Q1 2026 MongoDB Inc Earnings Call

June 4, 2025

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Operator: Thank you for watching!

Operator: Good day and thank you for standing by.

Good day, and thank you for standing by and welcome to the Mongo DB is Q1 FY 'twenty six earnings conference call. At this time all participants are in listen only mode. Please be advised that today's conference is being recorded after the speaker's presentation there'll be a question and answer session.

Operator: Welcome to the MongoDB's Q1 FY26 Earnings Conference Call. At this time, all participants are in listen-only mode. Please be advised that today's conference is being recorded.

Operator: After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again.

Speaker Change: To ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again I would not like to hand, the conference over to your Speaker today, Brian then you from ICR.

Brian Denyeau: I would now like to hand the conference over to your speaker today, Brian Denyeau from ICPSR. Thank you, Josh.

Josh: Thank you Josh.

Dev Ittycheria: Good afternoon, and thank you for joining us today to review MongoDB's first quarter fiscal 2026 financial results. which we announced in our press release issued after the close of the market today.

Brian: Good afternoon, and thank you for joining us today to review <unk> first quarter fiscal 2026 financial results, which we announced in our press release issued after the close of market today.

Operator: Joining me on the call today are Dave Ittycheria, President and CEO of MongoDB, and Mike Berry, CFO of MongoDB.

Brian: Joining me on the call today are Dave <unk>, Chairman, President and CEO of Margaret ebay, and Mike Berry CFO of Margaret ebay.

Operator: During this call, we will make four looking statements, including statements related to our market and future growth opportunities, our opportunity to win new business, our expectations regarding Atlas consumption growth, the impact of non-Atlas business and multi-year license revenue, the long-term opportunity of AI, the opportunity of application modernization, our expectations regarding our win rates and Salesforce productivity, our financial guidance and underlying assumptions, and our planned share repurchases and investments and growth opportunities in AI. These statements are subject to a variety of risks and uncertainties, including the results of operations and financial conditions that could cause actual results to differ materially from our expectations.

Brian: During this call we will make forward looking statements, including statements related to our market and our future growth opportunities our opportunity to win new business, our expectations regarding Atlas consumption growth the impact of non Atlas business and multi year license revenue the long term opportunity.

Brian: Opportunity of application modernization, our expectations regarding our win rates on sales force productivity, our financial guidance and underlying assumptions and our planned share repurchases and investments in growth opportunities NII.

Brian: These statements are subject to a variety of risks and uncertainties, including the results of operations and financial condition, because actual results to differ materially from our expectations.

Operator: For a discussion of the material risks and uncertainties that could affect our actual results, please refer to the risks described in our annual report on Form 10-K for the year ended January 31, 2025, followed by the SEC on March 20, 2025. Any forward-looking statements made in this call reflect our views only as of today, and we undertake no obligation to update them, except as required by law.

Brian: For a discussion of the material risks uncertainties that could affect our actual results. Please refer to the risks described in our annual report on Form 10-K for the year ended January 31, 2025 filed with the SEC on March 22025.

Brian: Any forward looking statements made on this call reflect our views only as of today and we undertake no obligation to update them, except as required by law.

Operator: Additionally, we'll discuss non-GAAP financial measures in this conference call. Please refer to the tables in our earnings release on the Investor Relations portion of our website for a reconciliation of these measures, the most directly comparable GAAP financial measures.

Brian: Lastly, we will discuss non-GAAP financial measures on this conference call. Please refer to the tables in our earnings release on the Investor Relations portion of our website for a reconciliation of these measures the most directly comparable GAAP financial measure.

Dev Ittycheria: With that, I'd like to turn the call over to Dev. Thank you, Brian, and thank you to everyone joining us today. I'm pleased to report that we got off to a strong start in fiscal 2026 as we executed well against a large market opportunity. Let's begin by reviewing our first quarter results before giving you a broader company update. We generated revenue of $549 million, a 22% year-over-year increase and above the high end of our guidance. Atlas revenue grew 26% year-over-year, representing 72% of revenue. We generated non-GAAP operating income of $87 million for a 16% non-GAAP operating margin, and we ended the quarter with over $57,100.

Dave: I'd like to turn the call over to Dave.

Speaker Change: Thank you, Brian and thank you to everyone. Joining us today I am pleased to report that we got off to a strong start in fiscal 2026, as we executed well against our large market opportunity, let's begin by reviewing our first quarter results before giving you a broader company update we generated revenue of $549 million or 22% year over year increase in <unk>.

Speaker Change: Love the high end of our guidance Atlas revenue grew 26% year over year, representing 72% of revenue we generated non-GAAP operating income of $87 million for 16% non-GAAP operating margin and we ended the quarter with over 57100 customers.

