Q2 Data Storage Earnings: MongoDB Earns Top Marks
Stock Story | Oct 06, 2023 07:51
As we reflect back on the just completed Q2 data storage sector earnings season, we dig into the relative performance of MongoDB and its peers.
This article was originally published on Stock Story
Data is the lifeblood of the internet and software in general, and the amount of data created is growing at an accelerating pace. Likewise, the importance of storing the data in scalable and efficient formats continues to rise, especially as the diversity of the data and associated use cases expand from analyzing simple, structured data to high-scale processing of unstructured data, images, audio and video.
The 5 data storage stocks we track reported a mixed Q2; on average, revenues beat analyst consensus estimates by 2.81%, while on average next quarter revenue guidance was 0.22% under consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital and data storage stocks have not been spared, with share prices down 15.4% since the previous earnings results, on average.
Best Q2: MongoDB
Started in 2007 by the team behind Google’s ad platform DoubleClick, MongoDB (NASDAQ:MDB) offers database-as-a-service that helps companies store large volumes of semi-structured data.
MongoDB reported revenues of $423.8 million, up 39.6% year on year, beating analyst expectations by 8.42%. It was a very strong quarter for the company, with an impressive beat of analysts' revenue estimates and optimistic revenue guidance for the next quarter. Full year guidance was also raised across the board.
"MongoDB delivered excellent results in the second quarter, highlighted by 40% revenue growth, continued strength in new workload acquisition and record operating margin. The ongoing success of our new business efforts for Atlas and Enterprise Advanced across our sales channels is a testament to the value of MongoDB's run anywhere strategy which enables customers of any size to innovate faster and more efficiently," said Dev Ittycheria, President and Chief Executive Officer of MongoDB.
MongoDB achieved the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise of the whole group. The company added 94 enterprise customers paying more than $100,000 annually to a total of 1,855. The stock is down 11.9% since the results and currently trades at $336.14.
Is now the time to buy MongoDB? Read our full report on MongoDB here.
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Commvault Systems
Originally formed in 1988 as part of Bell Labs, CommVault (NASDAQ:CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention and compliance.
Commvault Systems reported revenues of $198.2 million, flat year on year, in line with analyst expectations. It was a decent quarter for the company, with revenue guidance relatively in line for the next quarter.
Commvault Systems had the slowest revenue growth among its peers. The stock is down 13.2% since the results and currently trades at $67.72.
Is now the time to buy Commvault Systems? Access our full analysis of the earnings results here, it's free.
Weakest Q2: DigitalOcean
Started by brothers Ben and Moisey Uretsky, DigitalOcean (NYSE:DOCN) provides a simple, low-cost platform that allows developers and small and medium sized businesses to host applications and data in the cloud.
DigitalOcean reported revenues of $169.8 million, up 26.8% year on year, missing analyst expectations by 0.06%. It was a weak quarter for the company, with a deterioration in gross margin and revenue retention rate.
DigitalOcean had the weakest performance against analyst estimates and weakest full year guidance update in the group. The stock is down 51.8% since the results and currently trades at $22.5.
Snowflake
Founded in 2013 by three French engineers who spent decades working for Oracle (NYSE:ORCL), Snowflake (NYSE:SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.
Snowflake reported revenues of $674 million, up 35.5% year on year, beating analyst expectations by 1.77%. t was a decent quarter for the company, with an improvement in its gross margin. We were also happy that its revenue narrowly outperformed Wall Street's estimates, driven by better-than-expected net revenue retention and an increase in Forbes Global 2000 customers.
The company added 29 enterprise customers paying more than $1m annually to a total of 402. The stock is down 2.77% since the results and currently trades at $151.44.
Couchbase
Formed in 2011 with the merger of Membase and CouchOne, Couchbase (NASDAQ:BASE) is a database as a service platform that allows enterprises to store large volumes of semi-structured data.
Couchbase reported revenues of $43.1 million, up 8.41% year on year, beating analyst expectations by 3.42%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter.
The stock is up 2.24% since the results and currently trades at $16.87.
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