Latest news with #non-Atlas
Yahoo
2 days ago
- Business
- Yahoo
DA Davidson Reiterates Buy Rating on MongoDB (MDB), Keeps PT
On June 5, DA Davidson analysts reiterated a 'Buy' rating on MongoDB Inc. (NASDAQ:MDB) stock and stuck with the $275 price target. The analysts asserted the rating and price target in response to the company's robust performance in the first quarter. Copyright: limonzest / 123RF Stock Photo MongoDB delivered Atlas and Non-Atlas revenue that topped analysts' expectations, contributing to a 19.2% year-over-year revenue increase. The company achieved non-GAAP earnings per share of $1.00, better than $0.66 expected. Revenue in the quarter totaled $549 million, above the $528.2 million expected. While Atlas consumption remained under pressure in April, it bounced back in May. On the other hand, Atlas's growth accelerated by 26% compared to 24% in the first quarter of last year. Following the better-than-expected first quarter results, MongoDB raised its fiscal year 2026 guidance due to some non-Atlas timing advantages realized in the quarter. It now expects full-year revenue to range between $2.25 billion and $2.29 billion, signaling confidence in continued growth. The company also increased its operating profit projections to affirm improvements in operational efficiency. DA Davidson reaffirmed the Buy rating buoyed by the company's strategic focus on operational efficiency. MongoDB is a company that develops and supports the MongoDB database, a popular NoSQL database known for its flexibility and scalability. It provides a multi-cloud developer data platform, including cloud-based services like MongoDB Atlas, and caters to a wide range of industries, including financial services, telecommunications, and healthcare. 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: and. Disclosure: None. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
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.
Yahoo
3 days ago
- Business
- Yahoo
MongoDB Jumps 17% on Strong Q1 Beat
MongoDB (NASDAQ:MDB) surges 17% premarket after beating Q1 fiscal 2026 estimates and raising guidance amid Atlas momentum. Analysts at Wedbush retained their Outperform rating and $300 price target, noting that Atlas monetization is just getting started as the cloud database provider posted revenue upside of roughly 6% driven by a 7% beat in Atlas. Atlas revenue reached $395 million, up 1.3% quarter-over-quarter versus flat to down guidance, while non-Atlas revenue of $136 million exceeded the implied $132 million forecast. Net Atlas customer additions of 2,700well above the historical 1,5002,000 rangeunderscore accelerating enterprise demand for next-gen database solutions. Wedbush's Daniel Ives pointed to MongoDB's Voyage AI acquisition as a catalyst for wider AI adoption, while noting that new CFO Mike Berry's May 27 appointment should be seamless and support efforts to sharpen operating efficiency. BofA Securities' Brad Sills maintained a Buy rating and $275 target after calling the quarter strong, attributing upside to stabilizing usage and easing unused credit headwinds. Morgan Stanley's Sanjit Singh bumped his price target to $255 from $235, citing Atlas growth accelerating to 26% year-over-year, up from 24% in Q4, paired with record customer additions and prudent guidance. Despite a tougher macro environment, MongoDB's mix shift toward cloud and AI-driven services positions it to outpace competition like Postgres in the $120 billion unstructured data management market. Investors care because MongoDB's stronger growth trajectory and raised outlook suggest upside potential, even as peers face margin pressures. Investors will watch Q2 Atlas growth and updated full-year guidance when MongoDB reports next quarter. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
MongoDB Inc (MDB) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic Expansions
Revenue: $549 million, a 22% year-over-year increase. Atlas Revenue: Grew 26% year over year, representing 72% of total revenue. Non-GAAP Operating Income: $87 million, with a 16% non-GAAP operating margin. Customer Count: Over 57,100 customers, with approximately 2,600 added sequentially. Net ARR Expansion Rate: Approximately 119%. Gross Margin: 74%, down from 75% in the year-ago period. Net Income: $86 million or $1 per share. Operating Cash Flow: $110 million. Free Cash Flow: $106 million. Cash and Equivalents: $2.5 billion. Share Repurchase Program: Increased by $800 million, totaling $1 billion. Q2 Revenue Guidance: $548 million to $553 million. Fiscal Year '26 Revenue Guidance: $2.25 billion to $2.29 billion. Fiscal Year '26 Non-GAAP Income from Operations Guidance: $267 million to $287 million. Warning! GuruFocus has detected 3 Warning Sign with VRNT. Release Date: June 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. MongoDB Inc (NASDAQ:MDB) reported a 22% year-over-year increase in revenue, reaching $549 million, surpassing the high end