MongoDB's Q1 Earnings Surge: AI Potential Drives Growth and Stock Rally

MongoDB crushes expectations and its stock makes huge gains after-hours - SiliconANGLE

MongoDB crushes expectations and its stock makes huge gains after-hours Shares of the database company MongoDB Inc. were flying high in extended trading today after it posted better-than-expected financial results, upped its full-year guidance and expanded its share buyback program. The company reported first-quarter earnings before certain costs such as stock compensation of $1 per share, blowing past analysts' consensus estimate of 67 cents by a wide margin. Revenue was impressive too, growing 22% from the same period one year ago, to $549 million, easily surpassing Wall Street's target of $527.5 million. Those numbers meant the company ended the quarter with a net loss of $37.6 million, improving quite a bit on the $80.5 million loss it posted one year ago. MongoDB is the creator of the document-oriented MongoDB database, which is used to power data-intensive applications. Its flagship product is the cloud-hosted MongoDB Atlas, which accounts for the bulk of its revenue, though it also sells on-premises and mobile versions. All three are popular with developers thanks to their support for multiple data formats and ease of use. Recently, the company has been looking to enhance its vector search capabilities to make its database more appealing to developers of artificial intelligence applications, and it has high hopes that doing so will boost the appeal of its platform. Earlier this year, it bought a startup called Voyage AI Inc. that develops AI models for generating embeddings, which are the mathematical structures used to store key details about unstructured data in vector databases. MongoDB Chief Executive Dev Ittycheria (pictured) said the results show the company is off to a strong start in fiscal 2026, with Atlas-based revenue growing even faster than the rest of its businesses at 26%. He also pointed to "meaningful margin outperformance" and the "highest total net customer additions in six years" as more evidence of its progress. "Enterprises and startups are choosing MongoDB as their platform of choice for both modernizing existing and building new applications," Ittycheria added. The company also cited an improved cash flow position at the end of the quarter, with operating cash flow of $109.9 million, up from $63.6 million in the year-ago period. It finished the quarter with more than 57,100 customers, up from 49,200 one year earlier. Of those, 55,800 are now using MongoDB Atlas. Investors were happy to see that the company's strong performance is unlikely to be a flash in the pan, for it also offered very optimistic guidance for the current quarter. Officials said they're looking at second-quarter earnings of between 62 and 66 cents per share on revenue of between $548 million and $553 million. Both numbers exceeded the Street's expectations, with analysts forecasting second-quarter earnings of just 58 cents per share on lower sales of $549.3 million. The performance was encouraging enough that MongoDB hiked its full-year guidance. It's now looking for annual earnings of between $2.94 and $3.12 per share, up from an earlier target of just $2.44 to $2.62 per share. In terms of revenue, it's targeting a range of $2.25 billion and $2.29 billion, compared to a prior view of just $2.24 billion to $2.28 billion. The new range compares very well with the Street's guidance, which calls for earnings of $2.65 per share on revenue of $2.27 billion. Ittycheria said the company is upping its guidance because it sees an "incredible opportunity" for customers to leverage its platform for artificial intelligence applications. "We are confident in our position to drive profitable growth as we benefit from this next wave of application development," the CEO said. The company further pleased investors when it announced it's stepping up its share repurchase program, pledging to buy back an additional $800 million of common stock, in addition to the $200 million buyback authorization it announced three months earlier. It brings the total authorization to $1 billion. MongoDB's share price jumped more than 13% in the after-hours trading session. That added to a gain of more than 3% earlier in the day, but the stock still has more ground to recover, and remains 14% down in the year to date.

MongoDB Stock Rallies as Analysts Raise Price Targets on Strong Quarterly Results

Analysts said that growth runs counter to the recent bearish narrative around the company. Shares of AI-powered software provider MongoDB (MDB) surged Thursday as the company's strong quarterly results and improved outlook drew price target hikes from analysts. The company's Atlas multi-cloud database subscription offering saw its highest total net customer additions in six years, which Morgan Stanley analysts said "flies in the face of the bear case narrative that MongoDB is losing [market] share." The bank lifted its target to $255 from $235. MongoDB shares added nearly 13% Thursday to close at $225.38, with Morgan Stanley's target suggesting the stock could stand to climb another 13%. Still, the stock has lost about 3% year-to-date, after plunging in March on disappointing results a quarter ago. Citi analysts were even more bullish following the results, raising their target to $395 from $330. The bank called MongoDB's results a "convincing rebuke to the ongoing narrative of increasing competition and diminishing developer mindshare." Meanwhile, UBS analysts raised their target to $240 from $213. MongoDB reported first-quarter revenue of $549 million, up 22% year-over-year, which CEO Dev Ittycheria attributed to enterprise clients choosing its software to modernize existing AI applications and build new ones.

