Stock Story -
Database software company MongoDB (NASDAQ:MDB) announced better-than-expected results in Q4 FY2024, with revenue up 26.8% year on year to $458 million. On the other hand, next quarter's revenue guidance of $438 million was less impressive, coming in 2.5% below analysts' estimates. It made a non-GAAP profit of $0.86 per share, improving from its profit of $0.57 per share in the same quarter last year.
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MongoDB (MDB) Q4 FY2024 Highlights:
- Revenue: $458 million vs analyst estimates of $435.6 million (5.2% beat)
- EPS (non-GAAP): $0.86 vs analyst estimates of $0.48 (79.1% beat)
- Revenue Guidance for Q1 2025 is $438 million at the midpoint, below analyst estimates of $449.1 million
- Management's revenue guidance for the upcoming financial year 2025 is $1.92 billion at the midpoint, missing analyst estimates by 5.8% and implying 13.8% growth (vs 31.3% in FY2024)
- Free Cash Flow of $50.49 million, up 44.4% from the previous quarter
- Customers: 47,800, up from 46,400 in the previous quarter
- Gross Margin (GAAP): 75%, in line with the same quarter last year
- Market Capitalization: $29.56 billion
Started in 2007 by the team behind Google’s ad platform, DoubleClick, MongoDB offers database-as-a-service that helps companies store large volumes of semi-structured data.
Data StorageData is the lifeblood of the internet and software in general, and the amount of data created is accelerating. As a result, the importance of storing the data in scalable and efficient formats continues to rise, especially as its diversity and associated use cases expand from analyzing simple, structured datasets to high-scale processing of unstructured data such as images, audio, and video.
Sales GrowthAs you can see below, MongoDB's revenue growth has been very strong over the last two years, growing from $266.5 million in Q4 FY2022 to $458 million this quarter.
This quarter, MongoDB's quarterly revenue was once again up a very solid 26.8% year on year. On top of that, its revenue increased $25.06 million quarter on quarter, a very strong improvement from the $9.15 million increase in Q3 2024. This is a sign of acceleration of growth and great to see.
Next quarter's guidance suggests that MongoDB is expecting revenue to grow 18.9% year on year to $438 million, slowing down from the 29% year-on-year increase it recorded in the same quarter last year. For the upcoming financial year, management expects revenue to be $1.92 billion at the midpoint, growing 13.8% year on year compared to the 31.1% increase in FY2024.
Customer Growth MongoDB reported 47,800 customers at the end of the quarter, an increase of 1,400 from the previous quarter. That's in line with the customer growth we observed last quarter but a bit below what we've typically seen over the last year, suggesting that sales momentum may be slowing a little.
Key Takeaways from MongoDB's Q4 Results We enjoyed seeing MongoDB exceed analysts' revenue expectations and deliver strong free cash flow this quarter. On the other hand, its full-year revenue guidance was below expectations and suggests a slowdown in demand. Overall, this was a mixed quarter for MongoDB. The company is down 7.1% on the results and currently trades at $382.94 per share.
