MongoDB Issues Weak FY25 Guidance, Shares Tumble

Despite strong Q4 earnings, MongoDB forecasts a significant revenue drop and higher labor costs, leading to a stock decline.

MongoDB Inc. anticipates a $80 million revenue drop in FY25 due to unrealized multiyear licenses and unused commitments.
The company plans to increase its workforce, resulting in higher labor costs and a predicted decline in operating margin from FY24.
Shares of MongoDB fell more than 6% following the announcement, despite a year-over-year increase of 84%.
Analysts have revised their price targets for MongoDB, with some maintaining positive ratings while others lower their expectations.
MongoDB's Q4 earnings surpassed expectations, with a 27% increase in total revenue and significant Atlas revenue growth.