Financial report good news is hard to overcome AI anxiety! MongoDB (MDB.US) gives weak guidance, stock price plunges 25% after hours.

Although MongoDB (MDB.US) reported a strong fourth quarter performance, the document database platform provider's quarterly performance guidance fell short of market expectations, causing investors who were already concerned about the rise of artificial intelligence (AI) potentially disrupting their business to feel uneasy once again. As a result of this news, the company's stock price plummeted over 25% in after-hours trading. By the end of Monday, the stock had already fallen by 19% over the past three months. MongoDB expects that in the first quarter of the fiscal year ending in April, the company's revenue will be between $659 million and $664 million, with adjusted earnings per share between $1.15 and $1.19. Both of these forecasts are lower than Wall Street's expectations - analysts had previously expected revenue of $662.5 million and adjusted earnings per share of $1.20. With the release of this performance guidance, investors are becoming more worried: as AI models become more advanced, the software industry may face disruptive impacts. Looking back, MongoDB's stock price had risen by 96% from mid-August to the end of last year. The strong performance in the second quarter was the main driver of this rise. However, this year, as investors' overall sentiment towards software stocks turned cold, the stock experienced a downturn. The market is concerned that AI agents may disrupt the existing subscription-based software model. However, CEO CJ Desai stated that MongoDB is in a favorable position as customers seek to expand their AI capabilities and is poised to be a winner. He pointed out that the company's database platform is increasingly recognized as the foundation for leading digital enterprises and continues to be acknowledged in the rapidly growing AI industry. It is understood that the company mainly provides database software that can store unstructured data in flexible, independent "document" units. "Over the past 60 years, the database layer has withstood the tests of multiple technological revolutions, and its importance has only increased in the current AI revolution," Desai said during a conference call with analysts. He added that AI applications and intelligent systems require high-speed, high-quality retrieval capabilities, which are the native strengths of the MongoDB platform. For the entire fiscal year, the company expects revenue of $2.86 billion to $2.9 billion and adjusted earnings per share of $5.75 to $5.93. Analysts had previously expected annual revenue of $2.9 billion and adjusted earnings per share of $5.69. As for the fourth quarter financial report, the company achieved a net profit of $15.5 million, or 18 cents per share, compared to $15.8 million, or 19 cents per share, in the same period last year. The company's sales and research and development costs increased compared to the same period last year. Adjusted earnings per share were $1.65, higher than analyst expectations of $1.48. Quarterly revenue increased by 27% year-over-year to $695.1 million, exceeding analysts' expectations of $670.1 million. Investors were particularly concerned about the cloud database software business Atlas, which also performed well, with revenue growing by 29% year-over-year and adding 2,700 new customers in the quarter, bringing the total number of customers to 65,200 by the end of the period. Desai stated that as customers actively adopt more product lines from the company, demand across all business segments is generally strong, driving overall performance growth. He also pointed out that AI has not yet become a significant driver of the company's performance. In addition to financial performance, MongoDB also made changes to its executive team. Erica Violini will be appointed Chief Customer Officer, having previously worked with current CEO Desai at ServiceNow (NOW.US). Meanwhile, the former Chief Operating Officer Cedric Pech and Chief Revenue Officer Paul Capombassis will be leaving the company.