Wall Street's second-quarter earnings season is nearly over, but this week's results are thanks to a number of high-flying cloud-based software-as-a-service (SaaS) companies.
Cloud-related software ETFs are trading at their all-time high, with the First Trust Cloud Computing ETF (NASDAQ 🙂 up about 90% since its March low as enterprise digitization trends accelerated as a result of the COVID Pandemic increase demand for cloud-based offerings.
Below are three cloud-based tech stocks that will benefit from explosive revenues and earnings. Each of these are worth considering pending their upcoming quarterly reports:
1. MongoDB : Reports September 2 after markets close
MongoDB (NASDAQ 🙂 shares have more than doubled since hitting a bear market down in mid-March, up 167% as it benefits from strong demand for its cloud-based, open-source database offering. MongoDB is the most widely used NoSQL database that provides a mechanism for storing and retrieving data.
The stock closed at $ 250.72 last night after hitting a record high of $ 254.76 earlier in the session. At current levels, the fast-growing software-as-a-service company is valued at approximately $ 14.6 billion.
MongoDB, whose earnings and sales can be easily seen in the first quarter, is expected to record a loss of $ 0.40 per share for Q2, increasing from a loss of $ 0.26 per share in the same period one year earlier. Revenue is expected to grow nearly 28% year-on-year to $ 126.81 million, reflecting the booming demand for the Atlas cloud-based database.
As such, Wall Street will keep a close eye on earnings from its Atlas platform, which rose 75% year-on-year in the previous quarter. The offering now accounts for more than 40% of MongoDB's total revenues.
Aside from earnings per share and revenue figures, market players will also focus on MongoDB's update regarding its outlook for the remainder of the year and beyond. The company brought full-year 2021 revenues to between $ 520 million and $ 530 million in the last quarter, compared to $ 421.7 million in fiscal 2020.
2. Crowdstrike: September 2 Reports After Market Closes
Cloud-based cybersecurity specialist Crowdstrike (NASDAQ 🙂 more than tripled its shares during the coronavirus crisis, up an astonishing 350% from its March low. The cybersecurity leader – whose technology is used to detect and prevent security breaches – has benefited as an increasing number of companies use its services to make their IT networks more secure.
The stock jumped to a new all-time high of $ 144.69 yesterday before settling at $ 143.69, bringing the Sunnyvale, California-based company to a market cap of approximately $ 21.8 billion.
Crowdstrike, which readily and first quarter revenue expectations are expected to report a loss of $ 0.01 per share in the second quarter, less than a loss of $ 0.18 per share in the same period a year earlier. Revenue is expected to increase 74.4% from the same period last year to $ 188.57 million, driven by strong demand for the cloud-based Falcon cybersecurity platform amid the shift to the work-from-home environment.
Perhaps more importantly, investors will keep an eye on CrowdStrike's total subscriber customers, which were up 105% in the previous quarter to 6,261.
3. DocuSign: Reports September 3 after Markets Close
DocuSign (NASDAQ 🙂 – generally considered the leader in the electronic signature market – has seen its stocks thrive in recent months, recovering about 315% from mid-March lows, based on the belief that fewer business travel amid the ongoing coronavirus pandemic will lead to more companies signing contracts electronically over the internet. The company has more than 660,000 paying customers and hundreds of millions of users in more than 180 countries.
The stock hit a record high of $ 271.44 on Tuesday, before finishing at $ 268.80, bringing the San Francisco, California-based software-as-a-service company to a market cap of approximately $ 49.3 billion. received.
DocuSign – which reported in early June – is expected to report earnings of $ 0.08 per share for the second quarter, indicating a year-over-year increase in earnings per share of 700%. Revenues are expected to increase about 35% from the same period a year earlier to $ 318.57 million as the COVID-19 pandemic has created massive demand for its Agreement Cloud e-signature platform as a result of the shift to the work-from-home environment.
In addition to the top and bottom line numbers, market players will also turn to DocuSign's update on its additions to enterprise customers to see if it can sustain its scorching growth rate. The company disclosed in its first quarter earnings report that customers with annual contract value in excess of $ 300,000 grew 46% from the same period last year to 473.