Dev Ittycheria: Overall, we posted a strong Q1 despite a dynamic and fast-changing macro environment. We had a solid new business quarter. We are beginning to see the benefit of our decision to focus our resources on the high end of the market where we have the largest opportunity. Atlas consumption this quarter played out in line with our expectations.

Speaker Change: Overall, we posted a strong Q1, despite a dynamic and fast changing macro environment, we had a solid new business quarter. We are beginning to see the benefit of our decision to focus our resources on the high end of the market, where we have the largest opportunity <unk>.

Speaker Change: Outlets consumption. This quarter played out in line with our expectations, Mike will discuss consumption trends in more detail and our expectations for the remainder of the year.

Dev Ittycheria: Mike will discuss consumption trends in more detail and our expectations for the remainder of the year. Our total customer net ads are the highest in over six years reflecting the continued strong adoption of MongoDB across a wide range of industries and use Self-serve customer additions were particularly strong this quarter, reinforcing MongoDB's position as the go-to platform for developers building the next generation of applications, including many focused on AI. While these accounts typically start small, the self-serve channel is a powerful engine for long-term growth.

Speaker Change: Our total customer net adds are the highest in over six years, reflecting the continued strong adoption of <unk> across a wide range of industries and use cases.

Self serve customer additions were particularly strong this quarter reinforcing <unk> position as the go to platform for developers building. The next generation of applications, including many focused on AI. While these accounts typically start small the self serve channel as a powerful engine for long term growth.

Dev Ittycheria: Finally, retention rates remain strong in Q1, demonstrating the quality of our product and the mission criticality of our platform. We are pleased with our Q1 performance. As I said before, companies leverage software to execute their business strategy, drive differentiation, and improve operational efficiency. As the operational database that is the core of software applications, MongoDB is undeniably a must-have component of the tech . We continue to make progress toward our goal of becoming the standard platform for enterprises and the default for developers building new applications. At the heart of this momentum is MongoDB's modern architecture. which delivers real and measurable advantages for the types of applications being built today, cloud native, distributed, real time, and the AI powered applications of tomorrow.

Speaker Change: Finally, a retention rates remained strong in Q1, demonstrating the quality of our product and the mission criticality of our platform.

Brian: We are pleased with our Q1 performance as I said before companies leveraged software to execute their business strategy drive differentiation and improve operational efficiency as the operational database that is the core of software applications. <unk> is undeniably a must have component of the tech stack.

Brian: We continue to make progress toward our goal of becoming the standard platform for enterprises and the default for developers building new applications at the heart of this momentum as <unk> modern architecture, which delivers real and measurable advantages for the types of applications being built today cloud native distributed real time, and the AI powered applications of tomorrow.

Dev Ittycheria: MongoDB's document model and the associated platform enable developers to more easily represent the messiness of real-world data, which includes understanding relationships between structured and unstructured data, and managing data that is constantly evolving and changing. This fundamental architectural advantage provides customers greater flexibility, faster time to market, and the ability to scale without re-architecting. These capabilities are why customers continue to develop more and more mission-critical workloads on MongoDB, illustrated by our strong customer additions this quarter. As AI redefines how applications are built and how businesses operate, MongoDB is exceptionally well-positioned. Real-world AI applications require high-quality, context-rich, and offered unstructured data to deliver trustworthy output.

<unk> document model and the associated platform enables developers to more easily represent the messiness of real world data, which includes understanding relationships between structured and unstructured data and managing data that is constantly evolving and changing.

Brian: This fundamental architectural advantage provides customers greater flexibility faster time to market and the ability to scale without re architected. These capabilities are why customers continue to develop more and more mission critical workloads among the be illustrated by our strong customer additions this quarter.

Brian: As AI redefines, our applications are built and how businesses operate long DB is exceptionally well positioned.

Brian: Real world applications require high quality contacts rich and offered unstructured data to deliver trustworthy outlets.

Dev Ittycheria: We continually hear from large enterprises that high accuracy is a critical requirement to drive wide-scale adoption of AI. Our recent acquisition of Voyage AI enhances our ability to serve this Embeddings are the bridge between a large language model and a customer's private data. Voyage's leading embedding and re-ranking models allow customers to feed precise and relevant context into LLMs, significantly improving the accuracy and reliability of the output of AI applications. By producing the most contextually-rich, domain-optimized embeddings, MongoDB sits at a gateway of meaning in an AI system. With the release of Voyage 3.5, we've taken another step forward, meaningfully outperforming the next best embedding models while reducing storage costs by more than 80%.

Brian: We continually hear from large enterprises the high accuracy is a critical requirement to drive widescale adoption of AI.

