NEW YORK, Jan. 9, 2025 /PRNewswire/ -- MongoDB, Inc. (NASDAQ: MDB) today announced that Chief Operating Officer and Chief Financial Officer, Michael Gordon, and Senior Vice President of Finance, Serge Tanjga, will present virtually at the 27th Annual Needham Growth Conference.The MongoDB presentation is scheduled for Thursday, January 16, 2025, at 3:45 p.m. Eastern Time. A live webcast of the presentation will be available on the Events page of the MongoDB investor relations website at https://investors.mon ...

Shares of database upstart MongoDB (MDB -0.07%) plunged 27.8% in December, according to data from S&P Global Market Intelligence.MongoDB released its fiscal third-quarter earnings early in the month, which disappointed investors, and also announced the retirement of its chief financial officer.However, MongoDB could be a big winner in the next stage of the artificial intelligence (AI) era. So is the downturn an opportunity?MongoDB goes through some growing painsMongoDB actually beat analyst expectations in ...

Core Viewpoint - MongoDB has faced significant challenges in 2024, with a 40% decline in share price as of December 26, largely due to lower consumption on its Atlas platform and a substantial reduction in earnings guidance for the year [2][13]. Group 1: Financial Performance - The company's share price has been adversely affected after earnings releases, particularly following the fiscal 2025 Q1 results in May, which led to a lowered earnings forecast for the entire year [2][16]. - MongoDB's stock is currently trading 52% below its 52-week high of $509.62, with a forward price-to-earnings (P/E) multiple down 56% from a peak of nearly 180x, now standing at 79x [9][13]. - Analysts have set an average price target of $366.14 for MongoDB, indicating a potential upside of 35% based on 24 price targets released in December [10][13]. Group 2: Product and Market Position - MongoDB's primary offerings include MongoDB Atlas and MongoDB Enterprise Advanced, which accounted for 66% and 26% of total revenue in 2023, respectively [8]. - The company's document-oriented data model allows for efficient data management, enabling businesses to store all information about a customer in a single document, which enhances targeting and personalization [4][14]. - As AI applications proliferate, the demand for database solutions like MongoDB's is expected to increase, positioning the company favorably for future growth [10][17]. Group 3: Market Trends and Future Outlook - In 2024, businesses have shifted spending towards AI investments, impacting MongoDB's revenue, but the anticipated growth in AI applications could benefit the company in 2025 [6][17]. - The total addressable market for MongoDB is vast, as nearly every industry utilizes its services, particularly as AI transforms various sectors of the economy [10][17].

Career and Expertise of Bert Hochfeld - Bert Hochfeld holds a degree in economics from the University of Pennsylvania and an MBA from Harvard [1] - He has a long career in the tech industry, working for companies such as IBM, Memorex/Telex, Raytheon Data Systems, and BMC Software [1] - Starting in the 1990s, he worked as a sell-side analyst and won awards from the Wall Street Journal for his coverage of the software space [1] - In 2001, he founded Hochfeld Independent Research Group, providing research services to major institutions like Fidelity, Columbia Asset, and SAC Capital [1] - He operated the Hepplewhite Fund, a hedge fund specializing in technology investments, which was rated as the best-performing small-cap fund for the 5 years ending in 2011 by Hedge Fund Research [1] - He has published over 500 articles on Seeking Alpha, focusing on companies in the information technology space [1] - He ranks in the top 0.1% of Tip Ranks analysts for his selection of information technology stocks and their subsequent successes [1] Legal and Ethical Issues - In 2012, Bert Hochfeld was convicted of misappropriating funds from a hedge fund he operated [1] Analysis of MongoDB (NASDAQ: MDB) - The latest earnings release for MongoDB (NASDAQ: MDB) did not show signs of an inflection point [2] - The article questions whether MongoDB can return to its growth trajectory [2]

