MongoDB, Inc. Q1 FY2026 earnings call

• Dev mentioned that the company had a strong start in fiscal 2026. Atlas grew 26% year - over - year, customer net adds were the highest in over six years, self - serve customer additions were strong, and retention rates remained high. - The company's modern architecture, including document model and platform, provides advantages for cloud - native, distributed, real - time, and AI - powered applications. - Acquisition of Voyage AI enhances ability to serve AI needs, with Voyage 3.5 outperforming and reducing storage costs. - Examples like Zepto migrating to MongoDB from Postgres to overcome scalability challenges were given. - Strategic priorities such as moving upmarket and modernizing legacy apps were discussed, including hiring a new leader for application modernization program. - Customer adoption trends were highlighted, with customers like CSX, LG Uplus using MongoDB. - Mike Gordon discussed financial results, including revenue, product mix, customer growth, gross profit, operating margin, cash flow, and raised revenue and operating margin guidance, and announced expansion of share repurchase program.

In the first quarter, MongoDB, Inc. generated revenue of $549 million, a 22% year - over - year increase and above the high end of its guidance. Atlas revenue grew 26% year - over - year, representing 72% of revenue. Non - GAAP operating income was $87 million with a 16% non - GAAP operating margin. The total customer count ended the quarter at over 57,100.

• Raised full - year revenue guidance by $10 million. - Non - Atlas subscription revenue expectations remain, with non - Atlas ARR expected to grow year - over - year but non - Atlas business expected to be down in the high single digits for the year. - Expect approximately $50 million headwind from multiyear license revenue in fiscal year 2026, primarily impacting the second half. - Raised operating margin expectations to 12% at the midpoint, up from 10% initially. - Q2 revenue expected to be in the range of $548 to $553 million. - Non - GAAP income from operations expected to be in the range of $55 to $59 million and non - GAAP net income per share in the range of $0.62 to $0.66 for Q2. - For fiscal year 2026, revenue expected to be in the range of $2.25 to $2.29 billion, non - GAAP income from operations in the range of $267 million to $287 million, and non - GAAP net income per share in the range of $2.94 to $3.12.

Forward - looking statements are subject to a variety of risks and uncertainties, including the results of operations and financial condition, which may cause actual results to differ materially from expectations. For a discussion of material risks and uncertainties, refer to the risks described in the annual report on Form 10 - K for the year ended January 31, 2025, filed with the SEC on March 20, 2025.

Q: Sanjit Singh asked about what's driving Atlas growth in terms of the type of applications being built.

A: Dev Ittycheria said that customers have near - term needs for running business, building new applications for operational efficiency, new products/services, and innovation. MongoDB, Inc. can be used for a wide variety of use cases like transactional, IoT, streaming, AI, and can run on any cloud or on - prem without code changes.

Q: Raimo Lenschow asked about Databricks' and Snowflake's moves and company's position, and about thinking about the business as CFO.

A: Dev Ittycheria said moves by Databricks and Snowflake validate OLTP as strategic high ground for AI, and building organic OLTP store is hard. Mike Gordon said the company has a strong growth rate, leveraged business model, potential for efficiency improvement, and strong balance sheet.

Q: Jason Ader asked about Postgres popularity and long - term relevance of relational vs non - relational.

A: Dev Ittycheria said it's a big market with multiple winners. Postgres popularity is due to people leaving other relational platforms, but MongoDB, Inc. is better optimized for modern applications, especially in AI, as it can handle complex data natively while Postgres plus other tools can't be stitched as easily.

Q: Kash Rangan asked about growth initiatives like Relational Migrator, move upmarket, sales force refocus, and EA business dynamics.

A: Dev Ittycheria said R&D investments are paying off, move upmarket is going well with large deals, self - serve business is acquiring mid - market customers. Mike Gordon said adjusted Q2 - Q4 non - Atlas business for EA timing, and $50 million multiyear headwind is due to renewal timing.

Q: Brad Reback asked about AI impact on revenue growth and upper - market comp plan.

A: Dev Ittycheria said AI adoption by enterprises is early, with barriers like skills and trust, but MongoDB, Inc. is well - positioned. No meaningful changes to upper - market comp plan.

Q: Brent Bracelin asked about Atlas growth trajectory and use of cash.

A: Dev Ittycheria said Atlas is a large business growing at 26% with good opportunities. Mike Gordon said focused on organic growth, buyback active, and cash can be used for tuck - ins if needed.

Q: Meta Marshall asked about headcount additions and beat/raise in guidance.

A: Mike Gordon said slower headcount additions were broad - based and not a concern, and raised guidance due to rolling Atlas beat into full - year number and prudent guidance on non - Atlas business.

Q: Andrew Nowinski asked about Atlas consumption mechanics and query language.

A: Mike Gordon said April was soft but May rebounded to be consistent with Feb - Mar. Dev Ittycheria said MongoDB, Inc. is native JSON database better at modeling complex real - world data than relational databases adding JSON support as an afterthought.

Q: Mike Cikos asked about Atlas consumption monthly trends and new logos growth.

A: Mike Gordon said May rebound was consistent with Feb - Mar. Dev Ittycheria said self - serve business growth is due to May Petri's team growing the business through experiments and attracting customers.