MongoDB Earnings: Less Stress on Upfront Revenue Opens Door to More Customers; Shares Fairly Valued

MongoDB posted a solid quarter, exceeding our expectations all around as consumption of the firm’s cloud platform, Atlas, proved rosier even with it feeling the effects of the weak macroeconomic environment. With retention rates remaining high, we continue to believe MongoDB has all the right seeds of a switching cost moat that will pay off in the long run. We are maintaining our fair value estimate of $379 per share, as we remain confident in MongoDB’s positioning at the right place and the right time amid a mass data boom that will require the technical flexibility and ease of use MongoDB is known for. With afterhours shares trading near $398, up 4%, we view shares as fairly valued.