MongoDB Earnings: Profit Explosion | The Motley Fool

MongoDB added 2,600 net new customers in the first quarter of fiscal 2026, bringing its total customer count for the platform-agnostic, document-oriented database, software provider to approximately 57,100. That's the largest quarterly customer gain in six years. Most of those new customers are using Atlas, the company's managed database offering, while the rest opted for MongoDB Enterprise. Atlas revenue grew by 26% year over year in Q1 and accounted for 72% of overall Q1 revenue. MongoDB's profitability improved substantially in Q1. While the company still posted a net loss according to generally accepted accounting principles (GAAP), that loss was more than cut in half from the prior-year period. Non-GAAP earnings per share nearly doubled, and free cash flow soared by 74%. MongoDB kept its sales and marketing spending roughly flat year over year and cut its general and administrative spending, which partially offset a rise in R&D spending and led to a small overall increase in operating expenses. Along with its Q1 report, MongoDB announced an additional $800 million has been authorized for share repurchases. This brings the total authorization to $1 billion. Looking ahead to Q2, MongoDB expects revenue between $548 million and $553 million, and adjusted earnings per share (EPS) between $0.62 and $0.66. Share prices of MongoDB shot up 12% in after-hours trading Wednesday as investors digested the company's Q1 report. MongoDB beat analyst expectations across the board, and the major profitability improvements combined with solid Atlas growth gave investors plenty to like. MongoDB stock was down about 14% year to date going into the report, so if this rally holds, the stock should regain much of that lost ground on Thursday. MongoDB sees a big opportunity to ride the artificial intelligence (AI) wave and position its platform as an easy choice for companies looking to modernize applications. The company acquired Voyage AI, an AI model developer, earlier this year, a move aimed at helping customers build AI-powered applications. MongoDB also recently launched a public preview of its Model Context Protocol Server, enabling developers to interact with databases using natural language. With no end in sight to the AI boom, MongoDB is set to benefit from soaring AI demand.

Why MongoDB Rallied This Week | The Motley Fool

MongoDB reported its fiscal first-quarter earnings on Wednesday, trouncing analyst estimates and showing some reacceleration from the prior quarter. MongoDB has said that it would become an artificial intelligence (AI) winner once the "experimentation" phase ended and companies began to build AI-powered software applications. It looks like that may be starting now. Coming into this week, MongoDB was still wallowing in a severe downturn, having been more than cut in half since its 2021 highs and also its early 2024 highs. Revenue had been decelerating amid economic uncertainty, and management said that while it expects to see growth from the AI revolution, that growth wouldn't happen until AI moved from the experimentation phase to the application phase. In the first quarter ending in April, MongoDB began to see some of those benefits. Revenue grew 22% to $549 million, fueled by consumption-based MongoDB Atlas growth of 26%. That overall revenue figure was well above expectations, as well as the prior guidance given by the company of $524 million to $529 million. Non-GAAP (adjusted) earnings per share of $1 nearly doubled, and trounced expectations by $0.34. Management also raised full-year revenue guidance from $2.26 billion to $2.27 billion at the midpoint, and adjusted earnings-per-share figures from $2.51 to $3.03 at the midpoint. On the conference call, MongoDB noted its net customer additions were the highest in over six years, especially self-serve customers. That's really impressive, and highlights AI developers turning to MongoDB as their go-to database to handle and organize the "messiness of the real world" within data connections. Software-as-a-service stocks are generally very expensive, but if MongoDB is in fact on the brink of an acceleration, it could be one of the best values in the space. After this week's surge, shares trade around 8 times this year's revenue guidance, which is expensive for a typical stock, but reasonable for a software stock. Of note, MongoDB also has a significant amount of cash on its balance sheet, at over $2.3 billion, good for 13% of its market cap, and no debt. In terms of AI software plays, MongoDB looks like a promising opportunity, as the stock is still down markedly from its all-time highs.