Monday, March 2, 2026 at 5 p.m.
ET Call participants President and CEO — Chirantan “CJ” DesaiChief Financial Officer — Michael BerryVice President, Investor Relations — Jess Lubert Need a quote from a Motley Fool analyst? Email [email protected] Total revenue -- $695 million, representing 27% year-over-year growth and exceeding the high end of the company's own guidance by 4%.Atlas revenue -- Grew 29% year over year, surpassed the $2 billion run rate mark, and contributed a record $114 million in net new revenue for the quarter, accounting for 72% of total revenue, up from 71%.Non-Atlas revenue -- Increased 20% year over year, producing the best quarterly growth in the past two years.Customer count -- Ended with over 65,200 customers, adding 2,700 in the quarter, and achieved a 60% full-year increase in additions.Operating margin -- Reported at 23%, an improvement from 21% a year ago, with positive GAAP operating income for the quarter.Net income -- $143 million, or $1.65 per share based on 86.5 million diluted shares, up from $108 million and $1.28 per share on 84.6 million diluted shares last year.Total company net ARR expansion rate -- Reached 121%, increasing from 120% last quarter and 119% a year prior.Non-Atlas ARR -- Grew 13% year over year, excluding duration impact, with increased momentum from financial services, public sector, and technology customers.RPO (remaining performance obligations) -- Rose to $1.47 billion from $748 million, a 97% year-over-year growth.Large deals closed -- Included an approximately $90 million Atlas deal with a major tech company and a greater than $100 million Enterprise Advanced (EA) deal with a large financial institution, noted as the largest total contract value in company history.Customers generating $100,000+ ARR -- 2,799 customers; customers generating $1 million+ ARR -- 402 customers.
(Management noted rapid growth in these cohorts, but the 1,726% figure appears to be a transcript error and is omitted for accuracy.)Feature usage in Atlas -- Of Atlas customers producing $100,000+ ARR, 44% use two or more platform features, rising from 36% prior year.Operating cash flow -- $180 million; free cash flow -- $177 million, comparing favorably to $51 million and $23 million, respectively, last year.Cash, equivalents, and investments -- Nearly $2.4 billion at quarter-end.Atlas revenue guidance -- Projected growth of approximately 26% in Q1 and 21%-23% for fiscal 2027.Non-Atlas revenue guidance -- Expected mid to upper single-digit growth in Q1 and low to mid single-digit growth for fiscal 2027.Total fiscal 2027 revenue guidance -- Anticipated at $2.86 billion to $2.9 billion, equating to 16%-18% growth.Fiscal 2027 operating margin guidance -- ~19.5% (non-GAAP) at the high end of guidance; commitment to expanding operating margin by 100 basis points while investing for growth.Capital allocation -- 100% of free cash flow planned for share repurchases and settling employee RSU tax obligations in fiscal 2027; $55 million spent this quarter repurchasing 133,000 shares.AI product uptake metrics -- The number of customers using vector search and Voyage embedding models nearly doubled year over year.Leadership changes -- Erica Woolini appointed as Chief Customer Officer, effective March 3; Cedric Pash and Paul Kepambesis to depart, with a new CRO search in late stages and leadership transition planned through Q2.
MongoDB (MDB 0.85%) reported accelerated growth across both Atlas and non-Atlas product lines, highlighted by all-time record new ARR and substantial large enterprise deals in regulated industries.
Management indicated broad-based demand from AI native, fintech, public sector, and Fortune 500 cohorts, with specific expansion in AI workloads and deeper adoption of platform features among high-value Atlas customers.
Strategic execution included a significant increase in RPO, prioritization of feature parity for EA with Atlas, and a leadership transition designed to support expanded go-to-market initiatives, especially in the AI and enterprise segments.
