NEW YORK (AP) — NEW YORK (AP) — MongoDB Inc. (MDB) on Wednesday reported fiscal fourth-quarter profit of $15.8 million.
On a per-share basis, the New York-based company said it had profit of 19 cents. Earnings, adjusted for one-time gains and costs, were $1.28 per share.
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MongoDB Inc. finally delivered a quarterly profit as it posted its fiscal 2025 fourth-quarter results, crushing the Street’s targets on earnings and revenue.
However, its outlook for the new fiscal year was a big disappointment, sending investors running for the hills as the value of its stock plummeted in late trading.
The company reported earnings before certain costs such as stock compensation of $1.28 per share on revenue of $548.4 million, up 20% from the same period one year ago. They were impressive numbers that far surpassed expectations, with analysts targeting earnings of just 60 cents per share on sales of $521 million.
Subscription revenue jumped 19% in the quarter, while services revenue expanded by 34%, and the company continued to add new customers at an impressive rate, ending the quarter with more than 54,500.
All told, the company delivered net income of $15.8 million – not a massive profit, but better than the $55.5 million net loss it posted one year earlier.
But as solid as those numbers were, the company let itself down with its guidance for the new year. MongoDB said it’s looking for earnings of between $2.44 and $2.62 per share, well below the Street’s target of $3.38. In terms of revenue, the company is guiding for a range of $2.24 billion to $2.28 billion, trailing the Street’s $2.33 billion consensus.
MongoDB’s stock had risen more than 3% earlier in the day, prior to the report, only for investors to bail on the lower outlook. After-hours, the stock plunged more than 16%.
The company is the creator of the document-oriented MongoDB database, which is used to power data-intensive applications. Its flagship product is the cloud-hosted MongoDB Atlas, which accounts for the bulk of its revenue, though it also sells on-premises and mobile versions. All three are popular with developers thanks to their support for multiple data formats and ease of use.
MongoDB President and Chief Executive Dev Ittycheria (pictured) said consumption of Atlas was much higher than expected during the quarter, driving significant margin expansion.
“We continue to see good performance in new workload wins due to the flexibility, scalability and performance of the MongoDB platform,” he added. “In fiscal year 2026 we expect to see stable consumption growth in Atlas, our main growth driver.
MongoDB recently made a key acquisition, buying a startup called Voyage AI Inc. that develops artificial intelligence models for generating embeddings, which are mathematical structures that can store key details about unstructured data. Those embeddings describe how a data record relates to the other records in a database, making it searchable and, thus, more accessible to generative AI models.
Besides its embedding generators, Voyage AI also offers “rerankers,” which are AI models that reorganize search results to display the most relevant items first. When an AI application retrieves a collection of data points to answer a prompt, it uses a reranker to identify the most relevant data points.
The company aims to incorporate these capabilities into its own database to enhance its vector search capabilities and make it more suitable for AI applications, and it has high hopes that doing so will boost the appeal of its platform.
“Following the Voyage AI acquisition, we combine real-time data, sophisticated embedding and retrieval models and semantic search directly in the database, simplifying the development of trustworthy AI-powered apps,” Ittycheria said of the acquisition.
For the current quarter, at least, MongoDB’s guidance isn’t so bad. The company said it’s looking for earnings of between 63 and 67 cents on revenue of $524 million to $529 million. Wall Street is guiding for earnings of 62 cents on sales of $527 million.
Despite the after-hours drop, MongoDB’s stock is still up more than 13% in the year to date.
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MongoDB’s full-year view came in below consensus, as the company called for slower revenue growth than the company has ever shown since going public in 2017.
Meanwhile, MongoDB is hiring to go after opportunities among big companies, and during the quarter it bought artificial intelligence startup Voyage.
Dev Ittycheria, CEO of MongoDB
Adam Jeffery | CNBC
MongoDB shares sank 16% in extended trading on Wednesday after the database software maker issued disappointing guidance.
Here’s how the company did in comparison with LSEG consensus:
Earnings per share: $1.28 adjusted vs. 66 cents expected
Revenue: $548.4 million vs. $519.6 million expected
Revenue increased about 20% from a year ago in the quarter that ended on Jan. 31, according to a statement. The company generated $15.8 million in net income, or 19 cents per share, which factors in stock-based compensation. In the same quarter a year ago, MongoDB had registered a net loss of $55.5 million, or 77 cents per share.
