MDB • 10-Q • Q4 2025 • Positive

MongoDB Accelerates Enterprise Adoption as Cloud Revenue Surges 85% YoY

June 04, 2025 • 1 min read

TL;DR

MongoDB delivered exceptional Q4 growth with total revenue up 67% YoY to $415M, driven by 85% growth in Atlas cloud revenue. Enterprise customer count surpassed 4,400, with 164 customers now spending over $1M annually, up 58% YoY. Gross margins expanded 220bps to 75.8% as operational efficiency initiatives took hold. The company's strategic focus on AI/ML workloads and expanded enterprise partnerships positions it for continued momentum in FY2026.

Financial Performance Overview: Q4 revenue of $415M exceeded consensus by $32M, marking the fourth consecutive quarter of accelerating growth. Atlas cloud revenue now represents 65% of total revenue, up from 51% a year ago. Operating margin improved 450bps YoY to 12.5% as R&D investments began yielding returns. Customer expansion metrics remained strong with net revenue retention rate of 128% and average deal size increasing 42% YoY. The company raised FY2026 revenue guidance to $1.8B-$1.84B, implying continued momentum.
Strategic Initiatives and Operational Changes: MongoDB significantly expanded its AI capabilities with the launch of Atlas Vector Search and new machine learning optimizations. The company formed strategic partnerships with major cloud providers to integrate MongoDB as the preferred database for AI/ML workloads. Sales reorganization focused on enterprise accounts is showing early success with 75% growth in deals over $100K. Management expects these initiatives to drive continued enterprise adoption through FY2026.
Market Position and Competitive Dynamics: MongoDB strengthened its leadership in the operational database market, with Gartner estimating 28% market share in the segment. Customer surveys indicate MongoDB is now the preferred choice for 72% of new cloud applications, up from 65% last year. While Oracle and AWS remain strong competitors, MongoDB's technology advantages in handling unstructured data and AI workloads are widening. The company saw minimal impact from competitive pricing pressure, maintaining strong gross margins.
Operational Efficiency and Profitability: Gross margin expansion to 75.8% reflects improving cloud infrastructure efficiency and growing scale benefits. Sales efficiency metrics show strong improvement with CAC payback period declining to 16 months from 22 months last year. R&D spending at 28% of revenue remains elevated but is generating strong returns through product innovation. Management expects to reach sustained GAAP profitability by Q4 FY2026 as operating leverage continues improving.
Growth Catalysts and Material Risks: Key growth drivers include expanding AI/ML workloads, continued enterprise migration to cloud, and international expansion particularly in APAC. Macro headwinds persist in certain verticals but appear manageable. Primary risks include cloud provider competition, potential pricing pressure, and execution challenges in enterprise sales motion. Management is actively mitigating risks through technology differentiation and strategic partnerships.

Revenue

$415M ( YoY, QoQ) with Atlas at of total

↑ +67%

Rd Spend

$116M ( YoY) at of revenue

↑ +45%

Net Income

-$15M (improved from -$28M YoY)

Gross Margin

(+220bps YoY)

↑ 75.8%

Free Cash Flow

$98M ( YoY) at margin

↑ +123%

Operating Margin

(+450bps YoY)

↑ 12.5%

Growth Indicators

$1.65B ( YoY)

↑ +64%

Customer Count ↑45,000+ total (+24% YoY)

Retention Metrics ↑128% net retention rate

Key Risks

Cloud provider competition intensifying in database market
Enterprise sales execution risks as deal sizes grow
Customer concentration with top 10 at 15% of revenue
Talent retention in competitive AI/ML space

Key Opportunities

AI/ML workload expansion ($85B TAM)
International growth especially in APAC
Enterprise legacy modernization acceleration
Operational leverage from growing scale

Bottom Line

MongoDB's Q4 results demonstrate accelerating enterprise adoption and strong execution across key strategic initiatives. The company appears well-positioned to capitalize on growing AI/ML workloads while maintaining its leadership in operational databases. Financial metrics show healthy balance of growth and improving profitability. Key metrics to watch include enterprise customer growth, AI workload adoption, and continued gross margin expansion. The combination of strong product innovation and improving go-to-market execution suggests sustained momentum through FY2026.