MongoDB Shares Plunge 25% on Weaker-than-Expected Guidance

MongoDB (NASDAQ:MDB) reported first-quarter earnings that exceeded analyst expectations, yet the company's stock dropped more than 25% intra-day today due to lower-than-anticipated guidance for the upcoming quarter and fiscal year.

For the first quarter of 2025, MongoDB posted adjusted earnings per share (EPS) of $0.51, surpassing the Street estimate of $0.38. Revenue was also strong, coming in at $450.6 million, higher than the projected $440.8 million.

This marks a 22% increase in total revenue compared to the same quarter last year, with subscription revenue up 23% and services revenue showing a modest 1% rise. MongoDB Atlas, the company's cloud database service, saw significant growth of 32% year-over-year, contributing 70% of the total first-quarter revenue.

Despite the robust revenue performance, the company’s guidance for Q2 and 2025 was below Wall Street expectations. The company forecasts Q2 EPS between $0.46 and $0.49, compared to the analyst expectation of $0.58. Revenue projections for Q2 are between $460 million and $464 million, falling short of the Street estimate of $470 million.

For the full year, MongoDB anticipates adjusted EPS between $2.15 and $2.30, with revenue ranging from $1.88 billion to $1.9 billion, both below the analyst consensus of $2.50 EPS and $1.93 billion in revenue.

President and CEO Dev Ittycheria mentioned that a slower start to the year for Atlas consumption growth and new workload wins could impact the company's performance for the rest of fiscal 2025. However, he remains optimistic about MongoDB's market potential and its ability to capitalize on the next wave of AI-powered application development, thanks to its document-based architecture.