MongoDB Inc Q3 2025 Earnings Call Transcript

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

Question: Sanjit Singh - Morgan Stanley - Analyst : Thank you for taking the questions and congrats, Michael, on a solid career. You had an absolutely fantastic run at MongoDB. I'm excited to see what you do next or excited if you just take a breather. So congrats, Michael. I guess, to take the question to start off with the questions. When we look at what Atlas has been doing in the past two quarters -- correct me if I'm wrong, but I think consumption is coming in at least modestly ahead of your expectations. Relative to what we've seen at the beginning of the year, what sort of -- is it a function of sales execution? Is it a function of the end user activity sort of improving? What's driving at least the improvement in Atlas consumption the past two quarters?

Question: Sanjit Singh - Morgan Stanley - Analyst : Yeah, that makes total sense. And then Dev, I have to ask you the AI agent question. In terms of an AI agent needing more context, it has going to have a set of tools to take its actions. What does it mean for MongoDB as an operational data store as customers start to roll out more agentic applications?

Question: Sanjit Singh - Morgan Stanley - Analyst : Awesome. I appreciate the thought. Thanks

Question: Tyler Radke - Citi - Analyst : Alright, thank you very much for taking the question and Michael, all the best, and congratulations on 10 years. Going back to the sales execution, I mean one of the things that you talked about earlier this year was some challenges just in terms of the recently acquired workloads ramping. And I think a lot of those were from the past fiscal year. So curious how the quality of workload acquisition has trended this year? And as you think about the ramp in consumption, potential into next year, how does that sort of look versus this time a year ago?

Question: Tyler Radke - Citi - Analyst : Great. And follow-up on the EA side. You talked about the outsized strength in non-Atlas business this quarter. Maybe if you could unpack like the relative upside that was driven by simply duration versus new business? I know you called out the duration impact year-over-year. But do you feel like this was sort of a one-off? Or do you feel like maybe some of your bigger customers are indexing more towards EA? And how does that impact the way you think about the product and introducing things like vector search and stream processing onto the on-prem product?

Question: Brad Reback - Stifel - Analyst : Great. Michael, best of luck. It's been a great run. Dev, you started the call talking about a bunch of investments, which are great given the growth of the business. And obviously, you talked about reallocating some expenses. But net-net, should we think about this incremental investment phase next year as gating margin upside? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 09, 2024 / 10:00PM, MDB.OQ - Q3 2025 MongoDB Inc Earnings Call

Question: Brad Reback - Stifel - Analyst : That's great. And then on the MAAP program, are most of those workloads going to wind up in Atlas? Or will that be a healthy combination of EA and Atlas?

Question: Brad Reback - Stifel - Analyst : Great. Thanks very much.

Question: Jason Ader - William Blair - Analyst : Yeah. Thank you. I'm not going to belabor congratulating Michael, but it has been fun working with you and best of luck. The question I had is on the strength in EA. Do you think, Dev, it represents a comment on how enterprises might be rethinking or reassessing the kind of on-prem versus cloud workload placement decision?

Question: Jason Ader - William Blair - Analyst : All right. And then just as a follow-up also on the investments you're making in strategic sales in enterprise. Could you just get a little more specific on what those investments might be? Is it hiring a lot of new salespeople? Is it working more with SIs, investing more in SIs? Any additional detail would be helpful. Thanks.

Question: Jason Ader - William Blair - Analyst : Thank you.

Question: Andrew Nowinski - Wells Fargo - Analyst : Okay. Good afternoon. Thank you very much for taking the question and congrats on a nice quarter. You gave an example of a customer that migrated off Postgres. And I think you said they had issues with their PG vector function. I was wondering how long is that customer using Postgres before they decided to make a change to Mongo, meaning was this some sort of like a rebound type customer where they chose or PG or Postgres and it didn't work? And then how frequently are you seeing this type of transition? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 09, 2024 / 10:00PM, MDB.OQ - Q3 2025 MongoDB Inc Earnings Call

Question: Andrew Nowinski - Wells Fargo - Analyst : Thank you.. That was very helpful. And maybe just a quick follow-up. If we normalize the $15 million in multiyear deal impact you had in Q3, would EA still be down sequentially in Q4? Thank you.

Question: Andrew Nowinski - Wells Fargo - Analyst : Got it. Thanks.

