Database platform company MongoDB (NASDAQ: MDB) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 18.7% year on year to $628.3 million. On top of that, next quarter’s revenue guidance ($667.5 million at the midpoint) was surprisingly good and 6.5% above what analysts were expecting. Its non-GAAP profit of $1.32 per share was 66.2% above analysts’ consensus estimates.
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MongoDB (MDB) Q3 CY2025 Highlights:
- Revenue: $628.3 million vs analyst estimates of $594.3 million (18.7% year-on-year growth, 5.7% beat)
- Adjusted EPS: $1.32 vs analyst estimates of $0.79 (66.2% beat)
- Adjusted Operating Income: $123.1 million vs analyst estimates of $70.72 million (19.6% margin, 74.1% beat)
- Revenue Guidance for Q4 CY2025 is $667.5 million at the midpoint, above analyst estimates of $626.9 million
- Management raised its full-year Adjusted EPS guidance to $4.78 at the midpoint, a 29.7% increase
- Operating Margin: -2.9%, up from -5.3% in the same quarter last year
- Free Cash Flow Margin: 22.3%, up from 11.8% in the previous quarter
- Customers: 62,500, up from 59,900 in the previous quarter
- Billings: $687.3 million at quarter end, up 34.4% year on year
- Market Capitalization: $27.04 billion
"MongoDB delivered strong third quarter results that exceeded the high-end of our guidance driven by continued strength in Atlas, which saw growth accelerate to 30% year-over-year. We also delivered meaningful margin outperformance as we executed on our plan to drive profitable growth. Reflecting this strength, we are raising our guidance on the top and bottom line for the rest of the year," said CJ Desai, President and Chief Executive Officer of MongoDB.
Company Overview
Named after "humongous database," reflecting its ability to handle massive data loads, MongoDB (NASDAQ: MDB) provides a flexible document-based database platform that helps developers build, deploy, and maintain modern applications more efficiently.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, MongoDB grew its sales at an excellent 33.7% compounded annual growth rate. Its growth beat the average software company and shows its offerings resonate with customers, a helpful starting point for our analysis.
Long-term growth is the most important, but within software, a half-decade historical view may miss new innovations or demand cycles. MongoDB’s annualized revenue growth of 20.9% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
This quarter, MongoDB reported year-on-year revenue growth of 18.7%, and its $628.3 million of revenue exceeded Wall Street’s estimates by 5.7%. Company management is currently guiding for a 21.7% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 14.6% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and indicates its products and services will see some demand headwinds. At least the company is tracking well in other measures of financial health.
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Billings
Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.
MongoDB’s billings punched in at $687.3 million in Q3, and over the last four quarters, its growth was fantastic as it averaged 25.2% year-on-year increases. This alternate topline metric grew faster than total sales, meaning the company collects cash upfront and then recognizes the revenue over the length of its contracts - a boost for its liquidity and future revenue prospects. 
Customer Base
MongoDB reported 62,500 customers at the end of the quarter, a sequential increase of 2,600. That’s roughly in line with what we observed last quarter and quite a bit above what we’ve seen over the previous year, confirming that the company is maintaining its sales momentum.
Key Takeaways from MongoDB’s Q3 Results
We were impressed by how significantly MongoDB blew past analysts’ billings expectations this quarter. We were also glad its EPS guidance for next quarter trumped Wall Street’s estimates. Zooming out, we think this was a solid print. The stock traded up 8.4% to $356.77 immediately following the results.
MongoDB had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
