MongoDB's stock (NASDAQ: MDB) took a dramatic drop in trading post earnings, down 26.94% on the day, and hitting new 52 week lows in the process. Whilst EPS came in as a big upside surprise, with a $1.28 reported against the street's expectation for $0.67, the company issued revenue guidance that failed to meet expectations.
The revenue guidance from MongoDB projected a full-year revenue in the range of $2.24 billion to $2.28 billion. This projection indicates a 12% growth, which is notably below the 18% growth that analysts had anticipated.
Additionally, the company reported revenue of $548.4 million, exceeding the expected $519.84 million by analysts. This growth was driven by a 19% year-over-year rise in subscription revenue, reaching $531 million, and a 34% increase in services revenue, amounting to $17.4 million.
As has been the case with many tech names during this earnings season, any chink in the armour, or a guidance that fails to meet expectations has seen stock prices punished. Shedding some $5billion in market cap on the day, and with the stock now down 53% over the past year, MongoDB is down at 2 year lows, and has work to do in order to shift sentiment.
Despite the disappointing forecast, Loop Capital, and Citi were a couple of holdouts in what was a day of price target cuts for MDG. We counted no fewer than 16 reductions in PT on the day, despite the price targets in some cases remaining significantly to the upside of current price action. Citi were one of the more bullish on the print, indicating they saw the fundamentals “stable to improving”, with positives taken on Atlas consumption. The firm kept a $430 price target, along with a Buy rating in place.
Here is a list of the new targets on the day, with previous marks in brackets :
- Oppenheimer $330 ($400)
- Baird $300 ($390)
- Stifel $340 ($425)
- Wells Fargo $225 ($365)
- Barclays $280 ($330)
- ScotiaBank $240 ($275)
- Needham $270 ($415)
- RBC Capital $320 ($400)
- Truist $300 ($400)
- Wedbush $300 ($360)
- Guggenheim $300 ($325)
- Piper Sandler $280 ($425)
- Morgan Stanley $315 ($350)
- Canaccord $320 ($385)
- BofA $286 ($420)
- Citizens JMP $345 ($380)
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