(Reuters) – MongoDB on Monday raised its forecasts for annual revenue and profit for the second time this year as the software company expects strong growth in the usage of Atlas, its service that helps clients manage their databases on the cloud.
Shares of the New York-based company were up 10.6% in extended trading following the results.
The company charges for services based on how much they are used, unlike traditional subscription models that have relatively fixed prices.
MongoDB and its peers that operate such pay-as-you-use models have seen an increase in the usage of their services, including for workloads that involve the deployment of artificial intelligence.
Peer Snowflake also raised its full-year product revenue forecast last month on the back of strong consumption and bookings, while also announcing an AI partnership with Amazon-backed Anthropic.
MongoDB raised its adjusted profit per share forecast to the range of $3.01 and $3.03 for the fiscal year ending on Jan. 31, compared with the previous forecast of $2.33 to $2.47.
The company expects its fiscal revenue to be between $1.97 billion and $1.98 billion, up from the previous projection of $1.92 billion to $1.93 billion.
The company’s third-quarter revenue rose 22% to $529.4 million from a year ago, beating estimates of about $502 million, according to data compiled by LSEG.
On an adjusted basis, it earned $1.16 per share in the third quarter, compared with estimates of 69 cents per share in profit.
MongoDB also announced on Monday that Chief Financial Officer Michael Gordon will step down at the end of its fiscal year.
The company’s senior vice president of finance, Serge Tanjga, will serve as interim CFO starting Feb. 1 while the company searches for Gordon’s successor.
(Reporting by Rishi Kant in Bengaluru; Editing by Shreya Biswas)
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