MongoDB Inc (NASDAQ:MDB) reported stronger-than-expected second-quarter fiscal 2027 results on Tuesday, with revenue and adjusted earnings exceeding analyst estimates as the database software company continued to expand its cloud business.
Revenue for the quarter ended July 31 was $771.8 million, up 30% from $591.0 million a year earlier and above estimates ranging from $733.6 million to $735 million.
Subscription revenue rose 31% to $747.1 million, while services revenue increased 29% to $24.6 million.
Non-GAAP net income was $162.6 million, or $1.90 per diluted share, compared with $87.2 million, or $1 per share, in the year-ago period. The result exceeded analyst estimates of approximately $1.60 to $1.62 per share.
MongoDB also reported a return to GAAP profitability. Net income was $40.9 million, or $0.50 per share, compared with a net loss of $47 million, or $0.58 per share, a year earlier.
Gross profit increased to $569.8 million, representing a 74% gross margin, compared with a 71% margin in the prior-year quarter. Non-GAAP operating income rose to $185.9 million from $86.8 million, while the non-GAAP operating margin increased to 24% from 15%.
Remaining performance obligations increased 91% year over year to $1.52 billion, with current remaining performance obligations rising 73% to $797.3 million.
MongoDB generated $141.9 million in operating cash flow and $137.6 million in free cash flow during the quarter, compared with $72.1 million and $69.9 million, respectively, a year earlier.
The company highlighted growth across its Atlas and Enterprise Advanced offerings, with Atlas revenue increasing approximately 29% year over year and EA and other revenue rising approximately 36%.
"We delivered strong second quarter results, highlighted by 30% year-over-year revenue growth—the highest level of growth in several years—and continued strong profitability,” MongoDB CEO CJ Desai said in a statement.
“This performance reflects the mission-critical role our platform plays for customers, with strength driven by core enterprise workloads and early momentum with AI use cases.
For the third quarter, MongoDB expects revenue of $756 million to $761 million and non-GAAP earnings of $1.57 to $1.61 per share. The company raised its full-year fiscal 2027 revenue forecast to $2.99 billion to $3.03 billion and its non-GAAP earnings outlook to $6.39 to $6.58 per share.
Despite the quarterly results and higher full-year guidance, MongoDB shares fell more than 12% in after-hours trading. The decline appears to reflect investor concerns about the company's near-term outlook, particularly the third-quarter revenue forecast, which implies a sequential decline from the second quarter's $771.8 million.