MongoDB's stock sinks after earnings, signaling more tough times for the software sector

By Emily Bary

A 'planned' transition involving the exits of two sales leaders is also rattling investors

MongoDB is bringing on a new chief customer officer.

The reaction to MongoDB's mixed earnings report shows that it's a tough world out there for software companies.

While the database-software company delivered with its latest results Monday, it came up short with some aspects of its guidance. Meanwhile, the company announced that Cedric Pech, its president of field operations, and Paul Capombassis, its chief revenue officer, would be leaving MongoDB as part of a "planned" transition.

Shares of MongoDB (MDB) could lose nearly a quarter of their value if Monday's aftermarket move carries over through Tuesday's regular-session close. The stock fell 24% in the extended session.

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MongoDB's latest financials topped expectations. Revenue for the fiscal fourth quarter came in at $695.1 million, up 27% from a year before. That was ahead of the $670.1 million consensus view. MongoDB also exceeded estimates with its $1.65 in adjusted earnings per share, which was up from $1.28 a year prior and ahead of the $1.48 FactSet consensus.

But the outlook for the fiscal first quarter was mixed. For instance, MongoDB expects $1.15 to $1.19 in adjusted EPS, while analysts had been looking for $1.20.

For the full fiscal year, MongoDB is targeting $2.86 billion to $2.9 billion in revenue, while analysts had been modeling $2.9 billion. The company's forecast for adjusted EPS calls for $5.75 to $5.93, whereas the FactSet consensus was for $5.69.

MongoDB CFO Mike Berry said that the company expects its Atlas business, a multicloud offering, to grow at a 21% to 23% clip this fiscal year. He has "continued confidence in Atlas," but noted that MongoDB charges based on consumption of its software, so "visibility is more limited in the back half of the fiscal year."

As for the non-Atlas business, which includes a self-managed commercial database offering that can run in multiple environments, the company has seen "healthy" recent trends. Still, "we will only include deals in our forecast that have either closed or have a high probability of closing, to limit the risk of a negative surprise," Berry said.

CEO CJ Desai noted that "AI is not yet a material driver to our results" but also said that MongoDB has seen customers take advantage of some AI options, including for search. Customers are using MongoDB's technology to help power agentic AI workloads, he added.

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MongoDB disclosed that Erica Volini will become the company's chief customer officer as of March 3. She "brings a rare blend of experience serving large enterprise customers and scaling partner-led growth," according to a statement.

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-Emily Bary

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03-02-26 2123ET