Financial Performance - MongoDB reported quarterly earnings of $1 per share, exceeding the Zacks Consensus Estimate of $0.65 per share, and up from $0.51 per share a year ago, representing an earnings surprise of 53.85% [1] - The company posted revenues of $549.01 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 4.23%, and an increase from $450.56 million year-over-year [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $546.56 million, and for the current fiscal year, it is $2.56 on revenues of $2.26 billion [7] - The estimate revisions trend for MongoDB is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Internet - Software industry, to which MongoDB belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - The company generated revenue of $549 million, a 22% year-over-year increase, exceeding the high end of guidance [5][23] - Non-GAAP operating income was $87 million, resulting in a 16% non-GAAP operating margin, compared to a 7% operating margin in the year-ago period [6][26] - Net income for the quarter was $86 million, or $1 per share, compared to $43 million, or $0.51 per share, in the prior year [27] Business Line Data and Key Metrics Changes - Atlas revenue grew 26% year-over-year, now representing 72% of total revenue, up from 70% in the first quarter of fiscal 2025 [5][23] - The total customer count increased by approximately 2,600 sequentially, bringing the total to over 57,100 customers, with Atlas having over 55,800 customers [24][25] - The net ARR expansion rate was approximately 119%, consistent with recent quarters [26] Market Data and Key Metrics Changes - The company experienced strong adoption across various industries, with notable customers including the European Commission, Lenovo, and CSX [18] - The self-serve customer additions were particularly strong, reinforcing MongoDB's position as a preferred platform for developers [8] Company Strategy and Development Direction - The company aims to become the standard platform for enterprises and the default choice for developers building new applications [9] - Focus on high-end market opportunities and application modernization is expected to fuel growth into fiscal 2027 and beyond [15][16] - The recent acquisition of Voyage AI is intended to enhance capabilities in AI applications, improving accuracy and reliability [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute on long-term opportunities despite a dynamic macro environment [6][19] - The company is raising its revenue expectations for the fiscal year based on a strong start, with an increase in operating margin guidance by 200 basis points [28][29] - Management noted that while AI adoption is still early, the company is well-positioned to capitalize on future opportunities [92][94] Other Important Information - The company announced an increase in its share repurchase program, allowing for up to an additional $800 million in buybacks, bringing the total authorization to $1 billion [29] - The company ended the quarter with $2.5 billion in cash and cash equivalents, indicating a strong balance sheet [27] Q&A Session Summary Question: What is driving Atlas growth in terms of application types? - Management highlighted that customers are building a wide variety of applications, including transactional, IoT, and AI-focused applications, leveraging MongoDB's flexible architecture [38][42] Question: How does the company view the opportunity ahead from a CFO perspective? - The new CFO emphasized the importance of capital structure and cash flow generation, indicating a focus on operational discipline and efficiency [44][46] Question: How does MongoDB fit into the competitive landscape with recent moves by Snowflake and Databricks? - Management noted that the operational data store is crucial for AI and that building such capabilities organically is challenging, positioning MongoDB favorably against competitors [54][56] Question: Is the rising popularity of Postgres a concern for MongoDB's long-term relevance? - Management clarified that while Postgres is gaining traction, MongoDB's architecture is better suited for modern applications, especially in the AI space [66][68] Question: What is the status of growth initiatives like Relational Migrator and moving upmarket? - Management reported positive returns on R&D investments and noted that moving upmarket has resulted in larger deals and increased productivity [78][80]

