MongoDB, Inc. · Q2 FY2027 call

Total revenue of $772 million, up 30% year-over-year, and representing the highest level of quarterly growth seen since fiscal year 2024. […] We ended the quarter with 70,600 customers, adding a record 2,900 net new customers in the period.

For customers that already run large part of their data estate on MongoDB, building an agent on top of that data is a natural extension because the data an agent actually needs is live operational data, not a stale copy sitting in a warehouse. Search, vector search, and embeddings are built in, not bolted on, so rather than agents connecting to many separate systems, they connect to one platform.

One lab uses us for inference and chat workloads after moving away from PostgreSQL due to performance lags and outages affecting user experience. They migrated their chat memory system onto Atlas in just four weeks and now run at 10x faster reads than PostgreSQL.

This is the sixth straight quarter of year-over-year dollar growth in Atlas, adding a record $127 million in the quarter. […] Now Atlas is almost a $2.3 billion run rate.

This continued strength is reflected in our total company net ARR expansion rate, which increased to 122% for the quarter, compared to 119% a year ago and 121% last quarter.

Of our Atlas customers generating at least $100,000 in ARR, 48% are leveraging two or more features on our platform, which is up from 42% in the year-ago quarter, driven largely by vector and tech search adoption.

we expect Atlas growth of approximately 26% in Q3, and we are raising our full-year growth expectation to approximately 27%, an increase of 300 basis points from the midpoint of our prior guidance.

we are raising our full-year expectations for EA and other revenue to approximately 11% growth in fiscal 2027, up from our prior guidance of mid-single digit growth. This is the first time in three years EA and other is projected to grow at a double-digit rate for the full year.

We now expect to expand operating margin by approximately 250 basis points in fiscal 2027, 100 basis points higher than the high end of our previous range. […] With the combination of 23% revenue growth and 21% operating margin, we are targeting a rule of 44 performance at the high end of our fiscal 2027 outlook.

given our strong first half performance, we now expect full-year free cash flow to conversion to be at the upper end of our long-term target range of 80%-100%.

I want to be very clear that the growth of EA, self-managed MongoDB, is not coming at the expense of Atlas.

For Q4 specifically, it is still in consumption dynamics. That is still ways away from our perspective. We need to see how things play out in the month of September, in month of October, which becomes the baseline. Then the holidays are coming in Q4, which does impact our consumption.

I also want to address your comment about Q4 and just be super clear on the call. There were no large bundled deals in the quarter. There was none of that Q4 dynamic this quarter.

When the team did analysis on where is the referral for our Voyage is coming, as you would have imagined, most of this referral is coming via coding agents. Number one, Claude, and number two, Codex is driving most of the referral traffic for Voyage.

Now, in terms of the timeline, one thing is that when we introduce this functionality for search and vector search, which was driven by the AI demand. We are charging our customers extra for that feature set that we are providing in EA.

there are some customers who have outlined to me, the large ones, that our consumption is growing faster than we thought it would. And CJ, can we have a conversation on if we continue to grow at this rate, should we relook at the contract? But that is not happening a lot. This is like onesies and twosies, maximum single digits, but not widespread.

This customer told me, "Oh, we love Voyage. We are using Voyage." I said, "You know that is a MongoDB product." They are like, "Oh, we did not know that."