MongoDB (MDB) sells developer data platforms, the systems that build databases. Hence, MongoDB (NASDAQ: MDB) profits from big data.
You can consider MongoDB a value investment in data, because MongoDB builds the infrastructure data runs on. For example, MongoDB its products provide one query interface for transactional, search, analytics, and mobile uses. Hence, developers can build all their database solutions in some system.
Specific MongoDB products include multi-cloud developer platforms. A multi-cloud developer data platform provides an integrated suite of database and data services. They claim the platform allows developers to map data in the application code.
MongoDB Unified Query API
Moreover, MongoDB offers an application programming interface (API) that makes it easy to access the database and the platform. A Unified Query API allows fast access to the database through servers and mobile devices. They claim the Query API works with data as code to build applications faster.
The Query API allows users to query, analyze, and transform data. A Query allows users to present data arrays, time series, and geospatial objects such as charts. They claim the MongoDB Query API can handle any data structure.
This API can execute key data operations, including querying, indexing, and updating. MongoDB’s Query API saves time because there is no need to switch between interfaces. The Query API supports diverse index types, data analysis, full-text searches for document models, change streams, geospatial and graph data, and on-demand materialized views.
By speeding data operations, the Query API can simplify the development process. A MongoDB Query API contains drivers that programmatically generate queries and build aggregation pipelines, which eliminates the need to learn a new query language.
The ultimate use of the Query API is to build modular, multi-stage aggregations to run powerful analytics on data. This can provide key insights to decision makers. Users can connect and integrate data to build and integrate data-centric applications with idiomatic language drivers and secure access to HTTPs.
Uses for MongoDB
Uses for MongoDB include financial services, ecommerce, including Data Mesh and MACH and artificial intelligence and machine learning fraud detection systems.
Other uses include telecom, healthcare, Retail, Gaming, industry, analytics, the Internet of Things (IOT), payments, Mobile, and Serverless Development.
MongoDB products include the MongoDB Atlas multi-cloud developer data platform. Atlas is in an integrated suite of cloud database and data services for developing cloud solutions. Atlas allows users to work with data as code, scale workloads, build databases, create charts, and run high-performance analytics in MongoDB’s Data Lake.
Atlas connects databases through Data Federation. It connects data bases to other applications through APIs, triggers, and functions. One use for those triggers, functions, and APIs is to build apps connected to data. Atlas can also sync databases with devices.
MongoDB also offers an Enterprise Advanced Database Platform that functions as an Enterprise Server, an Ops Manager, and an Enterprise Kubernetes Operator. A Community Edition database platform functions as a Community Server, a Cloud Manager, and a Community Kubernetes Operator.
What Value Does MongoDB offer?
Mr. Market thinks MongoDB (MDB) offers some value. He paid $268.64 for MDB shares on 9 September 2022. That share price fell from $489.75 on 7 September 2021.
However, I think MongoDB offers little value because it reported a $303.66 million quarterly revenue on 31 July 2022. Yet the revenue is growing, the quarterly revenue rose from $285.45 million on 30 April 2022 and $198.75 million on 31 July 2021.
MongoDB’s revenues are growing. Stockrow gave MongoDB a high revenue growth rate of 52.79% for the quarter ending on 31 July 2022. The revenue growth rate grew from 57.14% in the quarter ending on 30 April 2022 and $43.73% in the quarter ending on 31 July 2022.
How Much Money is MongoDB losing?
However, MongoDB (MDB) is making no money. MongoDB reported no quarterly operating income on 31 July 2022, a quarterly operating loss of -$75.94 million on 30 April 2022, and a quarterly operating loss of -$72.53 million on 31 July 2022.
Similarly, MongoDB reported a quarterly operating cash flow of -$42.31 million on 31 July 2022. The quarterly operating cash flow fell from $13.77 million on 30 April 2022 and rose from -$18.19 million on 31 July 2021.
MongoDB reported no quarterly ending cash flow on 31 July 2022, a $456.79 million quarterly ending cash flow on 30 April 2022 and a $753.94 million on 31 July 2021.
Moreover, MongoDB is borrowing money to finance its operations. It reported a quarterly financing cash flow of $13.46 million on 31 July 2022. The quarterly financing cash flow rose from -$1.12 million on 30 April 2022 and fell from $901.95 million on 31 July 2021.
Predictably, MongoDB’s Total debt grew fell from $1.243 billion on 31 July 2021 to $1.239 billion on 30 April 2022, and $1.118 billion on 31 July 2022. Hence, MongoDB has less debt.
Is MongoDB growing in Value?
MongoDB (MDB) has less cash. Cash and short-term investments rose from $1.815 billion on 31 July 2021 to $1.829 billion on 30 April 2022. The cash and short-term investment fell to $1.796 billion on 31 July 2022.
I think Mr. Market overvalues MongoDB because it had just $2.452 billion in Total Assets on 31 July 2022. The Total assets rose from $2.435 billion on 30 April 2022 and $2.281 billion on 31 July 2021. This does not justify the $268.364 Mr. Market paid for MongoDB on 9 September 2022.
Hence, MongoDB is in a classic tech stock position. To explain, MongoDB is a fast-growing company with little value, limited cash, and no income. Growth is the only thing MongoDB offers. Thus, MongoDB is not a growth investment.
However, MongoDB serves a growing market. Statista estimates global big data revenue grew from $56 billion in 2020 to $70 billion in 2022. Statista forecasts global big data revenue could grow to $77 billion in 2023, $84 billion in 2024, $90 billion in 2025, $96 billion in 2026, and $103 billion in 2027.
I think MongoDB is a fast-growing company in a growing market. Notably, there is a genuine demand for MongoDB’s products. MongoDB’s customers include Toyota, Bosch, Cisco Systems, Liberty Mutual, SEGA, Boxed, and Roma (the city of Rome, Italy).
In conclusion, MongoDB (MDB) is an interesting growth stock. However, I think the high share price makes MongoDB a poor stock.
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