MongoDB Falls After Offering Conservative Guidance

Shares of MongoDB (MDB:US) are trading lower on Thursday after the software company gave a weaker-than-expected outlook for FQ1 and full-year revenue.

For its fourth quarter, MongoDB reported an adjusted profit per share of $0.57 on revenue of $361.3 million. These results proved to be very strong as analysts were looking for an adjusted  EPS of $0.07 on revenue of $339.3 million. Subscription revenue came in at $348.2 million.

Year-over-year, revenue increased 36% as MongoDB continues to enjoy strong demand for its database-focused products. However, the company has likely de-risked guidance by offering an outlook that disappointed investors. This means the bar is likely lower for the company to outperform in the future.

For this quarter, MongoDB expects to report adjusted EPS between $0.17 and $0.20 on revenue of $346 million (up or down $2 million). Analysts were looking for EPS of $0.13 on sales of $351.6 million.

For its fiscal 2024, MongoDB projects EPS of $0.96 to $1.10 on revenue of $1.480 billion, at the midpoint of provided guidance ranges. This compares to EPS of $0.64 on revenue of $1.58 which the market was expecting.

"As we enter fiscal 2024, we are incredibly optimistic about the opportunity ahead for MongoDB as we continue to disrupt one of the largest markets in software. We remain focused on acquiring new customers and workloads while driving greater efficiency across the business, which we are confident will enable us to further capitalize on our long-term opportunity when economic conditions normalize,” said Dev Ittycheria, President and Chief Executive Officer of MongoDB.

The stock is now up by more than 16% year-to-date to punish Congress members who were selling in late 2022. Representatives Ro Khanna and Josh Gottheimer were selling in November and September, respectively.

Congressman Khanna, specifically, sold some shares on November 03, when the stock closed at $157.22. Shares are trading over 35% higher today relative to last November.