To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Core Insights - MongoDB reported strong earnings for Q3 of fiscal year 2026, exceeding Wall Street expectations, leading to a stock price surge of over 20% in after-hours trading [1][5] - The company's growth is closely tied to its integration with Google Cloud and the Gemini AI product line, positioning it as a key beneficiary in the AI ecosystem [2][7] Financial Performance - For Q3, MongoDB's total revenue was approximately $628 million, representing a year-over-year growth of 19%, significantly above the expected $592 million [4][5] - The Non-GAAP earnings per share were reported at $1.32, far exceeding the anticipated $0.80 [4][5] - MongoDB's core product, Atlas, achieved a revenue increase of 30%, accounting for about 75% of total revenue, surpassing the expected growth of 20%-25% [4][5] Future Guidance - The company raised its revenue guidance for Q4 to a range of $665 million to $670 million, well above the Wall Street consensus of approximately $626 million [2][4] - For the full fiscal year 2026, MongoDB increased its revenue forecast to between $2.434 billion and $2.439 billion, up from a previous estimate of $2.34 billion to $2.36 billion, and above the average analyst expectation of $2.36 billion [3][4] Market Context - The strong performance of MongoDB is reflective of the broader demand for AI-related infrastructure and services, particularly in the context of Google's significant investments in AI and cloud computing [6][8] - The launch of Google's Gemini AI products has driven a surge in AI token processing, indicating a robust demand for AI capabilities that MongoDB is well-positioned to support [9][10]

Market Overview - US stock futures showed a cautious recovery with S&P 500 futures rising 0.3%, Nasdaq 100 futures up 0.4%, and Dow Jones Industrial Average futures increasing by approximately 0.2% [1] - The market is attempting to regain ground after a sell-off that interrupted a five-day winning streak for major US indexes, marking a rocky start to December, a month typically strong for equities [2] Cryptocurrency Market - Bitcoin traded above $87,000, recovering from a low of $84,000, which was its worst day since March [3] - Shares of crypto-related companies like Coinbase and Robinhood also saw positive movement after previously closing over 4% lower [3] Economic Indicators - Investors are focused on economic data as delayed government reports are released, which may influence expectations for a potential interest rate cut in December [4] - Current market sentiment reflects a significant increase in bets on easing, with an 87% probability of a rate cut on December 10, according to the CME FedWatch tool [5] Company Earnings - Marvell is expected to release earnings results after market close, with its stock rising due to reports of advanced talks to acquire chip start-up Celestial AI in a multibillion-dollar deal [6] - MongoDB's stock increased by 2% in premarket trading after reporting revenue of $628.3 million for Q3, a 19% year-over-year increase, surpassing its previous guidance [7][8] - MongoDB's CEO highlighted strong customer expansion and a positive outlook for the full year, expecting revenue between $2.434 billion and $2.439 billion [8] Investment Trends - Retail investors in cryptocurrency are facing significant losses, particularly with Strategy Inc. (MSTR) shares dropping over 60% from recent highs amid a broader digital currency decline [10] - Strategy has created a $1.4 billion reserve to manage dividend and interest payments, but many investors have already experienced substantial losses, with some ETFs tracking its stock down over 80% this year [11][12]

Core Insights - MongoDB reported quarterly earnings of $1.32 per share, exceeding the Zacks Consensus Estimate of $0.79 per share, and showing an increase from $1.16 per share a year ago, resulting in an earnings surprise of +67.09% [1] - The company achieved revenues of $628.31 million for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 6.27% and up from $529.38 million year-over-year [2] - MongoDB has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the last quarter was +56.25%, with actual earnings of $1 compared to an expected $0.64 [1] - The company has a favorable trend in estimate revisions leading to a Zacks Rank 2 (Buy), indicating expected outperformance in the near future [6] Future Outlook - Current consensus EPS estimate for the upcoming quarter is $0.91 on revenues of $622.14 million, and for the current fiscal year, it is $3.70 on revenues of $2.35 billion [7] - The sustainability of stock price movement will depend on management's commentary during the earnings call [3][4] Industry Context - The Internet - Software industry, to which MongoDB belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Core Insights - MongoDB's stock experienced a significant increase of 21.8% in after-hours trading following the release of its Q3 2026 financial results, which exceeded expectations on both revenue and earnings [1][2] Financial Performance - Analysts had projected MongoDB's revenue at $593.4 million and adjusted EPS at $0.79, but the company reported actual sales of $628.3 million and adjusted EPS of $1.32 [2] - The company has revised its fiscal 2026 revenue forecast to a range of $2.434 billion to $2.439 billion, up from the previous estimate of $2.25 billion to $2.29 billion [5] - Adjusted EPS expectations have also been increased from a range of $2.94 to $3.12 to a new range of $4.76 to $4.80 [5] Market Data - As of the latest trading session, MongoDB's stock price was $328.87, with a market capitalization of $27 billion [3] - The stock's trading range for the day was between $321.26 and $335.92, and it has a 52-week range of $140.78 to $385.44 [4] Business Highlights - The strong performance in Q3 2026 is attributed to the cloud platform, Atlas, which saw a 30% year-over-year revenue increase [4] - MongoDB's shares are currently valued at 11.8 times trailing sales, which is below its five-year average sales multiple of 14.7, indicating a discount to its historical sales valuation [6]

