MongoDB, Inc. is a pioneering force in the database software industry, with a mission to empower developers and businesses to create, transform, and disrupt industries through the power of data and software. Founded in 2007 and headquartered in New York City, MongoDB has established itself as a market leader, revolutionizing the way organizations approach data management and harness the potential of emerging technologies like artificial intelligence (AI).
Company Background
MongoDB's journey began with the introduction of its flagship product, MongoDB Community Server, in 2009. This free-to-download version of the company's database software quickly gained traction among developers, thanks to its flexible, document-based architecture and ability to handle structured, semi-structured, and unstructured data. As the demand for more robust and scalable data solutions grew, MongoDB further expanded its offerings, launching MongoDB Enterprise Advanced in 2013 and MongoDB Atlas, its fully managed database-as-a-service (DBaaS) solution, in 2016.
Originally incorporated as 10Gen, Inc. in November 2007, the company rebranded to MongoDB, Inc. in August 2013. MongoDB's database is designed to meet the needs of organizations for performance, scalability, flexibility, and reliability while maintaining the strengths of relational databases. Built on a unique document-based architecture, MongoDB's database can handle a variety of data types, from structured to unstructured.
Growth and Expansion
Since its inception, MongoDB has expanded its product offerings to include additional capabilities such as search, time series, and application-driven analytics. The company has experienced significant growth, with its customer base expanding from just over 3,200 customers in January 2017 to over 54,500 customers as of January 2024. Similarly, MongoDB's employee headcount has grown from 713 in January 2017 to 5,040 as of January 2024. In October 2017, MongoDB went public, raising $192 million in its initial public offering.
Over the years, MongoDB has consistently demonstrated its ability to adapt and innovate, positioning itself at the forefront of the industry. In fiscal year 2025, the company surpassed the $2 billion revenue milestone, a remarkable achievement that underscores its sustained growth and increasing importance in the market. This revenue figure represents a 19% year-over-year increase, highlighting the strong demand for MongoDB's products and services.
Product Success
One of the key drivers of MongoDB's success has been the rapid adoption of its cloud-based offering, MongoDB Atlas. In the fourth quarter of fiscal year 2025, Atlas revenue grew by a robust 24% year-over-year, accounting for 71% of the company's total revenue. This shift towards cloud-based deployments reflects the growing preference among organizations for scalable, fully managed database solutions that can adapt to their evolving needs.
Challenges and Opportunities
However, MongoDB's growth story is not without its challenges. In the company's latest financial report, it highlighted a potential headwind in the form of declining revenue from its non-Atlas offerings, particularly its MongoDB Enterprise Advanced (EA) product. This anticipated slowdown is attributed to a reduced pool of multi-year deals, as well as a trend among customers to deploy more of their incremental workloads on the Atlas platform.
Despite this dynamic, MongoDB remains confident in its long-term prospects, particularly in the realm of artificial intelligence (AI). The company's recent acquisition of Voyage AI, a provider of advanced embedding and reranking models, has positioned it to address a critical challenge faced by organizations in the AI era: the risk of "hallucinations" or inaccurate results from AI-powered applications.
By integrating Voyage AI's technology into its database platform, MongoDB aims to democratize the process of building trustworthy AI applications, providing customers with the necessary tools and infrastructure to develop mission-critical AI-driven solutions. This strategic move underscores MongoDB's commitment to staying at the forefront of technological advancements and catering to the evolving needs of its customer base.
Financials
MongoDB's financial performance has been impressive, with the company reporting total revenue of $1.68 billion for the fiscal year ended January 31, 2024, representing 31% year-over-year growth. In the most recent quarter, MongoDB generated revenue of $548.4 million, up 20% year-over-year, surpassing the high end of their Q4 FY2025 revenue guidance. The increase in revenue was primarily driven by a 24% increase in Atlas revenue, which represented 71% of total revenue. Non-Atlas revenue also came in ahead of expectations, in part due to greater than expected contribution from multiyear deals.
Despite strong revenue growth, MongoDB reported a net loss of $176.6 million for the most recent fiscal year. However, the company demonstrated positive cash flow generation, with annual operating cash flow of $121.5 million and annual free cash flow of $115.4 million. In the most recent quarter, MongoDB achieved profitability with a net income of $108.4 million, along with quarterly operating cash flow of $50.5 million and quarterly free cash flow of $22.9 million.
