MongoDB Inc (MDB) (Q2 2027) Earnings Call Highlights: Record Revenue Growth and AI Momentum ...

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MongoDB Inc (MDB) (Q2 2027) Earnings Call Highlights: Record Revenue Growth and AI Momentum ... GuruFocus News Wed, September 2, 2026 at 1:00 AM EDT 9 min read MDB This article first appeared on GuruFocus . Total Revenue: $772 million, up 30% year-over-year, the highest quarterly growth since fiscal '24. Atlas Revenue: Grew approximately 29% year-over-year for the fifth consecutive quarter, adding a record $127 million in the quarter. EA and Other Revenue: Grew 36% year-over-year, the strongest quarter in three years. Non-GAAP Operating Margin: 24%, up from 15% in the year-ago period. Non-GAAP Net Income: $163 million, or $1.90 per share, compared to $87 million, or $1.00 per share, in the year-ago period. GAAP EPS: Third consecutive quarter of GAAP EPS profitability. Total Customers: 70,600, adding a record 2,900 net new customers in the quarter. Atlas Customers: 69,300 at the end of the quarter, up from 58,500 in the year-ago period. Net ARR Expansion Rate: Increased to 122% for the quarter, compared to 119% a year ago and 121% last quarter. Remaining Performance Obligations: $1.52 billion, representing year-over-year growth of 91%. Operating Cash Flow: $142 million, compared to $72 million in the year-ago period. Free Cash Flow: $138 million, compared to $70 million a year ago. Q3 Fiscal '27 Revenue Guidance: $756 million to $761 million, representing 20% to 21% year-over-year growth. Fiscal '27 Revenue Guidance: $2.99 billion to $3.03 billion, representing full-year growth of 21% to 23%. Warning! GuruFocus has detected 5 Warning Sign with MDB. Is MDB fairly valued? Test your thesis with our free DCF calculator. For the complete transcript of the earnings call, please refer to the full earnings call transcript . Total revenue grew 30% year-over-year, the highest quarterly growth since fiscal '24, with Atlas revenue up 29% for the fifth straight quarter. EA and Other revenue surged 36% year-over-year, driven by strong demand for new Search and Vector Search capabilities and broad-based strength across industries. Record net new customer additions of 2,900 in the quarter, with Voyage customer count nearly doubling quarter-over-quarter, indicating strong AI momentum. Non-GAAP operating margin expanded to 24%, up from 15% a year ago, and the company raised full-year operating margin expansion guidance to 250 basis points. Net ARR expansion rate increased to 122%, up from 119% a year ago, reflecting strong upmarket momentum and increased multiproduct adoption. AI workloads are gaining traction, with Frontier labs and AI-native startups like Fireflies and EU choosing MongoDB for production AI applications. The company raised full-year Atlas growth guidance to approximately 27%, up 300 basis points, and expects EA and Other revenue to grow 11% for the year. GAAP EPS profitability for the third consecutive quarter, with full-year guidance now expecting GAAP EPS profitability for fiscal '27. Atlas growth is expected to decelerate to approximately 26% in Q3, with Q4 guidance implying a further slowdown due to seasonal consumption patterns. EA and Other revenue is expected to be approximately flat in the second half, with growth in the mid-single digits in Q3, indicating potential lumpiness. The company remains cautious about multiyear EA deals, which are inherently hard to predict and could impact revenue stability. AI revenue contribution is still small, and the company acknowledges it is early in the AI adoption cycle, with limited visibility into long-term scaling. The company's guidance philosophy remains conservative, with a focus on being prudent about out-quarter estimates, which may limit upside expectations. Despite strong customer additions, the company notes that customer count metrics will fluctuate quarter-to-quarter, and new customer growth may not be linear. The company faces tough comparisons in Q3 for Atlas, which could pressure growth rates in the near term. Q : What factors are driving the strength in Atlas revenue, and what gives management confidence in its continued growth? A : Mike Berry (CFO) highlighted that Atlas delivered its fifth consecutive quarter of approximately 29% year-over-year growth, adding a record $127 million in net new revenue. The business is now at a nearly $2.3 billion run rate. Confidence is driven by continued strength from large enterprise customers, particularly in the US, early but encouraging benefits from AI workloads, and a strong net ARR expansion rate of 122%. The company raised its full-year Atlas growth guidance to approximately 27%, a 300-basis-point increase from prior guidance. Q : Can you elaborate on the dynamics behind the strong EA (Enterprise Advanced) performance and whether it is coming at the expense of Atlas growth? A : CJ Desai (CEO) clarified that EA growth is not coming at the expense of Atlas. The company is meeting customers where they are, with many large enterprises wanting to run AI workloads in governed, self-managed environments. The launch of Search and Vector Search on EA in Q2 drove immediate, broad-based demand across financial services, public sector, and tech. Mike Berry (CFO) added that EA and Other revenue grew 36% year-over-year, the strongest