MongoDB Inc. (NASDAQ) Reports Strong Q1 Earnings, Faces Market Backlash on Cautious Outlook

MongoDB Inc. (NASDAQ) delivered robust first-quarter earnings that surpassed analyst expectations, yet faced a significant downturn in its stock price due to cautious guidance for the upcoming quarter and fiscal year.

Earnings Performance

In the first quarter of fiscal 2025, MongoDB posted adjusted earnings per share (EPS) of $0.51, outperforming the consensus estimate of $0.38. Revenue for the quarter also exceeded expectations, reaching $450.6 million compared to analysts' predictions of $440.8 million.

• Total revenue saw a 22% YoY increase, with subscription revenue up 23% and services revenue witnessing a modest 1% rise.
• MongoDB Atlas, the cloud database service, experienced notable 32% growth YoY, contributing 70% to total first-quarter revenue.

Market Reaction

Despite strong revenue performance, MongoDB's stock plummeted nearly 25% in premarket trading as investors reacted to the company's cautious outlook.

Guidance Concerns

MongoDB's guidance for the second quarter and full fiscal year 2025 fell short of Wall Street estimates.

• Q2 EPS is forecasted in the range of $0.46 to $0.49, below analysts' expectations of $0.58.
• Revenue projections for Q2 are set between $460 million and $464 million, missing the consensus estimate of $470 million.
• Full-year adjusted EPS is anticipated between $2.15 and $2.30, with revenue expected to be between $1.88 billion and $1.9 billion, both below analyst consensus.

CEO's Statement

President and CEO Dev Ittycheria attributed the cautious outlook to a slower start in Atlas consumption growth and new workload wins, factors that could impact performance for the remainder of fiscal 2025.

Key Takeaways

1. Strong Performance: MongoDB delivered impressive Q1 earnings, driven by robust revenue growth, particularly in its Atlas cloud database service.
2. Market Backlash: Despite exceeding expectations, the company faced a significant market downturn due to cautious guidance for the upcoming quarters.
3. Guidance Factors: MongoDB cited slower growth in Atlas consumption and new workload wins as reasons for the conservative outlook.

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