Data Storage Stocks Q2 Recap: Benchmarking MongoDB (NASDAQ:MDB)

MDB Cover Image — Data Storage Stocks Q2 Recap: Benchmarking MongoDB (NASDAQ:MDB)

Anthony Lee

Thu, Oct 17, 2024, 1:38 AM 5 min read

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 a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was 1.3% above.

Inflation progressed towards the Fed's 2% goal recently, leading the Fed to reduce its policy rate by 50bps (half a percent or 0.5%) in September 2024. This is the first cut in four years. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be debating whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.

Luckily, data storage stocks have performed well with share prices up 11% on average since the latest earnings results.

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 $478.1 million, up 12.8% year on year. This print exceeded analysts’ expectations by 3%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ billings estimates and full-year revenue guidance exceeding analysts’ expectations.

"MongoDB delivered healthy second quarter results, highlighted by strong new workload acquisition and better-than-expected Atlas consumption trends. Our continued success in winning new workloads demonstrates the critical role MongoDB's platform plays in modern application development," said Dev Ittycheria, President and Chief Executive Officer of MongoDB.

MongoDB delivered the slowest revenue growth of the whole group. The company added 52 enterprise customers paying more than $100,000 annually to reach a total of 2,189. Interestingly, the stock is up 12.7% since reporting and currently trades at $277.

Is now the time to buy MongoDB? Access our full analysis of the earnings results here, it’s free.

Best Q2: 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 $224.7 million, up 13.4% year on year, outperforming analysts’ expectations by 4.2%. The business had an exceptional quarter with an impressive beat of analysts’ billings estimates and full-year revenue guidance exceeding analysts’ expectations.

Commvault Systems achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 18.6% since reporting. It currently trades at $146.23.

Is now the time to buy Commvault Systems? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Snowflake (NYSE:SNOW)

Founded in 2013 by three French engineers who spent decades working for Oracle, 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 $868.8 million, up 28.9% year on year, exceeding analysts’ expectations by 2.1%. Still, it was a slower quarter as it posted a miss of analysts’ billings estimates.

As expected, the stock is down 11.6% since the results and currently trades at $119.45.

Read our full analysis of Snowflake’s results here.

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 $51.59 million, up 19.6% year on year. This number was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it also produced full-year revenue guidance exceeding analysts’ expectations but a miss of analysts’ billings estimates.

Couchbase had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is down 14.4% since reporting and currently trades at $16.25.

Read our full, actionable report on Couchbase here, it’s free.

DigitalOcean (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 $192.5 million, up 13.3% year on year. This number surpassed analysts’ expectations by 2%. Overall, it was a very strong quarter as it also recorded full-year revenue guidance exceeding analysts’ expectations and a solid beat of analysts’ ARR (annual recurring revenue) estimates.

DigitalOcean achieved the highest full-year guidance raise among its peers. The stock is up 49.7% since reporting and currently trades at $43.55.

Read our full, actionable report on DigitalOcean here, it’s free.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.