According to a Market Research Future report, the global cloud database market is estimated to grow at a tremendous CAGR of 47% to reach $21.67 billion by the year 2023. Last month, cloud Database-as-a-Service provider MongoDB (NASDAQ:MDB) announced its first quarter results that surpassed all market expectations.
For the first quarter of the year, MongoDB's revenues grew an impressive 78% to $89.4 million, ahead of the market's forecast of $83.2 million. Subscription revenues grew 82% to $84 million, and services revenues grew 33% to $5.4 million. Net loss was $0.22 per share, which was also better than the Street's estimated loss of $0.24.
For the current quarter, it expects revenues of $90-$92 million with a net loss of $0.29-$0.27 per share. It expects to end the year with revenues of $375-$381 million and a net loss of $1.11-$1.04 per share. The market was looking for revenues of $86.68 million and loss of $0.27 per share for the quarter and revenues of $372.76 million and loss of $0.99 for the year.
MongoDB's Market Expansion
MongoDB continues to expand its market reach through partnerships, acquisitions, and product launches. Last quarter, it announced a new business partnership with Google Cloud Platform (GCP) to provide deeper product integration and unified billing for joint customers. As part of the agreement, MongoDB's Atlas database service will be integrated within the GCP Console and the two companies will expand their go to market relationship. The integration of Atlas into GCP will help customers get a seamless experience on Atlas and core GCP services such as identity and access management, logging and monitoring, and open source projects like Kubernetes and Tensorflow.
As part of its mobile initiative, MongoDB announced the $39 million acquisition of Realm. San Francisco-based Realm was founded in 2011 as a mobile database that enabled its users to develop faster applications. Realm makes it easy to build reactive apps with collaborative features and offline-first experiences, There are more than 100,000 active developers using Realm.
MongoDB plans to leverage Realm's capabilities to expand its mobile product offerings and deepen its relationship with developer communities focused on mobile and serverless development. Prior to the acquisition, Realm had raised $40.2 million in two rounds from investors including Scale Venture Partners, Khosla Ventures, Y Combinator, Lerer Hippeau, Data Collective DCVC, CrunchFund, Greylock Partners, and SV Angel. Realm is estimated to have annual revenues of $8.7 million.
Additionally, MongoDB has been expanding its product capabilities. Recently, it announced the beta versions of MongoDB Atlas Data Lake and MongoDB Atlas Full-Text Search that will allow users to access advanced features in a fully-managed MongoDB environment with no additional infrastructure or systems to manage. It also announced the general availability of MongoDB Charts, which is a visualization tool that lets customers create charts and graphs, build and share dashboards and embed them directly into web apps.
It's upgrades like these that have helped MongoDB's products gain market recognition. It was recently named a leader by Forrester Research in The Forrester Wave: Big Data NoSQL, Q1 2019 and The Forrester Wave: Database-As-A-Service, Q2 2019 reports for its security, performance, scalability, availability, and ability.
The market is pleased with MongoDB and its stock is currently trading at $154.98 with a market capitalization of $9 billion. It touched a 52-week high of $184.78 earlier last month. The stock has been steadily climbing from the 52-week low of $50.60 that it was trading at almost a year ago. The stock has delivered tremendous growth over the $24 that it listed at in October 2017.