06:35 AM EST, 12/10/2024 (MT Newswires) -- MongoDB ( MDB ) raised its full-year outlook and reported better-than-expected fiscal third-quarter results, but the database software maker forecast a consumption slowdown for its Atlas cloud platform in the ongoing quarter, sending its shares down early Tuesday.

Adjusted earnings are now set to be in a range of $3.01 to $3.03 per share for fiscal 2025, the company said late Monday, up from its prior guidance of $2.33 to $2.47. Revenue is pegged at $1.97 billion to $1.98 billion, compared with previous projections of $1.92 billion to $1.93 billion. The consensus on FactSet is for non-GAAP EPS of $2.82 and revenue of $1.96 billion.

Consumption growth for MongoDB's ( MDB ) cloud-based developer data platform, Atlas, is anticipated to see a "typical seasonal slowdown" in the fourth quarter, "driven by underlying application usage moderating during the holiday season," Chief Financial Officer Michael Gordon said during an earnings call, according to a Capital IQ transcript. "Since Atlas consumption remained lower on a year-over-year basis in (the third quarter), we expect to see continued deceleration of Atlas year-over-year growth in (the fourth quarter)."

The company's stock gained nearly 2% as of the close of Monday trading but declined 2.9% in premarket activity Tuesday.

MongoDB ( MDB ) expects adjusted EPS to come in between $0.62 and $0.65 for the ongoing quarter on a revenue range of $515 million to $519 million. The Street is currently looking for non-GAAP EPS of $0.63 on revenue of $516.7 million.

"We expect to see a sequential decline in non-Atlas revenue in (the fourth quarter), which is contrary to our normal pattern," Gordon told analysts. "The reason for this is that we experienced a significant additional benefit from multi-year deals in (the third quarter), which we do not expect to recur in (the fourth quarter)."

For the three-month period ended October, the company's adjusted EPS advanced to $1.16 from $0.96 a year ago, exceeding the Street's view for $0.69. Revenue climbed 22% year over year to $529.4 million, topping analysts' $497.2 million estimate.

Subscription revenue jumped 22% to $512.2 million while services inclined 18% to $17.2 million. Atlas grew 26% in the quarter year over year and now represents 68% of total revenue versus 66% in the third quarter of fiscal 2024, Gordon said on the call. The total number of customers grew to more than 52,600 at the end of October from over 50,700 at the end of July.

Gordon will step down from his roles as CFO and chief operating officer of the company at the end of its fiscal year 2025. MongoDB ( MDB ) said it has launched a search process for a new CFO and will evaluate internal and external candidates. Senior Vice President of Finance Serge Tanjga will serve as interim CFO, effective Feb. 1, if the company hasn't named a successor to Gordon by then.