By Eric J. Savitz
MongoDB shares are down sharply in late trading after the provider of cloud-based database software provided disappointing guidance for both its April quarter and January 2025 fiscal year.
For the January quarter, MongoDB reported revenue of $458 million, up 27% from a year ago and ahead of Wall Street’s consensus as tracked by FactSet of $437 million. Adjusted profits of 86 cents a share were also above the Street’s consensus of 46 cents.
But the guidance was light.
For the April quarter, MongoDB projects revenue of between $436 million and $440 million, with adjusted profits of 34 to 39 cents a share; The Street consensus estimates had called for $452 million in revenue and profits of 62 cents.
For the January 2025 fiscal year, MongoDB sees revenue of between $1.9 billion and $1.93 billion, with profits of between $2.27 and $2.49 a share on an adjusted basis. That’s also short of the Wall Street consensus for $2.04 billion in revenue and profits on an adjusted basis of $3.27 a share.
MongoDB shares were down 12% in after-hours trading shortly after the report.
The soft outlook is likely to weigh on other cloud-related stocks, potentially spurring concern about weaker-than-expected growth in cloud computing. The news, in particular, seems to be pressuring shares of Datadog, which is down 1.8% in late trading Thursday.
MongoDB’s guidance miss follows a recent guidance disappointment from Snowflake, which is down another 0.5% in after-hours trading Thursday.
In announcing results, MongoDB said its forecast reflects the impact of over $80 million in revenue recorded in fiscal 2024 related to multiyear licenses that it does not expect to realize in fiscal 2025. Asked for further explanation of that comment, a spokesperson for MongoDB said the company would address the issue on its earnings call Thursday evening.
MongoDB also said that it will “continue to invest in our key product development and go-to-market initiatives to fully capitalize on our long-term growth opportunity.”
Write to Eric J. Savitz at eric.savitz@barrons.com