MongoDB Q3 Earnings & Revenues Surpass Estimates, Both Increase Y/Y

Core Insights - MongoDB, Inc. reported strong financial results for the third quarter of fiscal 2026, with non-GAAP EPS of $1.32, a 13.8% increase year-over-year, and revenues of $628.3 million, up 18.7% year-over-year, both exceeding consensus estimates [1][8] Financial Performance - Total revenues reached $628.3 million, representing an 18.7% year-over-year growth and surpassing the consensus estimate by 6.27% [1] - Subscription revenues increased by 18.9% year-over-year to $609.1 million, accounting for 96.9% of total revenues [2] - Services revenues grew 12.1% year-over-year to $19.2 million, making up 3.1% of total revenues [2] - Atlas (Cloud) revenues surged by 30% year-over-year, contributing 75% of total quarterly revenues [2] Customer Metrics - The company ended the fiscal third quarter with over 62,500 customers, an increase from approximately 52,600 in the prior-year period, adding 2,600 new customers [3] - Direct Sales Customers totaled over 7,000, down from roughly 7,400 in the year-ago period [3] - Atlas customers exceeded 60,800, up from 51,100 in the prior year [3] - There were 2,694 customers with annualized recurring revenues of $100,000 or more, an increase from about 2,314 in the year-ago quarter [4] Operating Details - Non-GAAP gross margin contracted by 240 basis points year-over-year to 74.2% [5] - Non-GAAP sales and marketing expenses rose 9.2% year-over-year to $192 million, with expenses as a percentage of revenues contracting by 260 basis points to 30.6% [5] - Non-GAAP research and development expenses increased by 16.4% year-over-year to $107.3 million, with R&D as a percentage of revenues decreasing by 30 basis points to 17.1% [5] - Non-GAAP general and administrative expenses rose 20.7% year-over-year to $43.7 million, with expenses as a percentage of revenues increasing by 10 basis points to 7% [6] - Non-GAAP operating income was $123.1 million, a 21.3% increase year-over-year, with the operating margin expanding by 40 basis points to 19.6% [6] Balance Sheet & Cash Flow - As of October 31, 2025, MongoDB had cash, cash equivalents, short-term investments, and restricted cash totaling $2.3 billion, unchanged from July 31, 2025 [7] - Operating cash flow was $143.5 million in the fiscal third quarter, up from $72.1 million in the previous quarter [7] - Free cash flow during the quarter was $140.1 million compared to $69.9 million in the prior quarter [9] Guidance - For the fourth quarter of fiscal 2026, MongoDB anticipates revenues between $665 million and $670 million, with non-GAAP EPS expected in the range of $1.44-$1.48 [10] - For fiscal 2026, revenues are projected to be between $2.434 billion and $2.439 billion, with non-GAAP EPS expected between $4.76 and $4.80 [10]