MongoDB (NasdaqGM:MDB) Q3 2026 Earnings Call December 01, 2025 05:00 PM ET Company ParticipantsDev Ittycheria - Board MemberJess Lubert - VP of Investor RelationsSanjit Singh - Executive DirectorMike Berry - CFOCJ Desai - President and CEORaimo Lenschow - Managing DirectorBrad Reback - Managing DirectorMatt Martino - Vice PresidentConference Call ParticipantsKarl Keirstead - Managing Director and Software Equity Research AnalystAlex Zukin - Managing Director and Senior AnalystRyan MacWilliams - Software Equ ...

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]