CEO Desai stated, "MongoDB's foundation is in great shape, and the company is well on its way to become the generational data platform of choice in the AI and multi-cloud era."New customer activity was sustained by self-service motions, in addition to upmarket sales, with record new ARR driven by EMEA team performance at major financial institutions, retailers, and technology companies.Large bundled Atlas and EA deals materially benefited non-Atlas results, while Atlas revenue attribution was affected by one unusually large transaction where "we had to attribute more of that revenue to EA versus Atlas," according to Berry.On-premises deployment demand increased with EA positioned as mission critical among major financial, telecom, and government customers; multiple references emphasized customer insistence on operational resilience and hybrid infrastructure.CFO Berry confirmed expectations for 80%-100% operating cash conversion in fiscal 2027, in line with long-term company targets.AI contributions to revenue remain nascent, but the customer base adopting agentic and AI-related database features grew rapidly.
Industry glossary Atlas: MongoDB's fully managed cloud database service, providing multi-cloud deployment and integrated features such as search, vector search, and embeddings.Enterprise Advanced (EA): The company’s commercial, on-premises database offering designed for regulated enterprise workloads, supporting hybrid environments.Vector search: A database capability allowing for similarity search on high-dimensional datasets, critical for AI and machine learning applications.Voyage: MongoDB's embedding model technology, enabling deeper integration of AI/machine learning within customer applications.ARR (annual recurring revenue): A metric representing the predictable and recurring revenue components generated from customer contracts over a one-year period.RPO (remaining performance obligations): The total contracted revenue not yet recognized on the balance sheet, reflecting future revenue under existing agreements.
Full Conference Call Transcript Jess Lubert: Thank you, operator.
Good afternoon, and thank you for joining us today to review MongoDB, Inc.'s fourth quarter and full-year fiscal 2026 financial results, which we announced in our press release issued after the close of market today.
Joining me on the call today are Chirantan “CJ” Desai, President and CEO of MongoDB, Inc., and Michael Berry, CFO of MongoDB, Inc.
During this call, we will make forward-looking statements, including statements related to our future growth opportunities, our opportunity to win new business, our expectations regarding Atlas consumption growth, the impact of non-Atlas business and multiyear license revenue, the long-term opportunity of AI, our financial guidance and underlying assumptions, and our investments and growth opportunities in AI.
These statements are subject to a variety of risks and uncertainties, including the results of operations and financial conditions, that could cause actual results to differ materially from our expectations.
For a discussion of material risks and uncertainties that could affect our actual results, please refer to the risks described in our Quarterly Report on Form 10-Q for the quarter ended 10/31/2025, filed with the SEC on 12/02/2025.
Any forward-looking statements made on this call reflect our views only as of today, and we undertake no obligation to update them except as required by law.
Additionally, we will discuss non-GAAP financial measures on this conference call.
Please refer to the tables in our earnings release on the Investor Relations portion of our website for a reconciliation of these measures to the most directly comparable GAAP financial measures.
With that, I will now turn the call over to CJ.
Chirantan Desai: Thank you, Jess, and thank you everyone for joining us today.
To begin, I would like to provide some observations from my first full quarter at MongoDB, Inc.
Over the last 100 days, I have spoken to more than 200 customers globally, spanning from AI natives to Fortune 500 enterprise customers that are leveraging the MongoDB, Inc.
platform to drive innovation that is critical to their business.
Whether it is an AI or digital native looking for a highly performant solution that dynamically scales, a large enterprise looking for multi-cloud resiliency for their modern mission-critical applications, or a customer seeking an integrated offering for AI agents with features such as search, vector search, and embeddings in a single intelligent data layer, customers are excited about the strength of the MongoDB, Inc.
My key takeaway is that MongoDB, Inc.'s foundation is in great shape, and the company is well on its way to become the generational data platform of choice in the AI and multi-cloud era.
Now on to this quarter's results.
We generated total revenue of $695,000,000, up 27% year over year, beating the high end of the guidance by 4%.
Top-line strength was driven by Atlas, which grew 29% year over year, crossing the $2,000,000,000 run rate mark for the first time and generating a record $114,000,000 in net new revenue in the quarter.
Non-Atlas grew 20% year over year, our best growth quarter in the last two years.
We signed several large deals in the quarter, including an approximately $90,000,000 transaction with a large tech company that plans to expand both core and AI workloads on Atlas, and a greater than $100,000,000 transaction with a large financial institution for Enterprise Advanced, referred to as EA, representing the largest TCV deal in the history of 23% more than 100 basis points above the high end of guidance.
