Summary
MongoDB reported total revenue of $478.1 million for the second quarter of fiscal 2025, up 12.8% from the prior-year quarter. Gross profit rose 9.9% to $349.9 million, but gross margin slipped 2.0 percentage points to 73.2%. Operating margin for the quarter was negative 14.9%, down 3.4 percentage points from the prior-year quarter. The company's operating loss widened 45.8% to $71.4 million, and net loss widened 45.0% to $54.5 million. On a non-GAAP basis, income from operations was $52.5 million and net income was $59.0 million, or $0.70 per share. MongoDB Atlas revenue grew 27% year over year and represented 71% of total second-quarter revenue. The quarter showed solid top-line growth but continued pressure on profitability.
For the first six months of fiscal 2025, revenue rose 17.2% to $928.7 million. Gross profit increased 15.0% to $677.7 million, while gross margin declined 1.4 percentage points to 73.0%. The operating loss for the six months widened 44.3% to $169.6 million, and net loss widened 47.1% to $135.1 million. Operating margin for the six months declined 3.4 percentage points to negative 18.3%. Operating cash flow for the six months was $62.2 million, up 118.9% from the prior-year period. Capital expenditures for the six months were $1.59 million, up 26.4%. Deferred revenue fell 12.5% to $322.7 million. The company ended the quarter with a strong liquidity position, though it continues to carry a history of losses.
Customer metrics continued to expand. MongoDB had over 50,700 customers as of July 31, 2024, compared with over 45,000 a year earlier. Direct Sales Customers exceeded 7,300, up from over 6,800. MongoDB Atlas customers exceeded 49,200, up from over 43,500. Customers with $100,000 or greater in annualized recurring revenue and annualized monthly recurring revenue reached 2,189, compared with 1,855. The net ARR expansion rate was approximately 119%, versus historically over 120%. The company said the decline was due to a smaller contribution from expanding customers. In the quarter, operating cash flow was negative $1.4 million, an improvement of 94.5% from the prior-year quarter. Capital expenditures were $1.05 million, up 65.5%. Free cash flow was negative $4.0 million, compared with negative $27.3 million in the year-ago period. MongoDB made its AI Applications Program generally available in July and highlighted Atlas Vector Search recognition and hyperscaler partner awards. It also noted availability in 118 AWS, Google Cloud, and Microsoft Azure cloud regions. The company also said it expects a higher portion of Atlas contracts to be billed monthly in arrears based on usage without upfront commitments.
Guidance for the third quarter of fiscal 2025 and the full fiscal year was also provided. Third-quarter non-GAAP income from operations is guided to $57.0 million to $60.0 million, and full-year non-GAAP income from operations is guided to $187.0 million to $195.0 million. Third-quarter non-GAAP net income per share is guided to $0.65 to $0.68, and full-year non-GAAP net income per share is guided to $2.33 to $2.47. Management pointed to macroeconomic headwinds on existing Atlas applications and said it expects the macroeconomic environment to continue to negatively impact revenue growth for the remainder of the year. Other risks include competition, a history of losses, potential need for additional capital, foreign exchange fluctuations, and geopolitical conflicts. The company also faces gross margin pressure as Atlas grows as a percentage of total revenue, and services gross margin remains negative. Headcount rose to 5,360 as of July 31, 2024, from 4,626 a year earlier. Sales and marketing headcount was 2,540, compared with 2,202, and research and development headcount grew 20%. Support and services headcount increased 14%. The guidance excludes stock-based compensation and other items, and reconciliations to GAAP are not available without unreasonable efforts.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $478.1M | $450.6M | +6.1% | $423.8M | +12.8% |
| Gross profit | $349.9M | $327.9M | +6.7% | $318.5M | +9.9% |
| Gross margin | 73.2% | 72.8% | +0.4 pp | 75.1% | -2.0 pp |
| Research & development | $149.0M | $146.1M | +2.0% | $125.4M | +18.8% |
| Sales & marketing | $221.5M | $219.4M | +1.0% | $195.9M | +13.1% |
| General & administrative | $50.8M | $60.5M | -16.1% | $46.1M | +10.2% |
| Total operating expenses | $421.3M | $426.1M | -1.1% | $367.5M | +14.7% |
| Operating income (loss) | -$71.4M | -$98.2M | +27.2% | -$49.0M | -45.8% |
| Operating margin | -14.9% | -21.8% | +6.8 pp | -11.6% | -3.4 pp |
| Net income (loss) | -$54.5M | -$80.6M | +32.3% | -$37.6M | -45.0% |
| Net margin | -11.4% | -17.9% | +6.5 pp | -8.9% | -2.5 pp |
| Customers | 792,071 | 368,280 | +115.1% | 589,107 | +34.5% |
Risks
Adverse macroeconomic conditions, including higher inflation and interest rates, negatively impacted the business during the six months ended July 31, 2024, with slower than historical growth of existing MongoDB Atlas applications. Management expects macroeconomic headwinds on existing Atlas application growth in the short term and a negative impact on revenue growth for the remainder of the year.
