MongoDB Surged 25% After It Beat Earnings Estimates

Founded in 2007, MongoDB has become one of the most valuable open-source company. Through this model, the company puts its code available for free to third parties who then build their own solutions around the existing code. MongoDB makes money by offering add-on services such as customisation, support and consulting services.

Sustained Growth

On Friday, the company said its quarterly sales grew 44% to $ 199m with its Atlas cloud database growing 83% and now making more than 50% of total sales. MongoDB expects full year sales to reach $ 805m to $ 811m, up from previous indications of $ 784m.

“What we’re hearing from customers is they need to move fast, because they’re feeling a lot of pressure, either from people who are trying to disrupt their businesses or disruptors who are trying to disrupt the large incumbents” MongoDB CEO Dev Ittycheria

Open-Source Leaders

MongoDB is joined by the likes of Elastic, Confluent and Databricks. This is one of the largest open-source companies, after recently raising $ 1.6B in a private funding round and at a $ 38B valuation. The company's solutions are build around Apache Spark, which helps company deal with vast amounts of data.

“Post-pandemic something has happened, and I think data and AI, cloud-computing, open-source technologies seem to be more top of mind for leaders of different enterprises, [...] These are secular trends that are going to remain for a long time to come.” Databricks CEO Ali Ghodsi

Disclaimer

Please note that this article does not constitute investment advice in any form. This article is not a research report and is not intended to serve as the basis for any investment decision. All investments involve risk and the past performance of a security or financial product does not guarantee future returns. Investors have to conduct their own research before conducting any transaction. There is always the risk of losing parts or all of your money when you invest in securities or other financial products.

Credits

Photo by İsmail Enes Ayhan on Unsplash.