We ended the quarter with over 65,200 customers, adding 2,700 customers in Q4, growing both year over year and quarter over quarter.
This brings our full-year customer additions to a 60% year over year increase.
While AI is not yet a material driver to our results, we are encouraged by the growth we are seeing with customers leveraging our AI capabilities.
The number of customers leveraging vector search has nearly doubled year over year, and the number of customers using Voyage embedding models has also doubled since the acquisition last February.
This growth is across a diverse range of customers: AI natives, digital natives, and large enterprises.
We finished fiscal 2026 on a high note, with strength in Q4 driven by our continued go-to-market execution and the broad-based demand we have seen across the business.
Our teams generated record new ARR in Q4, an acceleration of that metric in fiscal 2026, highlighting the strength of both our upmarket and self-service motions.
Our EMEA team had an especially strong Q4, generating record new ARR driven by wins at major financial institutions, large retailers, and leading tech companies.
At the same time, we outperformed on operating margin, achieving above a Rule of 40 performance and demonstrating that we can drive durable revenue growth while simultaneously expanding margin.
Through my conversations with customers, a clear theme emerged.
Large enterprises are increasingly standardizing on MongoDB, Inc.
to power a wide spectrum of workloads, including both core mission-critical applications and emerging agentic AI applications.
Rather than treating AI as a standalone initiative, many are expanding their use of us as a strategic data platform that supports both foundational workloads and the next generation of intelligent applications.
For example, MongoDB, Inc.
continues to power a wide range of workloads including high-volume transactional systems, real-time applications, and emerging AI workloads across multiple lines of business at JPMorgan Chase, the world's largest financial institution.
The scale and breadth of our partnership with them reinforces our ability to serve as a strategic data platform for the most demanding enterprises.
We see tremendous opportunity to expand within our existing Fortune 500, Global 2,000, and AI native customer base, where I am actively leveraging my relationships to open new doors, engage the C-suite, and drive strategic expansion conversations top down.
MongoDB, Inc.
is increasingly recognized as the architectural foundation powering innovation for frontier model companies, leading digital natives expanding into AI, and AI native organizations scaling globally.
The database layer has endured through multiple technology shifts over the past 60 years, and it is even more critical in this AI shift.
AI and agentic applications require memory, state, and high-quality retrieval capabilities native to our modern OLTP platform, which powers real-time applications without ETL or bolt-on systems through integrated search, vector search, and embeddings.
In this platform shift, OLTP is the high ground, and MongoDB, Inc.
is purpose built to win.
Notably, Emergent Labs, a leading AI white-coding platform in India that just crossed a $100,000,000 run rate, selected Atlas over PostgreSQL to power AI agents that build production-ready applications from natural language prompts.
They power nearly 6,000,000 applications built across 190 countries and handle applications that average 35,000 lines of code with some reaching 300k, all made possible with Atlas' flexible document architecture and reliable scale.
We are also fueling innovation at AI native customer Eleven Labs, which is redefining conversational AI with its new enterprise agentic platform.
Eleven Labs selected Atlas to power the critical long-term memory and knowledge base for their autonomous agents.
By leveraging Atlas Search and Vector Search, they enable their agents to retain complex context and deliver highly personalized interactions in real-time and at global scale, supporting the rapid expansion to $330,000,000 of ARR and an $11,000,000,000 valuation.
Another tailwind is the renewed importance of on-premises deployment enterprise architectures.
Many large customers, particularly in regulated industries such as financial services, telecommunications, and government, view EA as mission critical and are making long-term commitments that reflect the need for operational resilience and support for data that will not move to the public cloud.
Consequently, I am confident in the durability of our EA business.
Pursuing feature parity to Atlas and continued go-to-market momentum are key priorities as we move forward.
For example, Axon Networks, a global leader in telecom network management serving 32 telcos and over 90,000,000 homes and enterprises, selected EA as the foundation for its operator-as-a-service platform.