quarter in three years, and the company raised its full-year EA growth expectation to approximately 11%, up from mid-single-digit guidance. Q : How is MongoDB's AI momentum translating into customer acquisition, particularly with Voyage and AI-native startups? A : CJ Desai (CEO) noted that Voyage customer count nearly doubled quarter-over-quarter for the second consecutive quarter, and a large majority of these new Voyage customers are AI natives with no prior relationship with MongoDB. This is creating a massive top-of-funnel opportunity for Atlas. Referral traffic for Voyage is primarily driven by coding agents like Claude and Codex. While it is still early, the company sees this as a significant long-term opportunity to cross-sell and upsell these new customers onto the broader Atlas platform. Q : What types of AI use cases are showing the most powerful pull-through to MongoDB? A : CJ Desai (CEO) observed that MongoDB is winning AI workloads where scale and performance matter most, particularly customer-facing agents and applications. In large enterprises, this includes use cases like wealth management chatbots, employee knowledge retrieval, and document intelligence. For AI natives and Frontier labs, MongoDB is used for inference, chat memory, and real-time pipelines. The common thread is that customers choose MongoDB when they need to handle massive, real-time operational data for AI, rather than for small internal copilots. Q : Given the strong first half, why is the Q4 Atlas guidance implying a deceleration, and what are the inputs into that guide? A : Mike Berry (CFO) reiterated that the company's guidance philosophy remains consistent: being prudent on out-quarters. The Q3 guide of approximately 26% growth reflects the expectation of 200-300 basis points of outperformance, while Q4 is guided conservatively due to the inherent unpredictability of a consumption business, including the impact of the holiday season. CJ Desai (CEO) added that the company is optimistic about the momentum but wants to see how consumption trends play out in September and October before committing to a higher Q4 number. Q : How quickly are new customers adopting Voyage and Vector Search, and how fast can these products scale from pilot to strategic, company-wide deployments? A : CJ Desai (CEO) stated that the time to value for Search and Vector Search is fast, often just a few weeks, because they are integrated into the operational data layer, eliminating the complexity of separate systems. Large customers, including a major bank and a large media company, have quickly moved to production after testing. For Voyage, awareness is still low, but the company is making it easier to adopt with features like Automated Voyage Embeddings. Once customers realize Voyage is a MongoDB product, it often leads to broader Atlas adoption. Q : Can you provide more detail on the inference workloads being run by Frontier AI labs on MongoDB? A : CJ Desai (CEO) explained that one lab began using MongoDB as a memory layer for inference workloads in late 2025, moving away from PostgreSQL due to performance and uptime issues. After seeing strong performance, the lab migrated additional inference workloads to Atlas in Q2. The lab's technology team noted that Atlas has removed all pain points related to uptime and performance, and they plan to run inference on MongoDB for new products. This represents early but significant validation of MongoDB's capabilities for high-performance AI workloads. Q : How should investors think about the revenue mix between Atlas and EA over the next three to five years? A : Mike Berry (CFO) stated that while Atlas will continue to increase as a percentage of total revenue (currently around 74%), the growth of EA is expected to be more durable than previously anticipated. The AI push is benefiting both segments, and the company views them as complementary ("an and, not an or"). CJ Desai (CEO) added that the "run anywhere" strategy, including hybrid deployments and Neo Cloud usage, is driving demand for both EA and Atlas, making both durable growth drivers for the company. Q : Are customers coming back to renew or true up their contracts sooner than expected, and what does that say about consumption trends? A : CJ Desai (CEO) noted that the net revenue retention rate was very strong across both Atlas and EA. While some large customers have indicated their consumption is growing faster than anticipated and have asked about renegotiating contracts, this is happening in only a small number of cases (single digits). This is encouraging because it shows customers are not pushing back on increased consumption, indicating healthy and improving usage trends. Q : What gives you confidence in the EA growth outlook for the second half, given that most of the guidance raise was driven by Atlas? A : Mike Berry (CFO) acknowledged that the hard part in forecasting EA is predicting multiyear deals. The company raised its full-year EA growth guidance to 11% from mid-single digits, reflecting the strong momentum. However, they remain prudent because multiyear deals are inherently lumpy. If the trend of the last four quarters continues, there is potential for upside, but the company prefers to wait until deals land before incorporating them into guidance.

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