Shares of database software company MongoDB (MDB) fell 13.8% in the morning session after the company reported mixed third-quarter (FQ3 2025) results. Consumption trends for Atlas, its cloud-based product, remained below last year’s levels, and management predicts this weakness will continue into the next quarter. Reflecting this lower demand, revenue expectations for the next quarter implied a 2% sequential slowdown in growth.
On the other hand, MongoDB exceeded analyst expectations during the quarter, leading to higher revenue and operating profits. Revenue and profit expectations for the next quarter also came in higher than Wall Street estimates. It was a good quarter, but not good enough for the markets, something we’ve seen with other SaaS companies like NET and ZS, which immediately fell after seemingly solid results.
MDB also announced that Michael Gordon, Chief Operating Officer and Chief Financial Officer, will retire at the end of the fiscal year on January 31, 2025.
Shares ended the day at $290.85, down 17% from the previous close.
The stock market overreacts to news, and big price drops can provide good opportunities to buy high-quality stocks. Is Now the Time to Buy MongoDB? View our full analysis report here. It’s free.
MongoDB stock is highly volatile, having seen 22 moves of more than 5% in the past year. But such big moves are rare even for MongoDB and indicate that this news has had a significant impact on the market’s perception of the company.
The previous big move we wrote about was 19 days ago, when the stock rose 17.5% on news that fellow data analytics software provider Snowflake reported impressive third-quarter results that beat analysts’ revenue and profit expectations. Customer retention has also normalized, indicating that some of the demand headwinds that have hampered the growth of some enterprise software companies are fading, especially those with more exposure to small and medium-sized businesses. The improved trends are also supported by Snowflake’s strong sales outlook, which exceeded consensus estimates. Overall, the results showed signs of improved demand within the data analytics segment.
MongoDB is down 24.2% year-to-date and at $290.80 per share is trading 41.9% below its 52-week high of $500.90 set in February 2024. Investors who bought $1,000 five years ago bought shares of MongoDB would now be looking for at an investment worth $2,251.
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