8-K: MongoDB Kicks Off Fiscal 2026 with Strong Q1 Revenue Growth and Significant Profitability Turnaround, Announces $800M Additional Share Buyback

• Total revenue for the first quarter of fiscal 2026 reached $549.0 million, marking a 22% increase year-over-year.
• Subscription revenue grew by 22% year-over-year to $531.5 million, while services revenue increased by 28% to $17.5 million.
• MongoDB Atlas revenue surged by 26% year-over-year, now accounting for 72% of total Q1 revenue.
• The company achieved a non-GAAP gross profit of $406.5 million, representing a 74% non-GAAP gross margin.
• Non-GAAP income from operations significantly improved to $87.4 million, compared to $32.8 million in the year-ago period.
• MongoDB reported a non-GAAP net income of $86.3 million, or $1.00 per share, a substantial turnaround from a non-GAAP net loss of $42.7 million, or $0.51 per share, in the prior year.
• Cash generated from operations increased to $109.9 million, up from $63.6 million in the year-ago period.
• Free cash flow for the quarter was $105.9 million, compared to $61.0 million in the year-ago period.
• MongoDB added 2,600 new customers, bringing the total customer count to over 57,100 as of April 30, 2025, marking the highest total net customer additions in six years.
• The company authorized an additional $800 million for its share repurchase program, increasing the total authorization to $1 billion.
• MongoDB launched new AI-related products, including Voyage AI retrieval models (voyage 3.5 and voyage 3.5 lite) and the MongoDB Model Context Protocol (MCP) Server in public preview.
• Mike Berry was appointed as MongoDB's new Chief Financial Officer.

Score: 9

Explanation: The sentiment is highly positive due to strong financial performance, particularly the significant swing to non-GAAP profitability and robust free cash flow. The highest net customer additions in six years, strong Atlas revenue growth, and a substantial share repurchase authorization further reinforce a very positive outlook. Strategic advancements in AI also contribute to the strong sentiment.

• Total revenue increased by a strong 22% year-over-year to $549.0 million.
• MongoDB Atlas revenue grew 26% year-over-year, demonstrating continued strength in their cloud database service.
• The company achieved a significant swing to non-GAAP net income of $86.3 million ($1.00 per share) from a non-GAAP net loss in the prior year, indicating improved profitability.
• Non-GAAP income from operations more than doubled to $87.4 million from $32.8 million year-over-year, showcasing strong operational leverage.
• Free cash flow increased substantially to $105.9 million from $61.0 million, reflecting robust cash generation.
• MongoDB added 2,600 customers, reaching over 57,100 total customers, which is the highest net customer addition in six years.
• The company announced an additional $800 million share repurchase authorization, bringing the total to $1 billion, signaling management's confidence in the company's valuation and future prospects.
• Strategic product advancements in AI, such as the release of Voyage AI retrieval models and the MongoDB Model Context Protocol (MCP) Server, position the company for future growth in AI-powered applications.

• GAAP gross margin slightly decreased to 71% from 73% in the year-ago period.
• Non-GAAP gross margin slightly decreased to 74% from 75% in the year-ago period.
• MongoDB Enterprise Advanced's percentage of subscription revenue decreased to 22% from 25% in the prior year, suggesting a shift in product mix or customer preference.
• Direct Sales Customers' revenue as a percentage of subscription revenue slightly decreased to 87% from 88%.

