Key Takeaways
- MongoDB’s board named Chirantan “CJ” Desai, an executive at Cloudflaire, its next CEO, replacing the retiring Dev Ittycheria.
- The database software company also said it expects its third-quarter revenue, adjusted operating income, and adjusted earnings to exceed the high end of its August guidance.
Database software maker MongoDB on Monday announced it will soon be welcoming a new CEO and said it expected third-quarter results would exceed its prior guidance.
MongoDB’s (MDB) board of directors has appointed Chirantan “CJ” Desai as the company’s next CEO, effective Nov. 10, according to a press release. Desai will replace Dev Ittycheria, who is retiring from leading the company after 11 years at the helm. Ittycheria will remain on MongoDB’s board and act as an advisor to Desai during the transition.
Desai most recently was President of Product and Engineering at cybersecurity firm Cloudflare (NET). Desai previously held positions at ServiceNow (NOW) and Oracle (ORCL).
Why This Is Important
MongoDB shares have been on a rollercoaster ride this year, weighed on at times by doubts that the database software maker can carve out for itself a vital role in the AI space. Its forecast of better-than-expected third-quarter growth may hearten wary investors and help the stock overtake last year’s all-time high.
“MongoDB has long been the partner of choice for building applications that transform businesses, and now it is uniquely positioned to power the next wave of AI-driven applications,” said Desai.
MongoDB on Monday also said it expects its third-quarter revenue, adjusted operating income, and adjusted earnings to exceed the high end of the guidance it issued in August. The company said the quarter’s results, which have yet to be finalized, were “driven by continued strength in Atlas,” its database platform. MongoDB is scheduled to report final results on Dec. 1.
Wall Street analysts are generally bullish on MongoDB stock, with 15 of the 18 analysts with current assessments tracked by Visible Alpha rating the stock a “Buy.” The remainder have assigned it a “Hold” rating. The median price target of $375 is about 4% above the stock’s closing price on Friday.
MongoDB shares pared early gains on Monday and were recently up about 0.4%, bringing the stock’s year-to-date performance to about 56%. Those 2025 gains, however, don’t tell the full story of an up-and-down year that saw the shares drop in March before springing higher in August to near current levels.