MongoDB Will Also Benefit From AI

MongoDB rose nearly 30% after the earnings report was released. The company stated on the conference call that the company will obviously benefit from the surge in AI demand, Q1, more than 200 of the new Atlas customers were AI or ML companies.

MongoDB is an open-source, NoSQL (non-relational) database management system. This means that rather than digesting "rigid" data, it's able to search through "always on" data.

The example I often give is this: Think of digesting data from Twitter. Data is being input at all times. Sometimes as a picture and sometimes as text. The question is how to structure this data? Or data from an e-commerce company's inventory, that's being added to and removed at all times via cloud orders?

MongoDB provides scalable and flexible data storage solutions for easy retrieval of complex data structures. Its value proposition lies in its efficient data storage solutions for real-time data processing where flexible data structures are required.

Basically, MongoDB is a database company where you can query data in different formats to gain insights.

The company maintains strong growth. The cloud-based database platform Atlas, which accounts for 65% of its revenue, saw its revenue increase by 40% year-on-year, and the number of customers increased by 23% year-on-year to 41,600, which is the strongest number of new customers in the past two years. Strong attractiveness and competitiveness of customers.

MongoDB's revenue growth rates are expected to remain robust, with the guidance for fiscal Q2 2024 indicating a potential close to 30% CAGR next quarter; about 50% higher than expectations.

MongoDB upwards revised the high end of its non-GAAP EPS figures by 42%. This is such a high upwards revision that it's worthwhile to get some context.Consider this: analysts were expecting to see approximately $1.04 of EPS this year. But the guidance points to $1.56 at the high end.