MongoDB Q1 Earnings Call Highlights

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MongoDB (NASDAQ:MDB) reported stronger-than-expected first-quarter fiscal 2027 results, with management pointing to continued momentum in its Atlas cloud database business, durable demand for Enterprise Advanced and early signs of growth tied to artificial intelligence workloads.

President and Chief Executive Officer CJ Desai said the company generated $688 million in total revenue in the quarter, up 25% year over year and above the high end of guidance. He said growth was led by Atlas, which increased 29.4% year over year and added a record $117 million in year-over-year revenue growth. Atlas is now running at a $2 billion run rate, according to Desai.

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“To be clear, our results today are driven primarily by core workloads,” Desai said. “We are seeing real and growing momentum from AI and agentic workloads.”

Atlas Drives Revenue Growth

Chief Financial Officer Mike Berry said Atlas accounted for approximately 75% of total first-quarter revenue, up from 72% in the year-ago period. He said Atlas consumption was stronger than expected, with demand led by established enterprise customers and momentum across financial services, technology and media.

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Berry said MongoDB’s total company net ARR expansion rate was 121%, compared with 119% a year earlier. The company ended the quarter with 67,700 customers, up from 57,100 in the prior-year period, including 66,400 Atlas customers. MongoDB added 2,500 customers sequentially during the quarter.

Enterprise Advanced and other revenue, previously referred to as non-Atlas revenue, grew 13% year over year. Berry said the strength was driven by existing customers, particularly in finance and technology, where customers continued expanding on-premises deployments to support traditional and AI applications.

Profitability and Cash Flow Expand

MongoDB reported non-GAAP income from operations of $123 million, representing an 18% operating margin, compared with 16% in the year-ago quarter. Berry also noted that MongoDB posted its second consecutive quarter of GAAP profitability.

First-quarter non-GAAP net income was $112 million, or $1.32 per diluted share, compared with $86 million, or $1.00 per diluted share, in the year-ago period. Total non-GAAP gross margin was 74.5%, up about 40 basis points year over year.

The company ended the quarter with $2.4 billion in cash equivalents and short-term investments. Operating cash flow was $202 million, compared with $110 million last year, while free cash flow was $198 million, compared with $106 million. MongoDB also allocated $100 million toward share repurchases and $58 million to settle taxes on employee restricted stock units.

AI and Agentic Workloads Remain Early but Strategic

Desai framed MongoDB’s opportunity around two areas: core mission-critical workloads and AI. He said enterprises, digital natives, frontier labs and AI-native companies are increasingly deploying agentic applications and choosing MongoDB as the data platform behind them.

Desai said AI adoption across MongoDB’s customer base is accelerating, citing significant growth in MCP server usage, more than a doubling of Voyage customers quarter over quarter and vector search adoption that is outpacing overall company growth.

Management cited several customer examples. Desai said Zoom uses MongoDB Enterprise Advanced as a unified data platform across Zoom Meetings, Zoom Phone, Zoom Contact Center and Zoom Virtual Agent. He said Zomato built Nugget, an AI-native customer support platform running on Atlas that orchestrates 15 million conversations per month, reducing support costs by 55% and improving human agent productivity by 40%. Desai also said Adobe uses MongoDB as the long-term memory and reasoning layer for its Journey Agent.

In response to an analyst question from Goldman Sachs, Desai said agentic workloads are still early, noting that security, governance and observability remain important considerations. However, he said customer discussions are encouraging and that MongoDB is “ready” to support production agentic workloads at scale.

Desai also said MongoDB is working with multiple frontier labs, though he did not name them or provide details on the use cases. He said those engagements are early and vary by lab and workload.

Clarity Acquisition Supports Federal Push

Berry announced that MongoDB acquired Clarity Business Solutions, a partner that has provided support and professional services for highly classified U.S. government workloads since 2021. Berry said the acquisition adds specialized domain expertise and security clearances as MongoDB increases investment in the U.S. federal market.

The transaction is expected to represent approximately $10 million in annual services revenue at roughly break-even profitability, with the impact already included in updated guidance. Desai said MongoDB sees “tremendous opportunity” in federal markets, including agencies handling large volumes of unstructured data. He said the company expects to receive FedRAMP High certification for U.S. federal customers this year.

Guidance Raised for Fiscal 2027

For the second quarter, MongoDB guided for revenue of $729 million to $734 million, representing 23% to 24% year-over-year growth. The company expects non-GAAP income from operations of $152 million to $156 million and non-GAAP net income per share of $1.58 to $1.61.

For fiscal 2027, MongoDB now expects revenue of $2.92 billion to $2.96 billion, representing full-year growth of 19% to 20%. The company expects non-GAAP income from operations of $571 million to $591 million and non-GAAP net income per share of $5.95 to $6.14.

Berry said MongoDB expects Atlas revenue growth of approximately 26% in the second quarter and raised the full-year Atlas growth expectation to a range of 23% to 25%. He also said the company now expects Enterprise Advanced and other revenue to grow in the mid-single digits for fiscal 2027, with a stronger second quarter followed by a roughly flat second half because of tougher comparisons from fiscal 2026.

Berry said MongoDB remains committed to expanding operating margins while continuing to invest in AI capabilities, Enterprise Advanced features, Japan, the U.S. federal vertical, quota-carrying sales headcount, marketing programs and developer awareness.

About MongoDB (NASDAQ:MDB)

MongoDB, Inc is a software company best known for developing MongoDB, a general-purpose, document-oriented database designed for modern application development. The company's platform is built to support high-performance, scalable data storage and retrieval for use cases such as cloud-native applications, mobile backends, real-time analytics, and content management. MongoDB offers a mix of open-source software, commercial server distributions, and subscription-based services that include technical support, training and professional services.

The company traces its origins to 2007 when it was founded as 10gen by Dwight Merriman and Eliot Horowitz; it later adopted the MongoDB name and completed a public listing in 2017.

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