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  • Writer's pictureRealFacts Editorial Team

MongoDB Shares Plunge 26% Amid Slowed Growth and Reduced Forecast


MongoDB building

MongoDB saw a big drop in its stock price, falling by up to 26% in after-hours trading after releasing its quarterly guidance and adjusting its full-year forecast. Although it did better than expected, with earnings per share of 51 cents and revenue of $450.6 million compared to estimates of 40 cents and $439.7 million, respectively, investors were disappointed by the company’s future outlook. This quarter marked the third in a row of slowing revenue growth, a big change from the 57% growth reported two years ago. MongoDB reported a net loss of $80.6 million, or $1.10 per share, compared to $54.2 million, or 77 cents per share, in the same quarter last year.


For the next quarter, MongoDB expects adjusted earnings per share between 46 to 49 cents and revenue of $460 million to $464 million, falling short of analysts’ expectations of 58 cents per share and $470.4 million in revenue. The company also adjusted its full-year forecast to adjusted earnings per share of $2.15 to $2.30 and revenue between $1.88 billion and $1.90 billion, showing a growth rate of 12%. This adjustment from the previous guidance, which predicted earnings per share of $2.27 to $2.49 and revenue of $1.90 billion to $1.93 billion, didn’t meet analysts’ expectations of $2.50 per share on $1.93 billion in revenue. In CNBC’s article ”MongoDB shares sink 23% after management trims guidance,” Jordan Novet quotes MongoDB’s President and CEO, Dev Ittycheria, saying ”We had a slower than expected start to the year for both Atlas consumption growth and new workload wins, which will have a downstream impact for the remainder of fiscal 2025,” Dev attributes the lower guidance to a slower-than-anticipated start in both Atlas consumption growth and new workload wins, citing macroeconomic challenges as contributing factors.


During an analyst call, Ittycheria emphasized that MongoDB isn’t losing market share to competitors despite these challenges and remains confident in its long-term prospects. Atlas, MongoDB’s cloud-based database service, now makes up 70% of the company’s total revenue, showing its importance to the business. However, broader economic conditions have led to slower growth in new business, echoing sentiments from other tech companies like Salesforce, which also reported delays in closing deals. Before this drop, MongoDB shares had already fallen by 24% this year, lagging behind the S&P 500’s 10% gain over the same period, showing the tough environment the company is operating in.

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