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MongoDB (MDB) is a $27 billion provider of datacenter solutions and is a key alternative to AWS and Azure because developers seem to love the platform.
Mongo has established itself as the clear next-generation, NoSQL, general purpose database leader with over $2B of annualized revenue growing at 20%+ and its core Atlas product growing high double-digits. Based on its large total addressable market, their growing platform capabilities position MongoDB for strong growth for many years.
But despite a big earnings beat on March 7, MongoDB slipped into the cellar of the Zacks Rank this week on weaker guidance that forced analysts to lower their growth projections.
MongoDB forecast revenue growth in a range of +13% to +15% for its current FY’25 that began Feb. 1. The guidance lagged consensus views of 22% increase.
For fiscal 2025, MongoDB expects revenues between $1.9 billion and $1.93 billion. And non-GAAP net income per share is anticipated between $2.27 and $2.49.
This news compelled analysts to lower this year’s EPS consensus 19% from $3.08 to $2.49, representing a -25% drop in annual profits.
Quarter Details
MongoDB reported Q4 FY24 (ended January) adjusted earnings of 86 cents per share, which beat the Zacks Consensus Estimate by 86.96% and increased 50.9% year over year.
Revenues of $457.5 million jumped 26.6% year over year and surpassed the consensus mark by 6.02%.
MongoDB’s subscription revenues accounted for 97.1% of revenues and totaled $444.3 million, up 27.6% year over year. Services revenues declined 0.5% year over year to $13.1 million, contributing 2.9% to revenues.
Increased User Base
MongoDB added 1,400 customers sequentially to reach 47,800 at the end of the quarter under review. Of this, more than 7,000 were direct-sales customers.
The company’s Atlas revenues soared 34% year over year, contributing 68% to total revenues. Atlas had more than 46,300 customers at the end of the reported quarter, adding 1,400 customers sequentially.
MongoDB ended the quarter with 2,052 customers (with at least $100K in ARR) compared with 1,651 in the year-ago quarter.
Bottom line: Most analysts remain bullish on MongoDB and see the lowered guidance as a temporary blip that the company will quickly overcome in the next few quarters.
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