06:24 AM EDT, 05/31/2024 (MT Newswires) -- MongoDB ( MDB ) shares tumbled early Friday after lowering its full-year outlook due to a slower-than-expected start for its Atlas offering and new workload wins, even though the database software maker's fiscal first-quarter results topped market estimates.

Adjusted earnings are now set to be in a range of $2.15 to $2.30 per share for fiscal 2025, the company said late Thursday, down from its prior guidance of $2.27 to $2.49. Revenue is pegged at $1.88 billion to $1.9 billion, compared with previous projections of $1.9 billion to $1.93 billion. The consensus on Capital IQ is for normalized EPS of $2.36 and revenue of $1.91 billion.

Consumption growth for MongoDB's ( MDB ) cloud-based developer data platform, Atlas, came in below expectations in the first quarter, as the company saw less seasonal improvement and this "dynamic was true with customers across tenure, industry, size and geography," Chief Executive Dev Ittycheria said on an earnings call, according to a Capital IQ transcript. "We believe this indicates a more challenging macro environment than expected at the beginning of the year," Ittycheria told analysts.

The company now anticipates Atlas consumption growth to slow down in fiscal 2025, having initially expected stable growth versus last year, on the back of a weaker-than-forecast first quarter, Chief Financial Officer Michael Gordon said on the call. "The slowdown is driven by the more pronounced macro impact we are seeing on our existing workloads, recent cohorts in particular," according to Gordon.

The company's stock has dropped about 19% year-to-date and tanked 26% in recent premarket activity.

For the three month period ended April, MongoDB's ( MDB ) adjusted EPS declined to $0.51 from $0.56 on a yearly basis, but topped the Street's view for $0.37. Revenue climbed 22% to $450.6 million, exceeding analysts' $439.9 million estimate.

Subscription revenue advanced 22% to $436.9 million while services ticked up 1% to $13.7 million. "Atlas grew 32% in the quarter compared to the previous year and now represents 70% of total revenue compared to 65% in the first quarter of fiscal 2024," Gordon said. The total number of customers grew to more than 49,200 at the end of April from over 47,800 at the end of January.

The company expects adjusted EPS to come in between $0.46 and $0.49 a share for the ongoing quarter on a revenue range of $460 million to $464 million. The Street is currently looking for normalized EPS of $0.44 on revenue of $464.2 million.

Price: 235.60, Change: -74.40, Percent Change: -24.00