MongoDB Atlas represented 71% of total revenue for the quarter ended July 31, 2024 and 70% for the six months ended July 31, 2024, up from 63% and 64% in the prior-year periods, and is primarily usage-based. Slower growth of existing Atlas applications and limited visibility into consumption timing make future revenue less predictable.
The business depends on customers renewing subscriptions and expanding usage; net ARR expansion rate was approximately 119% as of July 31, 2024, down from historically being over 120%, due to a smaller contribution from expanding customers. Deferred revenue was down $45.9 million or 12.5% for the quarter ended July 31, 2024 compared with the prior-year quarter.
Operating loss widened to $71.4 million for the quarter ended July 31, 2024 and net loss widened to $54.5 million, as sales and marketing, research and development, and general and administrative expenses increased. Gross margin declined to 73.2% for the quarter and 73.0% year to date, down 2.0 percentage points and 1.4 percentage points respectively, partly due to MongoDB Atlas revenue mix.
The database market is highly competitive with legacy providers such as IBM, Microsoft, and Oracle and cloud providers such as AWS, Google Cloud Platform, and Microsoft Azure. Larger competitors can bundle offerings, price aggressively, and devote greater resources, which may cause MongoDB to lose customers or fail to renew existing ones.
The EU AI Act entered into force on August 1, 2024 and creates a risk-based governance framework for AI systems, while generative AI use in code development poses ownership and security risks. New or evolving AI regulations may increase research and development costs and compliance burdens and slow adoption of AI features.
In December 2023, MongoDB discovered a previously unknown flaw in a third-party application that enabled an unauthorized party to phish and access certain corporate applications, including applications used to provide support services that contained customer contact information and related account metadata. The investigation found no evidence of unauthorized access to MongoDB Atlas clusters, but future incidents could disrupt platform delivery and create liability.
Community Server is offered under the SSPL for versions released on or after October 16, 2018 and under the AGPL for earlier versions; the SSPL has not been approved by the Open Source Initiative and may be held unenforceable. Limited visibility into licensee use and copyleft requirements may reduce adoption, impair monetization, and limit protection of intellectual property rights.
The conditional conversion feature of the 2026 Notes was not triggered as of July 31, 2024, but if triggered in the future holders may convert and require cash settlement, which could adversely affect liquidity. The notes also create significant debt service obligations and may limit flexibility.
SaaS KPIs
All quarters →Total Customers
MongoDB Atlas Customers
Direct Sales Customers
Free Cash Flow
Net ARR Expansion Rate
Customers over $100K ARR
Non-GAAP Gross Margin
Non-GAAP Operating Margin
MongoDB Atlas Revenue % of Total Revenue
MongoDB Atlas Revenue Growth YoY
Summary, forecast, risks and KPIs are extracted from MongoDB, Inc.'s SEC filings for Q2 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.