MongoDB, a prominent database software company, reported robust fiscal fourth-quarter earnings that surpassed analyst expectations. However, a conservative outlook for the upcoming fiscal year led to a significant decline in the company’s stock during after-hours trading.
Fourth-Quarter Performance
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Adjusted Earnings: MongoDB reported adjusted earnings of $1.28 per share, significantly higher than the anticipated 66 cents per share.
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Revenue: The company’s revenue reached $548.4 million for the quarter, exceeding analyst projections of $521 million.
Guidance for Fiscal Year 2026
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Earnings Forecast: The company expects adjusted earnings between $2.44 and $2.62 per share for the fiscal year ending January 2026, below Wall Street’s expectation of $3.38 per share.
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Revenue Projection: MongoDB projects sales between $2.24 billion and $2.28 billion, slightly under the anticipated $2.33 billion.
Market Reaction
Following the release of the earnings report and the conservative guidance, MongoDB’s stock experienced a decline of over 16% in after-hours trading, dropping to $219.98. Prior to the announcement, the stock had gained 3.8% during regular trading hours.
Company Outlook
Despite the market’s reaction, MongoDB’s CEO, Dev Ittycheria, expressed optimism about the company’s performance, highlighting a 24% growth in Atlas revenue and significant margin expansion. He emphasized the platform’s flexibility, scalability, and performance as key factors in winning new workloads.
Analyst Perspectives
Analysts note that while the short-term guidance is conservative, MongoDB’s fundamentals remain strong. The company’s ability to adapt to evolving market demands and its robust product offerings position it well for long-term growth, despite current market fluctuations.
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