MongoDB (MDB) has posted another quarter of outperformance and the company has the potential for sustained momentum into fiscal 2025, Oppenheimer said in a note to clients emailed Wednesday.
“Solid execution by management continues to drive the company’s success in winning incremental workloads/customers, highlighting the mission-critical nature of MongoDB’s platform,” said Oppenheimer analysts including Ittai Kidron.
The company reported fiscal Q3 non-GAAP diluted earnings late Tuesday of $0.96 per share, up from $0.23 a year earlier. Analysts polled by Capital IQ expected $0.50. Revenue for the quarter was $432.9 million, up from $333.6 million a year earlier. Analysts expected $404 million.
“We see potential for sustained momentum into FY25,” the analysts said. “MongoDB’s mission-critical data platform is positioned to see increasing adoption from customers looking to modernize their architecture for new GenAI initiatives, and the recently released Vector Search can drive higher consumption from the existing base.”
The investment firm also said MongoDB’s shares have seen strong year to date performance and “are not cheap” but the company has “underlying growth drivers.”
Oppenheimer kept the outperform rating on MongoDB and has a $480 price target.