Shares fell after the company projected first-quarter adjusted earnings of $1.15 to $1.19 per share, below estimates.
- Shares plunged 24% after-hours despite a Q4 beat, as weak Q1 EPS guidance weighed on sentiment.
- Atlas revenue grew 29% and crossed a $2 billion run rate for the first time, while non-Atlas revenue rose 20%, its strongest growth in two years.
- Barclays called the selloff ‘overblown,’ reiterating an 'Overweight' rating and a $440 price target, which implies a 35% upside from current levels.
MongoDB, Inc. (MDB) shares crashed 24% in extended trading on Monday after the database company issued first-quarter profit guidance that came in below expectations, even as it reported a fourth-quarter (Q4) beat and highlighted strong momentum in its cloud business.
MDB stock fell for the second straight session on Monday, declining over 3% to close at $325.01.
MDB Q4 Preview And Outlook
MongoDB reported Q4 adjusted earnings of $1.65 per share, beating consensus estimates of $1.47 per share. Revenue came in at $695.1 million, above expectations of $669.37 million, marking a 27% increase from the previous year.
Revenue from Atlas, MongoDB’s cloud database platform, grew 29% from the previous year and crossed a $2 billion run-rate for the first time, while non-Atlas revenue increased 20%, marking its strongest growth quarter in two years.
CEO C.J. Desai said on the company’s earnings call that MongoDB “delivered strong fourth quarter results driven by our continued go-to-market execution and the broad-based demand we are seeing across our product lines.” He added that MongoDB achieved Rule of 40 performance, a metric in which revenue growth and operating margin exceed 40%, while also expanding operating margins.
MongoDB ended the quarter with more than 65,200 customers, including 402 customers generating at least $1 million in annual recurring revenue.
Despite the strong finish to fiscal 2026, the company’s guidance weighed on sentiment. For the first quarter, MongoDB expects first-quarter adjusted earnings of $1.15 to $1.19 per share, below estimates of $1.21 per share. The company guided revenue in the $659 million to $664 million range, versus expectations of about $662.5 million.
For fiscal 2027, the company forecast revenue of $2.86 billion to $2.9 billion, representing 16% to 18% growth, and adjusted earnings of $5.75 to $5.93 per share. Atlas revenue is expected to grow 21% to 23% for the full year.
MongoDB Revamps Leadership
MongoDB also said that chief revenue officer (CRO) Paul Capombassis and president of field operations Cedric Pech are leaving the company. Capombassis will remain through the end of the first quarter and serve as an adviser in the second quarter. The company said it is in the final stages of a search for a new CRO.
Meanwhile, Erica Volini joined as the company’s chief customer officer, reporting directly to Desai. Volini previously led enterprise and partner growth initiatives at Deloitte and ServiceNow.
CEO Sees ‘Generational’ AI Opportunity
On the earnings call, Desai said he had spoken with more than 200 customers globally in his first full quarter as CEO and sees MongoDB positioned to become a “generational data platform of choice in the AI and multi-cloud era.”
While AI is not yet a material revenue driver, MongoDB said the number of customers using Vector Search, which enables similarity search across AI-generated data such as text and images, nearly doubled year over year.
Usage of Voyage embedding models, which are AI tools that turn text and other data into formats computers can quickly search and compare, has also doubled since last February.
Large deals in the quarter included a $90 million deal with a technology company expanding AI workloads on Atlas and a transaction exceeding $100 million with an undisclosed financial institution, marking the largest total contract value deal in MongoDB’s history.
The company reiterated its goal of growing Atlas above 20% and maintaining Rule of 40 performance, while guiding to operating margin expansion of about 100 basis points in fiscal 2027.
Barclays Calls Selloff ‘Overblown’
Barclays kept an ‘Overweight’ rating and $440 price target on MongoDB following the results, saying the post-earnings decline “seems overblown.” Based on MongoDB’s last close, Barclays’ price target implies a 35% upside.
The brokerage noted that Atlas' 29% growth remained “solid,” even with a slight deceleration from 30% in the prior quarter. Barclays also pointed out that the company has taken a “conservative” approach to guidance in recent years and that the 17% fiscal 2027 growth outlook is “higher than in previous years.” Barclays said it remains positive on the company’s long-term story and views the current decline as a “buying opportunity.”
How Did Stocktwits Users React?
On Stocktwits, retail sentiment for MDB was ‘extremely bullish’ amid ‘extremely high’ message volume.
One user said, “One more big dip in the AM tomorrow and then a bounce play. Let see and i wait for that big big dip.”
Another user expects MDB shares to open near $220 or at least fall to around that level intraday, then potentially reverse higher toward $255 by midweek. ”Lets see. So I may buy at $220 for that dead cat bounce play,” they added.
MDB stock has declined 23% year-to-date.
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