Financial Data and Key Metrics Changes - Total revenue for the third quarter was $628 million, representing a 19% year-over-year increase and at the high end of guidance [9][19] - Non-GAAP operating income was $123 million, resulting in a 20% operating margin, an improvement from 19% in the previous year [23] - Net income for the quarter was $115 million, or $1.32 per share, compared to $98 million, or $1.16 per share, in the year-ago period [23] Business Line Data and Key Metrics Changes - Atlas revenue grew 30% year-over-year, now accounting for 75% of total revenue, up from 68% in the same quarter last year [19][22] - Non-Atlas revenue grew 8% year-over-year, reflecting consistent trends and expansion within the existing customer base [21] - The total customer count increased to over 62,500, with 2,600 new customers added in the quarter, marking a 65% growth in customer additions year-to-date [9][22] Market Data and Key Metrics Changes - Strong performance in Atlas was driven by large customers in the US and broad-based strength in EMEA [19] - The net annual recurring revenue (ARR) expansion rate increased to 120%, up from 119% in the previous quarter [20] Company Strategy and Development Direction - The company aims to become a foundational data platform for the AI era, leveraging its strengths in operational data and emerging AI workloads [6][10] - There is a focus on deepening customer relationships and advancing innovation to build a generational modern data platform [17] - The company is committed to strategic investments in engineering, marketing, and sales to drive growth [26][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued momentum of Atlas and the strategic importance of the platform for customers [17][26] - The company raised its financial guidance for the fourth quarter and the full fiscal year 2026, reflecting strong performance and underlying fundamentals [17][29] - Management noted that while AI adoption is still early, there are encouraging signs of growth and demand for MongoDB's solutions [10][12] Other Important Information - The company ended the quarter with $2.3 billion in cash and cash equivalents, and operating cash flow was $144 million [24] - The company repurchased approximately 514,000 shares during the quarter under a $1 billion share repurchase authorization [24][28] Q&A Session Summary Question: What are the initial steps to make MongoDB a foundational data platform for the AI era? - Management highlighted the need for real-time operational data and the right context to support AI workloads, emphasizing the company's structural advantages [35][36] Question: How are the workloads for calendar year 2025 shaping up? - Management noted strength in larger customers and ongoing growth in existing workloads, indicating a positive outlook for future workloads [40] Question: What are the repeated themes in customer conversations? - Key themes include modernization efforts and the ongoing transformation to multi-cloud environments, with a focus on AI workloads [45][46] Question: How does the company plan to increase developer engagement? - The company is relaunching initiatives in the Bay Area to engage with AI-native companies and developers, aiming to increase mind share [72] Question: What is the philosophy around M&A for MongoDB? - Management expressed a preference for organic growth but remains open to strategic acquisitions that can accelerate the roadmap [82]

Financial Data and Key Metrics Changes - Total revenue for Q3 fiscal 2026 was $628 million, representing a 19% year-over-year increase and at the high end of guidance [9][19] - Non-GAAP operating income was $123 million, resulting in a 20% operating margin, up from 19% in the previous year [23] - Net income for the quarter was $115 million, or $1.32 per share, compared to $98 million, or $1.16 per share, in the year-ago period [23] Business Line Data and Key Metrics Changes - Atlas revenue grew 30% year-over-year, now accounting for 75% of total revenue, up from 68% a year ago [19][22] - Non-Atlas ARR grew 8% year-over-year, reflecting strong performance in expanding existing customer relationships [21] - The total customer count increased to over 62,500, with 2,600 new customers added in the quarter [22] Market Data and Key Metrics Changes - Strong performance in Atlas was driven by large customers in the U.S. and broad-based strength in EMEA [19] - The net ARR expansion rate increased to 120%, up from 119% in the previous quarter [20] - Atlas had over 60,800 customers at the end of Q3, compared to over 51,100 in the year-ago period [22] Company Strategy and Development Direction - The company aims to become a foundational data platform for the AI era, leveraging its strengths in operational data and emerging AI workloads [6][10] - Strategic investments are being made in engineering, marketing, and sales capacity to drive growth [26][31] - The focus is on deepening customer relationships and advancing innovation to build a generational modern data platform [17][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued momentum of Atlas and the overall business, raising financial guidance for Q4 and fiscal 2026 [17][29] - The company is optimistic about the expansion opportunities within existing enterprise customers and the potential impact of AI on future workloads [10][36] - Management noted that while AI applications are still in early stages, there is significant interest and investment from customers in AI-related projects [46][48] Other Important Information - The company ended the quarter with $2.3 billion in cash and cash equivalents, with strong operating cash flow of $144 million [24] - A share repurchase program is in place, with $145 million spent to repurchase shares during the quarter [24][28] - The company plans to provide more visibility into its expectations for Atlas and non-Atlas growth in future guidance [25][30] Q&A Session Summary Question: Initial steps for MongoDB in the AI era - Management highlighted the importance of real-time operational data and the need for modernization in enterprise workloads to support AI applications [35][36] Question: Quality of workloads for fiscal year 2025 - Management noted strength in larger customers and ongoing growth in existing workloads, emphasizing the importance of these dynamics for future growth [40] Question: Customer themes and modernization efforts - Management observed that many enterprises are still in the process of modernizing their application stacks and experimenting with AI applications [45][46] Question: New customer ramp-up for Atlas - Management indicated that engineering improvements have facilitated faster adoption of Atlas by new customers [79] Question: M&A strategy for MongoDB - Management expressed a preference for organic growth but remains open to strategic acquisitions that can enhance the technology platform [82]