Brian: Our recent acquisition of Voyager enhances our ability to serve this need Mb.

Brian: Embedding are the bridge between the large language model and our customers' private data.

Brian: <unk>, leading embedding and re ranking models allow customers to feed precise and relevant context into LMS significantly improving the accuracy and reliability of the output of AI applications by producing the most contextually rich domain optimized embedding <unk> sits at the gateway of meaning in an AI system.

Brian: With the release of voyage three five we've taken another step forward meaningfully outperforming the next best embedding models, while reducing storage costs by more than 80%. This makes it not only powerful but also cost effective at scale.

Dev Ittycheria: This makes it not only powerful, but also cost effective at scale.

Dev Ittycheria: So what does this all mean? MongoDB now brings together three things that modern AI-powered applications need. Real-time data, powerful search, and smart retrieval. By combining these into one platform, we make it dramatically easier for developers to build intelligent, responsive apps without stitching together multiple systems. In their desire to keep up with evolving customer needs, some vendors are retrofitting their products, such as adding JSON or vector support, as afterthoughts, which are superficial and brittle. This is a tacit admission that MongoDB's approach of using JSON and the DocuModel is the best way to model real-world data. These features may check the box, but they fall apart in production, leading to performance bottlenecks, operational headaches, and spiraling infrastructure costs.

Brian: So what does this all mean Mongo DB brings together three things that modern AI powered applications need real time data powerful search and smart retrieval by combining these into one platform, we make it dramatically easier for developers to build intelligence responsive apps without stitching together multiple systems.

Brian: And their desire to keep up with evolving customer needs. Some vendors are retrofitting their products, such as adding Jason on a vector support as after thoughts which are superficial embrittle.

Brian: This is a tacit admission that <unk> approach of using Jason and the document is the best way to model real real World data.

Brian: These features may check the box, but they fall apart in production leading to performance bottlenecks operational headaches and spiraling infrastructure costs fundamentally these vendors are constrained by the relational underpinnings, it's important to understand that superficial compatibility with modern data types is not the same as deeply integrated production grade functionality.

Dev Ittycheria: Fundamentally, these vendors are constrained by their relational underpinnings. It's important to understand that superficial compatibility with modern data types is not the same as deeply integrated production-grade functionality. MongoDB, by contrast, was purpose-built to address these needs natively. We see this dynamic in our customer base every day.

Brian: <unk> by contrast was purpose built to address these needs natively.

Brian: We see this dynamic in our customer base to everyday to bring this to life with an example, <unk> an India based quick commerce platform with $1 5 billion in annual sales migrated among the B from post crest after experiencing scalability challenges.

Dev Ittycheria: To bring this to life with an example, Zepto, an India-based quick commerce platform with 1.5 billion in annual sales, migrated to MongoDB from Postgres after experiencing scalability challenges. Zepto offers users a choice of over 15,000 products with a promised 10-minute delivery and has grown rapidly since its founding in July 2021, recording 20% month-over-month growth. After this rapid growth, Zepto faced performance issues with its previous infrastructure powered by PostgreSQL and Redis clusters that could no longer scale. By migrating to MongoDB Atlas, Zepto overcame these challenges through built-in features like in-memory caching, sharding, and real-time analytics. This transition enabled them to reduce latency by 40%, handle six times more traffic, and improve page load times by 14%, directly enhancing customer experience and enabling their fast growth.

Brian: <unk> offers users a choice of over 15000 products with a promise 10 minute delivery and has grown rapidly since its founding in July 2021, recording 20% month over month growth.

Brian: After this rapid growth is after faced performance issues with its previous infrastructure power by post press and writers clusters that could no longer scale.

Brian: Migrating to <unk> Atlas receptor overcame these challenges through built in features like in memory caching charting and real time analytics. This transition that enable them to reduce latency by 40% handle six times more traffic and improved page load times by 14% directly enhancing customer experience and enabling their fast growth.

Dev Ittycheria: As we look ahead, we're confident that MongoDB's combination of architectural advantage, enterprise trust, and broad developer adoption positions us to lead in both the current wave of digital transformation and the next wave powered by AI. We also remain focused on our other strategic priorities we've discussed in previous quarters, moving up market and modernizing legacy apps. We're seeing good progress on these initiatives, which will fuel growth into fiscal 27 and beyond.

Brian: As we look ahead, we're confident that <unk> combination of architectural advantage enterprise trust and broad developer adoption positions us to lead us to lead in both the current wave of digital transformation and the next wave powered by AI.

Brian: We also remain focused on our other strategic priorities, we've discussed in previous quarters, moving upmarket and modernizing legacy apps, we're seeing good progress on these initiatives, which will fuel growth into fiscal 'twenty seven and beyond this quarter, we hired a new leader who has nearly 30 years of experience in technology transformation and leading systems integrators to lead our <unk>.

