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
- 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: $26.76 billion
StockStory’s Take
MongoDB’s third quarter was marked by strong customer momentum and accelerating growth in its Atlas cloud database platform, leading to a positive market response. Management credited ongoing success in both self-serve and enterprise channels, noting that Atlas’s ease of adoption and improved performance played a crucial role. CEO Chirantan Desai highlighted, “We delivered an exceptional third quarter, highlighted by accelerating Atlas growth, robust customer additions and significant operating margin outperformance.” The company also pointed to broad-based demand across industries, particularly as organizations modernize their data infrastructure to support both operational needs and early-stage artificial intelligence initiatives.
Looking ahead, MongoDB’s guidance is anchored in continued expansion of Atlas and increasing adoption of its AI-focused offerings, such as vector search and embedding models. Management’s outlook reflects confidence in sustained cloud migration and the growing relevance of AI workloads, with Desai emphasizing, “We have everything required to become the generational data platform of choice in the AI era.” However, leadership acknowledged that widespread, customer-facing AI deployments remain nascent, with many enterprises still experimenting with pilot projects. Continued investment in product innovation and developer engagement, particularly in AI-native communities, is expected to support future growth.
Key Insights from Management’s Remarks
Management attributed the quarter’s outperformance to robust Atlas adoption, expansion within existing enterprise accounts, and early traction in AI-related use cases.
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Atlas acceleration: Atlas, MongoDB’s cloud database service, achieved 30% year-over-year growth, driven by both new workloads and expansion of existing ones, especially among large U.S. customers and across EMEA (Europe, Middle East, and Africa). This growth was underpinned by improvements in onboarding and performance, which reduced friction for new adopters.
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AI and vector search adoption: The company saw emerging demand for its AI-enabled capabilities, such as integrated vector search and Voyage embeddings, which help customers build intelligent applications. Desai cited examples where Atlas’s document model and AI features provided advantages in managing unstructured and semi-structured data compared to traditional databases.
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Customer expansion and self-serve momentum: MongoDB added 2,600 customers in the quarter, with self-serve channels contributing significantly to this growth. The company’s streamlined onboarding process and recent product releases, such as version 8.2, enabled faster adoption and scaling for new users.
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Enterprise modernization: Management described ongoing modernization efforts among large enterprises, including Fortune 500 companies, where organizations are migrating mission-critical systems to MongoDB as part of broader cloud and AI strategies. These efforts are expected to continue for several years, reflecting a durable addressable market.
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Acquisition and developer engagement: The February acquisition of Voyage AI has strengthened MongoDB’s AI portfolio, while targeted marketing and community events—such as the relaunch of its .local developer conference—are designed to deepen engagement with AI-native startups and developers, particularly on the U.S. West Coast.
Drivers of Future Performance
MongoDB’s outlook is shaped by ongoing Atlas expansion, increased AI workload adoption, and continued investment in engineering, sales, and marketing.
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Atlas as key growth engine: Management expects Atlas to remain the primary driver of revenue growth, benefiting from consistent consumption patterns and momentum with both large enterprises and new customer accounts. Continued enhancements to the platform are seen as important for maintaining competitive differentiation, especially in AI-related use cases.
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Strategic investments and margin impact: MongoDB plans to increase spending on engineering, marketing, and direct sales capacity to support long-term growth, although some investments have shifted to later periods. While this is expected to pressure short-term margins, the company targets ongoing margin expansion through revenue growth and operating efficiencies.
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AI adoption risk and enterprise readiness: Although early signs of AI-native application adoption are encouraging, management noted that most enterprise customers are still in pilot phases, and large-scale, production-grade AI agents remain rare. The pace of AI adoption and the ability to address enterprise requirements for governance and auditability are potential headwinds that could influence future results.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory analyst team will be watching (1) continued acceleration in Atlas customer additions and usage, (2) tangible progress in AI-native application deployments moving from pilot to production within enterprise accounts, and (3) the impact of increased investment in engineering and developer engagement on MongoDB’s competitive positioning. The evolution of the company’s AI product suite and its adoption by both new and existing customers will be important markers for sustained growth.
MongoDB currently trades at $365.76, up from $329.98 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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