On March 5, 2025, MongoDB Inc (MDB, Financial) released its 8-K filing detailing its financial performance for the fourth quarter and full fiscal year 2025. Founded in 2007, MongoDB is a document-oriented database company that offers both licenses and subscriptions for its NoSQL database, compatible with all major programming languages and deployable for various use cases.
Performance Overview
MongoDB Inc (MDB, Financial) reported a total revenue of $548.4 million for the fourth quarter of fiscal 2025, marking a 20% increase year-over-year, surpassing the analyst estimate of $519.60 million. For the full fiscal year 2025, the company achieved a total revenue of $2.01 billion, reflecting a 19% increase from the previous year and exceeding the annual estimate of $1.97741 billion. This growth was driven by a 24% year-over-year increase in MongoDB Atlas revenue, which constituted 71% of the total Q4 revenue.
Financial Achievements and Challenges
MongoDB's strong revenue growth is significant in the software industry, highlighting the company's ability to expand its customer base and enhance its product offerings. The company reported a net income of $15.8 million, or $0.20 per share, for Q4, a notable improvement from a net loss of $55.5 million, or $0.77 per share, in the same period last year. On a non-GAAP basis, net income was $108.4 million, or $1.28 per share, compared to $71.1 million, or $0.86 per share, in the prior year.
Key Financial Metrics
MongoDB's gross profit for Q4 was $399.4 million, representing a 73% gross margin, slightly down from 75% in the previous year. The non-GAAP gross profit was $411.7 million, with a 75% gross margin. The company also reported a significant reduction in its loss from operations, which was $18.6 million compared to $71.0 million in the previous year. Non-GAAP income from operations increased to $112.5 million from $69.2 million.
| Metric | Q4 FY 2025 | Q4 FY 2024 |
|---|---|---|
| Total Revenue | $548.4 million | $458.0 million |
| Net Income (Loss) | $15.8 million | $(55.5) million |
| Non-GAAP Net Income | $108.4 million | $71.1 million |
Strategic Developments
MongoDB's acquisition of Voyage AI is a strategic move to enhance its capabilities in AI-powered applications, integrating real-time data and sophisticated models directly into its database. This acquisition, along with a $200 million stock buyback program, underscores MongoDB's commitment to innovation and shareholder value.
“MongoDB delivered a strong end to fiscal 2025 with 24% Atlas revenue growth and significant margin expansion. Atlas consumption in the quarter was better than expected and we continue to see good performance in new workload wins due to the flexibility, scalability and performance of the MongoDB platform.” - Dev Ittycheria, President and CEO of MongoDB.
Financial Position and Cash Flow
As of January 31, 2025, MongoDB held $2.3 billion in cash, cash equivalents, short-term investments, and restricted cash. The company generated $50.5 million in cash from operations during Q4, compared to $54.6 million in the previous year. Free cash flow was $22.9 million, down from $50.5 million year-over-year, reflecting increased capital expenditures.
Analysis and Outlook
MongoDB's strong financial performance and strategic initiatives position it well for continued growth in the competitive software industry. The company's focus on expanding its AI capabilities and enhancing its product offerings is likely to drive further customer acquisition and revenue growth. However, maintaining profitability and managing operational costs remain critical challenges as the company scales its operations.
For more detailed insights and analysis, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from MongoDB Inc for further details.