Dev Ittycheria: This quarter, we hired a new leader who has nearly 30 years of experience in technology transformation at leading systems integrators to lead our application modernization process. We continue to see a significant demand to modernize legacy applications, and we're making great progress on tooling to automate this effort to standardize and productize this offering.

Brian: Application modernization program, we continue to see significant demand to modernize legacy applications, and we're making great progress on tooling to automate this effort to standardize and prioritizes offering.

Dev Ittycheria: While we continue to invest in the long term, we are also sharpening our focus on operating efficiency. We view this as healthy discipline, regularly reassessing the return on our spend, identify what's working and what's not, and reallocating resources to high conviction areas and improving profitability.

Brian: While we continue to invest long term. We are also sharpening our focus on operating efficiency. We view this as healthy discipline regularly reassessing the return on our spend identify what's working and what's not and reallocating resources to high conviction areas and improving profitability.

Dev Ittycheria: To help usher in our next stage of growth, I am delighted to introduce two new leaders to the Executive Mike Berry, our new CFO, joins us from NetApp where he has served in the same role for the past five years. Mike is a seven-time CFO with over 30 years' experience in technology and software and has a proven track record of driving profitable growth.

Brian: To help Usher in our next stage of growth I'm delighted to introduce two new leaders to the executive team.

Brian: <unk>, our new CFO joins us from net App, where he had served in the same role for the past five years, Mike has a seven time CFO with over 30 years experience in technology and software and has a proven track record of driving profitable growth.

Dev Ittycheria: We have also promoted May Petrie to be our new CMO. May joined MongoDB in early 2022 as VP of Digital and Growth Marketing and brings the right mix of enterprise experience and results orientation to lead our marketing.

Brian: We have also promoted may petri to be our new CMO main joined <unk> in early 2022, as VP of digital and growth marketing and brings the right mix of enterprise experience and results orientation to lead our marketing organization.

Dev Ittycheria: Now I'd like to spend a few minutes reviewing the adoption trends of MongoDB across our customers. Customers across industries and around the world are running mission-critical projects in Atlas, leveraging the full power of our platform, including the European Commission, Lenovo, Nokia Networks, and CSX. CSX, a leading U.S. railroad transportation company, migrated its mission-critical railroad transportation operations portal, which is responsible for real-time monitoring and alerts across 21,000 miles of track and ensuring uninterrupted 24 by 7 availability onto MongoDB apps. CSX can now dynamically scale workloads and optimizes database management. With this modernization, CSX is positioned to achieve greater operational performance while driving long-term sustainable growth.

Brian: Now I'd like to spend a few minutes reviewing the adoption trends among DB across our customer base cuts.

Brian: Customers across industries and around the world are running mission critical projects and Atlas leveraging the full power of our platform, including the European Commission, Lenovo Nokia networks and CSS CSS.

Brian: <unk>, a leading U S Railroad transportation company migrated its mission critical railroad transportation operations portal, which is responsible for real time monitoring alerts across 21000 miles of track and ensuring uninterrupted 24 by seven availability on demand Margaritaville Atlas <unk>.

Brian: <unk> can now dynamically scale workloads and Optimizes database management with this monetization <unk> is positioned to achieve greater operational performance, while driving long term sustainable growth.

Dev Ittycheria: Startups and mature companies are using MongoDB to help deliver the next wave of AI-powered applications to their customers, including Cursor, Halion, Vonage, The Financial Times, and LG U+. LG U+, a South Korean mobile network operator owned by the LG Corporation, built its Agent Assist AI solution on MongoDB Atlas, which supports thousands of agents in accessing information and delivering accurate responses to customers quickly. They use MongoDB Atlas Vector Search to enable real-time AI capabilities such as identifying customer intent and providing guidelines on how to respond to inquiries. The solution has significantly enhanced customer experiences and decreased the average processing time per call.

Brian: Startups and mature companies are using marketing to help to deliver the next wave of AI powered applications to their customers, including cursor alien vantage, the financial times and LG <unk> plus LNG.

Brian: LNG, you plus a south Korean mobile network operator owned by the LG Corporation built its agent assist AD solution on <unk> Atlas, which supports thousands of agents in accessing information and delivering accurate responses to customers quickly.

Brian: They use <unk> Atlas vector search to enable real time, AI capabilities, such as identifying customer intent and providing guidelines on how to respond to inquiries. The solution has significantly enhanced customer experiences and decrease the average processing time for call.

Dev Ittycheria: In summary, we had a strong Q1 and we remain confident in our ability to execute on a long-term opportunity. We're steadily advancing toward a vision of becoming the go-to platform for enterprises and the first choice for developers creating new applications.

