The US group MongoDB presented its third-quarter figures on Monday evening after the US stock market closed, exceeding market expectations. In an initial reaction, MongoDB shares rose by double digits in after-hours US trading before the price collapsed and turned negative. The reason for this may be this explosive personality.
Specifically, MongoDB increased revenue in the third quarter by 22 percent to $529.4 million. According to CEO Dev Ittycheria, the growth driver for the database manager is “EA performance that exceeded expectations and sales growth of 26 percent at Atlas.”
At EA it is the Enterprise Advanced segment. Here, MongoDB offers enterprise customers an enhanced version of its database with additional security features, management tools and better support. In the Atlas party, however, revenue is recorded that comes from a cloud database service that runs on platforms such as AWS, Microsoft Azure and Google Cloud. Worth noting: $512.2 million of total revenue, or 96.7 percent, comes from recurring subscription revenue. The remaining 3.3 percent came from service revenue.
Adjusted earnings per share, however, climbed from $0.96 in the same period last year to $1.16. With these figures, the US company exceeded market expectations: Analysts had previously expected earnings per share of $0.69 and sales of $495.7 million.
Forecasts raised
MongoDB is also convincing in terms of the outlook: Instead of the expected $508.5 million, sales in the final quarter are expected to be between $515.0 and $519.0 million and earnings per share are expected to be between $0.62 and $0.65, while the market is at 0 .57 dollars.
The group was also confident for the year as a whole and forecast revenue of between $1.97 and $1.98 billion, up from $1.92 billion previously. At the same time, the profit forecast was raised from the previous range of $2.33 to $2.47 per share to $3.01 to $3.03 per share. The consensus estimate before the figures were presented was only $2.48.
MongoDB, Inc.
(WKN: A2DYB1)
In after-hours US trading, MongoDB shares shot up by around ten percent to $387 thanks to the strong quarterly figures and the top outlook, only to then turn negative just as quickly. The reason for the collapse may have been the news that CFO Michael Gordon is leaving the company on January 31, 2025. Gordon served as CFO for MongoDB for almost ten years.
The search for a new CFO has already begun and Serge Tanjga, previously Senior Vice President of Finance at MongoDB, will act as interim CFO from February 1st, until then a new finance chief should not have been found.
MongoDB delivered strong numbers, but the CFO resignation disappointed. The stock fell 15 percent in regular US trading just under two hours before the market closed. Investors therefore remain on the sidelines.
