MongoDB’s second quarter was marked by strong operational execution, as the company surpassed Wall Street’s revenue and profit expectations and delivered a positive market reaction. Management highlighted the accelerating growth in its Atlas cloud database platform, now representing the majority of revenues, and attributed the outperformance to increased adoption among larger enterprise customers, successful expansion of advanced features like search and vector search, and robust new customer additions. CEO Dev Ittycheria emphasized, “Our results show that customers are choosing MongoDB because we deliver the features, performance, cost-effectiveness, and AI readiness they need all in one platform.”
Is now the time to buy MDB? Find out in our full research report (it’s free).
MongoDB (MDB) Q2 CY2025 Highlights:
- Revenue: $591.4 million vs analyst estimates of $553.6 million (23.7% year-on-year growth, 6.8% beat)
- Adjusted EPS: $1 vs analyst estimates of $0.66 (52.4% beat)
- Adjusted Operating Income: $86.82 million vs analyst estimates of $57.49 million (14.7% margin, 51% beat)
- The company lifted its revenue guidance for the full year to $2.35 billion at the midpoint from $2.27 billion, a 3.5% increase
- Management raised its full-year Adjusted EPS guidance to $3.69 at the midpoint, a 21.6% increase
- Operating Margin: -11%, up from -14.9% in the same quarter last year
- Customers: 59,900, up from 57,100 in the previous quarter
- Annual Recurring Revenue: $1.72 billion vs analyst estimates of $1.71 billion (26% year-on-year growth, in line)
- Billings: $580.5 million at quarter end, up 26% year on year
- Market Capitalization: $25.68 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From MongoDB’s Q2 Earnings Call
- Sanjit Singh (Morgan Stanley) asked about drivers of accelerating Atlas growth. CEO Dev Ittycheria pointed to the move upmarket and increased adoption of advanced features, with larger workloads growing faster than in previous cohorts.
- Tyler Radke (Citi) inquired if AI-native use cases were materially contributing to growth. Ittycheria clarified that core business, not AI workloads, drove the quarter, though AI-native customer engagement is increasing.
- Jason Ader (William Blair) questioned MongoDB’s differentiation from competitors like Postgres and new open-source initiatives. Ittycheria highlighted architectural advantages in handling complex data and integrated search, and noted hyperscalers’ reduced investment in bolt-on solutions.
- Brad Reback (Stifel) asked about the trajectory for single-digit growth in the non-Atlas EA business. Ittycheria explained that customer demand for deployment flexibility between on-premise and cloud is supporting ongoing relevance and optionality for EA offerings.
- Ittai Kidron (Oppenheimer) sought details on go-to-market strategies for capturing AI opportunities. Ittycheria described a flexible approach, transitioning high-potential self-serve customers to direct sales as their needs mature, particularly for enterprise-grade AI workloads.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will closely monitor (1) the pace of Atlas adoption and migration of critical workloads from legacy databases, (2) the impact of new product features and AI-specific capabilities on both customer wins and usage growth, and (3) continued margin improvement as MongoDB invests in R&D and developer outreach. Execution on product innovation and success in upmarket enterprise segments will be key markers of MongoDB’s ability to sustain its growth trajectory.
MongoDB currently trades at $316.46, up from $214.39 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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