MongoDB Inc at Morgan Stanley Technology, Media & Telecom Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Sanjit Singh - Morgan Stanley - Analyst : <_ALACRA_META_ABSTRACT>So maybe just to level set, Dev, when we think about this year, another solid year, overall revenue growth 19%. Your cloud business on a reported basis was 27% growth. You reported earnings results last night again, solid quarter, 20% overall growth; cloud business growing 24%. But the outlook did disappoint the market expectations for fiscal year '26. Before we dive into the details and the debates around Q4, I guess the high level question that I have for you is from a big picture perspective, do you believe that MongoDB can get back to that 20% -- 20% revenue growth profile that you've historically achieved since you guys have been a public company.

Question: Sanjit Singh - Morgan Stanley - Analyst : Yeah, it's a great way to frame it out. So let's talk a little about -- Serge, maybe you can walk us through the guidance, philosophy, the assumptions that underpin that guidance, the puts and takes, and why that outputting and netting out to a 12% to 14% guide. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 06, 2025 / 7:30PM, MDB.OQ - MongoDB Inc at Morgan Stanley Technology, Media & Telecom Conference

Question: Sanjit Singh - Morgan Stanley - Analyst : One of the questions I'm getting this morning from investors is you just look at the big picture and you look at the trend line of growth, guys, I think a couple of years ago were high 40s; the year after, low 30s; this year 19; now guiding if we normalize mid-15. So the question I'm getting is, is there a competitive issue here? Is there any issue with retention in terms of that line of concern, Dev? Or how would you address that?

Question: Sanjit Singh - Morgan Stanley - Analyst : Yeah, a lot there and I definitely want to dive deeper into a lot of those points that you just made, tying the bow on last night's earnings results. Serge, going into this fiscal year '25 that we just completed, you guys had historically been prudently conservative on the non-Atlas business and the multi-year deals. What is it about fiscal year '26 that's going to be different, resulting in that high-single digit headwind, because it was, I think, a $40-million anticipated headwind for this year that didn't seem to materialize. Why won't that resolve itself to the upside in fiscal year '26?

Question: Sanjit Singh - Morgan Stanley - Analyst : Got it. And then the last one on coming off of last night's results on margins, so op margins in terms of the guidance, you look at the midpoint, targeting about 10% after delivering about 15% operating margins as you're 25%, understanding the $50-million headwind from the non-Atlas business, which is a super high margin. Why not philosophically take the decision to protect margins after a weaker-than-expected outlook?

Question: Sanjit Singh - Morgan Stanley - Analyst : Yeah, I was in the bulk of we have roughly 20 minutes left. I want to spend the bulk of the time diving to why MongoDB is well positioned to power the next wave of modern AI applications, and maybe we level set the conversation. Dev, give us your thoughts about roughly the last 12 to 18 months as 2024 progressed, what is your latest thoughts on where we are in the cycle? Are we moving out of the test eval proof-of-concept phase of the market and actually getting applications into production?

Question: Sanjit Singh - Morgan Stanley - Analyst : To pick up on some of those things that you just laid out and incorporating the Voyager acquisition rewind back two years ago, vector database companies is the hot thing. Increasingly, database companies across the market have embedding vector search capabilities, and now you guys seem to pushing the puck forward with having world-class embedding models, re-ranking capabilities. So it sounds like the unlock here is about bringing a solution to the customers.

Question: Sanjit Singh - Morgan Stanley - Analyst : The classic MongoDB value (multiple speakers)--

Question: Sanjit Singh - Morgan Stanley - Analyst : And so could you talk about what have been -- what's been the storyline in terms of vector search, adoption, rag adoption? You guys released it generally available earlier last year. How's that been building momentum and do you think the acquisition with Voyager is going to unlock more of those rag and agentic use cases?

Question: Sanjit Singh - Morgan Stanley - Analyst : What's going to be the timeline to integrate the embedding models and the re-ranking capabilities into the core (multiple speakers)-- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 06, 2025 / 7:30PM, MDB.OQ - MongoDB Inc at Morgan Stanley Technology, Media & Telecom Conference

Question: Sanjit Singh - Morgan Stanley - Analyst : You talked a little bit about the advantages or maybe the limitations of Postgres. If you look at the big picture, the operational database market, relational is still two-thirds to 70% of the operational database market. My question is that it seems like relational has this -- a supply advantages. Kids go to school, undergrads in computer science, they still learn SQL, so you're pumping out thousands of students a year that know SQL and relational. And so if we take a step back, what is the MongoDB strategy to penetrate that supply side and get developers to learn MongoDB whereas every year you have new developers being pumped out learning relational (multiple speakers)--

Question: Sanjit Singh - Morgan Stanley - Analyst : A key part of your strategy for growth, one of the pillars I should say for growth is your AI relational migrator service. Now there's been several pilots going on at some very large customers. What have been the results thus far from the customer's perspective and what is the go-to-market and investment plan to scale these early successes to the rest of the customer base? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 06, 2025 / 7:30PM, MDB.OQ - MongoDB Inc at Morgan Stanley Technology, Media & Telecom Conference

Question: Sanjit Singh - Morgan Stanley - Analyst : They sound like super exciting opportunities. And so if I look at like I'm going to call it your new workload opportunity, including the AI relational migrator service. Let's put Vector search rag in there as well. Let's put stream processing there. If we think about this as a bucket or a class of opportunities, when do you think that starts to move benefit growth in your cloud business? Is that something that happens this year or is it (multiple speakers)--?

Question: Sanjit Singh - Morgan Stanley - Analyst : So maybe with the last minute or so maybe they just take the opportunity to speak to what excites you about MongoDB today. The business is a $2-billion scale. You've got a world-class cloud business. Looking forward, what excites you and why do you think MongoDB is a good investment opportunity at these levels?

Question: Sanjit Singh - Morgan Stanley - Analyst : Maybe just to leave a loss on one of the debates that we've been getting this morning since we started a little bit late. Common question I get hyperscaler competition. Is there any truth to that in terms of that being their ability to bundle maybe Cosmos or DocumentDB? Are you seeing any signs of that as a potential headwind on (multiple speakers)--

Question: Sanjit Singh - Morgan Stanley - Analyst : Awesome. With that, we're out of time. Thank you, Dev. Thank you, Serge (multiple speakers) updating us on the MongoDB opportunity.