Speaker Change: In summary, we had a strong Q1 and we remain confident in our ability to execute our long term opportunity for steadily advancing toward our vision of becoming the go to platform for enterprises and the first choice for developers, creating new applications.

Dev Ittycheria: Before I turn it over to Mike, I would personally invite you to the investor session at the mongodb.local NYC to be held at the Javits Center on September 17th. Please email ir at mongodb.com if you are interested in attending.

Mike: Before I turn it over to Mike I would personally invite you to the investor session at the moment would be that local NYSE to be held at the Javits Center on September 17. Please E mail IR at <unk> Dot com, if youre interested in attending with that here's Mike.

Mike Berry: With that, here's Mike. Thank you, Dave, for that great introduction. I am thrilled to join MongoDB at such an exciting moment in its growth journey. The company's incredible track record of product innovation and established leadership position in one of the largest, most strategic markets in software provides significant growth drivers that we expect to benefit our business for years to come. The opportunity to join a company the caliber of MongoDB was incredibly compelling.

Mike: Thank you Dave for that Great introduction, I am thrilled to join Mongo DB at such an exciting moment in its growth journey. The company's incredible track record of product innovation and established leadership position and what are the largest most strategic markets in software provides significant growth drivers that we expect to benefit our biz.

Brian: US for years to come the opportunity to join a company of the caliber of Mongo DB was incredibly compelling.

Mike Berry: I would like to thank Dave and the entire board for giving me this opportunity. I am extremely excited and look forward to working alongside the talented team to create long-term value for our customers, shareholders, and employees. Driving profitable growth with operational excellence and discipline is a priority for the whole leadership team.

Brian: I'd like to thank Dave and the entire board for giving me this opportunity I am extremely excited and look forward to working alongside the talented team to create long term value for our customers shareholders and employees driving profitable growth with operational excellence and discipline is a priority for the whole.

Brian: Our leadership team.

Mike Berry: With that said, let's move on to the financial results.

Brian: That said, let's move on to the financial results I'll begin with a detailed review of our first quarter results and then finish with our outlook for the second quarter and fiscal year 2006.

Mike Berry: I'll begin with a detailed review of our first quarter results and then finish with our outlook for the second quarter and fiscal year 26. I will be discussing our results on a non-GAAP basis unless otherwise noted. In the first quarter, total revenue was $549 million, up 22% year-over-year, and above the high end of our guidance. Shifting to product mix, Atlas grew 26% in the quarter compared to the year-ago period and now represents 72% of total revenue. This compares to 70% in the first quarter of fiscal 25 and 71% last quarter.

Brian: I'll be discussing our results on a non-GAAP basis, unless otherwise noted.

Brian: In the first quarter total revenue was $549 million up 22% year over year and above the high end of our guidance.

Brian: Shifting the product mix Atlas grew 26% in the quarter compared to the year ago period, and now represents 72% of total revenue.

Brian: This compares to 70% in the first quarter of fiscal 'twenty, five and 71% last quarter.

Mike Berry: Let me provide some context on Atlas consumption in the quarter. In Q1, consumption growth was in line with our expectation.

Brian: Let me provide some context on Atlas consumption in the quarter and Q1 consumption growth was in line with our expectations.

Brian: The unique macroeconomic backdrop I will provide some detail on the month over month trends, but please note that I do not expect to give this level of detail going forward.

Brian: Specifically, we saw good consumption growth in February and March.

Brian: Some softness in April as macroeconomic volatility increased followed by a healthy rebound in may.

Mike Berry: Turning to non-ATLAS, revenue came in ahead of our expectations in the quarter as we continue to have success selling incremental workloads into our existing EA customer base. Turning to customer growth, during the first quarter, we grew our customer base by approximately 2,600 sequentially, bringing our total customer count to over 57,100, which is up from over 49,200 in the year-ago period. The growth in our total customer count is being driven primarily by Atlas, which had over 55,800 customers at the end of the quarter, compared to over 47,700 in the year-ago period. It is important to keep in mind that the growth in our Atlas customer count reflects new customers to MongoDB, in addition to existing EA customers deploying workloads on Atlas for the first time.

Brian: Turning to non Atlas revenue came in ahead of our expectations in the quarter as we continue to have success selling incremental workloads into our existing EAA customer base.

Brian: Turning to customer growth during the first quarter, we grew our customer base by approximately 2600 sequentially, bringing our total customer count to over 50.

Brian: <unk> 7100 <unk>.

Brian: Is up from over 49200, and the year ago period.

Brian: Growth in our total customer count is being driven primarily by Atlas.

Brian: <unk> had over 55800 customers at the end of the quarter compared to over 47700 in the year ago period.

