MongoDB(US:MDB)2025-12-01 23:02Financial 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]