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Omar Venerio
Omar Venerio
Articles (1746) 

2 Stocks Fall on Friday

MongoDB and Vail Resorts decline on earnings

June 05, 2020 | About:

Shares of MongoDB Inc. (NASDAQ:MDB) fell almost 8% on Friday after reporting first-quarter revenue of $130.33 million and a loss of 13 cents per share on Thursday. It beat analysts' earnings estimates by 12 cents and revenue expectations by $10.61 million.

In a statement, CEO Dev Ittycheria commented on the company's performance amid the coronavirus outbreak:

"MongoDB's strong first quarter performance in the midst of the COVID-19 pandemic demonstrates the value of our modern data platform for the success of our customers. In particular, the speed and agility of the MongoDB platform enables customers to quickly adapt to changing business conditions. While the impact from COVID-19 will be longer than we originally expected at the beginning of this fiscal year, we are seeing clear signs that the current environment is reinforcing the long-term trends towards digital transformation and cloud migration. MongoDB is a clear beneficiary of these trends and we will continue making investments to fully capitalize on this market opportunity."

The cloud-based database company's revenue grew 46% year over year. By segment, subscription sales increased 49% to $124.9 million. Services revenue totaled $5.5 million, an increase of 1%.

Moreover, the gross profit was $92.7 million, for a gross margin of 71%, compared to 68% in the same period of fiscal 2020. The non-GAAP gross profit was $95.6 million, or 73%.

Looking at financial position, the company had $977.5 million in cash, cash equivalents, short-term investments and restricted cash as of April 30.

The company ended with a free cash flow of -$8.5 million, using $5.9 million of cash from operations, $1.5 million in capital expenditures and $1.1 million in principal repayments.

During the first quarter, Jim Simons' Renaissance Technologies initiated a new position with 97,300 shares. Paul Tudor Jones (Trades, Portfolio) curbed his position by 57% to 13,089 shares, while Philippe Laffont (Trades, Portfolio) and Steven Cohen (Trades, Portfolio) sold out.

Shares of Vail Resorts Inc. (NYSE:MTN) fell almost 4% after reporting third-quarter revenue of $694.09 million and earnings of $3.74 per share. The company, which operates ski resorts, beat revenue expectations by $66.42 million and earnings estimates by 83 cents.

In the Mountain Segment, total lift revenue was down $152.1 million, or 28.9%, to $374.8 million due to the Covid-19 pandemic, which closed down the North American mountain resorts and regional ski areas. Ski school revenue decreased $34.2 million, or 30.9%; dining revenue decreased $17.3 million, or 21.9%, and retail/rental revenue decreased $35.9 million, or 31.5%. The earnings before interest, taxes, depreciation and amortization also decreased to $166.7 million, or 35.6%.

In the lodging segment, net revenue decreased $20.5 million, or 27%, by the closure of the North American lodging properties. Lodging Ebitda decreased $9.7 million, or 76.8%.

Resort net revenue decreased $264.1 million, or 27.6%, to $693.7 million. The Ebitda was $304.4 million, a decrease of $176.4 million, or 36.7%, compared to the same period in the prior year.

Looking ahead, CEO Rob Katz said:

"We continue to be confident in the long-term prospects of our business model that is built on the loyalty of our guests, the strong lineup of season pass products that provide access to our irreplaceable network of world-class resorts and the sophisticated marketing approach we use to communicate with and attract our guests. As we head into this summer and next ski season, we will be providing an exceptional experience for our guests through our passionate employees and the investments we've made in our resorts and technology, supported by our strong capitalization and liquidity that positions us well to pursue our growth goals over time."

Diamond Hill Capital (Trades, Portfolio) boosted its holding by 22% to 585,495 shares. John Rogers (Trades, Portfolio) initiated a new position of 312,781 shares. Ron Baron (Trades, Portfolio) trimmed his stake by 1% to 4,515,327 shares.

Disclosure: The author holds no position in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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