MongoDB, Inc. Q2 FY2025 Earnings Call Highlights

In its second quarter fiscal year 2025 earnings call, MongoDB, Inc. (ticker: NASDAQ: MDB) reported a revenue increase of 13% year-over-year (YoY) to $478 million, with its Atlas (NYSE: ATCO) product contributing 71% to the total revenue.

The company also experienced a non-GAAP operating income of $52.5 million and a non-GAAP operating margin of 11%. MongoDB’s customer base grew to over 50,700, adding over 1,500 customers during the quarter.

The company is optimistic about its long-term growth opportunities, particularly in the AI space with its MongoDB AI Applications Program (MAAP).

Despite challenges in the macroeconomic environment, MongoDB continues to see strong new business and sales productivity, remaining confident in its long-term execution abilities.

Key Takeaways

• MongoDB’s Q2 FY2025 revenue reached $478 million, a 13% increase YoY.
• Atlas saw 27% YoY revenue growth, now representing 71% of total revenue.
• Non-GAAP operating income was $52.5 million with an operating margin of 11%.
• Over 50,700 customers at quarter-end, adding over 1,500 in Q2.
• MongoDB is optimistic about AI opportunities and offers tools for AI application development.
• Q3 revenue is projected between $493 million and $497 million, and FY2025 revenue between $1.92 billion and $1.93 billion.

Company Outlook

• Anticipates Q3 revenue between $493 million and $497 million.
• Projects FY2025 revenue between $1.92 billion and $1.93 billion.
• Investing in AI initiatives, expecting a slower rebound in Q3, with potential growth in the public sector.

Bearish Highlights

• Tough year-over-year comparisons and slower starts in prior year workloads may affect revenue.
• Q4 is historically a weaker quarter, potentially lowering sequential growth rates.
• Atlas gross margins declined but are expected to improve.

Bullish Highlights

• The run-anywhere strategy and enterprise agreements are seen as strengths.
• Competitive advantages over Postgres in flexibility, scalability, and developer productivity.
• Positive impact from modernization pilots utilizing AI, resulting in significant time and cost savings.

Misses

• Acknowledgments of tough comparisons and challenges in Q4.
• Lower-than-expected Atlas gross margins in the quarter.

Q&A Highlights

• Atlas is widely available, focusing on a large developer community.
• The focus remains on growth and maintaining double-digit operating margins.
• Newer services like Atlas Search and Vector Processing are gaining traction with customers.

MongoDB’s latest financial results highlight continued growth and strategic emphasis on AI capabilities and Atlas offerings. Confidence in long-term opportunities, despite current economic headwinds, positions MongoDB as a strong player in the database and AI application markets. With a solid customer base and increased interest in modernizing legacy applications, MongoDB’s investments in innovation and developer productivity are showing positive results.

Full transcript – MongoDB (MDB) Q2 2025:

Operator: Good day, and thank you for standing by… [Full transcript continues as in original text] …

Operator: This does conclude today’s conference call. You may now disconnect.

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