NEW YORK - MongoDB , Inc. (NASDAQ: NASDAQ:MDB) reported a significant beat on earnings for the fourth quarter, but shares declined sharply due to lower-than-expected guidance for the upcoming fiscal year and first quarter.
The database platform provider announced an adjusted EPS of $0.86 for Q4, outperforming the analyst consensus of $0.46. Revenue for the quarter reached $458 million, surpassing the consensus estimate of $437.18 million and marking a 27% increase YoY.
However, MongoDB's stock fell 11.49% in after-hours trading as the company's guidance for fiscal year 2025 and the first quarter came in below Wall Street expectations. For FY2025, MongoDB forecasts adjusted EPS between $2.27 and $2.49, compared to the consensus estimate of $3.54. Revenue guidance for the year is set at $1.9 to $1.93 billion, while analysts had predicted $2.03 billion. The first quarter outlook is also dim, with expected EPS of $0.34 to $0.39 and revenue between $436 and $440 million, both falling short of the consensus estimates of $0.62 and $447.5 million, respectively.
MongoDB's President and CEO, Dev Ittycheria, highlighted the company's 34% year-over-year growth in Atlas (NYSE:ATCO) revenue and nearly a five-percentage-point improvement in operating margin. The company's customer base also expanded, now exceeding 47,800 as of January 31, 2024. Ittycheria emphasized MongoDB's commitment to investing in product development and go-to-market initiatives to leverage long-term growth opportunities.
Despite the robust fourth-quarter performance, investors are reacting to the cautious guidance, which reflects an $80 million impact from non-recurring FY24 revenue that the company does not expect to realize in FY25. This includes multi-year term licenses and unused Atlas commitments.
MongoDB's financial health remains strong, with $2.0 billion in cash, cash equivalents, short-term investments, and restricted cash as of January 31, 2024. The company also generated $54.6 million in cash from operations during the fourth quarter, leading to a free cash flow of $50.5 million.
Looking ahead, MongoDB will continue to expand its Atlas platform, which now represents 68% of total Q4 revenue and has seen a 34% increase YoY. The platform's global availability across major cloud providers positions it to meet diverse customer needs for data residency, latency, and high availability.
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