- MongoDB shares jumped as much as 21% Tuesday following a better-than-expected earnings report.
- Revenue from Atlas jumped 84%, with Coinbase moving more workloads to the cloud database service.
- MongoDB went public in 2017 with a $1.6 billion valuation and is now worth about $33 billion.
Shares of MongoDB spiked as much as 21% Tuesday after the database provider crushed quarterly earnings estimates.
The New York-based company said in its third-quarter results that sales jumped 50% year-over-year to $226.9 million. Analysts predicted $205.2 million, CNBC reported, citing Refinitiv data. The company beat on its earning-per-share, too. It recorded an $0.11 loss-per-share, compared to estimates of $0.38 loss per share, CNBC said.
Atlas, MongoDB's cloud database service, is one of the company's core products, making up more than half of its quarterly sales. Its revenue jumped 84% in the third quarter. On the earnings call, MongoDB Chief Executive Officer Dev Ittycheria said crypto exchange Coinbase has begun moving more workloads to Atlas amid "unprecedented growth in the cryptocurrency markets."
"We believe a key driver of our success has been the early, but growing, trend of customers choosing MongoDB as an enterprise standard for their future application development," he said. "Our success across industries and a wide variety of use cases puts us in a great position to build even deeper relationships with our customers over time."
The stock traded 16% higher at $497.13 at 11:14 a.m. in New York. It was trending among retail traders as the second top stock on Reddit investing threads, according to HypeEquity data. Fidelity data showed it was 25th most-traded stock on Tuesday.
The company, along with Confluent and Databricks, has found success — despite being in a market dominated by Amazon, Microsoft, and Google — thanks to its beginnings as an open-source project, free for anyone to use, download, or modify, Insider previously reported. So far this year, MongoDB shares have surged about 40%.
MongoDB went public in October 2017 with a value of $1.6 billion. At the time, critics said the company was "crazy" for being headquartered outside of Silicon Valley. But now, MongoDB boasts a market capitalization of about $33 billion.