Looking back on data storage stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Commvault Systems (NASDAQ: CVLT) and its peers.
Data is the lifeblood of the internet and software in general, and the amount of data created is accelerating. As a result, the importance of storing the data in scalable and efficient formats continues to rise, especially as its diversity and associated use cases expand from analyzing simple, structured datasets to high-scale processing of unstructured data such as images, audio, and video.
The 5 data storage stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 7.1% on average since the latest earnings results.
Best Q1: Commvault Systems (NASDAQ: CVLT)
Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ: CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention, and compliance.
Commvault Systems reported revenues of $275 million, up 23.2% year on year. This print exceeded analysts’ expectations by 4.8%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.
"It was a record-breaking year at Commvault," said Sanjay Mirchandani, President and CEO.
Commvault Systems pulled off the biggest analyst estimates beat and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 15.2% since reporting and currently trades at $190.99.
Is now the time to buy Commvault Systems? Access our full analysis of the earnings results here, it’s free.
MongoDB (NASDAQ: MDB)
Started in 2007 by the team behind Google’s ad platform, DoubleClick, MongoDB offers database-as-a-service that helps companies store large volumes of semi-structured data.
MongoDB reported revenues of $549 million, up 21.9% year on year, outperforming analysts’ expectations by 4.1%. The business had a very strong quarter with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 8.4% since reporting. It currently trades at $216.65.
Is now the time to buy MongoDB? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: DigitalOcean (NYSE: DOCN)
Started by brothers Ben and Moisey Uretsky, DigitalOcean (NYSE: DOCN) provides a simple, low-cost platform that allows developers and small and medium-sized businesses to host applications and data in the cloud.
DigitalOcean reported revenues of $210.7 million, up 14.1% year on year, exceeding analysts’ expectations by 1%. Still, it was a mixed quarter as it posted EPS guidance for next quarter missing analysts’ expectations.
DigitalOcean delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 11.5% since the results and currently trades at $28.98.
Read our full analysis of DigitalOcean’s results here.
Couchbase (NASDAQ: BASE)
Formed in 2011 with the merger of Membase and CouchOne, Couchbase (NASDAQ: BASE) is a database-as-a-service platform that allows enterprises to store large volumes of semi-structured data.
Couchbase reported revenues of $56.52 million, up 10.1% year on year. This number surpassed analysts’ expectations by 1.7%. Aside from that, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EBITDA estimates.
Couchbase had the slowest revenue growth among its peers. The stock is up 5.6% since reporting and currently trades at $19.60.
Read our full, actionable report on Couchbase here, it’s free.
Snowflake (NYSE: SNOW)
Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake (NYSE: SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.
Snowflake reported revenues of $1.04 billion, up 25.7% year on year. This result topped analysts’ expectations by 3.4%. More broadly, it was a satisfactory quarter as it also logged an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates.
Snowflake achieved the fastest revenue growth among its peers. The company added 26 enterprise customers paying more than $1 million annually to reach a total of 606. The stock is up 17.7% since reporting and currently trades at $210.85.
Read our full, actionable report on Snowflake here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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