(Bloomberg) -- MongoDB Inc. shares rose more than 15% in extended trading after the database provider reported better-than-expected quarterly results and projected strong sales through the rest of the fiscal year.
Revenue will be as much as $242 million in the current period, which ends in January, compared with analysts’ average estimate of $226 million. The company projected an adjusted loss of as much as 24 cents a share. Analysts estimated 35 cents, according to data compiled by Bloomberg.
Fiscal third-quarter revenue increased 50% to $226.9 million, the New York-based company said Monday in a statement. Sales of MongoDB Atlas, the company’s flagship product, rose 84%. MongoDB also narrowed its adjusted loss to 11 cents per share, from a loss of 31 cents in the period a year earlier. Analysts, on average, had expected sales of $204 million and a loss of 40 cents per share, according to data compiled by Bloomberg.
MongoDB faces competition in the database market among long-standing providers like Oracle Corp. and Microsoft Corp., along with newer entrants like Redis. The results are continued validation for MongoDB, which survived a wave of industry consolidation several years ago and successfully made the jump to the cloud with Atlas, which makes up the majority of the company’s revenue.
“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,” Chief Executive Officer Dev Ittycheria said in the statement.
The shares rose to a high of $512 in extended trading after closing at $429.34 in New York. The stock has gained 20% this year.
MongoDB earlier in the quarter appointed Peder Ulander as chief marketing officer. Ulander previously served as a marketing executive in Amazon.com Inc.’s cloud division.
©2021 Bloomberg L.P.