Zacks Rating Upgrade for MongoDB - MongoDB has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a powerful factor influencing stock prices [1] - The Zacks rating system relies solely on changes in a company's earnings picture, tracking EPS estimates for the current and following years through the Zacks Consensus Estimate [1] - The upgrade reflects positivity about MongoDB's earnings outlook, which could translate into buying pressure and an increase in its stock price [3] Earnings Estimate Revisions and Stock Price Movement - Changes in a company's future earnings potential, as reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [4] - Institutional investors use earnings estimates to calculate the fair value of a company's shares, and their bulk investment actions lead to price movements [4] - For MongoDB, rising earnings estimates and the consequent rating upgrade indicate an improvement in the company's underlying business, which should push the stock higher [5] Zacks Rank System and Its Effectiveness - The Zacks Rank system uses four factors related to earnings estimates to classify stocks into five groups, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7] - The system maintains an equal proportion of 'buy' and 'sell' ratings for over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating and the next 15% receiving a 'Buy' rating [9] - MongoDB's placement in the top 20% of Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term [10][11] MongoDB's Earnings Estimates - MongoDB is expected to earn $2 97 per share for the fiscal year ending January 2025, representing a year-over-year change of -10 8% [8] - Over the past three months, the Zacks Consensus Estimate for MongoDB has increased by 23 9% [8]

Summary of MongoDB, Inc. Conference Call Company Overview - **Company**: MongoDB, Inc. (NASDAQ: MDB) - **Event**: Barclays 22nd Annual Global Technology Conference - **Date**: December 11, 2024 Key Highlights Financial Performance - MongoDB reported strong Q3 results, beating both top and bottom line expectations [4][5] - Consumption trends were slightly better than anticipated, benefiting from multi-year deals in Enterprise Advanced (EA) [4][5] - Net Dollar Retention (NDR) was reported at 120%, indicating strong customer retention [4] Business Strategy - The "run anywhere" strategy allows customers to deploy workloads in cloud, on-premise, or hybrid environments, appealing particularly to large enterprises [4][7] - Multi-year deals are seen as a positive indicator of customer confidence and demand for MongoDB's platform [9][10] - The company is focused on making MongoDB easy to use across various deployment choices [7] Application Modernization - There is a significant push for application modernization among large enterprises, driven by the need to address technical debt and regulatory pressures [20] - The modernization process is complex, primarily due to the need to rewrite applications, which can involve extensive code [21] - Generative AI (GenAI) is viewed as a tool to facilitate this modernization by automating code analysis and testing [22][23] Market Dynamics - MongoDB is well-positioned to capture a portion of the market as enterprises modernize their applications, with a focus on flexibility and scalability [23][64] - The company sees a growing opportunity in legacy application monetization, which has been challenging due to high switching costs [68] Competitive Landscape - MongoDB acknowledges the rise of Postgres as a standard relational database but emphasizes its advantages in agility and scalability over traditional relational databases [70][71] - The company does not view the success of MongoDB as dependent on the decline of Postgres, indicating a large market opportunity exists for both [71] Go-to-Market Strategy - Adjustments have been made to the sales compensation plan to focus more on net new Annual Recurring Revenue (ARR) rather than just acquiring workloads [50][51] - The company is prioritizing upmarket strategies to capture larger accounts and increase wallet share within existing customers [73] Future Outlook - The company anticipates headwinds in fiscal '25 due to a shift away from upfront commitments and the recognition of multi-year deals [57][58] - Consumption growth for Atlas is expected to decelerate, with careful monitoring of Q4 performance to set the stage for fiscal '26 [61][62] Additional Insights - MongoDB is actively developing tools and partnerships to facilitate the migration of applications to its platform, leveraging both open-source and proprietary solutions [32][34] - The company is focused on real-time data access, which is critical for applications like AI chatbots that require immediate information [66] This summary encapsulates the key points discussed during the conference call, highlighting MongoDB's financial performance, strategic initiatives, market positioning, and future outlook.

