MongoDB Slows Hiring to a Crawl
Cloud-database provider MongoDB (NASDAQ: MDB) reported solid fourth-quarter results on Wednesday. Revenue soared 36% year over year, driven by 50% growth in Atlas, the company's managed cloud-database product. Adjusted net income and free cash flow greatly improved as well -- the results of that impressive revenue growth.
But MongoDB, like nearly every other enterprise-software company, is feeling some pain from an uncertain economic environment. Consumption trends for Atlas have been below the company's expectations as customers pull back on how quickly they're ramping up usage and resources. MongoDB isn't having trouble winning new customers and workloads, but with customers facing lower demand for their own products and services, there's less of a need to scale up.
MongoDB's guidance was not nearly as impressive as its results. The company expects a significant sequential decline in revenue in fiscal 2024's Q1, which kicked off on Feb. 1. While MongoDB delivered $361.3 million of revenue in fiscal 2023's Q4, guidance calls for Q1 revenue between $344 million and $348 million. A small benefit in Q4 related to revenue recognition around customer commitments muddles the comparison a bit, but this guidance represents a clear slowdown.
Source Fool.com
