Wrapping up Q4 earnings, we look at the numbers and key takeaways for the data storage stocks, including MongoDB (NASDAQ:MDB) and its peers.
Data is the lifeblood of the internet and software in general, and the amount of data created is accelerating. As a result, the importance of storing the data in scalable and efficient formats continues to rise, especially as its diversity and associated use cases expand from analyzing simple, structured datasets to high-scale processing of unstructured data such as images, audio, and video.
The 5 data storage stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 4.2% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17.7% since the latest earnings results.
Weakest Q4: MongoDB (NASDAQ:MDB)
Started in 2007 by the team behind Google’s ad platform, DoubleClick, MongoDB offers database-as-a-service that helps companies store large volumes of semi-structured data.
MongoDB reported revenues of $548.4 million, up 19.7% year on year. This print exceeded analysts’ expectations by 5.6%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ billings estimates but full-year EPS guidance missing analysts’ expectations significantly.
"MongoDB delivered a strong end to fiscal 2025 with 24% Atlas revenue growth and significant margin expansion. Atlas consumption in the quarter was better than expected and we continue to see good performance in new workload wins due to the flexibility, scalability and performance of the MongoDB platform. In fiscal year 2026 we expect to see stable consumption growth in Atlas, our main growth driver," said Dev Ittycheria, President and Chief Executive Officer of MongoDB.
MongoDB Total Revenue
The stock is down 38.4% since reporting and currently trades at $163.06.
Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ: CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention, and compliance.
Commvault Systems reported revenues of $262.6 million, up 21.1% year on year, outperforming analysts’ expectations by 6.9%. The business had a very strong quarter with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.
Commvault Systems Total Revenue
Commvault Systems delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is down 2.8% since reporting. It currently trades at $154.08.
Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake (NYSE:SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.
Snowflake reported revenues of $986.8 million, up 27.4% year on year, exceeding analysts’ expectations by 3%. It was a satisfactory quarter as it also posted a solid beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates.
As expected, the stock is down 11.1% since the results and currently trades at $147.66.
Started by brothers Ben and Moisey Uretsky, DigitalOcean (NYSE: DOCN) provides a simple, low-cost platform that allows developers and small and medium-sized businesses to host applications and data in the cloud.
DigitalOcean reported revenues of $204.9 million, up 13.3% year on year. This number topped analysts’ expectations by 2%. It was a strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.
DigitalOcean had the weakest performance against analyst estimates among its peers. The stock is down 24.3% since reporting and currently trades at $28.16.
Formed in 2011 with the merger of Membase and CouchOne, Couchbase (NASDAQ:BASE) is a database-as-a-service platform that allows enterprises to store large volumes of semi-structured data.
Couchbase reported revenues of $54.92 million, up 9.6% year on year. This result surpassed analysts’ expectations by 3.1%. Aside from that, it was a satisfactory quarter as it also logged an impressive beat of analysts’ billings estimates but full-year guidance of slowing revenue growth.
Couchbase had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is down 11.9% since reporting and currently trades at $14.33.
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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