Financial Data and Key Metrics Changes - The company reported revenue of $549 million, a 22% year-over-year increase, exceeding the high end of guidance [4][22] - Non-GAAP operating income was $87 million, resulting in a 16% non-GAAP operating margin, compared to a 7% operating margin in the year-ago period [5][26] - Net income for the quarter was $86 million, or $1 per share, compared to $43 million, or $0.51 per share, in the previous year [27] Business Line Data and Key Metrics Changes - Atlas revenue grew 26% year-over-year, now representing 72% of total revenue, up from 70% in the first quarter of fiscal 2025 [4][22] - The total customer count increased to over 57,100, with approximately 2,600 net new customers added in the quarter [6][23] - The net ARR expansion rate was approximately 119%, consistent with recent quarters [25] Market Data and Key Metrics Changes - The company experienced strong customer additions across various industries, including significant projects from the European Commission, Lenovo, and CSX [17] - The self-serve customer additions were particularly strong, indicating robust adoption of MongoDB across a wide range of use cases [6][18] Company Strategy and Development Direction - The company aims to become the standard platform for enterprises and the default choice for developers building new applications, particularly in AI [7][14] - There is a focus on moving upmarket and modernizing legacy applications, with significant demand for these initiatives [14][15] - The recent acquisition of Voyage AI is expected to enhance the company's capabilities in serving AI applications [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive continued revenue and profitability growth despite a dynamic macroeconomic environment [28][30] - The company raised its full-year revenue guidance by $10 million, reflecting strong performance in Atlas [30] - Management noted that while AI adoption is still early among enterprises, the company is well-positioned to capitalize on this trend [92][94] Other Important Information - The company announced an increase in its share repurchase program, allowing for up to an additional $800 million in buybacks, bringing the total authorization to $1 billion [29] - The company ended the quarter with $2.5 billion in cash and cash equivalents, indicating a strong balance sheet [27] Q&A Session Summary Question: What is driving Atlas growth in terms of application types? - Management highlighted that customers are building a variety of applications, including transactional, IoT, and AI-focused solutions, all on a single platform [40][41] Question: How does the company view the competition from Postgres and other relational databases? - Management believes that the moves by competitors validate the importance of operational data stores for AI and emphasizes MongoDB's architectural advantages [53][57] Question: What are the expectations for AI's contribution to revenue growth? - Management indicated that while AI is still early in adoption, the company is well-positioned for future growth as enterprises begin to build custom AI applications [92][94] Question: What is the outlook for the EA business and potential upside? - Management noted that the EA business had a good quarter, but timing of renewals could impact future performance [86][87] Question: Has the company reached a stable trajectory for Atlas growth? - Management expressed pride in the strong Q1 results and indicated confidence in the growth trajectory moving forward, particularly with AI and app modernization initiatives [102]

Revenue and Growth - Subscription revenue accounted for 97% of total revenue for both the three months ended April 30, 2025, and 2024 [108]. - MongoDB Atlas revenue represented 72% of total revenue for the three months ended April 30, 2025, compared to 70% for the same period in 2024 [110]. - The number of customers with $100,000 or greater in annual recurring revenue (ARR) increased to 2,506 as of April 30, 2025, from 2,137 a year earlier [124]. - The net ARR expansion rate was approximately 119% as of April 30, 2025, indicating strong growth from existing customers [125]. - MongoDB had over 57,100 customers across more than 100 countries as of April 30, 2025, up from over 49,200 customers a year prior [121]. - Total revenue for the three months ended April 30, 2025, was $549.0 million, representing a 22% increase from $450.6 million in the same period of 2024 [147]. - Subscription revenue increased by $94.6 million, primarily driven by a $79.2 million increase from Direct Sales Customers [147]. Expenses and Financial Performance - Gross profit for the three months ended April 30, 2025, was $391.0 million, with a gross margin of 71%, down from 73% in 2024 [149][150]. - Research and development expenses rose to $168.8 million, a 16% increase from $146.1 million in the prior year, primarily due to increased personnel costs [152]. - Sales and marketing expenses were $220.9 million, a slight increase of 1% from $219.4 million in 2024, driven by higher personnel costs [151]. - General and administrative expenses decreased by 10% to $54.8 million, primarily due to a release of reserves for value-added tax expenses [154]. - The net loss for the three months ended April 30, 2025, was $37.6 million, compared to a net loss of $80.6 million in the same period of 2024 [144]. - The company expects to continue incurring operating losses and may require additional capital resources to support growth initiatives [159]. Cash Flow and Liquidity - As of April 30, 2025, the company had cash, cash equivalents, and short-term investments totaling $2.5 billion, sufficient to fund operations for at least the next 12 months [157]. - Cash provided by operating activities for the three months ended April 30, 2025, was $109.9 million, an increase from $63.6 million in the same period of 2024, reflecting growth in sales and customer base expansion [163][164]. - Accounts receivable decreased by $79.9 million in Q1 2025, compared to a decrease of $59.3 million in Q1 2024, indicating improved cash collections [163][164]. - Cash provided by investing activities in Q1 2025 was $51.6 million, primarily from maturities of marketable securities, while cash used in investing activities in Q1 2024 was $48.1 million due to purchases of marketable securities [165][166]. - Cash used in financing activities for Q1 2025 was $1.8 million, slightly higher than $1.1 million in Q1 2024, mainly due to principal payments of finance leases [167]. - As of April 30, 2025, the company had cash, cash equivalents, restricted cash, and short-term investments totaling $2.5 billion, reflecting strong liquidity [177]. Market and Strategic Outlook - The worldwide data software market is projected to grow from $106 billion in 2024 to approximately $191 billion in 2029, representing a 13% compound annual growth rate [114]. - MongoDB plans to continue investing in sales and marketing efforts to drive customer acquisition and expand its global reach [121]. - The macroeconomic environment negatively impacted growth rates for existing MongoDB Atlas applications during the three months ended April 30, 2025 [117]. - The company experienced seasonal fluctuations in revenue, particularly with MongoDB Atlas revenue recorded on a consumption basis, which may impact future results [168]. - The company has not entered into derivative or hedging transactions for foreign currency risks but may consider it as international operations grow [178]. - There were no material changes to contractual obligations and commitments during the three months ended April 30, 2025, compared to previous disclosures [170].

