MongoDB Forecast Cuts Spark 27% Stock Plunge After $695M Q4
MongoDB's shares plunged more than 25% after management trimmed full-year Atlas growth guidance to 21-23% from 30%, despite Q4 revenue of $695.1 million and 29% Atlas segment expansion. They forecast 26% Atlas growth in Q1 and 17% revenue increase for FY27.
1. Fourth-Quarter Results
MongoDB posted Q4 revenue of $695.1 million, up 26.7% year-over-year, with the Atlas cloud database segment growing 29%, slightly above guidance but down from 30% in Q3.
2. Updated Growth Guidance
Management projected Atlas revenue growth of 26% in the first quarter and trimmed full-year Atlas growth to 21-23%, implying total FY27 revenue growth of 17%.
3. Market Reaction
The stock plunged approximately 25-27%, slumping to a six-month low and erasing nearly $6 billion in market value as investors reacted to the muted outlook despite solid quarterly beats.
4. Analyst Perspectives
Analysts noted near-100% RPO growth and a valuation compressing to about 5x 2027 EV/sales, with some calling the sell-off overdone while others cited the guidance cut as a significant setback.