Brian: It is important to keep in mind that the growth in our Atlas customer count reflects new customers to Mongo DB. In addition to existing EAA customers deploying workloads on Atlas for the first time.

Mike Berry: of our total customer count, over 7,500 are direct sales customers, relatively flat the last quarter and up 5% year over year.

Brian: Of our total customer count over 7500 are direct sales customers relatively flat to last quarter and up 5% year over year.

Mike Berry: These metrics are largely due to our decision to reallocate a portion of our go-to-market resources from the mid-market to the enterprise channel starting in the second half of last year. We expect this dynamic will continue going forward as we capture more mid-market customers with our self-serve motion.

Brian: These metrics are largely due to our decision to reallocate a portion of our go to market resources from the mid market to the enterprise channel starting in the second half of last year. We expect this dynamic will continue going forward as we capture more mid market customers with our self serve motion.

Mike Berry: For more information visit www.FEMA.gov In Q1, our net ARR expansion rate was approximately 119%, which is consistent with recent quarters. We ended the quarter with 2,506 customers with at least $100,000 in ARR, a 17% growth versus the year-ago period. Moving down the income statement, gross profit in the first quarter was $407 million, representing a gross margin of 74%, which is down from 75% in the year-ago period. Our year-over-year gross margin decline is primarily driven by Atlas growing as a percent of the overall business and the impact of the Voyage acquisition. Our income from operations was $87 million for a 16% operating margin compared to a 7% operating margin in the year-ago period.

Brian: In Q1, our net expansion rate was approximately 119%, which is consistent with recent quarters.

Brian: We ended the quarter with 2506 customers with at least $100000.

Brian: A 17% growth versus the year ago period.

Brian: Moving down the income statement gross profit in the first quarter was $407 million, representing a gross margin of 74%, which is down from 75% in the year ago period.

Brian: Our year over year gross margin decline is primarily driven by Atlas growing as a percent of the overall business and the impact of the voyage acquisition.

Brian: Our income from operations was $87 million for a 16% operating margin compared to a 7% operating margin in the year ago period.

Mike Berry: We are very pleased with our stronger-than-expected operating margin results, which benefited from our revenue outperformance, as well as the timing of expenses, particularly slower than planned headcount additions. Net income in the first quarter was $86 million, or $1 per share, based on 86 million diluted shares outstanding. This compares to a net income of $43 million, or $0.51 per share, on 83 million diluted shares outstanding in the year-ago period.

Brian: We are very pleased with our stronger than expected operating margin result, which benefited from our revenue outperformance as well as the timing of expenses, particularly slower than planned head count additions.

Brian: Net income in the first quarter was $86 million or $1 per share based on 86 million diluted shares outstanding. This compares to a net income of $43 million or <unk> 51 per share on 83 million diluted shares outstanding in the year ago period.

Mike Berry: Turning to the balance sheet and cash flow, we ended the quarter with $2.5 billion in cash, cash equivalents, short-term investments, and restricted cash. Operating cash flow was $110 million and free cash flow was $106 million in the first quarter, which compares to $64 and $61 million, respectively, in the year-ago period. The strong start for cash flow in Fiscal 26 was driven primarily by strong operating profit results and higher cash collection.

Brian: Turning to the balance sheet and cash flow, we ended the quarter with $2 $5 billion in cash cash equivalents short term investments and restricted cash.

Brian: Operating cash flow was $110 million on free cash flow was $106 million in the first quarter, which compares to 64 and $61 million respectively in the year ago period.

Brian: The strong start for cash flow in fiscal 2006 was driven primarily by strong operating profit results and higher cash collections.

Mike Berry: Before turning to our outlook in greater detail, I would like to share the key points driving how we are looking at the rest of fiscal year 26. Number one, we are raising our expectations for revenue based on our strong start to the year. Number two, we are increasing our operating margin guidance by 200 basis points, reflecting an increased focus on margin improvement, and number three, we are announcing a significant expansion to our share repurchase program.

Brian: Before turning to our outlook in greater detail I would like to share the key points driving how we're looking at the rest of fiscal year 'twenty six.

Brian: Number one we are raising our expectations for revenue based on our strong start to the year.

Brian: Number two we are increasing our operating margin guidance by 200 basis points, reflecting an increased focus on margin improvement.

Brian: And number three we are announcing a significant expansion to our share repurchase program.

Mike Berry: I would like to take a minute to provide some color on the share repurchase. Today, we are pleased to announce that our Board of Directors has authorized an increase to our share repurchase program under which we may repurchase up to an additional $800 million of our common stock. Please note this authorization is in addition to the $200 million buyback the board authorized last quarter to offset the dilutive impact of the Voyage AI acquisition, bringing the total authorization to $1 billion. This decision reflects our confidence in the long-term potential of our business and underscores our commitment to delivering value to our shareholders while maintaining a flexible capital structure.

