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2 Tech Stocks Fall Despite Non-GAAP Earnings Beat

MongoDB and Cloudera announce results for the 1st quarter of fiscal 2020

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Alberto Abaterusso
Jun 06, 2019
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Two tech stocks announced quarterly results after the closing bell on Wednesday.

Shares of MongoDB Inc. (

MDB, Financial) went down 3.94% to $143 in after-hours trading on Wednesday after beating consensus estimates on non-GAAP earnings for the first quarter of fiscal 2020 by 2 cents, despite posting a loss of 22 cents per share. Non-GAAP earnings improved 40.5% year-over-year.

The GAAP result was also a loss of 61 cents per share, reflecting a 15.1% decline from the prior-year quarter. The GAAP result fell 12 cents short of expectations.

Strong sales results across all products and geographies drove 78.3% growth in first-quarter revenue to $89.4 million, beating consensus estimates by $6.3 million.

The subscription segment soared 82.3% to nearly $84 million, and the services segment increased 32.5% to $5.4 million.

"Our success is being driven in part by growing customer interest in a modern, general purpose database for use on premise and in hybrid and multi-cloud environments to help users innovate more quickly and efficiently," President and CEO Dev Ittycheria said in a statement.

In the quarter, MongoDB also recorded a 500 basis-point decline in GAAP gross profit margin to 68% and a 400% basis-point drop in non-GAAP gross profit margin to 70%. Operations generated cash inflows of $3.21 million in the first quarter of fiscal 2020, compared to cash outflows of $8.05 million in the first quarter of fiscal 2019. Funds used as capital expenditures increased only 6% to $389 million, prompting a positive turnaround in free cash flow to $2.83 million.

The company didn’t pay a dividend in the quarter.

For the second quarter of fiscal 2020, MongoDB guided for revenue between $90 million and $92 million versus estimates of $87.69 million. It forecasted a non-GAAP net loss per share of 29 to 27 cents versus estimates of a non-GAAP net loss of 28 cents.

For full fiscal 2020, the New York-based software company forecasted revenue of $375 million to $381 million versus expectations of $369.14 million. Further, MongoDB expects the non-GAAP net loss per share to range between $1.11 and $1.

The balance sheet had $476.4 million in cash on hand and short-term securities, and $220.1 million in total debt at the end of April 2019. In addition, deferred revenue totaled $143.7 million, of which 11% is non-current.

The stock was $148.6 per share at close on Wednesday for a market capitalization of $8.22 billion. MongoDB gained 77% so far this year. The closing price on Wednesday was 211.6% above the 52-week low of $47.69 and 4.2% from the 52-week high of $154.80.

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Cloudera Inc. (

CLDR, Financial) plummeted 31.82% to $6 per share in after-hours trading on Wednesday after beating analysts’ expectations on non-GAAP earnings for the first quarter of fiscal 2020 by 10 cents, posting a loss of 13 cents per share. It marked a 27.8% improvement from the prior-year quarter loss.

The GAAP loss was 38 cents per share or 5.6% lower year-over-year, topping consensus estimates by 10 cents.

Revenue was $187.47 million, up 81.2%, but missing market expectations by $1.01 million. By segment, subscription revenues grew 78.5% to $154.84 million, and services revenues increased 95.4% to $32.63 million. Also, the annualized recurring revenue jumped 21% to $672 million, and 929 customers provided annualized recurring revenue of more than $100,000.

The Palo Alto, California-based software company also posted a 100 basis-point increase in non-GAAP subscription gross margin to 85% and a 2,200 basis-point growth in GAAP subscription gross margin to 81%.

The operating cash flow fell 53% to $11.5 million, which included merger-related payments of $25 million.

During the quarter the company enlarged its business cooperation with IBM, comprising all product offerings of Cloudera, and launched Cloudera Edge Management and Cloudera Flow Management on the market. The first product is a solution for the internet of things system and streaming data. The second product is a solution for the administration of a multitude of tasks, data and processes.

For the second quarter, Cloudera expects revenue ranging between $180 million and $183 million compared to estimates of $203.29 million. The company forecasted a non-GAAP net loss per share ranging between 11 cents and 8 cents versus consensus estimates of a non-GAAP net loss of 9 cents.

The full fiscal 2020 guidance has revenue ranging between $745 million and $765 million compared to analysts’ expectations of $844.71 million and non-GAAP net loss per share of 38 cents to 32 cents versus consensus estimates of 35 cents.

The balance sheet of Cloudera has $444.65 million in cash on hand and short-term securities and $473.11 million in total deferred revenues as of April 30.

Shares of Cloudera Inc. closed at $8.8 on Wednesday for a market capitalization of $2.41 billion. The stock has fallen 20% so far this year. The closing price on Wednesday was 3.3% above the 52-week low of $8.52 and 129.3% below the 52-week high of $20.18.

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Disclosure: I have no positions in any security mentioned.

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