MongoDB, Inc. Q4 FY2025 earnings call

• Fourth quarter performance was strong with revenue above guidance, Atlas revenue growth, and healthy new business led by Atlas customers and multi-year non-Atlas deals.
• Fiscal '26 drivers include strong new workload acquisition, stable Atlas consumption growth, a headwind from non-Atlas multiyear deals, long-term AI opportunity, and application modernization.
• Examples of customer adoption: Grab migrated key app to Atlas, The Associated Press and Urban Outfitters modernized applications with MongoDB, Swisscom deployed GenAI app using Atlas.

In the fourth quarter, MongoDB generated revenue of $548.4 million, a 20% year-over-year increase. Atlas revenue grew 24% year-over-year, representing 71% of revenue. Non-GAAP operating income was $112.5 million with a 21% non-GAAP operating margin. The company ended the quarter with over 54,500 customers. For the full year, revenue crossed $2 billion, growing 19% year-over-year. Atlas consumption growth was stable compared to the prior year, and retention rates remained strong.

• Q1 2026 revenue expected $524 million to $529 million, non-GAAP income from operations $54 million to $58 million, non-GAAP net income per share $0.63 to $0.67.
• Full year 2026 revenue expected $2.24 billion to $2.28 billion, non-GAAP income from operations $210 million to $230 million, non-GAAP net income per share $2.44 to $2.62.
• Expect stable Atlas consumption, $50 million headwind from non-Atlas multiyear deals in fiscal '26, margin decline due to high-margin multiyear revenue not repeating, and investments in R&D and marketing including the Voyage AI acquisition.

• Risks related to actual results differing from expectations, including market and operational uncertainties as detailed in the quarterly report on Form 10-Q filed with the SEC.

Q: On the multiyear guidance or the multiyear situation, like, if you look like this quarter and the quarters before, you overperformed there. The guidance is, obviously, you expense for slightly weaker because you have a lower renewal portfolio. Is it just a portfolio or do you see a change in trend they -- so is it just a mechanical problem or like -- or mechanical situation or is there also a change in behavior?

A: Raimo, why don't I take that one. So let me just make sure that I repeat and level set. So in fiscal year '24, we had exceptionally strong multiyear performance led by our Alibaba deal. And going into fiscal year '25, we expected a $40 million headwind based on the assumption that fiscal year '25 would be in line with long-term trends. Instead, after a strong Q3 and Q4, the ultimate headwind was significantly lower than that $40 million. And that creates the renewal base effect that sets us up for fiscal year '26. So what I mean by that is, because we've done so many more multiyear deals in fiscal year '24 and '25, the renewal base and the opportunity is just much lower to begin with. So it's not a change in trends. In fact, we assume same conversion rates as historically is just the opportunity set is lower in fiscal year '26.

Q: When you think about the Voyage acquisition, like, how do you need to think about that in terms of getting that into the organization and into the market? Is that kind of going to be like an attachment to what you were doing or do you think it's going to be sold broader than just into the MongoDB installed base?

A: Thanks, Raimo. I'll take that question. Today, Voyage AI does offer its models to other third parties, and we will continue to do that. We think it's important for people to have access to the best-in-class models. We also believe that, that will be a great way to bring people new to MongoDB into the MongoDB sphere, and that's a way for us, that will be in the short to medium term, a better together story where we will basically integrate Voyage AI into the MongoDB platform and do things like auto embeddings where data will be embedded as soon as it's basically entered into a MongoDB platform, which will make a developer's life that much easier versus having to go to some third-party to get the data embedded and then to use our vector store. And then we have a bunch of other things that we plan to do in terms of the product road map in terms of more sophisticated model, more domain-specific models, etc. And we'll talk about that in future calls. But we do want to make this available to all customers, including people who are not MongoDB customers today, and we think that's good for the business long-term.