This platform delivers a real-time digital twin and an API-first architecture designed to handle massive data peaks and high-volume time-series workloads.
EA provides the flexibility to run across mission-critical environments, including hyperscalers and bare metal, along with the enterprise-grade security and operational tooling required to support Axon's AI-first autonomous networking platform at scale.
What is truly compelling about our platform is that these tailwinds serve as a powerful force multiplier for one another.
The combined power of these capabilities—the flexibility of the document model, the performance and scale of Atlas, the ability to run anywhere, and our integrated AI functionality—is what really resonates with our customers.
A marquee example of the platform in action is Adobe, which expanded its strategic partnership and long-term commitment with us to accelerate AI-driven innovation.
MongoDB, Inc.
now underpins a range of Adobe's key initiatives, including agentic experiences powered by Atlas Vector Search and soon Voyage embeddings.
Adobe leverages Atlas to manage large fleets and always-on database deployments at global scale, while also continuing to partner with us for support of self-managed business-critical workloads on EA, highlighting our ability to operate seamlessly across both cloud and on-prem environments.
After spending time with 200 customers, partners, and our go-to-market teams globally, it has become increasingly clear that we have a massive opportunity ahead of us.
The strength of our platform and the depth of our customer relationships is a direct reflection of our exceptional global team, and I am proud to say we have world-class talent across engineering, go-to-market, and G&A functions.
During the upcoming year, my focus will be to build upon what is already working by first, remaining relentlessly customer-focused to deepen strategic partnerships and accelerate growth, particularly across large enterprises and AI native customers here in Silicon Valley.
Second, accelerate our innovation agenda by empowering product and engineering teams to build a generational multi-cloud data platform for the AI era.
Third, thoughtfully scale our self-serve motion to expand adoption across the long tail, with a disproportionate focus on AI native companies.
Fourth, drive operational excellence across go-to-market, product, and G&A to enable our teams to perform at their best while sustaining durable, profitable growth.
Finally, I wanted to provide an update on our go-to-market leadership.
Effective tomorrow, 03/03/2026, Erica Woolini joins MongoDB, Inc.
as our Chief Customer Officer reporting directly to me to accelerate our next phase of growth.
Erica brings a rare blend of experience serving large enterprise customers at Deloitte and scaling go-to-market growth at ServiceNow.
At MongoDB, Inc., she will focus on accelerating our partner growth engine, deepening our enterprise footprint, and ensuring a seamless, world-class experience across the entire customer life cycle.
As noted in our earnings press release, Cedric Pash, President of Field Operations, and Paul Kepambesis, Chief Revenue Officer, are leaving MongoDB, Inc.
We have been thoughtfully planning this transition for some time, and we believe now is the right moment for this change.
I want to extend my sincere gratitude to both Cedric and Paul for their contributions over the last decade.
They were truly instrumental in building our go-to-market foundation.
Looking ahead, we have a deep bench of go-to-market talent and the team is well positioned to execute against our objectives without disruption.
We are in the latter stages of a search for a new CRO.
The caliber of these candidates is a testament to our momentum and the significant opportunity ahead.
Paul will remain CRO through Q1 and serve as an adviser through Q2 to ensure a seamless transition to the new CRO.
With that, I will now hand the call over to Michael Berry to discuss the financial results in greater detail.
Michael Berry: Thank you, CJ, and good afternoon to everyone on the call.
I will begin with a review of our fourth quarter fiscal 2026 results and then finish with the outlook for the first quarter and full year fiscal 2027.
In order to spend more time on the fiscal 2027 outlook, I will be a little more concise on my fourth quarter comments.
I will be discussing both GAAP and non-GAAP results.
As CJ mentioned, we had another strong quarter as we exceeded all of our guidance ranges and finished our fiscal year on a high note.
In the fourth quarter, total revenue was $695,000,000, up 27% year over year and above the high end of our guidance.
Our income from operations was $159,000,000 for a 23% operating margin, compared to 21% in the year-ago period.
We achieved positive GAAP operating income in the fourth quarter.
We are very pleased with our stronger-than-expected operating margin results, which benefited entirely from our revenue outperformance.
