By Yasin Ebrahim and Senad Karaahmetovic
Investing.com -- MongoDB (NASDAQ:MDB) reported Wednesday softer than expected revenue guidance that offset fourth-quarter results that beat on both the top and bottom lines.
MongoDB shares are down over 11% following the report.
MongoDB reported adjusted EPS of $0.57 on revenue of $361.3 million, topping estimates of $0.07 and $339.3M, respectively.
The company attributed the earnings beat to strong revenue growth, driven by new enterprise customer wins.
"Our continued new business momentum is driven in part by an increasing number of enterprise customers looking to standardize on MongoDB's developer data platform to accelerate innovation while driving greater operational efficiency in their business," the company said.
Looking ahead to fiscal Q1, the company forecasts adjusted EPS of $0.17 to $0.20 on revenue of $344M to $348M. That compared with Wall Street estimates for EPS of $0.13 on revenue of $352.6M.
For fiscal 2024, adjusted EPS was guided in a range of $0.96 to $1.10, topping estimates of $0.64. Revenue is expected between $1.48 billion and $1.51B, missing estimates of $1.58B.
Guggenheim analysts say conservative guidance means the outlook is now derisked.
"Even if MongoDB ultimately achieves the 28% growth in FY24 we believe it can do, that still represents material deceleration vs. 47% growth in FY23," they wrote in a note.
Morgan Stanley analysts added:
"More pronounced seasonality in December and January weighed on customer consumption trends and the impact was broad-based. This translated to a disappointing FY24 rev outlook of 15-18%, but we still view the slowdown as cyclical vs. secular and remain optimistic on the LT opportunity."