MongoDB Raises Annual Forecasts Amid Increased Service Usage
MongoDB (MDB.O) announced on Monday that it is raising its annual revenue and profit forecasts for the second time this year, driven by strong growth in the usage of Atlas, its cloud-based database management service. The news prompted a 10.6% rise in the company’s shares in after-hours trading.
Unlike traditional subscription models, MongoDB operates a pay-as-you-use pricing model, where customers are charged based on their service usage. This model has proven successful, particularly as demand for services involving artificial intelligence (AI) deployments has surged.
Strong Growth Across the Board
MongoDB’s updated financial outlook reflects robust demand for its offerings, especially the Atlas service. The company now expects adjusted profit per share for the fiscal year ending on January 31 to range between $3.01 and $3.03, up from its prior forecast of $2.33 to $2.47.
Additionally, MongoDB revised its revenue forecast for the fiscal year, now projecting between $1.97 billion and $1.98 billion, an increase from the previous projection of $1.92 billion to $1.93 billion. The company’s third-quarter revenue rose by 22% year-over-year to $529.4 million, exceeding the analyst consensus of $502 million, according to data from LSEG.
On an adjusted basis, MongoDB earned $1.16 per share in Q3, significantly outperforming the expected profit of $0.69 per share.
Leadership Transition
In another development, MongoDB announced that its Chief Financial Officer (CFO), Michael Gordon, will step down at the end of the fiscal year. Serge Tanjga, the company’s Senior Vice President of Finance, will take over as interim CFO starting February 1, while MongoDB searches for a permanent successor.
Industry Trends
MongoDB’s performance comes at a time when other companies in the cloud database sector, such as Snowflake, are also revising their forecasts upward due to increased service usage. Snowflake recently raised its full-year product revenue forecast, bolstered by strong consumption and bookings, alongside its AI-focused partnership with Amazon-backed Anthropic.
