MongoDB: Our Fair Value Estimate Rises Along With Our Confidence as Relational Win Opportunity Grows

After MongoDB's annual investor session, we are increasing our fair value estimate to $379 per share from $335 to reflect our increased confidence in the company's ability to convert legacy relational customers to its document-based, nonrelational platform. We previously were more conservative on the opportunity here, as the road to such conversions is extremely complex. However, on June 22, the company announced the general availability of Relational Migrator, which simplifies the process of legacy relational database users moving to MongoDB's platform. In addition, we've been tracking impressive wins from Oracle, such as China Mobile (announced with the last earnings results), which moved a subset of workloads to MongoDB that ended up increasing performance by 80%.