of their guidance. Atlas revenue grew 26% year over year, now representing 72% of total revenue, indicating strong adoption of their cloud-based platform. The company achieved a non-GAAP operating income of $87 million, resulting in a 16% non-GAAP operating margin, which is an improvement from the previous year. MongoDB Inc (NASDAQ:MDB) added approximately 2,600 new customers in the quarter, bringing the total customer count to over 57,100, the highest net additions in over six years. The company announced a significant expansion of their share repurchase program, authorizing up to an additional $800 million, reflecting confidence in their long-term potential. Despite strong results, MongoDB Inc (NASDAQ:MDB) noted some softness in Atlas consumption in April due to macroeconomic volatility, although it rebounded in May. The non-Atlas business is expected to decline in the high single digits for the year, with a $50 million headwind from multiyear license revenue anticipated in the second half. Gross margin slightly declined to 74% from 75% in the previous year, primarily due to Atlas growing as a percentage of the overall business and the impact of the Voyage acquisition. The company experienced slower than planned headcount additions, which could impact future growth and operational capacity. MongoDB Inc (NASDAQ:MDB) remains cautious about the uncertain macroeconomic environment, which could affect future consumption trends and overall business performance. Q: Can you explain what's driving the growth of Atlas and the types of applications being built on MongoDB? A: Dev Ittycheria, President and CEO, explained that MongoDB is used for a wide variety of applications, including transactional-intensive, IoT, streaming, and AI use cases. The platform's ability to handle complex, nested, and evolving data, scale elastically, and run on any cloud makes it attractive for developers. The strong customer additions indicate MongoDB's growing adoption. Q: How do you plan to manage and communicate metrics in a consumption-based model? A: Mike Berry, CFO, noted that MongoDB already provides relevant metrics for investors, such as consumption and customer growth. He plans to focus on capital structure, cash flow generation, and operating margin improvements. More insights will be shared at the upcoming NYC event. Q: What is your perspective on the recent moves by Snowflake and Databricks towards PostGres? A: Dev Ittycheria highlighted that these moves validate the importance of operational data stores, especially for AI. He emphasized that building an OLTP store is challenging and questioned the need for additional PostGres databases. MongoDB's architecture is designed for modern applications, offering advantages over relational databases that are retrofitting features like JSON support. Q: How do you view the long-term relevance of relational databases like PostGres compared to MongoDB? A: Dev Ittycheria stated that while the database market is large enough for multiple winners, MongoDB is optimized for modern applications, especially in AI. He noted that relational databases adding JSON support indicates their limitations in handling complex, real-world data. MongoDB's architecture is better suited for these needs. Q: Can you provide an update on MongoDB's growth initiatives, such as moving upmarket and sales force refocusing? A: Dev Ittycheria reported progress in R&D investments, moving upmarket, and increasing awareness and education. MongoDB 8.0 has seen rapid adoption, and the company is expanding its engineering efforts in AI. The move upmarket is yielding larger deals, and the self-serve business is efficiently acquiring mid-market customers. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-03-2025
- Business
- Yahoo
MongoDB Just Lost Nearly 24%-Here's Why Analysts Are Sounding the Alarm
MongoDB (NASDAQ:MDB) shares plummeted 23.96% to $200.86 as of 13:27 ET, after the database solutions provider issued a weaker-than-expected outlook for fiscal year 2026. The stock's sharp drop follows concerns over slowing growth in non-Atlas revenue, which weighed heavily on investor sentiment. Warning! GuruFocus has detected 4 Warning Signs with MRVL. Atlas, the company's fully managed cloud database, accounted for 71% of revenue in Q4 FY25, but MongoDB warned that non-Atlas revenue will be a headwind in FY26. CEO Dev Ittycheria stated that fewer multiyear deals and a shift toward Atlas deployments are impacting growth. Despite the sell-off, financial firms maintained positive ratings but slashed price targets. Piper Sandler kept an Overweight rating but cut its target to $280 from $425, citing uncertainty in non-Atlas revenue. Needham lowered its target to $270 from $415, while Wedbush trimmed its target to $300 from $360. With MDB now down nearly 24%, the market remains cautious on the company's near-term growth potential. This article first appeared on GuruFocus. Sign in to access your portfolio
