MongoDB reported strong first quarter results powered by revenue growth of 22% from a year ago.
The company reported a first quarter net loss of $37.6 million, or 46 cents a share, on revenue of $549 million, up 22% from a year ago. Non-GAAP earnings in the quarter were $1 a share.
Wall Street was expecting MongoDB to report first quarter non-GAAP earnings of 67 cents a share on revenue of $528 million.
Keep in mind that MongoDB's recent quarterly results have been lumpy with hits and misses depending on consumption. MongoDB's outlook fell short of expectations following its fourth quarter results.
CEO Dev Ittycheria said the company is off to a strong start with Atlas revenue growth of 26%. MongoDB also said it had the highest total net customer additions in six years. "We are confident in our position to drive profitable growth as we benefit from this next wave of application development," said Ittycheria.
As for the outlook, MongoDB said second quarter sales will be between $548 million to $553 million with non-GAAP earnings of 62 cents a share to 66 cents a share. Analysts were modeling second quarter non-GAAP earnings of 58 cents a share on revenue of $549.28 million.
MongoDB added that annual revenue will be between $2.25 billion and $2.29 billion, up from its previous guidance $2.24 billion to $2.28 billion. The company said non-GAAP earnings for the year will be between $2.94 a share to $3.12 a share.
During the quarter, MongoDB launched its MongoDB Model Context Protocol (MCP) server, named Mike Berry CFO and launched two new Voyage AI retrieval models.
Constellation Research analyst Holger Mueller said:
"MongoDB is growing nicely, fueled by the need data for AI, delivered in the cloud. Also good to see record new customer additions. The challenge remains for MongoDB to turn a profit, From about $100 million more in revenue, only $43 million made it to reducing its net loss. The good news is Dev Ittycheria kept Sales and Marketing constant, reduced G&A and R&D took in $22 million, which is key in the current period of innovation. Now the question is – can MongoDB repeat the same trick for Q2 and then break out a small profit? The growth engines remain the same for Q2."