Brian: I would like to take a minute to provide some color on the share repurchases.

Brian: We are pleased to announce that our board of directors has authorized an increase to our share repurchase program under which we may repurchase up to an additional $800 million of our common stock.

Brian: Note. This authorization is in addition to the $200 million buyback the board authorized last quarter to offset the dilutive impact of the voyage AIA acquisition, bringing the total authorization to $1 billion.

Brian: This decision reflects our confidence in the long term potential of our business and underscores our commitment to delivering value to our shareholders, while maintaining a flexible capital structure.

Mike Berry: I would note that we did not repurchase any shares in Q1 as the CFO search process prevented us from initiating the repurchase program. It is our intention to begin repurchasing shares in Q2.

Brian: I would note that we did not repurchase any shares in Q1 as the CFO search process prevented us from initiating the repurchase program.

Brian: It is our intention to begin repurchasing shares in Q2.

Mike Berry: Now moving on to our full year guidance, I'd like to provide some incremental comments on our expectations. First, as we discussed, we had a strong start to the year and feel good about our ability to drive continued revenue and profitability growth, even with a more uncertain macroeconomic environment. We are raising our full-year revenue guidance by $10 million, which reflects the continued confidence in Atlas, while incorporating some timing differences in our EA business. Second, our expectations for non-ATLAS subscription revenue have not changed. We continue to expect it will be down in the high single digits for the year, though we will continue to expect non-ATLAS AR will grow year over year.

Brian: Now moving onto our full year guidance I would like to provide some incremental comments on our expectations.

Brian: First as we discussed we had a strong start to the year and feel good about our ability to drive continued revenue and profitability growth.

Brian: Even with a more uncertain macroeconomic environment.

Brian: We are raising our full year revenue guidance by $10 million, which reflects the continued confidence in atlas, while incorporating some timing differences in our EA business.

Brian: Second our expectations for non outlet subscription revenue have not changed we continue to expect it will be down in the high single digits for the year, though we will continue to expect non Atlas ALR will grow year over year.

Brian: As a reminder, we expect an approximately $50 million headwind from multi year license revenue in fiscal year 'twenty six.

Brian: Primarily impacting the second half of the year.

Brian: Finally, we are raising our expectations for operating margin to 12% at the midpoint up from 10% in our initial fiscal year guidance.

Mike Berry: We remain committed to a balanced investment approach that supports our key long-term growth initiatives. As CFO, one of my key priorities will be working closely with leaders across the business to identify ways to both reallocate existing spend to higher ROI opportunities and be more disciplined about incremental spending. We are focused on running an efficient, scalable business that supports growth in revenue and profitability to drive long-term shareholder value.

Brian: We remain committed to a balanced investment approach that supports our key long term growth initiatives.

Speaker Change: As CFO one of my key priorities will be working closely with leaders across the business to identify ways to reallocate existing spend to higher ROI opportunities and be more disciplined about incremental spending.

Speaker Change: We are focused on running an efficient scalable business that supports growth in revenue.

Speaker Change: And profitability to drive long term shareholder value.

Mike Berry: Moving on to our Q2 guidance, a few things to keep in mind. First, I want to remind you that Q2 has three more days than Q1, which is a sequential tailwind for Q2 Atlas Revenue. Second, we expect to see high single-digit year-over-year decline in the non-Atlas business after a stronger-than-expected Q1 And third, we expect operating margin will be lower than in Q1 as we have invested in targeted areas to drive growth. In addition, the expected sequential decline in non-Atlas revenue will be a headwind to profitability in Q2.

Brian: Moving moving onto our Q2 guidance a few things to keep in mind.

Brian: First I want to remind you that Q2 has three more days in Q1, which is a sequential tailwind for Q2 Atlas revenue.

Brian: Second we expect to see high single digit year over year decline in the non Atlas business after a stronger than expected Q1 and.

Brian: And third we expect operating margin will be lower than in Q1, as we have invested in targeted areas to drive growth.

Brian: In addition, the expected sequential decline in non Atlas revenue will be a headwind to profitability in Q2.

Mike Berry: With that context, I will now turn to our outlook for the second quarter in fiscal year 26. For the second quarter, we expect revenue to be in the range of $548 to $553 million. We expect non-GAAP income from operations to be in the range of $55 to $59 million, and non-GAAP net income per share to be in the range of $0.62 to $0.66 based on 87.5 million estimated diluted shares outstanding. For FY26, we now expect revenue to be in the range of $2.25 to $2.29 billion, an increase of $10 million from our prior guide. We are raising our non-GAAP income from operations expectations by $57 million and are now targeting a range of $267 to $287 million and non-GAAP net income per share to be in the range of $2.94 to $3.12 based on 87.6 million estimated diluting shares Note that the non-GAAP net income per share guidance for the second quarter and fiscal year 26 assumes a non-GAAP tax provision of approximately 20%.

