MongoDB, Inc.

MongoDB delivered another strong performance in the second quarter. The company generated $304 million in revenue, a 53% increase from the previous year exceeding Wall Street expectations. During the quarter, they added more than 37,000 customers, indicating another robust quarter of customer growth. Atlas revenue increased by 73% year over year, accounting for 64% of revenue. Furthermore, rates are still high, proving that their clients do not have a choice about spending money on MongoDB. The macro-environment did impact the growth in Atlas consumption. However, as it returns to normal, the team is optimistic that the current spending patterns will improve. The company also delivered an earnings beat as a result of its high rates. Additionally, they introduced Relational Migrator, which makes it easier to move workloads from relational databases to MongoDB. Despite the macroeconomic unpredictability, they are concentrating on the things they have direct control over, such as adding new users and workloads to their platform. We give MongoDB a ‘Hold’ rating with a revised target price.