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Following a strong performance in Q1, where Atlas (NYSE:ATCO) consumption saw a sequential rebound due to robust growth in app usage, Stifel believes that Snowflake’s (NYSE:SNOW) solid consumption activity/commentary positions Atlas for another solid quarter in Q2. The firm expects Atlas to exceed the sell-side’s projected 33% year-over-year growth by a significant margin (4%+).
Assessing EA (Enterprise Advanced), however, is more challenging as it has consistently outperformed management’s predictions in recent quarters, yielding substantial positive outcomes. “While management expects another Q/Q decline, we would not be surprised by another upside quarter,” noted Stifel.
Furthermore, the firm believes that MongoDB can maintain revenue growth of over 25% while continuing to invest in the future. This growth will be driven by a combination of robust growth among current customers (existing and new workloads, emerging product adoption), and new customer acquisition.
The firm reiterated its Buy rating and $420 price target on the stock.