MongoDB (MDB) Q1 2027 earnings summary

Executive summary

• Achieved Q1 revenue of $688 million, up 25% year-over-year, driven by Atlas growth and strong AI adoption, with Atlas now representing 75% of revenue and customer count reaching 67,700.

• Net income was $4.4 million, reversing a net loss of $37.6 million in the prior year, while non-GAAP net income reached $112 million ($1.32/share), up from $86 million ($1/share) last year.

• Atlas revenue grew 29.4% year-over-year, with 66,400+ customers and 2,895 customers generating at least $100,000 in ARR.

• Leadership team strengthened with new Chief Product Officers, Chief Revenue Officer, and Chief Information Security Officer; expanded partnerships and AI platform capabilities.

• Recent acquisitions, including Clarity Business Solutions, expanded U.S. federal vertical and government services capabilities.

Financial highlights

• Subscription revenue was $666.1 million (+25% YoY); services revenue was $21.5 million (+22% YoY); gross profit was $496.2 million (72% margin), with non-GAAP gross margin at 74.5%.

• Non-GAAP operating margin reached 18%, up from 16% a year ago; non-GAAP income from operations was $123.2 million.

• Free cash flow was $198 million, up from $106 million year-over-year.

• Ended Q1 with $2.4 billion in cash, equivalents, and short-term investments.

• Operating expenses increased: sales and marketing up 13%, R&D up 19%, and G&A up 30% year-over-year.

Outlook and guidance

• Q2 revenue expected at $729–$734 million (23–24% YoY growth); full-year FY2027 revenue guidance raised to $2.92–$2.96 billion (19–20% growth).

• Atlas revenue growth expected at 26% for Q2 and 23–25% for the full year.

• Non-GAAP operating margin targeted at 20% for fiscal 2027; non-GAAP EPS guidance for FY2027 is $5.95–$6.14.

• Management expects macroeconomic headwinds to impact Atlas growth rates in the short term.

• Anticipates potential release of U.S. deferred tax asset valuation allowance within 12 months, which could benefit future tax expense.