MongoDB (MDB) AI Stock Analysis

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MongoDB

(NASDAQ:MDB)

Rating:78Outperform

Price Target:

$240.00

▲(16.71%Upside)

MongoDB's impressive revenue growth and customer expansion are the primary strengths driving the stock score. The company's strategic focus on AI and application modernization enhances its growth potential. However, challenges in achieving profitability and a high P/E ratio temper the overall score, though strong technical indicators provide a supportive backdrop.

Positive Factors

Earnings

MongoDB reported strong FQ1 results, including Atlas revenue growth of 26% vs. 24% in FQ4 and strong customer growth, pushing shares higher after hours.

Growth Strategy

MongoDB expanded its customer base to over 57,100 in 1Q:FY26, with Atlas sales growing by 26% YoY, contributing 72% of revenue.

Share Buyback

The company raised full-year guidance modestly and increased its buyback authorization from $200 million to $1 billion.

Negative Factors

Macroeconomic Factors

Atlas growth accelerated to 26% YoY, driven by in-line consumption growth despite a macro-induced slowdown.

Revenue Forecast

The very slight revenue raise, and implied 2H revenue deceleration, likely reflects continued conservatism due to the macro, coupled with new CFO Mike Berry just starting.

MongoDB (MDB) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$17.21B

Dividend YieldN/A

Average Volume (3M)2.69M

Price to Earnings (P/E)―

Beta (1Y)1.84

Revenue Growth19.24%

EPS Growth59.66%

CountryUS

Employees5,558

SectorTechnology

Sector Strength79

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)1.00

Shares Outstanding81,714,310

10 Day Avg. Volume3,973,127

30 Day Avg. Volume2,693,279

Financial Highlights & Ratios

PEG Ratio-0.80

Price to Book (P/B)110.66

Price to Sales (P/S)0.00

P/FCF Ratio-276.97

Enterprise Value/Market Cap0.55

Enterprise Value/Revenue1.20

Enterprise Value/Gross Profit6.12

Enterprise Value/Ebitda-18.99

Forecast

1Y Price Target

$267.85

Price Target Upside30.26% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering30

MongoDB Business Overview & Revenue Model

Company DescriptionMongoDB, Inc. is a leading provider of modern, general-purpose database platforms designed to unleash the power of software and data for developers and the applications they build. Operating in the technology sector, the company is renowned for its flagship product, MongoDB, a NoSQL database that allows developers to store, query, and manage data in a flexible, scalable manner. MongoDB offers its database platform across various deployment types, including on-premise, cloud, and as a fully managed service through MongoDB Atlas.

How the Company Makes MoneyMongoDB, Inc. primarily generates revenue through subscriptions and services. The company's core revenue stream comes from its MongoDB Atlas offering, a cloud-based Database-as-a-Service (DBaaS) that provides customers with a fully managed and scalable database solution. Customers pay for MongoDB Atlas based on their usage, which includes factors like data storage, throughput, and additional features. MongoDB also earns revenue from Enterprise Advanced, which provides on-premise database solutions along with advanced security, monitoring, and support features. Additionally, the company offers professional services such as consulting and training to help enterprises effectively use and manage their MongoDB deployments. Key partnerships with major cloud providers like Amazon Web Services, Google Cloud, and Microsoft Azure further enhance MongoDB's market reach and adoption, contributing significantly to its revenue growth.

MongoDB Key Performance Indicators (KPIs)

Any

Total Customers

Total Customers
Tracks the total number of customers, indicating the company's market reach and potential for scaling its business model.

Chart InsightsMongoDB's customer base has shown a consistent upward trajectory, culminating in a record addition of 2,600 new customers in the latest quarter, the highest in over six years. This growth aligns with the company's strategic focus on AI and application modernization, as highlighted in their earnings call. Despite some challenges like a decline in gross margin and softness in April consumption, the expansion of their share repurchase program and increased revenue guidance underscore confidence in sustained growth and market leadership.

