MongoDB Inc (NASDAQ:MDB) shares jumped 25% on Tuesday after the cloud database company posted strong third-quarter results and raised full-year guidance, boosted by rising demand for its Atlas platform and AI-driven enterprise adoption.
The company reported revenue of $628.3 million for the quarter ended November 30, up 18.7% from a year earlier and above analysts’ $593.9 million estimate.
Subscription revenue hit $609.1 million, surpassing the Street’s $574.8 million forecast, as MongoDB added more than 2,500 net new customers and saw expansion among existing clients.
Atlas, MongoDB’s cloud database platform, generated $471 million in revenue, up 30% year-on-year and representing 75% of total revenue. Net new annual recurring revenue (ARR) from Atlas rose 63.5% to $134 million.
Non-GAAP gross margin came in at 74.2%, slightly below estimates, while operating margin surged to 19.6%, well above analysts’ 12.1% forecast. Free cash flow margin jumped to 22.3%.
Total customers reached 62,500, up 18.8% year-on-year, with 2,694 spending $100,000 or more annually, a 16.4% increase.
The company raised its full-year revenue guidance to $2.43 billion to $2.44 billion, exceeding analysts’ $2.36 billion estimate, with non-GAAP EPS projected at $4.76 to $4.80.
Wedbush analysts called it a “monster beat and raise,” noting that “Atlas consumption metrics continue to improve, taking up a larger portion of the pipeline, and the company is in a stronger position to capitalize while driving operating leverage into the business model.” The firm raised its price target to $440 from $400 and maintained an Outperform rating.
The results come after CEO Dev Ittycheria stepped down on November 10, with CJ Desai, former Cloudflare executive, taking the reins.