The stock of MongoDB (MDB) has plummeted 18% as weak forward guidance overshadowed strong fourth-quarter 2024 financial results from the database software company.
New York-based MongoDB announced earnings per share (EPS) of $1.28, which was well ahead of the $0.66 expected among analysts. Revenue in the period totaled $548.4 million, which was ahead of Wall Street forecasts that called for $521 million. Sales rose 20% year-over-year.
Unfortunately, the strong print was completely overshadowed by a weak outlook for the current year that fell short of analyst estimates. For the current quarter, MongoDB guided for sales of $526.5 million. Analysts were projecting $527.3 million for the company’s sales.
Disappointing Outlook
MongoDB’s projection for earnings of $0.65 a share in the current quarter beat expectations that called for $0.62 a share. However, the company’s full-year guidance came in far below expectations, with management saying they expect earnings of $2.44 to $2.62 per share and sales of $2.24 billion to $2.28 billion.
Wall Street was anticipating full-year earnings of $3.38 a share and sales of $2.33 billion. “We continue to see good performance in new workload wins due to the flexibility, scalability and performance of the MongoDB platform,” said CEO Dev Ittycheria in the company’s earnings release.
MDB stock has fallen 36% over the last 12 months.
Is MDB Stock a Buy?
The stock of MongoDB has a consensus Strong Buy rating among 29 Wall Street analysts. That rating is based on 25 Buy and four Hold recommendations issued in the last three months. The average MDB price target of $372.38 implies 40.98% upside from current levels. These ratings are likely to change after the company’s latest financial results.
