MongoDB Forecasts Loss of Some Business This Year, and Stock Tumbles

MongoDB Inc. (MDB) shares declined more than 6% Friday as the database platform provider for developers posted guidance that missed estimates, driven by the loss of some of its expected business.

The company said late Thursday that it anticipates current-quarter earnings per share (EPS) of 34 cents to 39 cents, and revenue in the range of $436 million to $440 million. It sees full-year EPS between $2.27 and $2.49, and sales of $1.90 billion to $1.93 billion. All were less than analysts’ forecasts.

MongoDB said that the outlook “reflects the impact of over $80 million of FY24 revenue, related to multi-year term licenses and unused Atlas commitments, that we do not expect to realize in FY25.” Atlas is a cloud-based database that handles deployments on cloud service providers Amazon.com Inc.’s (AMZN) AWS, Google’s (GOOGL) Cloud, and Microsoft Corp.’s (MSFT) Azure.

In addition, Chief Financial Officer (CFO) Michael Gordon told analysts that MongoDB will be facing higher labor costs as it increases headcount to a mid-teens percentage during the year. He noted that the company predicts a decline in operating margin from fiscal 2024.

In the fourth quarter, the company reported EPS of 86 cents, with total revenue 27% higher at $458.0 million. Both were above expectations.

Shares of MongoDB had been up more than 100% year-over-year in the month before Friday’s selloff, but they remain about 84% higher. At 1:55 p.m. ET, MongoDB stock was down 6.8% at $383.97.