MongoDB beat Wall Street's profit and revenue estimates in its fiscal second quarter, posting its fastest revenue growth since fiscal 2024. Shares still tumbled after hours as investors focused on next quarter's slower guidance rather than the beat.
MongoDB shares fell 13.18% to $377 in after-hours trading, down from a regular-session close of $434.26, even after the company topped analyst estimates on both earnings and revenue. The market appeared to focus more on the company's guidance than on the quarter itself.
Beats on both profit and revenue
MongoDB posted non-GAAP earnings of $1.90 a share, above the $1.61 forecast. Revenue reached $771.8 million, roughly 5% above the $735.16 million estimate. Revenue grew 30% from a year earlier, the company's fastest quarterly pace since fiscal 2024. Non-GAAP operating margin expanded to 24%, up from 15% a year earlier.
Atlas, MongoDB's cloud database, grew about 29% for a fifth straight quarter. Enterprise advanced and other revenue rose 36%. According to the earnings call transcript, Chief Executive CJ Desai said: "We added a record 2,900 net new customers this quarter", adding that many are AI-native companies. That lifted MongoDB's total customer count to 70,600, up from 59,900 a year earlier.
Customers spending at least $100,000 a year, a group management tracks closely, grew 17% year over year to nearly 3,000 accounts. Management pointed to early demand for AI products, including vector search, as a contributor to that growth.
Guidance falls short of the quarter just reported
For the third quarter of fiscal 2027, MongoDB guided for revenue of $756 million to $761 million. Non-GAAP earnings per share are expected at $1.57 to $1.61. That implies slower growth than the quarter just reported, which may have weighed on the stock even though management raised its full-year revenue outlook to $2.99 billion to $3.03 billion, with non-GAAP earnings per share of $6.39 to $6.58.
MongoDB's consumption-based model can produce uneven quarter-to-quarter results, and management said it is being prudent about the fourth quarter because holiday-season activity affects consumption. The company plans an investor day in New York on September 29 to detail its fiscal 2028 plans.
Source: Investing.com
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