Looking back on data storage stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Commvault (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 4 data storage stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.5% while next quarter’s revenue guidance was in line.
Luckily, data storage stocks have performed well with share prices up 24.8% on average since the latest earnings results.
Commvault (NASDAQ:CVLT)
Born from the need to create ironclad protection in an increasingly dangerous digital world, Commvault (NASDAQ:CVLT) provides data protection and cyber resilience software that helps organizations secure, back up, and recover their data across on-premises, hybrid, and multi-cloud environments.
Commvault reported revenues of $282 million, up 25.5% year on year. This print exceeded analysts’ expectations by 5.2%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ annual recurring revenue estimates.
"Commvault delivered a strong start to the fiscal year, fueled by customer growth, disciplined execution, and rising demand for our industry-leading cyber resilience platform," said Sanjay Mirchandani, President and CEO, Commvault.
Commvault pulled off the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 12.5% since reporting and currently trades at $183.96.
Is now the time to buy Commvault? Access our full analysis of the earnings results here, it’s free.
Best Q2: Snowflake (NYSE:SNOW)
Named after the unique architecture of its data warehouse which resembles a snowflake pattern, Snowflake (NYSE:SNOW) provides a cloud-based data platform that enables organizations to consolidate, analyze, and share data across multiple cloud providers.
Snowflake reported revenues of $1.14 billion, up 31.8% year on year, outperforming analysts’ expectations by 4.9%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ billings estimates.
Snowflake pulled off the fastest revenue growth among its peers. The company added 48 enterprise customers paying more than $1 million annually to reach a total of 654. The market seems happy with the results as the stock is up 13% since reporting. It currently trades at $226.52.
Is now the time to buy Snowflake? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: DigitalOcean (NYSE:DOCN)
Built for simplicity in a world of complex cloud solutions, DigitalOcean (NYSE:DOCN) provides a simplified cloud computing platform that enables developers and small businesses to quickly deploy and scale applications.
DigitalOcean reported revenues of $218.7 million, up 13.6% year on year, exceeding analysts’ expectations by 1%. It may have had the worst quarter among its peers, but its results were still good as it also locked in full-year EPS guidance exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
DigitalOcean delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. Interestingly, the stock is up 23.2% since the results and currently trades at $33.30.
Read our full analysis of DigitalOcean’s results here.
MongoDB (NASDAQ:MDB)
Named after "humongous database," reflecting its ability to handle massive data loads, MongoDB (NASDAQ:MDB) provides a flexible document-based database platform that helps developers build, deploy, and maintain modern applications more efficiently.
MongoDB reported revenues of $591.4 million, up 23.7% year on year. This result beat analysts’ expectations by 6.8%. It was a very strong quarter as it also put up an impressive beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.
MongoDB scored the biggest analyst estimates beat among its peers. The company added 58 enterprise customers paying more than $100,000 annually to reach a total of 2,564. The stock is up 50.7% since reporting and currently trades at $323.
Read our full, actionable report on MongoDB 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.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.