11:20 AM EST, 12/10/2024 (MT Newswires) -- MongoDB ( MDB ) delivered its "biggest beat of the year" in fiscal Q3, aided by multi-year deals, which are likely to weigh on fiscal Q4 revenue growth, Morgan Stanley said Tuesday.

The database software maker posted late Monday better-than-expected fiscal Q3 results, but projected a consumption slowdown for its Atlas cloud platform in fiscal Q4.

After reporting a 22% increase in fiscal Q3 revenue, the company projected fiscal Q4 revenue growth of 13%, ahead of the market consensus calling for an 11% increase, Morgan Stanley said in a note to clients. "Taken together, we think growth likely slows on a YoY basis in Q4 vs Q3 and falls below 20% again."

The company's fiscal Q3 results got a boost from multi-year deals, which are expected to weigh on overall revenue growth in fiscal Q4, "but we think new workload contribution and some benefits from a multiyear product cycle will allow MDB to reassert 20% growth in FY26," the brokerage said.

Morgan Stanley raised its price target to $350 from $340 and maintained its overweight rating on the stock.

The company's shares were down over 13% in recent trading.

Price: 303.17, Change: -46.96, Percent Change: -13.41