The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how MongoDB (NASDAQ:MDB) and the rest of the data storage stocks fared in Q1.
Data is the lifeblood of the internet and software in general, and the amount of data created is accelerating. As a result, the importance of storing the data in scalable and efficient formats continues to rise, especially as its diversity and associated use cases expand from analyzing simple, structured datasets to high-scale processing of unstructured data such as images, audio, and video.
The 5 data storage stocks we track reported an ok Q1; on average, revenues beat analyst consensus estimates by 3.9%. while next quarter's revenue guidance was in line with consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the data storage stocks have fared somewhat better than others, they collectively declined, with share prices falling 4.3% on average since the previous earnings results.
Weakest Q1: MongoDB (NASDAQ:MDB) Started in 2007 by the team behind Google’s ad platform, DoubleClick, MongoDB offers database-as-a-service that helps companies store large volumes of semi-structured data.
MongoDB reported revenues of $450.6 million, up 22.3% year on year, exceeding analysts' expectations by 2.4%. Despite the top-line beat, it was a weak quarter overall for the company with underwhelming revenue guidance for the next quarter and a miss of analysts' billings estimates.
"MongoDB's delivered solid first quarter results, highlighted by 32% Atlas revenue growth. At the same time, we had a slower than expected start to the year for both Atlas consumption growth and new workload wins, which will have a downstream impact for the remainder of fiscal 2025," said Dev Ittycheria, President and Chief Executive Officer of MongoDB.
MongoDB delivered the weakest full-year guidance update of the whole group. The company added 85 enterprise customers paying more than $100,000 annually to reach a total of 2,137. The stock is down 17.2% since reporting and currently trades at $256.62.
Is now the time to buy MongoDB? Find out by reading the original article on StockStory, it's free. Best Q1: Commvault Systems (NASDAQ:CVLT)Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ: CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention, and compliance.
Commvault Systems reported revenues of $223.3 million, up 9.7% year on year, outperforming analysts' expectations by 5.1%. It was a very strong quarter for the company with management forecasting accelerating growth and a solid beat of analysts' billings estimates.
Commvault Systems scored the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 22.9% since reporting. It currently trades at $122.24.
Snowflake (NYSE:NYSE:SNOW)Founded in 2013 by three French engineers who spent decades working for Oracle (NYSE:ORCL), Snowflake (NYSE:SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.
Snowflake reported revenues of $828.7 million, up 32.9% year on year, exceeding analysts' expectations by 5.4%. It was a weaker quarter for the company with a miss of analysts' billings estimates and a decline in its gross margin.
As expected, the stock is down 19.6% since the results and currently trades at $131.31.
Couchbase (NASDAQ:BASE)Formed in 2011 with the merger of Membase and CouchOne, Couchbase (NASDAQ:BASE) is a database-as-a-service platform that allows enterprises to store large volumes of semi-structured data.
Couchbase reported revenues of $51.33 million, up 25.2% year on year, surpassing analysts' expectations by 5.6%. Revenue aside, it was a strong quarter for the company with an impressive beat of analysts' billings estimates and in-line revenue guidance for the next quarter.
Couchbase pulled off the biggest analyst estimates beat among its peers. The stock is down 6% since reporting and currently trades at $20.24.
DigitalOcean (NYSE:NYSE:DOCN)Started by brothers Ben and Moisey Uretsky, DigitalOcean (NYSE: DOCN) provides a simple, low-cost platform that allows developers and small and medium-sized businesses to host applications and data in the cloud.
DigitalOcean reported revenues of $184.7 million, up 11.9% year on year, surpassing analysts' expectations by 1.2%. More broadly, it was a decent quarter for the company with a significant improvement in its gross margin.
DigitalOcean had the weakest performance against analyst estimates among its peers. The stock is down 1.8% since reporting and currently trades at $32.
This content was originally published on Stock Story
