MongoDB, the cloud-based database management system, reported Q4 results that beat estimates on both the top and bottom lines. The company reported adjusted earnings per share (EPS) of $0.57 on revenue of $361.3 million, exceeding estimates of $0.07 and $339.3 million, respectively. MongoDB attributed its earnings beat to strong revenue growth, driven by new enterprise customer wins.
In a statement, the company said, “Our continued new business momentum is driven in part by an increasing number of enterprise customers looking to standardize on MongoDB’s developer data platform to accelerate innovation while driving greater operational efficiency in their business.”
Soft Guidance Sends Shares Down
Despite its Q4 beat, MongoDB shares fell over 11% following the release of its earnings report. The company provided softer than expected revenue guidance for Q1 and fiscal year 2024.
For Q1, MongoDB forecasts adjusted EPS of $0.17 to $0.20 on revenue of $344 million to $348 million. Wall Street estimates had predicted an EPS of $0.13 on revenue of $352.6 million. For fiscal year 2024, adjusted EPS was guided in a range of $0.96 to $1.10, topping estimates of $0.64. However, revenue is expected to fall between $1.48 billion and $1.51 billion, missing estimates of $1.58 billion.
Analysts Weigh In on MongoDB’s Results
Guggenheim analysts said the conservative guidance provided by MongoDB means that the outlook is now de-risked. They noted that even if MongoDB achieves the 28% growth in FY24 that they believe it can, that still represents a material deceleration compared to the 47% growth in FY23.
Meanwhile, Morgan Stanley analysts said that the more pronounced seasonality in December and January weighed on customer consumption trends, and the impact was broad-based. They view the slowdown as cyclical rather than secular and remain optimistic on the long-term opportunity.
In conclusion, MongoDB reported Q4 results that exceeded expectations, driven by new enterprise customer wins. However, the company’s softer than expected revenue guidance for Q1 and fiscal year 2024 sent shares down over 11%. Analysts note that the slowdown is cyclical rather than secular, and they remain optimistic about the long-term opportunity for the company.