Database software company MongoDB (MDB) reported Q1 CY2025 results topping the market’s revenue expectations, with sales up 21.9% year on year to $549 million. The company expects next quarter’s revenue to be around $550.5 million, close to analysts’ estimates. Its non-GAAP loss of $0.46 per share was significantly below analysts’ consensus estimates.
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MongoDB (MDB) Q1 CY2025 Highlights:
- Revenue: $549 million vs analyst estimates of $527.5 million (21.9% year-on-year growth, 4.1% beat)
- Adjusted EPS: -$0.46 vs analyst estimates of $0.66 (significant miss)
- Adjusted Operating Income: $87.43 million vs analyst estimates of $56.36 million (15.9% margin, 55.1% beat)
- The company slightly lifted its revenue guidance for the full year to $2.27 billion at the midpoint from $2.26 billion
- Management raised its full-year Adjusted EPS guidance to $3.03 at the midpoint, a 19.8% increase
- Operating Margin: -9.8%, up from -21.8% in the same quarter last year
- Free Cash Flow Margin: 19.3%, up from 4.2% in the previous quarter
- Customers: 57,100, up from 54,500 in the previous quarter
- Billings: $509.4 million at quarter end, up 23.3% year on year
- Market Capitalization: $15.73 billion
Company Overview
Started in 2007 by the team behind Google’s ad platform, DoubleClick, MongoDB offers database-as-a-service that helps companies store large volumes of semi-structured data.
Sales Growth
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, MongoDB grew its sales at an impressive 29.1% compounded annual growth rate. Its growth beat the average software company and shows its offerings resonate with customers.
This quarter, MongoDB reported robust year-on-year revenue growth of 21.9%, and its $549 million of revenue topped Wall Street estimates by 4.1%. Company management is currently guiding for a 15.1% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 11.9% over the next 12 months, a deceleration versus the last three years. Still, this projection is above average for the sector and indicates the market is baking in some success for its newer products and services.
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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 $509.4 million in Q1, and over the last four quarters, its growth was impressive as it averaged 23.7% 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 57,100 customers at the end of the quarter, a sequential increase of 2,600. That’s a little better than last quarter and quite a bit above the typical growth we’ve seen over the previous year. Shareholders should take this as an indication that MongoDB’s go-to-market strategy is working well.
Key Takeaways from MongoDB’s Q1 Results
We were glad MongoDB raised its full-year revenue and EPS guidance. We were also impressed by how significantly the company beat analysts' revenue and adjusted operating income expectations. Zooming out, we think this quarter featured some important positives. The stock traded up 14.3% to $228.46 immediately after reporting.
MongoDB may have had a good quarter, but does that mean you should invest right now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.
