5 MongoDB Analysts Are Disappointed: 'Tepid Growth' Overshadows Q4 Revenue Beat

Zinger Key Points
  • The guidance shortfall reflects difficult comps for Enterprise Advanced and sustained macro headwinds to Atlas, one analyst said.
  • Management’s cost discipline means fewer opportunities to make profitable investments, another analyst stated.

Shares of MongoDB Inc MDB continued to slide in early trading on Thursday, after the company reported disappointing revenue guidance.

  • Needham analyst Mike Cikos maintained a Buy rating, while raising the price target from $240 to $250.
  • Mizuho Securities analyst Matthew Broome reiterated a Neutral rating, while reducing the price target from $220 to $180.
  • Piper Sandler analyst Brent Bracelin reiterated an Overweight rating and price target of $270.
  • Oppenheimer analyst Ittai Kidron reaffirmed an Outperform rating and price target of $270.
  • RBC Capital Markets analyst Rishi Jaluria maintained an Outperform rating and price target of $235.

Check out other analyst stock ratings.

Needham

  • “MongoDB's FY24 Revenue guidance for 15%-18% was below buy-side expectations, which had drifted down to 20%-21% (19% in more extreme scenarios),” Cikos wrote in a note.
  • “The guidance shortfall reflects a difficult yr-yr comparison for Enterprise Advanced, and sustained macro headwinds to Atlas as existing workloads grow below historical rates,” he added.

Mizuho Securities

  • “While MDB reported meaningful F4Q revenue upside, we believe the beat was largely in line with investor expectations,” Broome said. “More importantly, weaker-than-expected consumption trends over the holiday period will impact top line growth in FY24, with initial revenue guidance coming in well below Street expectations."
  • The company's increased cost discipline is "a welcome development," Broome added. Yet, it also implies fewer opportunities to make profitable investments.

Piper Sandler

  • The company’s “tepid” growth guidance for fiscal 2024 overshadowed strong fourth-quarter results, Bracelin stated.
  • “Once again, we find ourselves trying to decipher whether macro headwinds could pressure growth to 16% or if the reset FY24 model is now derisked,” he added.

Oppenheimer

  • MongoDB’s fourth-quarter results were “mixed,” but guidance came below expectations, “as the macro environment impacted consumption,” Kidron said.
  • “While trends improved in February, consumption growth remains below historical norms and is expected to remain pressured through FY24,” he added.

RBC Capital Markets

  • “MongoDB delivered a decent quarter but a soft FY24 revenue outlook,” Jaluria wrote in a note.
  • “We do believe the outlook includes a healthy dose of conservatism, we are encouraged by healthy new business trends, and we think the path to meaningful profitability is starting to materialize,” he added.

MDB Price Action: Shares of MongoDB had declined by 6.79% to $213.17 at the time of publication Thursday.

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Posted In: Analyst ColorEarningsNewsPrice TargetReiterationTop StoriesAnalyst RatingsMoversTrading IdeasBrent BracelinExpert IdeasIttai KidronMatthew BroomeMike CikosMizuho SecuritiesNeedhamOppenheimerPiper SandlerRBC Capital MarketsRishi Jaluria
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