MDB Q1 Earnings Call: Cloud Database Growth and AI Initiatives Shape Outlook
Database software company MongoDB (MDB) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 21.9% year on year to $549 million. Its non-GAAP EPS of $1 per share was 52% above analysts' consensus estimates.
Is now the time to buy MDB? Find out in our full research report (it's free).
Revenue: $549 million (21.9% year-on-year growth)
Adjusted EPS: $1 vs analyst estimates of $0.66 (52% beat)
Adjusted Operating Income: $87.43 million vs analyst estimates of $56.36 million (15.9% margin, 55.1% beat)
Revenue Guidance for Q2 CY2025 is $550.5 million at the midpoint, roughly in line with what analysts were expecting
Management raised its full-year Adjusted EPS guidance to $3.03 at the midpoint, a 19.8% increase
Operating Margin: -9.8%, up from -21.8% in the same quarter last year
Customers: 57,100, up from 54,500 in the previous quarter
Annual Recurring Revenue: $1.61 billion at quarter end, up 25.1% year on year
Billings: $509.3 million at quarter end, up 23.2% year on year
Market Capitalization: $16.32 billion
MongoDB's first quarter results were shaped by ongoing adoption of its Atlas cloud database, continued expansion into larger enterprise accounts, and increased self-serve customer acquisition. CEO Dev Ittycheria emphasized that the company's architectural approach—with a document model designed for complex, evolving data—remains central to its appeal for both new application development and legacy modernization. Management pointed out particularly strong net new customer additions, highlighting traction in industries focused on cloud-native and AI-powered applications. The quarter also benefited from higher operational efficiency, with non-GAAP margins improving due to disciplined expense management and a slower pace of headcount additions.
Looking forward, MongoDB's updated guidance is anchored in expectations for sustained Atlas cloud growth, ongoing investments in AI-related features, and targeted expansion within the enterprise segment. CFO Mike Gordon noted the company's intent to balance continued innovation with operational discipline, stating, 'We are focused on running an efficient, scalable business that supports growth in revenue and profitability.' Management remains attentive to macroeconomic uncertainty and the timing of multi-year license renewals, which are expected to weigh on non-Atlas revenue in the second half of the year. The company's strategic priorities include advancing its AI platform capabilities, further automating application modernization, and executing a $1 billion share repurchase program to support shareholder value.
Management attributed first quarter performance to increased demand for Atlas, accelerating self-serve customer growth, and early returns from investments in AI and modernization tooling.
Atlas cloud adoption: Growth in Atlas, MongoDB's fully managed cloud database, was driven by broad customer demand for real-time, cloud-native, and AI-enabled applications. Management cited rapid uptake from both new and existing customers, with Atlas now representing the majority of revenue.
Self-serve momentum: The self-serve channel posted its highest customer additions in over six years, indicating MongoDB's growing appeal among developers and small businesses. This channel is seen as a long-term engine for growth, especially as many accounts start small but have potential for expansion.
Enterprise and upmarket focus: The company's initiative to shift go-to-market resources from mid-market to enterprise accounts resulted in larger deal sizes and higher sales productivity. Management noted increased engagement with Fortune 500 companies and highlighted several large customer wins this quarter.
AI and Voyage acquisition: MongoDB's recent acquisition of Voyage AI was highlighted as a strategic move to strengthen the company's position in AI application development. Embedding and search enhancements from Voyage are expected to improve the performance and cost-efficiency of AI workloads on MongoDB's platform.
Operational efficiency: Improved non-GAAP operating margins were attributed to both outperformance in revenue and slower-than-planned headcount additions. Management emphasized ongoing scrutiny of spending and plans to reallocate resources toward higher-return initiatives.
MongoDB expects future performance to be shaped by ongoing cloud adoption, AI feature enhancements, and a disciplined investment approach.
Atlas momentum and expansion: Management projects continued growth in Atlas, supported by demand for scalable, cloud-based data solutions in both traditional and AI-powered applications. The company is investing in new features to meet evolving enterprise requirements.
AI platform integration: The integration of Voyage AI's embedding and search models is expected to enhance MongoDB's value proposition for customers building custom AI solutions. Management sees AI as a long-term driver, though enterprise adoption remains early and subject to talent and trust barriers.
