MongoDB Stock Plunges After Q2 Earnings: 4 Analysts Break Down The Print

Zinger Key Points
  • Following the new guidance, the "numbers are now fully de-risked," an analyst said.
  • The guidance shows "a healthy level of conservatism," another analyst stated.
MongoDB Stock Plunges After Q2 Earnings: 4 Analysts Break Down The Print

Shares of MongoDB Inc. MDB tanked in after-hours trading on Wednesday, after the New York-based company reported its fiscal second quarter results and issued weak guidance.

RBC Capital Markets

Analyst Rishi Jaluria reiterated an Outperform Buy rating, while reducing the price target from $400 to $350.

MongoDB reported mixed results, with revenue of $304 million, beating the consensus of $284 million and a non-GAAP loss of 23 cents per share, better than expectations of a loss of 28 cents per share, Jaluria said in a note.

“While Q2 revenue beat guidance by $23M/8% (~same as Q1), management raised FY23 guidance by $19M (effectively lowering 2H by $4M),” Jaluria said. “While we came away more cautious on FY23, we think numbers are now fully de-risked and we're encouraged by strong new business activity and enterprise trends, both of which indicate good underlying trends (ex macro) and support our bullish LT outlook."

Piper Sandler

Analyst Brent Bracelin maintained an Overweight rating, while lowering the price target from $375 to $350.

“Strong Q2 results punctuated by a $19M top-line beat on 73% y/y Atlas growth were overshadowed by a more conservative F2H23 growth outlook of 25%,” Bracelin wrote.

The guidance reflects headwinds in the second half, including forex, “slowing Atlas consumption patterns in the digital-natives cohort, and limited EA visibility,” he added.

MongoDB remains "a marquee all-weather growth stock worth revisiting on the 16% AMC pull-back and 2H model reset,” the analyst added.

Check Out Other Analyst Stock Ratings

Credit Suisse

Analyst Philip Winslow reiterated an Outperform Buy rating, while slashing the price target from $500 to $400.

Although MongoDB reported total revenue growth and Atlas growth higher than consensus expectations, “management noted that underlying macroeconomic conditions caused slower-than-historical consumption growth and slower customer application usage,” Winslow said. “Additionally, management expects both Atlas consumption trends and Enterprise Advanced to decline in H2, due to difficult year-ago comparison from strong cohort expansion in FQ3 and in FQ4 and a lower renewal base."

Barclays

Analyst Raimo Lenschow reaffirmed an Overweight rating and a price target of $360.

“Implied growth of around 16-18% YoY in Q4 is well below trend,” Lenschow wrote. He added, however, that management’s comments around new business being strong and the absence of elongated sales cycles, “would argue that there is a healthy level of conservatism in the new guidance.”

MDB Price Action: Shares of MongoDB had crashed almost 24% to $245.45 at the time of publication Thursday.

Posted In: BarclaysBrent BracelinCredit SuissePhilip WinslowPiper SandlerRaimo LenschowRBC Capital MarketsRishi JaluriaAnalyst ColorEarningsNewsPrice TargetReiterationAnalyst RatingsMoversTrading Ideas