MongoDB jumps 27% on strong Q1 beat, outlook; Mizuho says stock reaction ‘unjustified’

MongoDB (NASDAQ:) shares surged 27% in premarket Friday after the company reported .

Earnings per share of $0.56 crushed the consensus estimate of $0.18. Revenue grew 29% year-over-year to $368.3 million, beating the consensus estimate of $347.67M.

Subscription revenue was $354.7M, representing an increase of 29% year-over-year, and services revenue was $13.6M (up 25% year-over-year).

“MongoDB began fiscal 2024 with strong first quarter results, highlighted by 40% Atlas revenue growth and the most net new customer additions in over two years,” said CEO Dev Ittycheria, adding that they are confident the company’s developer data platform is well positioned to benefit from the next wave of AI applications in the years to come.

For Q2/24 the company expects EPS in the range of $0.43-$0.46, compared to the consensus of $0.14, and revenue of $388M-$392M, compared to the consensus of $361.59M.

For the full year, the company sees EPS at $1.42-$1.56, compared to the consensus of $1.03, and revenue at $1.522 billion-$1.524 billion, compared to the consensus of $1.51B.

Needham & Company analysts hiked the price target on MongoDB shares by $180 to $430 per share, a new Street-high.

“The sustained number of New Workloads moving to MongoDB is evidence of the company’s strong technological and competitive positioning. While New Customers and New Workloads are starting small, we think MongoDB’s Consumption model should benefit from outsized torque in a macro recovery. Meanwhile, the company is improving profitability, which demonstrates management’s balanced approach to growing the business,” they said.

Mizuho analysts are much more cautious as they raised the target to “just” $220 per share while maintaining a Neutral rating.

“Gen AI is unlikely to provide a meaningful near-term catalyst, and the longer-term benefits remain difficult to quantify. The stock was up 24% AH which we find unjustified given these results,” the analysts said in a note.

(Additional reporting by Senad Karaahmetovic)