MongoDB 2025 Revenue Forecast Slumps by $80M, Stock Drops Over 6%
MongoDB projects a revenue shortfall and higher labor costs in 2025, leading to a significant stock decline despite strong past quarter results.
Bill McColl brings over 25 years of expertise as a senior producer and writer across TV, radio, and digital media, leading teams in delivering impactful news coverage on major global events.
Essential Highlights
- MongoDB Inc. issues cautious earnings guidance, anticipating a loss of business in fiscal 2025 that impacts revenue projections.
- The company expects an $80 million revenue reduction due to unfulfilled multi-year licenses and unused Atlas commitments.
- Plans to expand workforce will increase labor expenses, contributing to a forecasted dip in operating margins.
Shares of MongoDB Inc. (MDB) dropped more than 6% following the announcement of earnings guidance that fell short of market expectations, driven by anticipated business losses in the upcoming fiscal year.
On Thursday, MongoDB projected its current quarter earnings per share (EPS) to range between $0.34 and $0.39, with revenue estimates from $436 million to $440 million. For the full fiscal year, EPS is expected between $2.27 and $2.49, alongside revenue forecasts of $1.90 billion to $1.93 billion—figures below analyst predictions.
The company highlighted that these projections account for over $80 million in fiscal 2024 revenue tied to multi-year licenses and unutilized Atlas cloud commitments unlikely to be realized in fiscal 2025. Atlas is MongoDB's cloud database platform operating on major providers including Amazon AWS, Google Cloud, and Microsoft Azure.
CFO Michael Gordon informed analysts that MongoDB anticipates increased labor costs due to a planned mid-teens percentage growth in headcount this year, which will pressure operating margins downward compared to fiscal 2024.
Despite this, MongoDB reported a strong Q4 with EPS of $0.86 and a 27% year-over-year revenue increase to $458 million, surpassing expectations.
Prior to the recent selloff, MongoDB shares had surged over 100% year-over-year, maintaining an approximate 84% gain. As of 1:55 p.m. ET, the stock traded down 6.8% at $383.97.
Discover the latest news and current events in Markets News as of 13-03-2024. The article titled " MongoDB 2025 Revenue Forecast Slumps by $80M, Stock Drops Over 6% " provides you with the most relevant and reliable information in the Markets News field. Each news piece is thoroughly analyzed to deliver valuable insights to our readers.
The information in " MongoDB 2025 Revenue Forecast Slumps by $80M, Stock Drops Over 6% " helps you make better-informed decisions within the Markets News category. Our news articles are continuously updated and adhere to journalistic standards.