The midpoint of management’s latest fiscal 2021 revenue guidance (provided in its fiscal 1Q21 earnings release), implies a YoY revenue growth rate of 24%, or less than half the YoY growth rate in fiscal 2020. Significantly lower revenue growth does not match the high-flying growth story from MongoDB bulls. Figure 6: MDB’s Revenue Growth Rate Is Expected to Decline Significantly in Fiscal 2021MDB Revenue Growth Guidance Fiscal 2021 New Constructs, LLCCosts are Growing Faster While Revenue Growth SlowsAs any software company grows, it aims to achieve economies of scale that allow it to turn recurring revenue streams into consistent profits. The YoY growth in costs is rising while revenue growth is slowing. With management guiding for significantly lower revenue growth rates, not solely because of the COVID-19 pandemic, investors may look elsewhere.

Source: Forbes July 20, 2020 13:18 UTC