Looking ahead, MongoDB's fiscal year 2026 guidance reflects a measured approach, with revenue expected to be in the range of $2.24 billion to $2.28 billion, representing a year-over-year growth of 11.6% to 13.6%. While this growth rate may appear lower compared to previous years, it is important to note that the company is actively investing in areas like research and development, as well as marketing, to enhance its competitive positioning and capture the expanding AI opportunity.
For the first quarter of fiscal year 2026, MongoDB expects revenue between $524 million and $529 million, non-GAAP operating income of $54 million to $58 million, and non-GAAP earnings per share of $0.63 to $0.67. For the full fiscal year 2026, the company projects non-GAAP operating income of $210 million to $230 million and non-GAAP earnings per share of $2.44 to $2.62.
It's worth noting that MongoDB expects roughly stable Atlas consumption growth in FY2026 compared to FY2025. However, the company anticipates its non-Atlas subscription revenue to decline in the high-single digits in FY2026, due to an approximately $50 million headwind from lower multi-year license revenue. The FY2026 operating margin guidance of 10% at the midpoint is down from 15% in FY2025, reflecting the impact of this revenue headwind, increased R&D investments including the Voyage AI acquisition, and higher marketing investments.
Liquidity
MongoDB's balance sheet remains strong, with $2.3 billion in cash, cash equivalents, and short-term investments as of the end of fiscal year 2025. This financial flexibility allows the company to navigate potential macroeconomic headwinds and continue its strategic investments in product innovation and customer acquisition. The company has no outstanding debt as it redeemed the 2026 Convertible Notes during the quarter.
MongoDB's liquidity position is further underscored by its current ratio and quick ratio, both standing at 5.20 as of October 31, 2024. The company's debt-to-equity ratio is 1.10, indicating a balanced capital structure.
Customer Base
MongoDB maintains a robust customer base, with over 54,500 customers as of the end of fiscal year 2025, up from over 47,800 as of October 31, 2023. This includes more than 7,500 direct sales customers. The company's ability to attract and retain a diverse range of customers, from startups to large enterprises, is a testament to the versatility and value proposition of its platform.
Geographic Performance
MongoDB has demonstrated strong performance across various geographic markets. Customers located in the United States accounted for 55% of total revenue for the fourth quarter and 54% for the full year, highlighting the company's strong presence in its home market while also indicating significant international diversification.
Product Segments
MongoDB operates through two main product segments: Subscription and Services.
The Subscription segment, which accounted for 97% of total revenue in both the three and nine months ended October 31, 2024, includes revenue from MongoDB's two primary subscription offerings - MongoDB Atlas and MongoDB Enterprise Advanced. MongoDB Atlas, the company's cloud-hosted database-as-a-service (DBaaS) offering, represented 68% and 70% of total revenue during the three and nine months ended October 31, 2024, respectively. MongoDB Enterprise Advanced, the company's on-premises, self-managed commercial database server offering for enterprise customers, represented 25% and 24% of subscription revenue for the same periods.
The Services segment, accounting for the remaining 3% of total revenue, primarily consists of fees associated with consulting and training services. This segment plays a crucial role in accelerating customers' ability to adopt and utilize MongoDB's products, contributing to customer retention and expansion.
Industry Trends
MongoDB is well-positioned to capitalize on the growing demand for advanced database solutions. According to IDC, the worldwide Data Management Software market was valued at $94 billion in 2023 and is expected to grow to approximately $170 billion by 2028, representing a 13% compound annual growth rate. This robust market growth trajectory aligns with MongoDB's strategic focus on innovation and expansion in the database software industry.
Conclusion
In conclusion, MongoDB's journey has been marked by innovation, adaptability, and a relentless pursuit of pushing the boundaries of data management. As the company navigates the evolving landscape, it remains poised to capitalize on the growing demand for flexible, scalable, and AI-powered database solutions. By redefining the role of the database in the age of artificial intelligence, MongoDB is cementing its position as a transformative force in the technology industry.
While facing challenges such as the anticipated decline in non-Atlas revenue and increased investments impacting near-term profitability, MongoDB's strong market position, robust customer base, and strategic focus on AI integration provide a solid foundation for future growth. The company's ability to consistently outperform its guidance and adapt to changing market dynamics demonstrates its resilience and potential for long-term success in the dynamic database software market.