MongoDB, Inc. (NASDAQ: MDB) Earnings Preview: Key Insights and Analyst Expectations

• Wall Street analysts set the EPS expectation at $0.64 for the quarter ending January 2025, with projected revenue of approximately $519.8 million.
• The anticipated EPS represents a 25.6% decline compared to the previous year, despite a 13% increase in revenue.
• Goldman Sachs analyst maintains a Buy rating following MongoDB's acquisition of Voyage AI, expected to enhance its AI capabilities significantly.

MongoDB, Inc. (NASDAQ: MDB) is a prominent player in the modern database applications sector. The company is known for its innovative solutions that cater to a wide range of data management needs. As MDB prepares to release its quarterly earnings on March 5, 2025, Wall Street analysts have set their expectations for the earnings per share (EPS) at $0.64, with projected revenue of approximately $519.8 million.

The anticipated EPS of $0.64 for the quarter ending January 2025 represents a 25.6% decline compared to the previous year. Over the past month, the consensus EPS estimate has remained unchanged, indicating stability in analysts' projections. This stability suggests that analysts have confidence in their initial assessments, which can influence investor reactions and short-term stock price movements. Changes in earnings projections are crucial, as they often correlate with stock price fluctuations, as highlighted by empirical studies.

Goldman Sachs analyst Kash Rangan has maintained a Buy rating for MongoDB following its acquisition of Voyage AI. This $220 million cash-and-stock deal is expected to enhance MongoDB's AI capabilities significantly. The integration of Voyage AI's advanced models is anticipated to improve the creation of AI applications, offering better contextual relevance and cost efficiency. This strategic move positions MongoDB favorably within the modern data stack.

Financially, MongoDB has a negative price-to-earnings (P/E) ratio of approximately -95.69, indicating negative earnings. The price-to-sales ratio is about 10.07, suggesting investors are willing to pay over ten times the company's sales per share. The enterprise value to sales ratio is around 10.32, reflecting the company's valuation relative to its sales. Despite these figures, MongoDB maintains a moderate debt-to-equity ratio of approximately 0.77 and a current ratio of about 1.70, indicating good short-term liquidity.