Core Insights - MongoDB reported total revenue of $549.0 million for the first quarter of fiscal 2026, representing a 22% increase year-over-year [1][7] - The company added 2,600 customers, bringing the total customer count to over 57,100 as of April 30, 2025 [1][7] - MongoDB Atlas revenue grew by 26% year-over-year, accounting for 72% of total revenue in Q1 [1][7] - An additional share repurchase authorization of $800 million was announced, increasing the total buyback authorization to $1 billion [1][7] Financial Performance - Subscription revenue reached $531.5 million, also up 22% year-over-year, while services revenue increased by 28% to $17.5 million [7] - Gross profit for Q1 was $391.0 million, yielding a gross margin of 71%, down from 73% in the previous year [7] - The loss from operations was $53.6 million, an improvement from a loss of $98.2 million in the same period last year [7] - Non-GAAP income from operations was $87.4 million, compared to $32.8 million in the year-ago period [7] Cash Flow and Liquidity - As of April 30, 2025, MongoDB had $2.5 billion in cash, cash equivalents, and short-term investments [7] - The company generated $109.9 million in cash from operations, up from $63.6 million in the prior year [7] - Free cash flow for the quarter was $105.9 million, compared to $61.0 million in the same period last year [7] Strategic Developments - MongoDB launched two new retrieval models, voyage 3.5 and voyage 3.5 lite, enhancing AI application capabilities [7] - The MongoDB Model Context Protocol (MCP) Server was introduced in public preview, facilitating natural language interactions with data [7] - Mike Berry was appointed as the new Chief Financial Officer, bringing over 30 years of experience in technology and software [7] Guidance - For Q2 fiscal 2026, MongoDB expects revenue between $548.0 million and $553.0 million, and for the full year, revenue is projected to be between $2.250 billion and $2.290 billion [6][8]

Financial Performance - Total revenue for Q1 Fiscal 2026 was $549.0 million, representing a 22% year-over-year increase[1] - Gross profit for Q1 Fiscal 2026 was $391.0 million, with a gross margin of 71%, down from 73% in the previous year[4] - Net loss for Q1 was $37.6 million, or $0.46 per share, compared to a net loss of $80.6 million, or $1.10 per share, in the year-ago period[4] - Free cash flow for Q1 was $105.9 million, an increase from $61.0 million in the same period last year[4] - Total revenue for the three months ended April 30, 2025, was $549,014,000, representing a 22% increase from $450,561,000 in the same period of 2024[23] - Subscription revenue increased to $531,455,000, up 22% from $436,896,000 year-over-year[23] - Gross profit for the quarter was $390,973,000, with a gross margin of 71%, compared to 73% in the prior year[27] - Net loss for the quarter was $37,626,000, improving from a net loss of $80,593,000 in the same quarter of 2024[23] - Cash provided by operating activities was $109,929,000, compared to $63,613,000 in the prior year[25] - The company reported a non-GAAP gross profit of $406,548,000, with a non-GAAP gross margin of 74%[27] - Operating expenses totaled $444,527,000, slightly higher than $426,050,000 in the same quarter of 2024[23] - Non-GAAP income from operations for the three months ended April 30, 2025, was $87,432,000, compared to $32,797,000 in the same period of 2024, representing a significant increase[28] - Non-GAAP operating margin improved to 16% in Q2 2025 from 7% in Q2 2024[28] - Non-GAAP net income for Q2 2025 was $86,347,000, up from $42,675,000 in Q2 2024[28] - The diluted non-GAAP net income per share increased to $1.00 in Q2 2025 from $0.51 in Q2 2024[28] Customer Growth - The company added 2,600 customers, bringing the total customer count to over 57,100 as of April 30, 2025[1] - Total customer count increased to 57,100 as of April 30, 2025, up from 49,200 a year earlier, reflecting a growth of approximately 16%[31] - Customers generating over $100,000 in annual recurring revenue rose to 2,506 in Q2 2025, compared to 2,137 in Q2 2024, marking an increase of 17%[31] - Direct sales customers remained stable at 7,500 as of April 30, 2025, consistent with the previous quarter[31] Future Guidance - For Q2 Fiscal 2026, revenue guidance is between $548.0 million and $553.0 million, and full-year guidance is between $2.250 billion and $2.290 billion[7] - Non-GAAP income from operations for Q2 is expected to be between $55.0 million and $59.0 million, with full-year guidance between $267.0 million and $287.0 million[7] Shareholder Actions - The company has authorized an additional $800 million for share repurchases, totaling $1 billion[1] Product Development - MongoDB launched new retrieval models and the MongoDB Model Context Protocol (MCP) Server to enhance AI application development capabilities[11] Asset and Equity Changes - Total assets increased to $3,624,420,000 as of April 30, 2025, up from $3,430,293,000 at the end of January 2025[21] - Total stockholders' equity rose to $3,032,950,000, compared to $2,782,224,000 as of January 31, 2025[21] Advanced Subscription Revenue - The percentage of advanced subscription revenue decreased to 22% in Q2 2025 from 25% in Q2 2024[36]