Financial Data and Key Metrics Changes - Total revenue for Q3 2026 was $628 million, representing a 19% year-over-year increase and at the high end of guidance [7][17] - Non-GAAP operating income was $123 million, resulting in a 20% operating margin, an improvement from 19% in the previous year [20] - Net income for the quarter was $115 million, or $1.32 per share, compared to $98 million, or $1.16 per share, in the year-ago period [20] Business Line Data and Key Metrics Changes - Atlas revenue grew 30% year-over-year, up from 29% in Q2 and 26% in Q1, now representing 75% of total revenue [7][17] - Non-Atlas ARR grew 8% year-over-year, reflecting consistent trends in the non-Atlas business [18] - The total customer count increased to over 62,500, with 2,600 new customers added in the quarter, marking a 65% growth in customer additions year-to-date [7][19] Market Data and Key Metrics Changes - Strong performance was noted in the U.S. and broad-based strength in EMEA, driven by both new workloads and growth of existing workloads [17] - The net ARR expansion rate increased to 120% in Q3, up from 119% in the previous quarter [18] Company Strategy and Development Direction - The company aims to deepen customer relationships and advance its innovation agenda to build a generational modern data platform for the multi-cloud and AI era [15] - The focus is on expanding within existing accounts and penetrating the Fortune 500 market more effectively [78] - Strategic investments in engineering, marketing, and sales capacity are planned to drive continued growth [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong momentum of Atlas and the healthy fundamentals of the business, leading to raised financial guidance for Q4 and the full fiscal year 2026 [15][25] - The company is optimistic about the potential of AI workloads and the role MongoDB can play in supporting enterprises in their AI transformations [11][33] Other Important Information - The company ended the quarter with $2.3 billion in cash and cash equivalents, and operating cash flow was significantly above expectations at $144 million [20][21] - The company is executing a share buyback program to offset dilution from employee equity awards [24] Q&A Session Summary Question: What are the initial steps to make MongoDB a foundational data platform for the AI era? - Management highlighted the need for real-time operational data and the right context to support AI workloads, emphasizing the importance of MongoDB's capabilities in this area [32][34] Question: How are the workloads for calendar year 2025 shaping up? - Management noted strength in larger customers and ongoing growth in existing workloads, indicating a positive trend for future workloads [36][37] Question: What are the repeated themes in customer conversations? - Key themes include modernization efforts and the ongoing transformation to multi-cloud environments, with a focus on AI workloads [40][41] Question: What is driving the new customer strength within Atlas? - The engineering team's successful product launches and the self-serve team's efforts to reduce friction for onboarding new customers were cited as key factors [69][71] Question: How does management view M&A in relation to MongoDB? - Management expressed a preference for organic growth but remains open to strategic acquisitions that can accelerate the roadmap [73]

MongoDB shares rose 15% in after-hours trading on Monday after the company announced strong third-quarter earnings that topped Wall Street estimates and issued a strong forecast.The database software maker reported a revenue of $628 million, which was up 19% year over year, blowing past the $592 million expected by LSEG analysts. The company's adjusted earnings per share of $1.32 also beat Wall Street's projections of 80 cents per share."These results reflect the strength of MongoDB's platform – our flexibl ...

Core Insights - The article discusses the importance of enabling Javascript and cookies in browsers to ensure proper functionality and access to content [1] Group 1 - The article highlights that users may face access issues if they have an ad-blocker enabled, suggesting the need to disable it for a better experience [1]