Why MongoDB Stock Soared 44.8% in March
What happened
Shares of MongoDB (NASDAQ: MDB) surged nearly 45% last month, according to data provided by S&P Global Market Intelligence, following the cloud database company's excellent fourth-quarter report.
So what
MongoDB's revenue rocketed 71% higher to $85.5 million, besting Wall Street's expectations of $74 million and representing an acceleration from the company's 57% growth in the third quarter. MongoDB's results were fueled by the torrid growth of its Atlas database-as-a-service offering, which saw sales explode higher by more than 400%.
"MongoDB Atlas, our fully managed global, multi-cloud database service, achieved a major milestone in the fourth quarter, surpassing $100 million in annualized revenue run rate less than three years from launch," CEO Dev Ittycheria said in a press release. "At approximately one-third of our revenue, MongoDB Atlas' tremendous growth highlights its compelling value to enable customers to focus on innovation and offload the operational burden of database management."
Looking ahead, MongoDB expects fiscal 2020 full-year revenue to rise 36% to 39% year over year to a range of $363 million to $371 million.
Now what
MongoDB's shares have pulled back about 7% so far in April. But despite new competition from Amazon, MongoDB continues to gain new customers at a rapid clip. And a new partnership with Google could help to accelerate MongoDB's subscriber gains in the quarters ahead.
As such -- and with Atlas leading the way -- MongoDB's strong March gains could be part of an even larger move higher for its stock in the coming years.
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