Shares of MongoDB Inc (NASDAQ: MDB) climbed in early trading on Friday, after the company's big earnings beat.
The report came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.
- Piper Sandler analyst Brent Bracelin maintained an Overweight rating, while raising the price target from $270 to $400.
- Needham analyst Mike Cikos reiterated a Buy rating, while lifting the price target from $250 to $430.
- Truist Securities analyst Miller Jump reaffirmed a Buy rating, while raising the price target from $235 to $365.
- Oppenheimer analyst Ittai Kidron maintained an Outperform rating, while lifting the price target from $270 to $430.
MongoDB's first-quarter results were better than feared, Bracelin said in a note. "Growth from both Atlas and EA came in better than expected, coupled with strong customer additions and new workload trends," he added.
"Despite near-term macro and consumption headwinds, we remain encouraged by MDB's evolution into the modern cloud database of choice, aided by tailwinds such as next-gen application development and generative AI," the analyst further stated.
Needham
MongoDB's upbeat earnings were driven by "high-quality subscription revenues," Cikos said. "Additionally, the company added more Net-New Customers than in any quarter in the previous 2 years - a bullish sign for MongoDB's longer-term financial profile as these customers scale over time," he added.
"While New Customers and New Workloads are starting small, we think MongoDB's Consumption model should benefit from outsized torque in a macro recovery," the analyst wrote.
Truist Securities
"The strength in the quarter was broad-based as they saw an impressive uptick in new business from both existing customers and new logos," Jump wrote in a note.
Although macro headwinds persisted, the company's execution "leads us to believe that there could be upside to guidance on both growth and margins," the analyst stated. "We believe that the margin improvement story could serve as a tailwind for shares."
Oppenheimer
MongoDB reported strong quarterly results, driven by "robust Atlas and large customer growth," Kidron stated.
"While the company continues to see consumption trends below historical levels, it more than made up revenue with solid execution, record new workloads and strong customer additions," the analyst said. "We expect the near-term macro environment to remain challenging but believe management has appropriately accounted for this in 2Q outlook," he added.