Q2 2027 MongoDB, Inc. Earnings Call Transcript
Key Points
- Total revenue grew 30% year-over-year, the highest quarterly growth since fiscal '24, with Atlas revenue up 29% for the fifth straight quarter.
- EA and Other revenue surged 36% year-over-year, driven by strong demand for new Search and Vector Search capabilities and broad-based strength across industries.
- Record net new customer additions of 2,900 in the quarter, with Voyage customer count nearly doubling quarter-over-quarter, indicating strong AI momentum.
- Non-GAAP operating margin expanded to 24%, up from 15% a year ago, and the company raised full-year operating margin expansion guidance to 250 basis points.
- Net ARR expansion rate increased to 122%, up from 119% a year ago, reflecting strong upmarket momentum and increased multiproduct adoption.
- AI workloads are gaining traction, with Frontier labs and AI-native startups like Fireflies and EU choosing MongoDB for production AI applications.
- The company raised full-year Atlas growth guidance to approximately 27%, up 300 basis points, and expects EA and Other revenue to grow 11% for the year.
- GAAP EPS profitability for the third consecutive quarter, with full-year guidance now expecting GAAP EPS profitability for fiscal '27.
- Atlas growth is expected to decelerate to approximately 26% in Q3, with Q4 guidance implying a further slowdown due to seasonal consumption patterns.
- EA and Other revenue is expected to be approximately flat in the second half, with growth in the mid-single digits in Q3, indicating potential lumpiness.
- The company remains cautious about multiyear EA deals, which are inherently hard to predict and could impact revenue stability.
- AI revenue contribution is still small, and the company acknowledges it is early in the AI adoption cycle, with limited visibility into long-term scaling.
- The company's guidance philosophy remains conservative, with a focus on being prudent about out-quarter estimates, which may limit upside expectations.
- Despite strong customer additions, the company notes that customer count metrics will fluctuate quarter-to-quarter, and new customer growth may not be linear.
- The company faces tough comparisons in Q3 for Atlas, which could pressure growth rates in the near term.
Hello, and welcome to MongoDB's second quarter fiscal '27 earnings call. (Operator Instructions) I would now like to hand the conference over to Jess Lubert, Vice President of Investor Relations. You may begin.
Thank you, operator. Good afternoon, and thank you for joining us today to review MongoDB's second quarter fiscal 2027 financial results, which we announced in our press release issued after the close of market today. Joining me on the call today are CJ Desai, President and CEO of MongoDB; and Mike Berry, CFO of MongoDB.
During this call, we will make forward-looking statements, including statements related to our market and future growth opportunities, our opportunity to win new business, our expectations regarding Atlas assumption growth, the impact of EA and other business and multiyear license revenue and the long-term opportunity of AI, our financial guidance and underlying assumptions, including expectations regarding profitability and operating margin and our investments in growth
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