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The stock has also underperformed its peers like The Trade Desk (TTD - Free Report) , DocuSign (DOCU - Free Report) and Datadog (DDOG - Free Report) , whose shares have risen 93.3%, 80% and 38.9%, respectively, in the same time frame.
MDB’s subpar performance can be attributed to macroeconomic headwinds, slower-than-expected modernization of AI applications and lower customer adoption in a competitive database market.
MDB’s Earnings Estimates Indicate YoY Losses
For the third quarter of fiscal 2025, MDB expects revenues to be in the range of $493 million to $497 million. Non-GAAP income from operations is expected to be in the range of $57-$60 million. MDB expects non-GAAP earnings to be between 65 cents per share and 68 cents per share.
For fiscal 2025, MDB expects revenues to be in the range of $1.92 billion to $1.93 billion. Non-GAAP income from operations is expected to be in the band of $187-$195 million. MDB expects non-GAAP earnings to be between $2.33 per share and $2.47 per share.
The Zacks Consensus Estimate for third-quarter fiscal 2025 revenues is pegged at $495.48 million, indicating 14.44% year-over-year growth. The consensus mark for earnings is currently pegged at 69 cents per share, which remained unchanged over the past 90 days, indicating a year-over-year loss of 28.13%.
The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $1.93 billion, indicating 14.52% year-over-year growth. The consensus mark for fiscal 2025 earnings is currently pegged at $2.43 per share, which rose 2 cents over the past 60 days, indicating a year-over-year loss of 27.03%.
MDB beat on earnings in each of the trailing four quarters, the average surprise being 65.73%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Rich Partner Base Aids MDB’s Prospects
MongoDB is benefiting from strong partnerships with major companies, including Fanatics, Occidental Petroleum, L’Oreal, Delivery Hero and Indeed. MDB’s flexible document model and high-performance architecture make it ideal for AI-driven workloads, enabling the processing of diverse data types efficiently.
The launch of the MongoDB AI Applications Program (MAAP) strengthens its position in helping customers build applications by offering pre-built integrations, professional services and end-to-end support. It brings together a unique ecosystem that includes providers like AWS, Azure, GCP, Accenture, Anthropic and Cohere.
However, MongoDB faces challenges from macroeconomic conditions, as Atlas products’ consumption fell significantly in the first two quarters of fiscal 2025. While AI offers long-term potential, the monetization of AI applications is still in its early stages, with MDB primarily focusing on infrastructure, investments and experimentation. This limits immediate benefits from AI-driven workloads.
Furthermore, the competitive database market, dominated by traditional relational architectures, poses barriers to MongoDB’s market share expansion. Revenues from initiatives like AI-driven modernization pilots remain uncertain, as these programs are currently in their early phases.
What Should Investors Do With MDB Stock?
MDB benefits from its strong and innovative solutions portfolio, despite facing near-term macroeconomic challenges.
Image: Shutterstock
MDB's Shares Fall 16% Year to Date: How Should Investors Play the Stock?
MongoDB's (MDB - Free Report) shares have lost 16% year to date, underperforming the Zacks Computer & Technology sector’s appreciation of 32.6% and the Zacks Internet-Software industry’s return of 41.6%.
The stock has also underperformed its peers like The Trade Desk (TTD - Free Report) , DocuSign (DOCU - Free Report) and Datadog (DDOG - Free Report) , whose shares have risen 93.3%, 80% and 38.9%, respectively, in the same time frame.
MDB’s subpar performance can be attributed to macroeconomic headwinds, slower-than-expected modernization of AI applications and lower customer adoption in a competitive database market.
MDB’s Earnings Estimates Indicate YoY Losses
For the third quarter of fiscal 2025, MDB expects revenues to be in the range of $493 million to $497 million. Non-GAAP income from operations is expected to be in the range of $57-$60 million. MDB expects non-GAAP earnings to be between 65 cents per share and 68 cents per share.
For fiscal 2025, MDB expects revenues to be in the range of $1.92 billion to $1.93 billion. Non-GAAP income from operations is expected to be in the band of $187-$195 million. MDB expects non-GAAP earnings to be between $2.33 per share and $2.47 per share.
The Zacks Consensus Estimate for third-quarter fiscal 2025 revenues is pegged at $495.48 million, indicating 14.44% year-over-year growth. The consensus mark for earnings is currently pegged at 69 cents per share, which remained unchanged over the past 90 days, indicating a year-over-year loss of 28.13%.
The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $1.93 billion, indicating 14.52% year-over-year growth. The consensus mark for fiscal 2025 earnings is currently pegged at $2.43 per share, which rose 2 cents over the past 60 days, indicating a year-over-year loss of 27.03%.
MDB beat on earnings in each of the trailing four quarters, the average surprise being 65.73%.
MongoDB, Inc. Price and Consensus
MongoDB, Inc. price-consensus-chart | MongoDB, Inc. Quote
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Rich Partner Base Aids MDB’s Prospects
MongoDB is benefiting from strong partnerships with major companies, including Fanatics, Occidental Petroleum, L’Oreal, Delivery Hero and Indeed. MDB’s flexible document model and high-performance architecture make it ideal for AI-driven workloads, enabling the processing of diverse data types efficiently.
The launch of the MongoDB AI Applications Program (MAAP) strengthens its position in helping customers build applications by offering pre-built integrations, professional services and end-to-end support. It brings together a unique ecosystem that includes providers like AWS, Azure, GCP, Accenture, Anthropic and Cohere.
However, MongoDB faces challenges from macroeconomic conditions, as Atlas products’ consumption fell significantly in the first two quarters of fiscal 2025. While AI offers long-term potential, the monetization of AI applications is still in its early stages, with MDB primarily focusing on infrastructure, investments and experimentation. This limits immediate benefits from AI-driven workloads.
Furthermore, the competitive database market, dominated by traditional relational architectures, poses barriers to MongoDB’s market share expansion. Revenues from initiatives like AI-driven modernization pilots remain uncertain, as these programs are currently in their early phases.
What Should Investors Do With MDB Stock?
MDB benefits from its strong and innovative solutions portfolio, despite facing near-term macroeconomic challenges.
MDB currently carries a Zacks Rank #3 (Hold), suggesting that it may be wise for investors to wait for a more favorable entry point in the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.