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.
Is now the time to buy MDB? Find out in our full research report (it’s free for active Edge members).
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
- Annual Recurring Revenue: $1.83 billion vs analyst estimates of $1.82 billion (26.9% year-on-year growth, in line)
- Billings: $686.2 million at quarter end, up 34.1% year on year
- Market Capitalization: $33.34 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From MongoDB’s Q3 Earnings Call
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Sanjit Singh (Morgan Stanley) asked about initial priorities for enabling MongoDB as a foundational platform for AI workloads. CEO Chirantan Desai explained that embedding and vector search capabilities are immediate entry points for customers, while large-scale AI agent deployments are still in early stages.
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Matthew Martino (Goldman Sachs) inquired about recurring themes in customer conversations. Desai highlighted ongoing modernization, multi-cloud transformation, and experimentation with AI workloads as consistent topics, noting that both enterprise and AI-native companies are seeking scalable, flexible data solutions.
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Karl Keirstead (UBS) questioned the extent to which core business strength is already benefiting from AI-related modernization. Desai responded that while modernization is a key driver, AI initiatives may be accelerating these efforts, with core data teams supporting innovation for AI teams.
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Raimo Lenschow (Barclays) asked about strategies for increasing developer engagement, particularly on the U.S. West Coast. Desai and former CEO Dev Ittycheria described targeted marketing and community outreach as key tactics for building mindshare among AI-native developers.
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Brad Reback (Stifel) sought clarification on the ramp-up of new Atlas customers. Management attributed faster onboarding to recent engineering improvements and streamlined self-serve processes, but indicated that initial revenue contributions remain modest compared to established customer cohorts.
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 $409.80, up from $329.98 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members).
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