MongoDB added 1,900 customers in the quarter, bringing the total to 54,500. But the company ended the quarter with about $360 million in deferred revenue, below the StreetAccount consensus of $370.4 million.
MongoDB is seeing slower growth than it had hoped for in new applications using its Atlas cloud-based database service, Srdjan Tanjga, MongoDB’s interim finance chief, said on a conference call with analysts. Meanwhile, MongoDB is hiring rapidly to pursue more deals with large companies, while pulling back on mid-sized businesses, Tanjga said.
During the quarter, MongoDB acquired artificial intelligence startup Voyage for an undisclosed sum.
“We want to capitalize on a once-in-a-generation opportunity,” CEO Dev Ittycheria said.
For the fiscal first quarter, MongoDB called for 63 cents to 67 cents in adjusted earnings per share on $524 million to $529 million in revenue. Analysts surveyed by LSEG had expected 62 cents of per-share earnings and revenue of $526.8 million.
MongoDB said it expects adjusted earnings per share of $2.44 to $2.62 and revenue of $2.24 billion to $2.28 billion for fiscal 2026. That implies 12.7% revenue growth, which would be the slowest rate at least since the company went public in 2017. Analysts were anticipating $3.34 per share of earnings and $2.32 billion in revenue.
Prior to Wednesday’s after-hours move, MongoDB shares were up 13%, while the S&P 500 was down about 1%.
MongoDB (NASDAQ:MDB), a leading database platform provider, delivered an exceptional performance for the fourth quarter of its fiscal 2025. In its earnings release on March 5, the company reported revenue of $548.4 million, outperforming analysts’ consensus forecast of $520 milli…
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On March 5, 2025, MongoDB Inc (MDB, Financial) announced its financial results for the fourth quarter and full fiscal year ending January 31, 2025. The company reported a 20% year-over-year increase in fourth-quarter revenue, reaching $548.4 million, and a 19% increase in full-year revenue, totaling $2.01 billion. MongoDB also highlighted significant customer growth, with over 54,500 customers by the end of the fiscal year. MongoDB Atlas, the company’s cloud database service, contributed 71% of the total Q4 revenue, growing 24% year-over-year.
Positive Highlights
Fourth-quarter revenue increased by 20% year-over-year to $548.4 million.
Full-year revenue reached $2.01 billion, marking a 19% increase from the previous year.
MongoDB Atlas revenue grew by 24% year-over-year, accounting for 71% of total Q4 revenue.
Customer base expanded to over 54,500, with significant growth in direct sales customers.
Net income for Q4 was $15.8 million, compared to a net loss in the previous year.
Negative Highlights
Gross margin slightly decreased from 75% to 73% year-over-year.
Free cash flow for Q4 was $22.9 million, down from $50.5 million in the previous year.
Non-Atlas revenue is expected to decline by high-single digits in fiscal 2026.
Financial Analyst Perspective
MongoDB’s financial performance in fiscal 2025 demonstrates robust growth, particularly in its cloud database service, MongoDB Atlas. The company’s ability to increase revenue while expanding its customer base is a positive indicator of its market position. However, the slight decline in gross margin and free cash flow suggests areas for potential improvement. The strategic acquisition of Voyage AI and the elimination of convertible notes from the balance sheet are expected to strengthen MongoDB’s financial health and support future growth initiatives.
Market Research Analyst Perspective
MongoDB’s continued growth in customer numbers and revenue highlights its strong market presence and the increasing demand for cloud-based database solutions. The company’s focus on innovation, as evidenced by the acquisition of Voyage AI, positions it well to capitalize on the growing trend of AI-powered applications. The stock buyback program to offset acquisition dilution is a strategic move to maintain shareholder value. However, the anticipated decline in non-Atlas revenue could pose a challenge, emphasizing the need for MongoDB to diversify its revenue streams further.
Frequently Asked Questions
Q: What was MongoDB’s total revenue for fiscal 2025?