Question: Raimo Lenschow - Barclays - Analyst : Thank you. And if you think about the EA strength this quarter, Michael, you kind of give us a little bit there, like how should we think about renewal the renewal situation and renewal pool coming up like or that you have in Q3 coming up in Q4, et cetera, as well? And then like what does it mean in terms of cross-sell opportunity as people think about starting AI projects self-serve as you kind of mentioned earlier on the call? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 09, 2024 / 10:00PM, MDB.OQ - Q3 2025 MongoDB Inc Earnings Call

Question: Raimo Lenschow - Barclays - Analyst : Yeah. Okay. Perfect. And then, Dev, can you talk a little bit about, like, obviously, there's a debate of like which database will be the persistent layer if you do AI projects, et cetera. What do you see from the big hyperscalers in terms of working with you guys and partnerships? We obviously just have AWS kind of summer, et cetera. Can you speak to a little bit like how your relationship with those Vegas is evolving around this? And Michael, all the best in case I don't talk to you.

Question: Raimo Lenschow - Barclays - Analyst : Okay, perfect. Thank you.

Question: Brad Sills - BofA Merrill Lynch - Analyst : Great. Thank you so much. And congratulations Michael on your next move. I wanted to ask about new workloads here, vector search, stream processing, relational migrator. Is there any one of those three that's ramping faster than maybe you expected? Just a little bit of color on how those new workload types are ramping. Thank you.

Question: Brad Sills - BofA Merrill Lynch - Analyst : That's really exciting. Thanks, Dave. And then I wanted to ask a question around Cedric's appointment, any focus that may be different here under his leadership that we should be thinking about going forward? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 09, 2024 / 10:00PM, MDB.OQ - Q3 2025 MongoDB Inc Earnings Call

Question: Brad Sills - BofA Merrill Lynch - Analyst : Super exciting. Thanks, Dave.

Question: Mike Cikos - Needham & Co - Analyst : Thanks for taking the question here. I just wanted to come back to the consumption growth being slightly better than expectations again for the second quarter in a row now. And apologies if I missed it, but this improvement that we're seeing, is this across all vintages and geographies or is it potentially more concentrated in scope? Just trying to get a better understanding what's taking place out there and what's embedded in the guide?

Question: Mike Cikos - Needham & Co - Analyst : Terrific. And maybe for a quick follow-up for Dev, I think it builds off maybe Tyler's question at the top of the Q&A. But you had cited that some customers are thinking about their workloads more holistically and even looking to run AI workloads on-prem. How much of that do you think is just a function of customers are still trying to figure out how to optimize for latency and cost? Or is this more a demonstration of we really are in the early phases, the exploratory phase versus going into production? Is there any way to parse that out or is it to not necessarily connected? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 09, 2024 / 10:00PM, MDB.OQ - Q3 2025 MongoDB Inc Earnings Call

Question: Mike Cikos - Needham & Co - Analyst : Great point. Thank you.

Question: Eric Heath - KeyBanc Capital - Analyst : Hi, thanks for taking the question. Michael, it sounds like the takeaway from the call is a greater focus on EA and on enterprise. So should we structurally rethink the EA business differently and think of this more as a healthy double-digit growth business going forward for the foreseeable future? And then if I could just ask a follow-up question separate to that. But Mike, I understand that it's still early to identify the fiscal '25 cohort of workloads. But just curious at a high level if they look and feel of higher quality than the fiscal '24 cohort of workloads?

Question: William Power - Baird - Analyst : Thank you. Dev, you had some encouraging comments on relational migrator I wonder if you could just touch on what you think is driving the higher interest here? I mean, it sounds like AI is contributing and helping, but it would be great to get some more color there because that still feels like obviously a meaningful long-term opportunity? And then maybe the second part of the question for Dev or Michael, just be great to get any other framework around the professional services investments. Any way to kind of think about quantification and timing of that?

Question: William Power - Baird - Analyst : That's helpful. Thank you.

Question: Rudy Kessinger - DA Davidson - Analyst : Thanks for taking me in here. I believe last quarter, you said consumption growth slightly ahead of expectations and while down slower year-over-year growth versus Q2 last year, the year-over-year growth did improve from Q1. And so I guess curious for Q3, could you make a comment in that same regard, obviously, slower on a year-over-year basis than Q3 last year. But was it stable with year-over-year consumption growth in Q2 or better or worse?

Question: Rudy Kessinger - DA Davidson - Analyst : Okay. And then just a quick follow-up. I believe it was on your Q4 call back in March. At that point, Dev, you said it would be at least another year until AI applications are being deployed at scale. It sounds like the commentary some early large workloads, but out of the thousands just not many that are at large scale. I guess is your expectation now that maybe it's still at least another year until we're seeing broad AI application rollout to scale? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 09, 2024 / 10:00PM, MDB.OQ - Q3 2025 MongoDB Inc Earnings Call