Group 1 - MongoDB, Inc. shares experienced a marginal increase after a significant selloff of nearly 17% on the previous day, finding support around the $293 level [1] - The company's third-quarter earnings were reported at $1.16 per share, exceeding estimates of 67 cents, with sales reaching $529 million compared to analyst expectations of $498 million [1] - On a GAAP basis, MongoDB reported a loss of 13 cents per share, contrasting with the positive non-GAAP earnings due to adjustments for stock-based compensation [1] Group 2 - The $293 price level previously acted as resistance but has now converted into support due to "seller's remorse" from traders who sold shares at that price [2][3] - Many investors who sold shares around the $293 level regretted their decision and placed buy orders when the stock returned to that price, creating a concentration of buy orders that formed support [3] - The difference between GAAP and non-GAAP earnings can lead to misleading headlines, emphasizing the importance of understanding the underlying accounting principles [3]

Core Insights - MongoDB's share price declined by 16.92% following the FQ3 release, primarily due to the departure of CFO Michael Gordon, raising concerns about future execution despite the company's strong operational performance [1][2] - The company is experiencing robust growth, with Q3 revenue reaching $529.38 million, a 22% year-over-year increase, driven by strong demand for its developer-centric database platform [3][4] - Analysts are optimistic about MongoDB's future, raising price targets and forecasting a 27.36% upside based on improved guidance and strong operational metrics [4][6] Financial Performance - Q3 revenue of $529.38 million represents a 22% increase year-over-year, significantly exceeding market expectations by 700 basis points [3] - The gross margin contracted by 100 basis points, but operating results improved, leading to a 25 basis point increase in adjusted net income margin, with adjusted net income rising 25% to $98.1 million [4] - The company has positive cash flow and a strengthening balance sheet, indicating overall financial health [2][4] Guidance and Analyst Sentiment - MongoDB raised its guidance for Q4 and the full year, setting revenue and earnings expectations above consensus forecasts, which analysts view positively [5] - Following the earnings report, analysts revised their price targets upward, with an average target of nearly $380, indicating a potential 20% price increase from current levels [6] - The stock currently holds a "Moderate Buy" rating among analysts, with a critical support level identified near $312.50 [7][9]

Capgemini, Confluent, IBM, QuantumBlack, AI by McKinsey, and Unstructured join the MongoDB AI Applications Program (MAAP) ecosystem to help organizations make an impact with AI MongoDB, Meta collaborating to support developers with Meta models and the end-to-end MAAP technology stackLeading autism and intellectual and developmental disability software provider CentralReach using MAAP to improve AI-powered care platformMAAP expansion follows the introduction of vector quantization to MongoDB Atlas Vector Sea ...

Core Viewpoint - MongoDB (MDB) has underperformed in the market, with a year-to-date decline of 20.4%, contrasting with the broader sector's growth of 27.2% [1]. Group 1: Stock Performance - MDB shares have lagged behind the Zacks Internet Software industry and peers such as Samsara, Fortinet, and Cognyte Software, which have seen returns of 60.9%, 60.7%, and 23.8% respectively [1]. - The overall industry has appreciated by 31.9% year-to-date [1]. Group 2: Factors Affecting Performance - The underperformance of MDB stock is attributed to sluggish macroeconomic conditions, a slowdown in software sector spending, and intense competition in the Internet software market [2]. Group 3: Growth Opportunities - MongoDB's expanding clientele and product offerings are seen as positive indicators for future growth [3]. - A recent partnership with Microsoft aims to integrate AI and data analytics, enhancing user capabilities and driving top-line growth [4][5]. - The launch of MongoDB 8.0 is expected to improve database offerings, enhancing throughput by 32% and accelerating time series data aggregations by over 200% [6][7]. Group 4: Financial Outlook - For fiscal 2025, MongoDB expects non-GAAP earnings to be between $2.33 and $2.47 per share, with a projected non-GAAP income from operations of $187 to $195 million [8]. - The consensus estimate for fiscal 2025 earnings is $2.43 per share, indicating a year-over-year decline of 27.03% [8]. - The Zacks Consensus Estimate for third-quarter fiscal 2025 earnings is 69 cents per share, reflecting a year-over-year decline of 28.13% [9]. - MongoDB anticipates revenues between $1.9 billion and $1.93 billion for fiscal 2025, with a consensus estimate of $1.93 billion indicating a year-over-year growth of 14.52% [11]. Group 5: Valuation Concerns - MDB shares are trading at a premium, with a Value Score of F, and a forward 12-month Price/Sales (P/S) ratio of 10.91X, higher than the sector's 6.1X [12]. - Currently, MongoDB holds a Zacks Rank 3 (Hold), suggesting that investors should wait for a more favorable entry point [13].