MongoDB Stock Is Moving Lower Wednesday: What's Going On?

MongoDB Inc MDB shares are trading lower Wednesday after the company reported third-quarter financial results. Here's a rundown of the report.

• Q3 Revenue: $432.9 million beat estimates of $403.65 million
• Q3 EPS: 96 cents beat estimates of 50 cents

Revenues were up 30% year-over-year. Cash from operations totaled $38.4 million in the quarter. MongoDB generated $35 million in free cash flow in the third quarter compared to negative free cash flow of $8.4 million in the comparable quarter last year.

The company ended the quarter with $1.9 billion in cash, equivalents, restricted cash and short-term investments.

"MongoDB continued to perform at a high level in the third quarter, as evidenced by 30% revenue growth and better-than-expected profitability. We are pleased by our success in winning new workloads from both new and existing customers across verticals, geographies, and customer segments," said Dev Ittycheria, president and CEO of MongoDB.

Guidance: MongoDB expects fourth-quarter revenue to be between $429 million and $433 million versus estimates of $413.94 million. The company anticipates full-year 2024 revenue of $1.654 billion to $1.658 billion versus estimates of $1.61 billion.

MongoDB sees fourth-quarter adjusted earnings in the range of 44 cents to 46 cents per share versus estimates of 37 cents per share. The company expects full-year 2024 earnings of $2.89 to $2.91 per share versus estimates of $2.35 per share.

Analyst Changes: 

• Piper Sandler analyst Brent Bracelin maintained MongoDB with an Overweight and raised the price target from $425 to $500.
• Needham analyst Mike Cikos maintained MongoDB with a Buy and raised the price target from $445 to $495.
• Barclays analyst Raimo Lenschow maintained MongoDB with an Overweight and raised the price target from $470 to $478.

See Also: SentinelOne To Rally Around 65%? Here Are 10 Top Analyst Forecasts For Wednesday

MDB Price Action: MongoDB shares were down 4.84% at $412.66 at the time of writing according to Benzinga Pro.

Photo: Boskampi from Pixabay.