Database software maker MongoDB announced on Monday the appointment of Chirantan “CJ” Desai as its new chief executive officer, succeeding Dev Ittycheria, who is stepping down after an 11-year tenure.
The leadership transition will take effect on November 10, the company said in a statement.
Shares of MongoDB surged more than 7% in premarket trading following the announcement, as investors welcomed both the company’s upbeat third-quarter outlook and the smooth leadership transition.
However, the stock gave up some of the gains at market open and was trading higher by 3.5%.
Ittycheria will continue to serve on the company’s board.
A planned transition after a decade of growth
Ittycheria, who took over in 2014, led MongoDB through a period of remarkable expansion, including its 2017 IPO and the company’s evolution into a major player in the database software market.
He told CNBC that the succession was part of a long-term plan.
“Earlier this year, as part of normal succession planning, the board asked about my long-term plans,” Ittycheria said. “After discussions with my family and the board, I realized I couldn’t commit to another five years as CEO.”
Before joining MongoDB, Ittycheria co-founded BladeLogic, taking it public in 2007 before selling it to BMC for $854 million the following year.
Under his leadership, MongoDB transformed from a niche developer favorite into a mainstream enterprise software provider competing with giants like Oracle, while shifting its business model toward cloud subscriptions and AI-powered database capabilities.
MongoDB’s stock has risen fifteenfold since its IPO, closing Friday at $359.82 and giving the company a market capitalization of nearly $30 billion.
CJ Desai brings deep cloud and AI experience
Desai joins MongoDB from Cloudflare, where he served as president of product and engineering.
He will officially assume the CEO role on November 10, shortly after stepping down from Cloudflare on November 7.
Previously, Desai held senior positions at ServiceNow, EMC, and Symantec.
His appointment follows what MongoDB described as a “comprehensive CEO search” to identify a next-generation leader experienced in cloud infrastructure, AI, and enterprise software innovation.
Ittycheria said the board felt confident in Desai’s leadership after consulting people familiar with his past work.
“We felt very, very comfortable that CJ is the right person to lead MongoDB in this next era,” he said.
Desai said he intends to build on MongoDB’s momentum: “I look forward to growing MongoDB to $5 billion-plus in a durable, profitable way and to make it the gold standard for modern database technology.”
Upbeat outlook boosts sentiment
Alongside the leadership news, MongoDB said it expects to exceed the high end of its fiscal third-quarter guidance for both revenue and adjusted earnings per share.
The company’s previous forecast had called for revenue of up to $592 million and earnings of 79 cents per share.
Analysts are set to hear more about the leadership change during a scheduled conference call with executives at 10 a.m. ET on Monday.
The post MongoDB shares climb on leadership change, strong Q3 outlook appeared first on Invezz