Data provided by:

Main Street Data

MongoDB Earnings Call Summary

Earnings Call Date:Jun 05, 2025

(Q1-2026)

% Change Since: -8.76%|

Next Earnings Date:Aug 28, 2025

Earnings Call Sentiment Positive

The earnings call presents an overall positive sentiment with strong revenue growth, record customer additions, and a significant increase in operating margin. The expansion of the share repurchase program and strategic acquisition to enhance AI capabilities further indicate confidence in future growth. However, challenges such as a decline in gross margin, softness in April consumption, and anticipated decline in non-Atlas revenue were noted.

Q1-2026 Updates

Positive Updates

Strong Revenue Growth

MongoDB, Inc. reported revenue of $549 million, a 22% year-over-year increase and above the high end of their guidance. Atlas revenue grew 26% year-over-year, representing 72% of total revenue.

Record Customer Growth

MongoDB, Inc. ended the quarter with over 57,100 customers, with total customer net adds being the highest in over six years. Atlas had over 55,800 customers at the end of the quarter.

Solid Operating Margin

The company generated non-GAAP operating income of $87 million for a 16% non-GAAP operating margin, a significant increase from 7% in the year-ago period.

Positive Cash Flow

Operating cash flow was $110 million and free cash flow was $106 million in Q1, up from $64 million and $61 million, respectively, in the year-ago period.

Expansion of Share Repurchase Program

The Board authorized an increase to the share repurchase program by up to an additional $800 million, bringing the total authorization to $1 billion.

Strategic Acquisition Enhances AI Capabilities

The acquisition of Voyage AI enhances MongoDB's ability to serve AI needs, significantly improving the accuracy and reliability of AI applications.

Negative Updates

Decline in Gross Margin

Gross margin was 74%, down from 75% in the year-ago period, primarily due to the growth of Atlas and the impact of the Voyage acquisition.

Softness in April Consumption

Atlas consumption saw some softness in April due to macroeconomic volatility, although there was a healthy rebound in May.

Challenges in Non-Atlas Business

Non-Atlas revenue came in ahead of expectations but is expected to see a high single-digit year-over-year decline in the upcoming quarter.

Company Guidance

During MongoDB, Inc.'s Q1 FY2026 earnings call, the company reported a robust financial performance, with revenue reaching $549 million, marking a 22% year-over-year increase and surpassing their guidance. Atlas, their cloud database service, contributed 72% of the total revenue, growing by 26% compared to the previous year. MongoDB ended the quarter with over 57,100 customers, reflecting a significant increase of approximately 2,600 new customer additions, the highest in over six years. The company's non-GAAP operating income was $87 million, translating to a 16% operating margin, and net income was $86 million or $1.00 per share. MongoDB highlighted strong adoption across various sectors and emphasized its strategic focus on AI, application modernization, and moving upmarket. The company announced an increase in their share repurchase program to $1 billion, underscoring their confidence in the business's long-term potential. Additionally, MongoDB raised its full-year revenue guidance to $2.25 to $2.29 billion and increased their operating margin guidance by 200 basis points to 12%.

MongoDB Financial Statement Overview

Summary

MongoDB shows strong revenue and free cash flow growth, supported by a robust balance sheet. Despite challenges in profitability, with negative net profit margins, operational efficiencies are improving, indicating potential for future profitability.

Income Statement

Very Positive

MongoDB has shown impressive revenue growth with a TTM revenue of $2.10 billion, a substantial increase from $873.78 million in 2022. The company maintains a strong gross profit margin of 72.9%, indicating efficient cost management. However, negative net profit and EBIT margins suggest ongoing challenges in achieving profitability. Improvements in EBITDA margin from past years demonstrate an upward trajectory towards operational efficiency.

Balance Sheet

Positive

The company's balance sheet is solid with a high equity ratio of 83.7%, indicating low financial leverage. A declining debt-to-equity ratio, currently at 0.01, shows effective management of debt levels. Return on Equity is negative due to the net losses, highlighting a need for profitability improvements. The strong liquidity position with significant cash reserves supports financial stability.

Cash Flow

Very Positive

MongoDB's cash flow statement reveals strong free cash flow growth, with TTM free cash flow reaching $167.50 million. The operating cash flow to net income ratio is robust, highlighting effective cash generation despite net losses. Positive free cash flow to net income ratio indicates potential for sustained cash flow improvement.

TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
2.10B	2.01B	1.68B	1.28B	873.78M	590.38M
	Gross Profit
1.53B	1.47B	1.26B	934.74M	614.29M	413.30M
	EBIT
-171.43M	-216.06M	-233.73M	-346.65M	-289.36M	-209.30M
	EBITDA
-82.27M	-96.53M	-122.34M	-294.27M	-267.12M	-186.03M
	Net Income Common Stockholders
-86.11M	-129.07M	-176.60M	-345.40M	-306.87M	-266.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.45B	2.34B	2.02B	1.84B	1.83B	957.74M
	Total Assets
3.62B	3.43B	2.87B	2.59B	2.45B	1.41B
	Total Debt
37.00M	36.50M	1.23B	1.18B	1.18B	979.17M
	Net Debt
-620.81M	-453.63M	424.72M	729.00M	709.41M	549.47M
	Total Liabilities
591.47M	648.07M	1.80B	1.85B	1.78B	1.41B
	Stockholders Equity
3.03B	2.78B	1.07B	739.51M	666.70M	-5.03M
Cash Flow		Free Cash Flow
167.50M	120.64M	115.40M	-20.21M	-1.09M	-54.45M
	Operating Cash Flow
196.51M	150.19M	121.48M	-12.97M	6.98M	-42.67M
	Investing Cash Flow
-557.73M	-657.44M	188.02M	-33.31M	-852.14M	-262.66M
	Financing Cash Flow
201.38M	202.06M	38.24M	30.20M	890.89M	27.58M

MongoDB Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price205.63

Price Trends

50DMA

180.85

Positive

100DMA

210.52

Negative

200DMA

243.90

Negative

Market Momentum

MACD

8.04

Negative

RSI

57.56

Neutral

STOCH

44.84

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDB, the sentiment is Neutral. The current price of 205.63 is above the 20-day moving average (MA) of 198.67, above the 50-day MA of 180.85, and below the 200-day MA of 243.90, indicating a neutral trend. The MACD of 8.04 indicates Negative momentum. The RSI at 57.56 is Neutral, neither overbought nor oversold. The STOCH value of 44.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MDB.

MongoDB Risk Analysis

MongoDB disclosed 67 risk factors in its most recent earnings report. MongoDB reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

MongoDB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FFIV	83 Outperform	$16.82B	27.70	19.89%	―	5.61%	26.65%
MDB	78 Outperform	$17.21B	―	-4.00%	―	19.24%	59.66%
YEXT	71 Outperform	$1.03B	―	-15.69%	―	8.38%	-278.88%
AKAM	70 Outperform	$11.48B	25.98	9.82%	―	3.51%	-27.28%
BASE	64 Neutral	$1.05B	―	-55.90%	―	12.76%	16.97%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
CFLT	60 Neutral	$8.31B	―	-34.18%	―	24.11%	21.87%

* Technology Sector Average

Performance Comparison

MDB

MongoDB

205.63

-21.37

-9.41%

AKAM

Akamai

77.03

-12.06

-13.54%

FFIV

F5 Networks

286.61

119.03

71.03%

YEXT

Yext

8.12

3.09

61.43%

CFLT

Confluent

23.65

-4.12

-14.84%

BASE

Couchbase

19.05

1.12

6.25%

MongoDB Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

MongoDB Appoints Michael J. Berry as New CFO

Positive

Apr 28, 2025

On April 28, 2025, MongoDB announced the appointment of Michael J. Berry as Chief Financial Officer, effective May 27, 2025. Berry, who brings over 30 years of experience in the technology and software industry, previously served as CFO at NetApp, McAfee, and other notable companies. His appointment is expected to bolster MongoDB’s strategic and financial objectives, particularly as the company navigates growth opportunities in the software market, including the adoption of GenAI by customers. Berry’s extensive experience in scaling businesses is seen as a valuable asset for MongoDB’s future growth.

Executive/Board Changes

MongoDB Announces CFO Resignation and Transition Plan

Neutral

Apr 21, 2025

On April 21, 2025, MongoDB, Inc. announced the resignation of its Interim Chief Financial Officer, Srdjan (‘Serge’) Tanjga, effective May 8, 2025. The company is in advanced discussions with a qualified candidate and expects to appoint a new CFO within 7-10 days, indicating a smooth transition in its financial leadership.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.