Net income in the fourth quarter was $143,000,000, or $1.65 per share, based on 86,500,000 diluted shares outstanding.
This compares to net income of $108,000,000, or $1.28 per share, on 84,600,000 diluted shares outstanding in the year-ago period.
Shifting to our product mix, Atlas revenue momentum remained strong, with year-over-year growth of 29% in the fourth quarter, which accounted for 72% of total revenue, up from 71% in the year-ago period.
Atlas growth was driven by continued strength with our largest customers in North America and Europe, customers and our total company net ARR expansion rate, which increased to 121% in the fourth quarter, up from 120% last quarter and 119% a year ago.
Turning to non-Atlas, we experienced strong momentum during the fourth quarter, driven by strength with financial services, public sector, and technology customers that are choosing to build with MongoDB, Inc.
long term for their most mission-critical applications.
This resulted in strong multiyear revenue and non-Atlas ARR, which reflects the underlying revenue growth of this product without the impact of changes in duration.
Non-Atlas ARR grew 13% year over year, reflecting the momentum we are seeing in the business.
The strength in non-Atlas also resulted in a higher-than-expected number of larger deals with bundled Atlas and EA products.
This resulted in a greater-than-expected attribution of revenue to EA versus Atlas in the fourth quarter.
Adding back this impact, Atlas growth would have been approximately 30%.
We are encouraged to see more of our customers growing on both Atlas and EA and believe these deals illustrate the strategic importance of having both cloud and on-prem solutions for many of our largest customers.
You can see the strength in the growth of deferred revenue as well as the growth in RPO, which grew from $748,000,000 at the end of fiscal 2025 to $1,470,000,000 at the end of fiscal 2026, a year-over-year growth of 97%.
We ended the quarter with 2,799 customers with at least $100,000 in ARR and 402 customers with at least $1,000,000 in ARR, representing 1,726% year-over-year growth respectively.
For each of these cohorts, ARR is growing even faster, reinforcing the benefit of our upmarket focus.
Of our Atlas customers generating at least $100,000 in ARR, 44% are leveraging two or more features of our platform, which is up from 36% in the year-ago quarter.
Average revenue from these platform customers is meaningfully higher on average as compared to the rest of the Atlas base, illustrating the benefit of our platform capabilities.
Turning to the balance sheet and cash flow, we ended the fourth quarter with nearly $2,400,000,000 in cash, cash equivalents, short-term investments, and restricted cash.
We spent $55,000,000 to repurchase 133,000 shares and used $60,000,000 for the cash settlement of taxes on employee RSUs.
Operating cash flow remains strong at $180,000,000, and free cash flow was $177,000,000, which compares to $51,000,000 and $23,000,000 respectively in the year-ago period.
Our cash flow results were driven primarily by strong operating profit and improving working capital dynamics, particularly related to higher cash collections mainly driven by the higher-than-expected multiyear EA deal.
Now I would like to share a few guiding principles and some of the assumptions underlying our outlook for Q1 and fiscal 2027.
To begin, we continue to believe in the long-term model presented at Investor Day last September and remain committed to growing Atlas by greater than 20% and being a Rule of 40 company.
We will achieve this goal through a combination of revenue growth and margin expansion, but to be clear, revenue growth will be the main driver of improved profitability.
Our outlook assumes the business environment remains relatively stable and we operate under conditions similar to what we experienced over the course of the past fiscal year.
As I mentioned at our Investor Day in September, we have not changed our guidance philosophy as we will provide an outlook with more upsides than downsides specifically related to the EA business.
We are early in the year, and we want to be mindful there could be risks that we do not have line of sight to at this time.
Now let us get into the details.
Starting with Atlas, we have continued to see strong momentum and experienced relatively consistent consumption growth through the course of the past year.
We expect these trends to continue through fiscal 2027 and would also note that as Atlas has grown larger, this has helped limit the volatility from specific customer cohorts.
Based on our continued confidence in our market positioning, customer feedback, and product advantages, we currently expect to see Atlas revenue growth of approximately 26% in Q1 and 21% to 23% in fiscal 2027.