A: MongoDB’s total revenue for fiscal 2025 was $2.01 billion, a 19% increase year-over-year.
Q: How much did MongoDB Atlas contribute to the total Q4 revenue?
A: MongoDB Atlas contributed 71% of the total Q4 revenue, with a 24% year-over-year growth.
Q: What is MongoDB’s customer count as of January 31, 2025?
A: MongoDB had over 54,500 customers as of January 31, 2025.
Q: What are MongoDB’s financial expectations for fiscal 2026?
A: MongoDB expects revenue for fiscal 2026 to be between $2.240 billion and $2.280 billion, with non-GAAP income from operations ranging from $210 million to $230 million.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
The database platform specialist reported impressive results, driven by strong cloud service performance.
MongoDB(MDB 3.83%), a leading database platform provider, delivered an exceptional performance for the fourth quarter of its fiscal 2025. In its earnings release on March 5, the company reported revenue of $548.4 million, outperforming analysts’ consensus forecast of $520 million and management’s guidance range of $515 million to $519 million. Non-GAAP earnings per share (EPS) of $1.28 were well above the anticipated $0.66. Overall, the quarter reflected strong growth, despite a slight deceleration in MongoDB Atlas consumption.
Metric
Fiscal Q4 2025 Actual
Fiscal Q4 2025 Analysts’ Estimate
Fiscal Q4 2024 Actual
% Change
Non-GAAP EPS
$1.28
$0.66
$0.86
48.8%
Revenue
$548.4 million
$520 million
$458.0 million
19.7%
Non-GAAP income from operations
$112.5 million
N/A
$69.2 million
62.6%
Free cash flow
$22.9 million
N/A
$50.5 million
(54.6%)
Source: Analysts’ estimates provided by FactSet.
Overview of MongoDB’s Business
MongoDB operates a developer-centric database platform that offers flexibility and scalability, crucial for modern application development. It’s known for its document-based architecture, which offers intuitive data interaction. It has been focusing on expanding its cloud services, especially MongoDB Atlas, and enhancing its AI capabilities to align with emerging tech trends that are driving the company’s growth.
Recently, MongoDB has shifted its focus to enterprise-level clients, boosting its market presence through strategic acquisitions like Voyage AI. This aligns with its commitment to modernizing legacy apps and innovating within the AI landscape. These moves, although promising, have also introduced challenges such as maintaining the momentum of its cloud services.
Quarterly Performance Highlights
In its fiscal Q4 2025, which ended Jan. 31, financial performance was robust. Total revenue rose 20% year over year to $548.4 million. Revenue from MongoDB Atlas, its cloud database service, grew 24% and comprised 71% of total revenue. Despite this, the growth rate showed signs of slowing down, a trend previously forecast in the company’s guidance.
Non-GAAP income from operations reached $112.5 million, far exceeding management’s $55 million to $58 million guidance range. However, free cash flow stood at $22.9 million, a 54.6% decline from the prior-year period’s $50.5 million, reflecting the company’s investments in growth initiatives.
MongoDB made several strategic moves during the quarter, including its acquisition of Voyage AI, which strengthened its position in AI-driven markets. This deal was part of MongoDB’s strategy to enhance its platform with AI capabilities and target the lucrative AI tech stack market. MongoDB also increased its customer base by 14% to over 54,500, with a notable increase in enterprise segment clients.
The company did face a challenge in maintaining its gross margin, which slightly decreased from 77% to 75% due to pricing pressures and operational restructuring.
Looking Ahead
Management offered a modest outlook for fiscal 2026 with projected revenues of $2.24 billion to $2.28 billion. It anticipates a strong emphasis on cloud and AI-focused revenues while preparing for potential declines in non-Atlas segments. This expectation underscores MongoDB’s strategic pivot towards cloud-based solutions and AI integration. However, the company’s shift in customer focus from mid-market to enterprise could impact revenue streams.
Investors should monitor aspects such as the evolution of the MongoDB Atlas growth rate and the impact of macroeconomic factors on customer adoption. The recent exit of the company’s CFO and the board’s search for a permanent replacement is another point of interest, as their eventual pick may influence strategic decisions.
JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends MongoDB. The Motley Fool has a disclosure policy.
Investing.com — MongoDB reported Wednesday full-year guidance that fell short of estimates, overshadowing fourth-quarter results that beat on both the top and bottom lines.
MongoDB (NASDAQ:MDB) fell more than 15% following the report.
For the three months ended Jan. 31, MongoDB reported adjusted EPS of $1.28 on revenue of $548.4 million, topping estimates of $0.67 and $519.8M, respectively.
Looking ahead to fiscal Q1, the company forecasts adjusted EPS of $0.63 to $0.67 on revenue of $524M to $529M. That topped Wall Street estimates for EPS of $0.63 on revenue of $526.1M.
For fiscal 2025, adjusted EPS was guided in a range of $2.44 to $2.62, missing estimates of $3.39. While revenue is expected between $2.24B and $2.28B, missing estimates of $2.32B.
On March 5, 2025, MongoDB Inc (MDB, Financial) released its 8-K filing detailing its financial performance for the fourth quarter and full fiscal year 2025. Founded in 2007, MongoDB is a document-oriented database company that offers both licenses and subscriptions for its NoSQL database, compatible with all major programming languages and deployable for various use cases.
Performance Overview
MongoDB Inc (MDB, Financial) reported a total revenue of $548.4 million for the fourth quarter of fiscal 2025, marking a 20% increase year-over-year, surpassing the analyst estimate of $519.60 million. For the full fiscal year 2025, the company achieved a total revenue of $2.01 billion, reflecting a 19% increase from the previous year and exceeding the annual estimate of $1.97741 billion. This growth was driven by a 24% year-over-year increase in MongoDB Atlas revenue, which constituted 71% of the total Q4 revenue.
Financial Achievements and Challenges
MongoDB’s strong revenue growth is significant in the software industry, highlighting the company’s ability to expand its customer base and enhance its product offerings. The company reported a net income of $15.8 million, or $0.20 per share, for Q4, a notable improvement from a net loss of $55.5 million, or $0.77 per share, in the same period last year. On a non-GAAP basis, net income was $108.4 million, or $1.28 per share, compared to $71.1 million, or $0.86 per share, in the prior year.
Key Financial Metrics
MongoDB’s gross profit for Q4 was $399.4 million, representing a 73% gross margin, slightly down from 75% in the previous year. The non-GAAP gross profit was $411.7 million, with a 75% gross margin. The company also reported a significant reduction in its loss from operations, which was $18.6 million compared to $71.0 million in the previous year. Non-GAAP income from operations increased to $112.5 million from $69.2 million.
Metric
Q4 FY 2025
Q4 FY 2024
Total Revenue
$548.4 million
$458.0 million
Net Income (Loss)
$15.8 million
$(55.5) million
Non-GAAP Net Income
$108.4 million
$71.1 million
Strategic Developments
MongoDB’s acquisition of Voyage AI is a strategic move to enhance its capabilities in AI-powered applications, integrating real-time data and sophisticated models directly into its database. This acquisition, along with a $200 million stock buyback program, underscores MongoDB’s commitment to innovation and shareholder value.
“MongoDB delivered a strong end to fiscal 2025 with 24% Atlas revenue growth and significant margin expansion. Atlas consumption in the quarter was better than expected and we continue to see good performance in new workload wins due to the flexibility, scalability and performance of the MongoDB platform.” – Dev Ittycheria, President and CEO of MongoDB.
Financial Position and Cash Flow
As of January 31, 2025, MongoDB held $2.3 billion in cash, cash equivalents, short-term investments, and restricted cash. The company generated $50.5 million in cash from operations during Q4, compared to $54.6 million in the previous year. Free cash flow was $22.9 million, down from $50.5 million year-over-year, reflecting increased capital expenditures.
Analysis and Outlook
MongoDB’s strong financial performance and strategic initiatives position it well for continued growth in the competitive software industry. The company’s focus on expanding its AI capabilities and enhancing its product offerings is likely to drive further customer acquisition and revenue growth. However, maintaining profitability and managing operational costs remain critical challenges as the company scales its operations.
For more detailed insights and analysis, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from MongoDB Inc for further details.
