Earning Date, Transcript Summary & Report

Earnings Surprise: MongoDB, Inc. beats earnings expectations with reported EPS of $1.28, exceeding expectations of $0.66.

Q4 Revenue Surge: Revenue for Q4 reached $548.4 million, a 20% year-over-year increase, surpassing the high end of guidance.

Strong Revenue Growth: Atlas revenue grew 24% year-over-year, now representing 71% of total revenue, indicating strong demand for the platform.

Customer Acquisition Growth: The company ended the quarter with over 54,500 customers, reflecting a healthy growth in customer acquisition.

Operating Income Improvement: Non-GAAP operating income was $112.5 million, resulting in a 21% operating margin, an improvement from the previous year.

Revenue Milestone Achievement: The company crossed the $2 billion revenue mark for the full year, growing 19% year-over-year, showcasing significant growth since going public.

Strong Retention Rates: Retention rates remained strong, demonstrating the quality and mission-critical nature of MongoDB's platform.

Stable Consumption Growth Outlook: The company expects stable consumption growth for Atlas in fiscal '26, indicating confidence in continued demand.

AI Investment Strategy: MongoDB is investing in AI opportunities, with plans to help customers transition from AI experimentation to production.

AI Capabilities Enhancement: The acquisition of Voyage AI is expected to enhance MongoDB's capabilities in AI, providing best-in-class embedding and reranking models.

Customer Base and Efficiency: MongoDB's customer base includes notable companies like Grab and Urban Outfitters, which have successfully leveraged Atlas for significant operational efficiencies.

Decline in Non-Atlas Revenue: Non-Atlas revenue growth is expected to decline in fiscal 2026, with a forecasted drop in the high-single digits due to fewer multiyear deals and a limited set of large non-Atlas accounts available for signing multiyear contracts.

Net ARR Expansion Decline: The net ARR expansion rate has declined to approximately 118%, which is lower than historical periods, indicating a smaller contribution from expanding customers.

Gross Margin Decline: Gross margin decreased to 75% from 77% year-over-year, attributed to the growing percentage of revenue coming from Atlas, which has a different margin profile.

Operating Margin Decline: Operating margin is expected to decline to 10% at the midpoint of guidance for fiscal 2026, down from 15% in fiscal 2025, primarily due to the absence of high-margin multiyear license revenue and increased investments in R&D and marketing.

Acquisition Impact on Margins: The acquisition of Voyage AI is expected to be dilutive to operating margin for the year as expenses related to growing the Voyage team will impact the R&D line in the income statement.