With share prices of the database provider MongoDB (MDB) - Get Report having more than doubled since March 2020, Jim Cramer spoke with David Ittycheria, president and CEO of the company, during a recent “Executive Decision” segment on Mad Money.
MongoDB shares are up 15% over the past three months. The stock rose 1.4% Tuesday to close at $342.34.
The company’s stock growth comes despite questions about profitability and amid continued rapid growth of the Atlas cloud database platform. Ittycheria said it's been five years since MongoDB unveiled Atlas. Today, Atlas is the majority of its business, growing at 73% year-over-year.
MongoDB software has been downloaded over 180 million times, Ittycheria told Cramer, adding that this is an impressive feat given there are only 25 million developers worldwide. People choose MongoDB for its flexibility, scalability and performance, he said.
When the company reported a smaller loss than expected after the first quarter, shares jumped.
When asked about profitability, Ittycheria said it would be silly for MongoDB to optimize on profits given the opportunities still in front of the company. The company will continue to focus on expanding reach and building market share for the foreseeable future.
Shares of MongoDB trade for 30 times earnings, while rivals like Snowflake (SNOW) - Get Report trade for over 70 times earnings. Although the stock grew steadily during the pandemic time frame over its historic base, it has shown peaks and valleys this spring and summer, falling back some in late June and July.