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MongoDB logs 50% hike in Q4 sales, beats analysts forecasts for next quarter
Yet losses grow at NoSQL database biz
NoSQL database slinger MongoDB has seen its share price bounce 15 per cent following a hefty upturn in sales for Q3 and better-than-expected forecasts for the final three months of its current financial year.
Revenues for the period ended 31 October 2021 came in at $226.9m, an increase of 50 per cent year-on-year. The share-price hike was also based on MongoDB projecting revenue for its Q4 ended January of $242m compared to analyst estimates of $226m.
Broken down by category, the database biz reported Q3 subscription revenue of $217.9m, an increase of 51 per cent year-on-year. Services revenue hit $9.0m, up 35 over the same period.
However, the compzany didn't have it all its own way: it posted widening net losses of $81.3m compared to $72.7m a year earlier, and execs were forced to answer concerns about sluggish migration to MongoDB’s database as a service system Atlas.
During a call with analysts, CEO Dev Ittycheria said revenue was driven by existing customers “meaningfully increasing their adoption of MongoDB”.
Yet under questioning, he admitted clients that signed up to the latest Atlas DBaaS were new adopters rather than a migration of existing customers. This, Ittycheria added, was not down to the difference in price compared with the earlier “Enterprise Advanced” iteration.
“In terms of price increase, in general, it tends to be flattish. Maybe there's a slight price premium, but there's not like some significant price delta. Growth of Atlas is really driven by a massive cloud transformation happening in the enterprise,” he said.
Michael Gordon, chief operating and financial officer, said of Atlas workloads that “new business doesn't tend to have as big an impact immediately”.
Angela Eager, research director at TechMarketView, described MongoDB financial news as “stellar results”.
“The management team highlighted that customers are choosing MongoDB as the enterprise standard for future application development, which is a major performance driver. The company is embedding itself in verticals such as financial services, with UK customers including Royal Bank of Scotland and ComparetheMarket,” she said.
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Meanwhile, Amazon's efforts to emulate MongoDB’s success seem to be falling flat. The AWS DocumentDB database service is 34 per cent compatible with MongoDB, MongoDB CTO Mark Porter told The Register, despite being described as "MongoDB compatible", by the online-book_seller-turned-enterprise-IT-giant.
An Amazon FAQ states that "'MongoDB-compatible' means that Amazon DocumentDB interacts with the Apache 2.0 open source MongoDB 3.6 and 4.0 APIs." ®