Why MongoDB Stock Crashed on Thursday

Core Viewpoint - MongoDB's stock experienced a significant decline of 20.3% following the release of its Q4 2024 earnings report, despite beating earnings expectations, primarily due to disappointing guidance for 2025 [1]. Group 1: Q4 2024 Earnings Performance - Analysts had forecasted MongoDB to earn $0.67 per share on sales of $519.8 million, but the company reported sales of $548.4 million and earnings of $1.28 per share, nearly double the expectations [2]. - Q4 revenue increased by 20% year over year, while full-year revenue grew by 19%. However, the gross profit margin declined to 73% in Q4, and GAAP earnings were reported at -$0.20 per share, an improvement from -$0.77 in the previous year [3]. - Free cash flow (FCF) fell by more than half to $22.9 million in Q4, although the full-year FCF was $114.5 million, slightly up from $109.9 million in fiscal 2024, with a growth rate of only 4% [4]. Group 2: 2025 Guidance Concerns - MongoDB provided guidance for Q1 in line with expectations, projecting sales of $526 million and non-GAAP earnings of $0.63 per share or better. However, for the full year, the company indicated that sales would not exceed $2.3 billion, and earnings could drop to between $2.44 and $2.62 per share, a significant decrease from last year's $3.66 per share [5][6].