MongoDB Inc MDB shares are down on Tuesday, despite the company reporting upbeat third-quarter results.

The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.

Goldman Sachs On MongoDB

Analyst Kash Rangan maintained a Buy rating while raising the price target from $340 to $390.

MongoDB reported strong fiscal third-quarter results, with revenues coming in 6.4% higher than consensus, Rangan said in a note. The results indicate "solid execution in a still choppy macro," with almost stable Atlas growth, Atlas customer adds inflecting, and NRR (net recurring revenue) improving by 100 basis points (bps) sequentially to +120%, he added.

"We continue to see MongoDB as well-positioned to capture an outsized share of its core $100B+ database TAM, especially as it doubles down on the upmarket opportunity through its strategic accounts program while enhancing its platform with new features and tooling to capitalize on the inevitable wave of AI production applications that can support re-accelerating growth mid-term," the analyst wrote.

Stifel On MongoDB

Analyst Brad Reback reiterated a Buy rating while raising the price target from $360 to $425.

MongoDB reported "solid" quarterly results, with a revenue beat of 6% and operating margins more than 700 bps better, Reback said. The quarter was helped by slightly higher-than-expected consumption growth and a "strong EA new business quarter that was aided by ~$15M in multi-year upfront revenue recognition driven by customer expansions," he added.

"Importantly, management announced a pivot towards expanding its Enterprise strategic account program, which has a significantly higher ROI vs. other direct sales accounts," the analyst wrote. While management expects EA (Enterprise Advanced) and other revenues to decline sequentially and for seasonal Atlas consumption to decelerate in the fourth quarter, "we view the guide as conservative," he further stated.

Truist Securities On MongoDB

Analyst Miller Jump reaffirmed a Buy rating while lifting the price target from $320 to $400.

The upside in quarterly results was driven by "a few multiyear EA deals that were $15M higher than for the same period last year, as well as Atlas consumption above expectations," Jump said. Atlas grew 26% year-on-year, while EA grew 13%, he added.

Non-GAAP operating margins of 19% also came in higher than expected, driven by the revenue beat as well as the "greater mix of higher-margin multiyear license revenue," the analyst stated. Management raised their fiscal 2025 guidance slightly beyond the beat, "reflecting the cumulative nature of their consumption model," he further wrote.

Check out other analyst stock ratings.

Needham On MongoDB

Analyst Mike Cikos maintained a Buy rating while raising the price target from $335 to $415.

EA was the main driver of MongoDB’s revenue outperformance in the quarter, "where the multi-year license component increased over $15 million yr-yr," Cikos said. Management guided to a sequential decline in non-Atlas revenues in the fiscal fourth quarter, "which breaks from typical seasonality," he added.

"In our view, we see EA as a long-term on-ramp for new customers and eventual migrations to Atlas, where durable growth is likely in the Low-/Mid-Teens," the analyst wrote.

Oppenheimer On MongoDB

Analyst Ittai Kidron reiterated an Outperform rating while lifting the price target from $350 to $400.

MongoDB reported revenue and earnings of $529.4 million and $1.17 per share, above consensus estimates of $497.7 million and 67 cents per share, respectively, Kidron said. The upside was driven by a significant subscription revenue beat and EA's outperformance, he added.

"While we hoped for a stronger Atlas beat, we’re encouraged by the continued improvements in execution, driving sustained new business growth," the analyst wrote. Management guided to fourth-quarter revenues of $515 million to $519 million, higher than consensus of $508.9 million, he further stated.

Scotiabank On MongoDB

Analyst Patrick Colville reaffirmed a Sector Perform rating while raising the price target from $295 to $350.

Although MongoDB reported a beat on both the top- and bottom-lines, the outperformance was driven by multi-year deals in EA, "which management don't expect to re-occur," Colville said. Atlas' momentum is "more important" for the company's shares, he added.

While new Atlas revenue grew, the bulls may have been expecting a slightly larger beat following strong results from peers Snowflake and Elastic NV, the analyst stated. "MongoDB is a legendary cloud business, we do nonetheless recommend investors take a wait-and-see approach until we can get more comfort from our deep-dive CIO checks around the timing of a potential AI benefit, as well as competition trends in database — in particular with PostgreSQL, he further wrote.

RBC Capital Markets On MongoDB

Analyst Rishi Jaluria maintained an Outperform rating while lifting the price target from $350 to $400.

MongoDB reported total revenues "well ahead of recent trends," accelerating to 22% year-on-year, Jaluria said. He added that the upside was driven only by a few large multi-year deals.

Atlas revenues grew 26% year-on-year, representing a deceleration from the previous quarter's 27%, the analyst stated. "Full-year guidance was raised by $50M at the midpoint (now implying 17% growth, from 14–15%), well above Q3’s ~ $35M upside," he further wrote.

MDB Price Action: Shares of MongoDB had declined by 15.58% to $295.58 at the time of publication on Tuesday.

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