Why MongoDB Stock Plunged Today
Why MongoDB Stock Plunged Today
Reasons Behind MongoDB's Stock Decline
Slower Growth and Weak Guidance
MongoDB reported a significant slowdown in revenue growth and provided disappointing future earnings guidance, which alarmed investors accustomed to its rapid growth pace.
Profitability Concerns
Despite beating earnings per share estimates, MongoDB's losses widened, and both GAAP and adjusted profits fell, highlighting ongoing profitability challenges.
Strategic Focus on MongoDB Atlas
While MongoDB Atlas continues to drive revenue, its growth has decelerated, raising concerns about the company's reliance on this cloud-based segment for future expansion.
Market Reaction
The stock experienced a sharp decline of over 25% following the announcements, reflecting investor concerns over the company's performance and future prospects.
What percentage of MongoDB's total revenue was attributed to its cloud-based database software, MongoDB Atlas, in the latest quarter?
In the first quarter of fiscal 2025, MongoDB Atlas, the cloud-based database software, accounted for 70% of MongoDB's total revenue.
How did MongoDB's revenue growth in the most recent quarter compare to its historical performance?
MongoDB's revenue growth in the most recent quarter was up 22% to $450.6 million, which beat headline estimates at $439.6 million. However, this was the slowest revenue growth the company has experienced since becoming a publicly traded company. In the past, MongoDB has delivered breakneck growth each quarter, but the growth rate is now coming back down to earth. The slowdown in growth was driven by MongoDB Atlas, its cloud-based database software option, which was up 32% in the quarter, but this was a notable deceleration from previous periods.