5 MongoDB Analysts Are Disappointed: 'Tepid Growth' Overshadows Q4 Revenue Beat

Shares of MongoDB Inc MDB continued to slide in early trading on Thursday, after the company reported disappointing revenue guidance.

• Needham analyst Mike Cikos maintained a Buy rating, while raising the price target from $240 to $250.
• Mizuho Securities analyst Matthew Broome reiterated a Neutral rating, while reducing the price target from $220 to $180.
• Piper Sandler analyst Brent Bracelin reiterated an Overweight rating and price target of $270.
• Oppenheimer analyst Ittai Kidron reaffirmed an Outperform rating and price target of $270.
• RBC Capital Markets analyst Rishi Jaluria maintained an Outperform rating and price target of $235.

Check out other analyst stock ratings.

Needham

• “MongoDB's FY24 Revenue guidance for 15%-18% was below buy-side expectations, which had drifted down to 20%-21% (19% in more extreme scenarios),” Cikos wrote in a note.
• “The guidance shortfall reflects a difficult yr-yr comparison for Enterprise Advanced, and sustained macro headwinds to Atlas as existing workloads grow below historical rates,” he added.

Mizuho Securities

• “While MDB reported meaningful F4Q revenue upside, we believe the beat was largely in line with investor expectations,” Broome said. “More importantly, weaker-than-expected consumption trends over the holiday period will impact top line growth in FY24, with initial revenue guidance coming in well below Street expectations."
• The company's increased cost discipline is "a welcome development," Broome added. Yet, it also implies fewer opportunities to make profitable investments.

Piper Sandler

• The company’s “tepid” growth guidance for fiscal 2024 overshadowed strong fourth-quarter results, Bracelin stated.
• “Once again, we find ourselves trying to decipher whether macro headwinds could pressure growth to 16% or if the reset FY24 model is now derisked,” he added.

Oppenheimer

• MongoDB’s fourth-quarter results were “mixed,” but guidance came below expectations, “as the macro environment impacted consumption,” Kidron said.
• “While trends improved in February, consumption growth remains below historical norms and is expected to remain pressured through FY24,” he added.

RBC Capital Markets

• “MongoDB delivered a decent quarter but a soft FY24 revenue outlook,” Jaluria wrote in a note.
• “We do believe the outlook includes a healthy dose of conservatism, we are encouraged by healthy new business trends, and we think the path to meaningful profitability is starting to materialize,” he added.

MDB Price Action: Shares of MongoDB had declined by 6.79% to $213.17 at the time of publication Thursday.