Macroeconomic and license renewal risks: Management cautioned that macroeconomic volatility and the timing of multi-year license renewals could create headwinds for non-Atlas revenue in upcoming quarters. The company is maintaining a balanced approach to spending while monitoring these external factors.
In the coming quarters, the StockStory team will watch (1) the pace of Atlas customer additions and expansion within larger enterprise accounts, (2) evidence that AI and app modernization features are driving customer adoption and incremental workloads, and (3) the impact of macroeconomic conditions and multi-year license renewals on non-Atlas revenue. Progress on integrating Voyage AI capabilities and execution of the expanded share repurchase program will also be important markers.
MongoDB currently trades at a forward price-to-sales ratio of 6.9×. In the wake of earnings, is it a buy or sell? The answer lies in our full research report (it's free).
Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
6 hours ago
- Yahoo
Why MongoDB Rallied This Week
MongoDB's first-quarter report and forward guidance impressed Wall Street. Management said the company had the most net customer adds in six years. MongoDB could be a delayed AI winner. 10 stocks we like better than MongoDB › Shares of database disruptor MongoDB (NASDAQ: MDB) rallied 17.7% this week through Friday as of 12:15 p.m. ET, according to data from S&P Global Market Intelligence. MongoDB reported its fiscal first-quarter earnings on Wednesday, trouncing analyst estimates and showing some reacceleration from the prior quarter. MongoDB has said that it would become an artificial intelligence (AI) winner once the "experimentation" phase ended and companies began to build AI-powered software applications. It looks like that may be starting now. Coming into this week, MongoDB was still wallowing in a severe downturn, having been more than cut in half since its 2021 highs and also its early 2024 highs. Revenue had been decelerating amid economic uncertainty, and management said that while it expects to see growth from the AI revolution, that growth wouldn't happen until AI moved from the experimentation phase to the application phase. In the first quarter ending in April, MongoDB began to see some of those benefits. Revenue grew 22% to $549 million, fueled by consumption-based MongoDB Atlas growth of 26%. That overall revenue figure was well above expectations, as well as the prior guidance given by the company of $524 million to $529 million. Non-GAAP (adjusted) earnings per share of $1 nearly doubled, and trounced expectations by $0.34. Management also raised full-year revenue guidance from $2.26 billion to $2.27 billion at the midpoint, and adjusted earnings-per-share figures from $2.51 to $3.03 at the midpoint. On the conference call, MongoDB noted its net customer additions were the highest in over six years, especially self-serve customers. That's really impressive, and highlights AI developers turning to MongoDB as their go-to database to handle and organize the "messiness of the real world" within data connections. Software-as-a-service stocks are generally very expensive, but if MongoDB is in fact on the brink of an acceleration, it could be one of the best values in the space. After this week's surge, shares trade around 8 times this year's revenue guidance, which is expensive for a typical stock, but reasonable for a software stock. Of note, MongoDB also has a significant amount of cash on its balance sheet, at over $2.3 billion, good for 13% of its market cap, and no debt. In terms of AI software plays, MongoDB looks like a promising opportunity, as the stock is still down markedly from its all-time highs. Before you buy stock in MongoDB, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and MongoDB wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MongoDB. The Motley Fool has a disclosure policy. Why MongoDB Rallied This Week was originally published by The Motley Fool Sign in to access your portfolio
Miami Herald
11 hours ago
- Miami Herald
Costco goes bananas to protect members from tariffs
As a general rule, it's a good idea for retailers to offer outstanding customer service. But Costco takes that concept a step further than most. Costco is known not only for its extremely competitive prices, but also for one of the most flexible return policies in all of retail. Buy something you don't like or whose quality isn't up to par, and with very few exceptions, you can bring it back for a full refund at any time. Don't miss the move: Subscribe to TheStreet's free daily newsletter Costco does other things to offer great value to members. It keeps a close eye on its inventory, while aiming to introduce new products from which customers can benefit. Related: Costco plans new checkout option members should love And you can bet that Costco keeps tabs on prices, too. The warehouse club giant prides itself on offering unbeatable deals. Those extend to everything from groceries to