Tech giants such as MongoDB (NASDAQ: MDB) and Salesforce (NYSE: CRM) reported quarterly earnings last week. While CRM stock declined over 4%, MDB stock was up 33% post-earnings. Let’s see why.
Salesforce stock is down 31% from an all-time high
Salesforce scored higher on earnings and revenue than what Wall Street was expecting and even boosted its full-year earnings forecast. But Salesforce stock took a hit despite outpacing Wall Street estimates.
Here's a quick breakdown of how Salesforce's numbers shaped up:
- Earnings: The company pulled in $1.69 per share (on an adjusted basis), which surpassed the anticipated $1.61 per share.
- Revenue: Salesforce's earnings clocked in at $8.25 billion, edging out forecasts of $8.18 billion.
But there's a snag. Capital costs for the quarter ended up totaling $243 million. That's about a 36% increase, surpassing the $205 million figure that analysts were betting on. So even though the company saw an 11% revenue increase for the quarter, concerns about these rising costs cast a shadow over the good news.
Looking ahead to the second quarter, Salesforce predicts earnings of $1.89 to $1.90 per share (on an adjusted basis) and revenue in the ballpark of $8.51 billion to $8.53 billion. This forecast beats what analysts were expecting: $1.70 in adjusted earnings per share and $8.49 billion in revenue.
Salesforce bumped up its earnings forecast for the fiscal year 2024 but left the revenue forecast as is. The company now expects $7.41 to $7.43 in adjusted earnings per share on $34.5 billion to $34.7 billion in revenue.
However, Salesforce has its challenges. According to COO Brian Millham, clients are taking their time with deals that are closing at a slower pace than before. As a result, Salesforce is now exploring ways to automate the selling process for smaller deals and boost productivity for their salespeople.
MongoDB stock is down 31% from record highs
After reporting knockout Q1 results and upping its full-year guidance, the stock surged by 22% in after-hours trading. Here's the lowdown:
- Earnings: MongoDB smashed it out of the park, bringing in 56 cents per share (adjusted) versus the 19 cents expected by analysts.
- Revenue: The company also outperformed here, hitting $368 million. Analysts had predicted a more modest $347 million.
So, what's behind these top-tier results? Well, MongoDB's Q1 revenue soared by 29% year over year. The net loss shrank to $54 million, or 77 cents per share, a drop from the previous year's $77 million, or $1.14 per share, despite a ramp-up in marketing, sales, and R&D expenditure.
The good news keeps coming - MongoDB gained 2,300 new customers in the quarter, boosting its total count to 43,100, which outperformed the Wall Street consensus of 42,430.
Another feather in MongoDB's cap came when China Mobile switched a service for sharing billing information from Oracle (NYSE: ORCL) to MongoDB. The move resulted in an 80% performance boost and reduced the number of servers from 50 to 12, according to CEO Dev Ittycheria.
MongoDB is calling for Q2 earnings of $0.43 to $0.46 per share on revenue between $388 million to $392 million. This forecast overshadows what analysts had expected, $0.14 in adjusted earnings per share and $362 million in revenue.
MongoDB upped its fiscal 2024 forecast for both revenue and income. The company now projects $1.42 to $1.56 in adjusted earnings per share on revenue ranging from $1.522 billion to $1.542 billion.
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