MongoDB (MDB +10%) is increasing today after beating on earnings and revenue for Q1 (Apr). The stock is also up despite MongoDB guiding Q2 (Jul) earnings under consensus. The strong sales of the company’s Atlas product are inspiring investors.

The open-source non-structured database company has been on a magnificent run since going public in October 2017, never missing on earnings or revenue. However, the stock is down at roughly 30% from February’s highs. Although the company has yet to show a profit, it is believed that a lot of its selloff is more macro-related, as investors are circling from tech and growth stocks into re-opening and value stocks.

MongoDB has transformed itself from other database companies by using a non-structured query language (NoSQL), which allows for more flexible data management over traditional structured query language (SQL). Simply put, MongoDB is not narrowed down to storing just phone numbers, for instance, but can store phone numbers, addresses, names, etc. all on one preliminary plan, which is a data blueprint. Furthermore, MongoDB is moving toward offering its products through MongoDB Atlas, its cloud product.

Overall, Q1 was another impressive quarter for MDB, starring another big beat and strong Atlas demand. Like many cloud-based software companies, MDB needs to spend money to extend its cloud business. As such, MDB is not expected to reach positivity in the near term — analysts are forecasting losses for the next several years. However, given the impressive growth in MDB’s Atlas cloud business, profitability is not weighing on investors’ minds today. Thus, we see Q1 as a good indication for MDB’s ongoing growth, and after the stock’s recent selloff, it could also act as a strong entry point.