MongoDB rebounded in the second quarter with better-than-expected results due to stronger Atlas consumption levels.
The company reported a second quarter net loss of $54.5 million, or 74 cents a share, on revenue of $478.1 million, up 13% from a year earlier. Non-GAAP earnings were 70 cents a share.
Wall Street was expecting MongoDB to report second quarter non-GAAP earnings of 48 cents a share on revenue of $464.22 million. The company has cut its outlook in the last two quarters and analysts have mostly been cutting estimates for both earnings and revenue.
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Dev Ittycheria, CEO of MongoDB, said the company acquired new workloads and saw Atlas consumption go up. “We believe we are incredibly well positioned to help customers incorporate generative AI into their business and modernize their legacy application estate,” he said.
As for the outlook, MongoDB projected third quarter revenue of $493 billion to $497 billion with non-GAAP earnings of 65 cents per share to 68 cents per share. For fiscal 2025, MongoDB projected revenue of $1.92 billion to $1.93 billion with non-GAAP earnings of $2.33 per share to $2.47 per share.
Constellation Research analyst Holger Mueller said:
"MongoDB is a great example that when a vendor does multi-cloud right, it always delivers. For MongoDB, that multi-cloud play is Atlas and it's growing substantially. The problem is that the company cannot control cost despite reasonable growth. The result is more losses and that is not popular with investors these days."