Financial Performance - MongoDB is set to release its first-quarter financial results on June 4, with analysts expecting earnings of 66 cents per share, an increase from 51 cents per share in the same period last year [1] - The projected quarterly revenue is $527.48 million, compared to $450.56 million a year earlier [1] Recent Earnings Report - On March 5, MongoDB reported quarterly earnings of $1.28 per share, surpassing the analyst consensus estimate of 66 cents [2] - Following the earnings report, MongoDB shares increased by 0.4%, closing at $193.75 [2] Analyst Ratings and Price Targets - Loop Capital downgraded MongoDB from Buy to Hold, reducing the price target from $350 to $190 [4] - Barclays maintained an Overweight rating but lowered the price target from $280 to $252 [4] - Scotiabank kept a Sector Perform rating and cut the price target from $240 to $160 [4] - Piper Sandler maintained an Overweight rating, reducing the price target from $280 to $200 [4] - Stifel maintained a Buy rating, lowering the price target from $340 to $275 [4]

Core Viewpoint - MongoDB is set to report earnings on June 4, 2025, with historical data indicating a tendency for negative stock reactions post-earnings announcements, as evidenced by a 55% decline rate over the past five years [1][3]. Earnings Estimates - Consensus estimates predict earnings of $0.66 per share on revenues of $527.5 million, compared to $0.51 per share on sales of $450.6 million in the same quarter last year [3]. - MongoDB's current market capitalization stands at $15 billion, with $2.0 billion in revenue over the last twelve months, alongside an operating loss of $216 million and a net loss of $129 million during the same period [3]. Historical Performance - Over the last five years, there have been 20 earnings data points for MongoDB, with 9 positive and 11 negative one-day returns, resulting in positive returns approximately 45% of the time [6]. - The median of the 9 positive returns is 19%, while the median of the 11 negative returns is -10% [6]. - The percentage of positive returns drops to 36% when considering data from the last three years [6]. Trading Strategies - Event-driven traders can utilize historical patterns to inform their strategies, either by positioning themselves before earnings releases or analyzing the correlation between immediate and medium-term returns post-release [2][4]. - A less risky strategy involves understanding the correlation between short-term and medium-term returns, allowing traders to position themselves accordingly based on positive 1D returns [4][5].

Group 1 - MongoDB Inc (NASDAQ:MDB) has experienced a 1.5% decline to $186.09 following a downgrade from Loop Capital, which changed its rating from "buy" to "hold" and significantly reduced the price target from $350 to $190, citing slowing adoption of its AI platform Atlas [1] - The stock has been gradually recovering since hitting a two-year low of $140.78 on April 7, but it remains below the $200 resistance level, with a year-to-date decline of approximately 20% [2] - Despite the recent downgrade, the majority of analysts remain optimistic, with 27 out of 37 analysts maintaining a "buy" or better rating, and a 12-month consensus price target of $273.14, representing a 45% premium to current levels [3] Group 2 - Options traders have shown bullish sentiment over the past 10 weeks, with a 50-day call/put volume ratio of 2.19, ranking higher than 97% of readings from the past year, indicating strong interest in options trading [4] - MongoDB's Schaeffer's Volatility Scorecard (SVS) stands at 90 out of 100, suggesting that the stock has exceeded options traders' volatility expectations over the past year [4]

Group 1 - MongoDB, Inc. is a cloud-based database provider with a strong growth track record, averaging 37% growth over the past five years [1] - The analysis focuses on MongoDB's business model to understand its growth drivers and assess its potential for continued growth [1] Group 2 - Khaveen Investments is a global investment advisory firm that provides comprehensive services including market and security research, business valuation, and wealth management [1] - The firm employs a multifaceted investment approach that integrates global macro, fundamental, and quantitative strategies, focusing on disruptive technologies [1]