MongoDB Shares Are Trading Down Today: What's Going On?

MongoDB, Inc. MDB shares are trading lower Tuesday following the release of the company’s fiscal third-quarter earnings. Here’s what you need to know.

What To Know: MongoDB reported earnings of $1.16 per share, higher than the analyst consensus estimate of 69 cents. Revenue for the quarter came in at $529.4 million, beating the expected $497.75 million and reflecting an increase from $432.94 million in the same period last year.

Subscription revenue grew by 22% year-over-year to $512.2 million, while services revenue rose by 18% to $17.2 million. MongoDB’s non-GAAP gross margin remained steady at 77%, consistent with the prior year.

Dev Ittycheria, MongoDB's president and CEO, attributed the strong performance to the company's developer data platform, citing better-than-expected enterprise advanced sales and a 26% increase in Atlas revenue.

The company provided optimistic guidance for the fourth quarter, as well as for fiscal year 2025. For the fourth quarter, MongoDB expects revenue between $515 million and $519 million, versus estimates of $506.13 million. The company anticipates adjusted earnings of 62 cents to 65 cents per share, versus estimates of 56 cents per share.

For fiscal 2025, MongoDB anticipates revenue in the range of $1.973 billion to $1.977 billion, versus estimates of $1.93 billion. The company expects adjusted earnings between $3.01 and $3.03 per share, versus estimates of $2.47 per share.

Despite the strong quarterly results and upbeat guidance, MongoDB shares are trading down nearly 13%. The decline comes after significant gains in recent months, suggesting investors may be taking profits.

The company also announced that COO and CFO Michael Gordon will step down on Jan. 31 2025. Serge Tanjga will take over as Interim CFO beginning Feb. 1 if a replacement is not appointed by then.

Several analysts lifted price targets for MongoDB following the company’s quarterly results:

• Piper Sandler: Maintains Overweight; target $425.
• Needham: Maintains Buy; raises target from $335 to $415.
• Barclays: Maintains Overweight; raises target from $375 to $400.
• Morgan Stanley: Maintains Overweight; raises target from $340 to $350.
• Mizuho: Maintains Neutral; raises target from $275 to $320.
• Baird: Maintains Outperform; raises target from $380 to $390.
• Scotiabank: Maintains Sector Perform; raises target from $295 to $350.
• Goldman Sachs: Maintains Buy; raises target from $340 to $390.
• RBC Capital: Maintains Outperform; raises target from $350 to $400.
• DA Davidson: Maintains Buy; raises target from $340 to $405.

MDB Price Action: MongoDB shares were down 12.8% at $305.51 at the time of writing, according to Benzinga Pro.

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