MongoDB, the most popular database for modern apps beat analysts’ earnings estimates on Friday when its stock price surged by roughly 25% CNBC reported.
Founded in 2007, MongoDB’s market cap has grown past $32 billion, putting it within reach of becoming the most valuable open-source company on record.
By the time of its IPO in 2017, MongoDB was worth $1.2 billion. It’s now the only publicly traded open-source company valued at $30 billion or more.
Open-source software is code that is designed to be publicly accessible. Anyone can see, modify, and distribute the code as they see fit.
The software is generally available free of charge, but companies build commercial businesses around it by offering add-on services such as customization, consulting and support, or by packaging disparate open-source tools into proprietary product suites.
Companies like MongoDB that have developed market-leading products that work rapidly across the major cloud vendors Amazon, Microsoft and Google, are thriving as customers invest in moving their data and applications from traditional data centres to the cloud.
Second-quarter revenue of MongoDB grew by 44% to $199 million, while its Atlas cloud database grew 83% and now makes up more than half of total revenue.
According to CNBC, the company now has 29,000 customers, ranging from stalwarts like Toyota, AT&T, Morgan Stanley and Verizon, to “cutting-edge start-ups” like UiPath and DataRobot.
What you should know
Other stocks in the open-source space are rewarding investors greatly.
Confluent, a data analytics provider is worth more than $15 billion after climbing 64% since its IPO in June.
Elastic, a company that offers solutions for enterprise search through open-source tools, is valued at about $15 billion and has almost quintupled since going public in 2018.