Why MongoDB Stock Lost 34% in March

MongoDB really bushed estimates successful its fourth-quarter net report, but guidance was the existent problem, arsenic the banal tumbled 27% connected March 6 aft the study came out.

Revenue successful the 4th roseate 20% to $548.4 million, which easy bushed the statement astatine $519.8 million. Adjusted net per stock roseate from $0.86 to $1.28, which was good up of the statement astatine $0.67.

Its cloud-based merchandise MongoDB Atlas continued to present beardown gross growth, up 24%, and made up 71% of gross successful the quarter, arsenic absorption noted better-than-expected depletion of Atlas.

However, investors were disappointed with its guidance for 2025, arsenic the institution called for gross of $2.24 billion-$2.28 billion, up conscionable 12.4% astatine the midpoint, a notable slowdown from 19% maturation successful 2024. That was besides beneath the expert statement astatine $2.32 billion. On the bottommost line, the institution sees adjusted net per stock of $2.44-$2.62, which was down from $3.33 successful 2024 and worse than the statement astatine $3.39.

MongoDB besides announced a $200 cardinal banal buyback inaugural to offset the dilutive interaction of its acquisition of Voyage AI, a creator of embedding and reranking models for AI applications.

Following the report, respective Wall Street analysts downgraded the banal oregon lowered their terms targets, noting the disappointing forecast for the existent year.

Management said the slowdown successful maturation successful fiscal 2026 -- this twelvemonth -- is related to a much constricted cohort eligible for multiyear deals than successful the past 2 years. It besides sees margins headwinds owed to the nonaccomplishment of $50 cardinal successful multiyear gross and owed to investments successful R&D.

Those headwinds could assistance successful fiscal 2027, but the sell-off connected the quality is understandable. MongoDB is inactive unprofitable connected a mostly accepted accounting principles (GAAP) basis, and its guardant P/E is astir 60, based connected guidance for adjusted earnings.

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