MongoDB reported Q1 revenue of $450.6 million, up 22% year-over-year, surpassing the estimated $439.91 million, and beating earnings by $0.13. However, the company provided a disappointing outlook for Q2 and FY 2025, citing slower demand for its Atlas product. As a result, MongoDB's stock dropped significantly, falling approximately 26% after hours to $230. The company also guided Q2 EPS and revenue below consensus, and its FY 2025 EPS and revenue forecasts were also below expectations. This has impacted the software sector, with MongoDB shares sinking 23% and dropping 25%+ after hours.