household essentials to electronics. Even though the tariff situation is still evolving, it has retailers spooked across the board. Many retailers rely on foreign trade partners to source goods. And they know that if tariffs drive the cost of goods upward, they're going to have to pass at least some of that increase onto consumers. Related: Costco quietly drops popular product, saddens fans Unfortunately, consumers can't afford to be paying more at the register at a time when inflation is still a problem. So it's a tough situation overall. Recently, Walmart CEO Doug McMillon acknowledged that the company might have to raise prices in response to tariffs. Even though he noted that Walmart would do its best to avoid tariff-related increases, he owned up to the fact that the company probably would not be able to absorb all of the extra costs on its own. If a giant like Walmart is sounding tariff warnings, you can bet that smaller retailers will be looking at raising prices, too. They may simply have no choice. While many retailers are sounding alarms on tariffs, Costco is doing the opposite. During the company's most recent earnings call, the Costco leadership team reassured investors that it had the tariff situation under control. "We're remaining agile as a situation with tariffs evolves," CEO Ron Vachris said. "As an example of this, during the third quarter, we rerouted many goods sourced from countries with large tariff exposure to our non-U.S. markets." Related: Costco brings back food court favorite, but members aren't happy In addition to moving goods strategically, Costco also intentionally held prices steady on key grocery items, even if that meant eating into profits. During that same last earnings call, CFO Gary Millerchip called out two such items – pineapples and bananas. "We felt it was important to really eliminate the impact there for the member," Millerchip explained. "We essentially held the price on those to make sure that we're protecting the member." In addition to keeping prices steady on key produce items, Costco also lowered prices on essential items like butter, eggs, and olive oil, Millerchip said. More Retail: Walmart CEO sounds alarm on a big problem for customersTarget makes a change that might scare Walmart, CostcoTop investor takes firm stance on troubled retail brandWalmart and Costco making major change affecting all customers To be fair, Costco isn't just holding and lowering prices out of the goodness of its heart. The company relies on membership fees for a huge chunk of its revenue. So Costco is invested in making members happy by keeping prices as stable as possible. But regardless of the company's motives for keeping prices low, Costco members still benefit. And at a time when so many retailers may be looking at price increases, Costco's commitment to shielding members from tariffs can't be overlooked. Maurie Backman owns shares of Costco. Related: Walmart makes surprise cuts as it looks at tariff price hikes The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
12 hours ago
- Yahoo
Why MongoDB, Inc. (MDB) Soared On Thursday
We recently published a list of . In this article, we are going to take a look at where MongoDB, Inc. (NASDAQ:MDB) stands against other best-performing stocks on Thursday. MongoDB saw its share prices increase by 12.84 percent on Thursday to close at $225.38 apiece as investor sentiment was boosted by its impressive earnings performance and optimistic business outlook for the rest of the year. In its financial statement, MongoDB, Inc. (NASDAQ:MDB) said it narrowed its net loss by 53 percent to $37.6 million in the first quarter of the year from the $80.59 million registered in the same period last year. A software engineer hosting a remote video training session on a multi-cloud database-as-a-service solution. Revenues increased by 22 percent to $549 million from $450 million registered year-on-year. Amid the strong performance, MongoDB, Inc. (NASDAQ:MDB) is looking at a higher range of revenue outlook for the second quarter, between $548 million and $553 million, while revenues for the full-year period were pegged at a range of $2.25 billion to $2.29 billion. 'MongoDB is off to a strong start in fiscal 2026 with 26 percent Atlas revenue growth, meaningful margin outperformance, and the highest total net customer additions in six years,' said MongoDB, Inc. (NASDAQ:MDB) President and CEO Dev Ittycheria. 'Looking ahead, we see an incredible opportunity for customers to take advantage of MongoDB's modern architecture, which delivers real and measurable advantages for the types of applications being built today—cloud-native, distributed, real-time—and the AI-powered applications of tomorrow. We are confident in our position to drive profitable growth as we benefit from this next wave of application development,' he added. Overall, MDB ranks 4th on our list of best-performing stocks on Thursday. While we acknowledge the potential of MDB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
