MongoDB stock tumbled late Thursday, despite the database software company reporting quarterly earnings and sales that exceeded expectations. The company’s outlook for the current quarter fell short of consensus.
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MongoDB (MDB) said that it earned an adjusted 86 cents per share on sales of $458 million for the January quarter. On average, analysts projected the New York-based company would post adjusted earnings of 46 cents per share on sales of $437 million, according to FactSet.
Earnings per share increased by 51% year over year while sales advanced 27%. The quarter marks the end of MongoDB’s fiscal 2024 period.
For the current quarter, MongoDB guided for sales of $438 million, based on the midpoint of its range. Analysts were projecting MongoDB would tally $452 million in sales for the April-ending quarter, according to FactSet. For the full fiscal year ending in January 2025, MongoDB projected sales of $1.90 billion to $1.93 billion. Analysts were looking for $2.04 billion, according to FactSet.
Further, the company guided for adjusted earnings per share of 34 cents and 39 cents for its April-ending quarter, compared with expectations of 62 cents per share.
On the stock market today, MongoDB stock fell more than 11% to 363 in recent after-hours action.
MongoDB AI Push
Chief Executive Dev Ittycheria said in a news release that the company is seeing “healthy new workload wins as MongoDB’s developer data platform increasingly becomes the standard for modern application development.”
MongoDB’s main platform, Atlas, is a leading provider of what’s known as a NoSQL, or nonrelational, database. Sales for the subscription-based Atlas increased 34% for the quarter, while MongoDB’s overall subscription revenue rose 28% to $445 million for the January period.
Further, the company said it reached more than 47,800 customers in the January quarter, up 17% year over year. Meanwhile, 2,052 of those customers pay more than $100,000 annually, MongoDB said, an increase of 24% from a year earlier.
MongoDB narrowed its net loss for the quarter to $55.5 million, from $64 million in the same period a year earlier. On a non-GAAP basis, MongoDB’s net income was $71.1 million for the three months ending in January.
MongoDB Stock: Technical Ratings
Prior to earnings, MongoDB stock had gained less than 1% in Thursday trading. Shares have gained 7% so far this year and more than 80% in the past 12 months.
MongoDB stock surged last year as it launched new products focused on generative artificial intelligence. The company’s advanced database software has made it a popular pick among analysts for AI-related growth.
Coming into the report, MongoDB stock had a perfect IBD Composite Rating of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
But MongoDB’s IBD Relative Strength Rating was 84 out of 99. Relative Strength measures a stock performance against the broader market. MongoDB’s RS score is down since February, when the stock began retreating from a 52-week high of 509.62, according to IBD MarketSurge.
MongoDB stock is on the IBD Tech Leaders list,
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Read More:MongoDB Stock Tumbles After Guidance Comes In Below Expectations
2024-03-07 22:14:00
