaffirmed an Overweight rating and price target of $416.
Check out other analyst stock ratings.
Needham: MongoDB made a strong start to the year, with AI traction from Frontier Labs and Enterprises, Cikos said in a note. The company's investments in the enterprise features for its multi-cloud database Atlas "appear to be paying dividends," with strength within Enterprise customers, he added.
MongoDB grew total revenue 25% year-on-year to $687.6 million. That exceeds the consensus of $664.5 million. Atlas drove the outperformance, delivering 29% year-on-year growth. On a days-adjusted basis, Atlas generated 5.4% sequential growth, which is the fastest first-quarter growth delivered in four years, he further noted.
Revenues from the company's non-Atlas business grew 13% year-on-year to $153.7 million, surpassing management’s outlook, Cikos said. While MongoDB is still early in monetizing AI, management discussed strong traction from Frontier Labs, AI-Natives, and Enterprises, he added.
Outlook: For the second quarter, management expects revenue to grow 23%-24% year-on-year to $729.0-$734.0 million, above consensus of $700.5 million, and Atlas to grow 26% year-on-year.
Although MongoDB raised its fiscal 2027 revenue outlook to $2.92-$2.96 billion, from its prior projection of $2.86-$2.90 billion, with management citing difficult comps, the revised guidance still appears "conservative," Cikos stated.
RBC Capital Markets: MongoDB reported strong quarterly results, beating across all metrics and raising its full-year guidance, Jaluria said. The company's net ARR expansion accelerated to 121% year-on-year, with the company adding 2,500 new customers.
Jaluria noted that more than $100,000-plus ARR customers grow 16% YoY to 2,895 customers. Revenue growth from this cohort outpaced total company revenue growth, he added.
Cantor Fitzgerald: MongoDB delivered a strong quarter, with revenue outperformance driven by strength in both Atlas and EA, Blakey said. Management indicated stronger-than-expected Atlas adoption as the primary driver of the revenue upside, he added.
Despite AI traction, management's guidance implies a significant deceleration in Atlas growth, the analyst stated. "We continue to view MongoDB as a key beneficiary of the emerging token-based economy and an increasingly strategic component of the AI data stack, as enterprises modernize their data architectures to fully capitalize on advances across the intelligence layer of software," he further wrote.
MDB Price Action: Shares of MongoDB had declined by 5.30% to $308.42 at the time of publication on Friday.
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