• Potential failure of customers to renew subscriptions or expand usage of software and related services.
• Impact of global political changes and ongoing military conflicts (Russia-Ukraine, Israel-Hamas) on business and operating results.
• Adverse effects of economic downturns, rising interest rates, inflation, and volatility in global economy and financial markets.
• Risk of not meeting publicly announced guidance or other expectations about business and future operating results.
• Potential liabilities, reputational harm, or other adverse consequences if AI product offerings and internal operations do not produce desired benefits.
• Challenges due to limited operating history and a history of losses (though recent non-GAAP results show profitability).
• Risk of failing to repurchase shares of common stock at favorable prices, if at all.
• Potential failure of the platform to satisfy evolving customer demands.
• Effects of increased competition in the database market.
• Risks associated with investments in new products and the ability to introduce new features, services, or enhancements successfully.
• Social, ethical, and security issues related to the use of new and evolving technologies, such as artificial intelligence, in offerings or partnerships.
• Challenges in effectively expanding the sales and marketing organization.
• Ability to continue building and maintaining credibility within the developer community.
• Ability to add new customers or increase sales to existing customers.
• Challenges in maintaining, protecting, enforcing, and enhancing intellectual property.
• Uncertainty regarding the growth and expansion of the market for database products and the company's ability to penetrate that market.
• Ability to maintain the security of software and adequately address privacy concerns.
• Challenges in managing growth effectively and successfully recruiting and retaining highly-qualified personnel.
• Price volatility of the company's common stock.

MongoDB provided guidance for the second quarter and full year fiscal 2026. For Q2 Fiscal 2026, revenue is projected to be between $548.0 million and $553.0 million, non-GAAP income from operations between $55.0 million and $59.0 million, and non-GAAP net income per share between $0.62 and $0.66. For the full year fiscal 2026, the company expects revenue in the range of $2.250 billion to $2.290 billion, non-GAAP income from operations between $267.0 million and $287.0 million, and non-GAAP net income per share between $2.94 and $3.12. The company expresses confidence in driving profitable growth by capitalizing on the next wave of application development, particularly cloud-native, distributed, real-time, and AI-powered applications.

• "MongoDB is off to a strong start in fiscal 2026 with 26% Atlas revenue growth, meaningful margin outperformance, and the highest total net customer additions in six years."
• "Enterprises and startups are choosing MongoDB as their platform of choice for both modernizing existing and building new applications."
• "Looking ahead, we see an incredible opportunity for customers to take advantage of MongoDBs modern architecture, which delivers real and measurable advantages for the types of applications being built today—cloud-native, distributed, real-time—and the AI-powered applications of tomorrow. We are confident in our position to drive profitable growth as we benefit from this next wave of application development."

MongoDB's strong performance, particularly in Atlas revenue growth and customer additions, indicates its continued leadership and relevance in the evolving database market. The emphasis on 'cloud-native, distributed, real-time' applications and 'AI-powered applications' aligns with major industry trends, where businesses are increasingly migrating to cloud infrastructure and leveraging AI for competitive advantage. The release of new AI retrieval models and the MCP Server demonstrates MongoDB's proactive approach to integrating AI capabilities, positioning itself as a critical platform for the next generation of intelligent applications. This strategic focus helps MongoDB capture market share in a competitive landscape dominated by both traditional database vendors and other cloud-native solutions.

• The document does not provide specific comparable companies, projects, or detailed results to assess MongoDB's performance against global benchmarks. Therefore, a direct comparison to industry standards with specific examples is not possible based solely on the provided text.

• **Shareholders:** Positive impact due to strong financial performance (profitability, cash flow), increased share repurchase authorization, and positive future outlook, which could lead to increased shareholder value.
• **Customers:** Positive impact through continued innovation with new AI-powered models (Voyage AI, MCP Server) and the company's commitment to being a platform of choice for modern and AI applications, enhancing their ability to build and modernize applications.
• **Employees:** No direct impact mentioned, but strong company performance and growth typically provide stability and opportunities.
• **Creditors:** Positive impact due to improved cash flow and financial health, indicating stronger ability to meet financial obligations.
• **Suppliers:** No direct impact mentioned.

• MongoDB will host a conference call on June 4, 2025, at 5:00 p.m. (Eastern Time) to discuss its financial results and business outlook.
• The company will file its Quarterly Report on Form 10-Q for the quarter ended April 30, 2025, with the SEC.
• MongoDB plans to continue its share repurchase program, with a total authorization of up to $1 billion.

• 2025-04-30: End of the first fiscal quarter for which financial results are announced.
• 2025-06-04: Date of the press release announcing financial results for Q1 Fiscal 2026 and the 8-K filing date.