Wolfe Research has initiated coverage on MongoDB (MDB, Financial) with an Outperform rating and set a target price of $280. Analyst Alex Zukin highlights that the company's shares have fallen 10% year-to-date, presenting a potential opportunity for investors. According to the research note, MongoDB is positioned favorably due to conservative estimates and enhanced execution strategies.
Wolfe Research underscores that MongoDB stands at the forefront of two key industry trends: the modernization of enterprise data and the burgeoning adoption of artificial intelligence. These factors combine to place MongoDB in a promising position for future growth and market performance. The firm anticipates that improving profit margins will contribute positively to the company's overall narrative and investor appeal.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 35 analysts, the average target price for MongoDB Inc (MDB, Financial) is $279.65 with a high estimate of $520.00 and a low estimate of $170.00. The average target implies an upside of 33.87% from the current price of $208.90. More detailed estimate data can be found on the MongoDB Inc (MDB) Forecast page.
Based on the consensus recommendation from 37 brokerage firms, MongoDB Inc's (MDB, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for MongoDB Inc (MDB, Financial) in one year is $379.42, suggesting a upside of 81.63% from the current price of $208.9. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the MongoDB Inc (MDB) Summary page.
MDB Key Business Developments
Release Date: June 04, 2025
- Revenue: $549 million, a 22% year-over-year increase.
- Atlas Revenue: Grew 26% year over year, representing 72% of total revenue.
- Non-GAAP Operating Income: $87 million, with a 16% non-GAAP operating margin.
- Customer Count: Over 57,100 customers, with approximately 2,600 added sequentially.
- Net ARR Expansion Rate: Approximately 119%.
- Gross Margin: 74%, down from 75% in the year-ago period.
- Net Income: $86 million or $1 per share.
- Operating Cash Flow: $110 million.
- Free Cash Flow: $106 million.
- Cash and Equivalents: $2.5 billion.
- Share Repurchase Program: Increased by $800 million, totaling $1 billion.
- Q2 Revenue Guidance: $548 million to $553 million.
- Fiscal Year '26 Revenue Guidance: $2.25 billion to $2.29 billion.
- Fiscal Year '26 Non-GAAP Income from Operations Guidance: $267 million to $287 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- MongoDB Inc (MDB, Financial) reported a 22% year-over-year increase in revenue, reaching $549 million, surpassing the high end of their guidance.
- Atlas revenue grew 26% year over year, now representing 72% of total revenue, indicating strong adoption of their cloud-based platform.
- The company achieved a non-GAAP operating income of $87 million, resulting in a 16% non-GAAP operating margin, which is an improvement from the previous year.
- MongoDB Inc (MDB) added approximately 2,600 new customers in the quarter, bringing the total customer count to over 57,100, the highest net additions in over six years.
- The company announced a significant expansion of their share repurchase program, authorizing up to an additional $800 million, reflecting confidence in their long-term potential.
Negative Points
- Despite strong results, MongoDB Inc (MDB) noted some softness in Atlas consumption in April due to macroeconomic volatility, although it rebounded in May.
- The non-Atlas business is expected to decline in the high single digits for the year, with a $50 million headwind from multiyear license revenue anticipated in the second half.
- Gross margin slightly declined to 74% from 75% in the previous year, primarily due to Atlas growing as a percentage of the overall business and the impact of the Voyage acquisition.
- The company experienced slower than planned headcount additions, which could impact future growth and operational capacity.
- MongoDB Inc (MDB) remains cautious about the uncertain macroeconomic environment, which could affect future consumption trends and overall business performance.
