MongoDB Q2 Earnings Call Highlights

Key Points

• MongoDB’s fiscal Q2 2027 revenue rose 30% to $772 million, driven by accelerating Atlas cloud database and Enterprise Advanced demand. The company added a record 2,900 customers, reaching 70,600 total customers, while its non-GAAP operating margin expanded to 24%.
• AI adoption is gaining momentum through Atlas Vector Search, Voyage AI models and the company’s managed Model Context Protocol server. Management said the strongest demand is coming from production-scale, customer-facing applications, although AI remains a relatively small contributor today.
• MongoDB raised its fiscal 2027 outlook to $2.99 billion–$3.03 billion in revenue and increased its Atlas growth and operating-margin expectations. Enterprise Advanced revenue grew 36% year over year and is becoming a more durable growth driver alongside Atlas.

MongoDB NASDAQ: MDB reported second-quarter fiscal 2027 revenue of $772 million, up 30% from a year earlier, as growth in its Atlas cloud database platform and Enterprise Advanced self-managed offering accelerated. The company also raised its full-year outlook, citing continued enterprise demand, consumption growth in Atlas and early adoption of artificial intelligence-related workloads.

President and CEO CJ Desai said the quarter marked the company’s highest quarterly revenue growth rate since fiscal 2024. MongoDB ended the period with 70,600 customers after adding a record 2,900 net new customers, while non-GAAP operating margin reached 24%.

Atlas Growth and Enterprise Demand

Atlas revenue grew approximately 29% year over year for the fifth consecutive quarter. CFO Mike Berry said Atlas exceeded the company’s guidance by roughly 300 basis points, with the platform adding a record $127 million in year-over-year revenue during the quarter.

Berry said growth was led by North American enterprise customers, particularly those generating at least $100,000 in annual recurring revenue. MongoDB’s total company net ARR expansion rate rose to 122%, compared with 119% a year earlier and 121% in the prior quarter.

“As we look forward, we continue to expect really good growth from our larger enterprise customers, especially in the U.S.,” Berry said during the question-and-answer session. He added that AI-related demand remains a small contributor but has shown encouraging momentum.

MongoDB said it had nearly 3,000 customers with at least $100,000 in ARR at the end of the quarter, an increase of 17% from a year earlier. Among Atlas customers in that cohort, 48% were using two or more platform features, up from 42% a year ago, driven largely by vector and text search adoption.

AI Products Gain Adoption

Management highlighted adoption of Atlas Vector Search and Voyage AI embedding and reranking models as evidence of increasing AI workload activity. Voyage customer count nearly doubled sequentially for the second consecutive quarter, according to Berry, and a large majority of new Voyage customers had no prior relationship with MongoDB.

Desai said coding agents, including Anthropic’s Claude and OpenAI’s Codex, are major sources of referral traffic for Voyage. MongoDB also launched a managed Model Context Protocol server designed to allow developers and AI agents to connect with MongoDB through tools including Claude Code, Codex, Grok Build, Cursor and Devin.

The company cited several customer examples. The Financial Times uses Atlas Vector Search and Voyage models to support AI-driven content discovery for its readers, processing more than 100,000 daily queries. Desai said the publisher reduced retrieval costs and shortened manual index-monitoring work from weeks to a day.

MongoDB also said Fireflies, an AI assistant platform for workplace conversations, selected Atlas from its inception and now operates more than 40 microservices on the platform. Legal technology company Eve uses MongoDB’s embedding and reranking capabilities to retrieve evidence from case documents for its AI products.

Desai said AI use cases gaining the most traction tend to involve production-scale, customer-facing applications rather than smaller internal copilots. He pointed to financial-services use cases such as semantic search and chatbots for wealth-management advisors, as well as employee-facing knowledge retrieval applications.

Enterprise Advanced Becomes a Larger Growth Driver

Enterprise Advanced and other revenue grew 36% year over year, while Enterprise Advanced and other ARR, which normalizes for contract duration, increased approximately 11%. Berry described the revenue result as the strongest quarter for the segment in three years.

The company attributed the performance to broad-based demand across financial services, public sector and technology customers, rather than a single transaction. MongoDB launched search and vector search capabilities for Enterprise Advanced during the quarter, allowing self-managed customers to use retrieval features for AI workloads in governed environments.

Desai said Enterprise Advanced growth was not occurring at the expense of Atlas. Instead, he characterized customer deployments as an “and, not an or” decision, with some organizations using both platforms for hybrid-cloud, regulatory and operational-resilience requirements.

MongoDB cited a major U.S. bank that uses Enterprise Advanced across more than 100 production applications and expanded its use of the platform for generative AI and semantic search. It also highlighted Nationwide U.K., which uses both Enterprise Advanced and Atlas for its speed-layer application, supporting more than 24 million weekly app logins.

Berry said Atlas represented roughly 74% of revenue under the company’s current outlook and should continue to rise as a percentage of total revenue. However, he said Enterprise Advanced is expected to contribute more meaningfully than previously anticipated as it becomes a more durable growth driver.

Profitability, Cash Flow and Raised Outlook

MongoDB reported non-GAAP income from operations of $186 million, or a 24% operating margin, compared with a 15% margin a year earlier. Non-GAAP net income was $163 million, or $1.90 per diluted share, compared with $87 million, or $1.00 per share, in the prior-year period.

The company said the second quarter was its third consecutive quarter of GAAP EPS profitability. It ended the period with $2.4 billion in cash equivalents and short-term investments, generated $142 million in operating cash flow and produced $138 million in free cash flow.

For the third quarter, MongoDB forecast:

• Revenue of $756 million to $761 million, representing 20% to 21% year-over-year growth.
• Non-GAAP operating income of $152 million to $156 million.
• Non-GAAP earnings per share of $1.57 to $1.61.

For fiscal 2027, the company raised its revenue outlook to $2.99 billion to $3.03 billion, representing growth of 21% to 23%. It now expects Atlas revenue growth of approximately 27% for the year, 300 basis points above its prior outlook, and Enterprise Advanced and other revenue growth of approximately 11%, up from prior expectations for mid-single-digit growth.

MongoDB also raised its operating-margin outlook, expecting expansion of approximately 250 basis points for fiscal 2027 while continuing investments in AI, product development, go-to-market capacity and developer awareness.

About MongoDB (NASDAQ:MDB)

MongoDB, Inc is a software company best known for developing MongoDB, a general-purpose, document-oriented database designed for modern application development. The company's platform is built to support high-performance, scalable data storage and retrieval for use cases such as cloud-native applications, mobile backends, real-time analytics, and content management. MongoDB offers a mix of open-source software, commercial server distributions, and subscription-based services that include technical support, training and professional services.

The company traces its origins to 2007 when it was founded as 10gen by Dwight Merriman and Eliot Horowitz; it later adopted the MongoDB name and completed a public listing in 2017.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source