Cloudera (NYSE: CLDR) and MongoDB (NASDAQ: MDB) are two bright spots at a time when tech stocks are underperforming.
Cloudera lost $0.08 a share (non-GAAP) while GAAP EPS came in at -$0.22. Revenue rose 22.8% Y/Y to $110.34M. Investors need not fret over the losses. The growth momentum, thanks to the subscription model, will accelerate as the company wins new businesses. In the second quarter (Q2/2019), Cloudera reported renewal rates that were above recent averages. The strong expansion in bookings order is due to 69 customers exceeding $1 million of annual recurring revenue. This represents half of the company’s software revenue. Net expansion exceeded management’s expectations, coming in at 128%.
MongoDB reported a non-GAAP EPS of -$0.41 and GAAP EPS of -$0.61. Revenue soared 61.5% to $57.49 million. When the company introduces enterprise features in Atlas, it will act as a positive catalyst to sales. This addition will meet the needs of its sophisticated customers looking for MongoDB as a service.
On its conference call, MongoDB cited Royal Caribbean (NYSE: RCL) as one of its customers using MongoDB Atlas to optimize cruise search on its e-commerce platform. RCL increased revenue and cut churn thanks to the software.
MongoDB ended the quarter with plenty of cash: $523.2 million, up by $254 million due to the convertible notes offering in June.
For FY 2019, the company raised its revenue guidance to $228 million - $230 million. Though it will lose between $82 - $84 million in the year, higher revenue and higher ROI investments will pay off for the company.
