MongoDB Shares Plummet After Earnings Miss, CFO Retires

MongoDB shares fell drastically after a disappointing earnings report and CFO retirement. Analysts note concerns over revenue forecasts, while management remains optimistic about future growth in AI applications.

Date: 08-01-2025

AI Rating: 4

Earnings Per Share (EPS): MongoDB reported an adjusted EPS of $1.16, indicating a growth of 21%. This suggests that despite the stock's decline, the company's profitability metrics improved and beat analyst expectations.

Revenue Growth: The revenue grew by 22% to $529 million. However, the forward guidance forecasts a revenue between $515 million and $519 million, which is a significant reduction from the previous year's fourth quarter. This deceleration likely contributed to the negative reaction from investors.

Concerns and Optimism: The stock's downturn seems linked to a disappointing earnings report compounded by C-suite turnover, with investors generally wary of such changes, especially involving long-standing executives. Yet, the management remains optimistic about MongoDB's growth, particularly related to AI applications. They anticipate that once AI apps are fully utilized, the demand for MongoDB's database services will rebound.

Future Considerations: The Atlas database-as-a-service product accounts for 68% of the total revenue and is witnessing growth that is still outpacing the overall company rate at 26%, although this is a decline from 36% year-over-year. This decline can be attributed to cautious spending by customers amidst AI-related uncertainties, suggesting that a shift in market dynamics could affect MongoDB's revenue growth in the near term.

Stocks: MDB