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MongoDB (Nasdaq: MDB) recently reported its first-quarter results that surpassed market expectations. However, the weaker outlook for the year and the second quarter sent the stock 23% down in the after-hours trading session.
MongoDB’s Financials
MongoDB’s revenues for the first quarter grew 22% to $450.6 million, ahead of the market’s forecast of $439.7 million. Adjusted net income was $0.51 per share compared with the market’s forecast of $0.40.By segment, Subscription revenue grew from $354.7 million to $436.9 million, and services revenue remained almost flat at $13.7 million.For the second quarter, MongoDB expects revenues of $460-$464 million and net income of $0.46-$0.49 per share. The market was looking for revenues of $470.4 million and earnings of $0.58 per share.It lowered its outlook for the year and now expects to end with revenues of $1.88-$1.90 billion and net income of $2.15-$2.30 per share. The market was looking for revenues of $1.93 billion and earnings of $2.50 per share. Macro conditions are impacting technology companies as they are seeing deal sizes reduce and sales cycle times go up.
MongoDB’s AI Product Growth
During the quarter, MongoDB continued to expand its AI ecosystem with the announcement of the MongoDB AI Applications Program (MAAP). The program provides customers with reference architectures, pre-built partner integrations, and professional services to help accelerate AI-powered applications. MongoDB’s MAAP aims to become a one-stop shop for enterprises by bringing together partners including industry-leading consultancies and professional services providers who will help customers build technology roadmaps for their generative AI strategy. It already announced a partnership with Accenture where Accenture will establish a center of excellence focused on MongoDB projects and will become the first global systems integrator to join MAAP.MongoDB also announced that it was collaborating with Google to optimize Gemini Code Assist to provide enhanced suggestions for application development and modernization on MongoDB. Gemini Code Assist from Google Cloud generates code suggestions, answers questions about existing code in developers’ integrated development environments, and can update entire codebases with a single prompt. With the partnership, Gemini Code Assist will help developers get answers and information about MongoDB code, documentation, and best practices, to help accelerate application development. Developers will also be able to leverage core Gemini Code Assist features such as natural language chat, code customization, and large-scale changes to entire codebases.Its stock is trading at $310.99 with a market capitalization of $24.5 billion. It touched a 52-week high of $509.62 in February. It hit a 52-week low of $308.38 this week due to the weak outlook.More By This Author:Cloud Stocks: BlackLine Builds On Its AI Offerings
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