MongoDB (NASDAQ:MDB) Posts Better-Than-Expected Sales In Q4 CY2025 But Stock Drops 23.5%

Database platform company MongoDB (NASDAQ:MDB) reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 26.7% year on year to $695.1 million. The company expects next quarter’s revenue to be around $661.5 million, close to analysts’ estimates. Its non-GAAP profit of $1.65 per share was 12.1% above analysts’ consensus estimates.

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"We delivered strong fourth quarter results driven by our continued go-to-market execution and the broad-based demand we are seeing across our product lines, as customers deploy additional elements of the MongoDB platform. At the same time, we significantly outperformed on operating margin, achieving a rule of 40 performance and demonstrating we can drive durable revenue growth while simultaneously expanding margin," said CJ Desai, President and Chief Executive Officer of MongoDB.

Company Overview

Named after "humongous database," reflecting its ability to handle massive data loads, MongoDB (NASDAQ:MDB) provides a flexible document-based database platform that helps developers build, deploy, and maintain modern applications more efficiently.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, MongoDB’s 33.1% annualized revenue growth over the last five years was excellent. Its growth beat the average software company and shows its offerings resonate with customers, a helpful starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. MongoDB’s annualized revenue growth of 21% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

This quarter, MongoDB reported robust year-on-year revenue growth of 26.7%, and its $695.1 million of revenue topped Wall Street estimates by 3.7%. Company management is currently guiding for a 20.5% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 17.4% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is healthy and implies the market sees success for its products and services.

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Billings

Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.

MongoDB’s billings punched in at $798 million in Q4, and over the last four quarters, its growth was fantastic as it averaged 28.9% year-on-year increases. This alternate topline metric grew faster than total sales, meaning the company collects cash upfront and then recognizes the revenue over the length of its contracts - a boost for its liquidity and future revenue prospects.

Customer Base

MongoDB reported 65,200 customers at the end of the quarter, a sequential increase of 2,700. That’s roughly in line with what we’ve observed over the last year, confirming that the company is maintaining its sales momentum.

Key Takeaways from MongoDB’s Q4 Results

We were impressed by how significantly MongoDB blew past analysts’ billings expectations this quarter. We were also glad its full-year EPS guidance exceeded Wall Street’s estimates. On the other hand, its EPS guidance for next quarter missed and its full-year revenue guidance fell slightly short of Wall Street’s estimates. Zooming out, we think this was a mixed quarter. The market seemed to be hoping for more, and the stock traded down 23.5% to $250.73 immediately following the results.

Should you buy the stock or not? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).