This outlook reflects our continued confidence in Atlas while taking into account we are a consumption business and visibility is more limited in the back half of the fiscal year.
For non-Atlas, we have continued to see healthy ARR trends and we have been positively surprised by the momentum we experienced with large multiyear deals in fiscal 2026.
While we remain optimistic regarding our ability to grow the business over the long term, it remains difficult to predict, and we will only include deals in our forecast that have either closed or have a high probability of closing to limit the risk of a negative surprise.
At this point, we expect our non-Atlas business to see mid to upper single-digit growth in Q1 and low to mid single-digit growth in fiscal 2027, which reflects our belief that the impact of duration will neither be a significant headwind nor tailwind to growth for the year.
In terms of AI, we remain optimistic regarding our outlook and are seeing encouraging trends with a number of AI natives.
While this subset of customers has significant potential, many of them remain early in their MongoDB, Inc.
journey and are not yet meaningful drivers of revenue.
Turning to profitability, we remain committed to driving revenue growth and expect to expand operating margin by 100 basis points in fiscal 2027.
We will achieve this expansion while investing for growth.
Some of these investments include enhancing our AI capabilities, further integrating Voyage, bringing feature parity to EA relative to Atlas, building out our presence in Japan, as well as strengthening our U.S.
federal business.
We will also continue to invest in marketing programs to develop our awareness and select quota-carrying headcount.
With respect to cash flow, we made meaningful progress in cash management during fiscal 2026 with our operating cash conversion exceeding 100% and up significantly from the approximately 50% experienced in fiscal 2024 and 2025.
This remains a key area of focus, and we would expect cash flow to remain healthy in fiscal 2027.
We currently expect cash conversion in the 80% to 100% range during the upcoming year and on a longer-term basis, which is in line with our long-term model.
Finally, we will continue to execute our share buyback program to partially offset dilution from employee equity awards and settle the taxes due on the vesting of employee RSUs with cash instead of issuing new shares.
In fiscal 2027, we currently plan to commit 100% of our free cash flow to these two actions, and we will also benefit from the settlement of over 1,000,000 shares of stock for the cap calls associated with our 2026 notes that matured in January 2026.
We will continue to manage share count prudently for the long term and demonstrate our commitment to being good stewards of your capital.
Now let us shift to guidance for the first quarter and fiscal 2027.
For the first quarter, we expect revenue of $659,000,000 to $664,000,000, which equates to 20% to 21% year-over-year growth.
We expect non-GAAP income from operations to be in the range of $105,000,000 to $109,000,000 for an operating margin of approximately 16.5% at the high end.
We expect non-GAAP net income per share to be in the range of $1.15 to $1.19 based on 86,200,000 diluted shares outstanding.
For fiscal 2027, we expect revenue to be in the range of $2,860,000,000 to $2,900,000,000, representing full-year revenue growth of 16% to 18%.
We expect non-GAAP income from operations of $545,000,000 to $565,000,000 for an operating margin of approximately 19.5% at the high end of guidance.
We expect non-GAAP net income per share to be in the range of $5.75 to $5.93 based on 86,700,000 diluted shares outstanding.
Note that the non-GAAP net income per share guidance for the first quarter and fiscal 2027 assumes a non-GAAP tax provision of 20%.
To summarize, we had another strong quarter and feel very good about the business heading into fiscal 2027.
We are pleased with our ability to drive revenue growth across the business while expanding operating profit and driving meaningful free cash flow.
We remain incredibly excited about the opportunity ahead, and we will continue to invest responsibly to drive long-term shareholder value.
With that, operator, we would like to open it up for questions.
Operator: Thank you.
At this time, we will conduct a question-and-answer session.
As a reminder, to ask a question, you will need to press *11 on your telephone and wait for your name to be announced.
To withdraw your question, please press *11 again.
Please limit yourself to one question and a follow-up.
Our first question comes from the line of Raimo Lenschow of Barclays.
Your line is now open.
Raimo Lenschow: Hey, thank you.
Great fourth quarter.
Two quick....