Brian: With that context, I will now turn to our outlook for the second quarter and fiscal year 2006.

Brian: For the second quarter, we expect revenue to be in the range of $548 million to $553 million.

Brian: We expect non-GAAP income from operations to be in the range of $55 million to $59 million and non-GAAP net income per share to be in the range of 62 to 66.

Brian: Based on $87 5 million estimated diluted shares outstanding.

Brian: For fiscal year 2006, we now expect revenue to be in the range of 2.25 to $2 two $9 billion.

Brian: An increase of $10 million from our prior guide.

Brian: We are raising our non-GAAP income from operations expectations by $57 million and are now targeting a range of $267 million to $287 million and non-GAAP net income per share to be in the range of $2 94.

Brian: So $3 12.

Brian: Based on $87 6 million estimated diluted shares outstanding.

Brian: Note that the non-GAAP net income per share guidance for the second quarter and fiscal year 2006 assumes a non-GAAP tax provision of approximately 20%.

Mike Berry: To summarize, MongoDB delivered strong first-quarter results. We are pleased with our ability to drive growth across the business and increase our operating profitability expectations. We have a small share in one of the largest and fastest growing markets in all of software with a number of secular tailwinds at our back. We remain incredibly excited about the opportunity ahead and will continue to invest responsibly to drive long-term shareholder value.

Brian: To summarize Mongo DB delivered strong first quarter results. We are pleased with our ability to drive growth across the business and increase our operating profitability expectations.

Brian: We have a small share in one of the largest and fastest growing markets in all of software with a number of secular tailwind at our back.

Brian: We remain incredibly excited about the opportunity ahead, and we will continue to invest responsibly to drive long term shareholder value.

Operator: With that, Josh, we'd like to open it up for questions. Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please limit yourself to one question and one follow-up. One moment for questions.

Brian: With that Josh we'd like to open it up for questions.

Brian: Thank you.

Speaker Change: As a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please limit yourself to one question and one follow up one moment for questions.

Sanjit Singh: Our first question comes from Sanjit Singh with Morgan Stanley, you may proceed. Yeah, thank you for taking the question and congrats on the strong Q1 and really nice to see the Atlas growth accelerating on a data adjusted basis and on a reported basis as well. Dave, I had a question for you and then I got a question for Mike as well. Dave, to start, when we think about what's driving Atlas growth, can you frame it in terms of the type of applications that are being built? In your script, you sort of distinguished cloud native distributed real time today versus, you know, the AI apps for tomorrow.

Announcer: Our first question comes from Sanjay Singh with Morgan Stanley You May proceed.

Speaker Change: Yeah. Thank you for taking that.

Speaker Change: A question and congrats on the strong Q1, and really nice to see the Atlas growth accelerating on a.

Speaker Change: Days' adjusted basis, and on a reported basis as well Dave I had a question for you and then.

Speaker Change: One for Mike.

Speaker Change: Well David to start when we think about what's driving Atlas Gus can you frame. It in terms of the type of applications that are being built in your script, you sort of distinguished cloud native distributed real time.

Speaker Change: Today versus the AI ops for tomorrow, and so I'd, just love to get a sense of the nature and style of applications that are being built on market. That's driving this accelerated growth.

Dev Ittycheria: And so I just love to get a sense of the nature and style of applications that are being built on Mongo that's driving this accelerated growth. Yes. So, Sanjit, thanks for the question. What I would say is that, you know, we still talk to customers who have very near, you know, needs for running their business, building new applications to drive operational efficiency, building new products and services through software to drive, to take advantage of new revenue opportunities. and to continue to drive more innovation. I think what people find attractive about MongoDB is that you really can use it for a wide variety of things.

Speaker Change: Yes so.

Brian: Thanks for the question, what I would say is that.

Brian: We still talk to customers who have.

Brian: Very near needs.

Brian: Needs for running their business building, new applications to drive operational efficiency building, new products and services through software to drive to take advantage of new revenue opportunities and to continue to drive more innovation of their business I think what people find attractive among DB is that you really can use it for a wide variety of use cases.

Dev Ittycheria: You can support very transactional intensive use cases, you can support more modern use cases, things like IoT, streaming, and so on and so forth, as well as being able to also support some of these more modern use cases like AI.

Brian: You can support very transactional intensive use cases, you can support more modern use cases things like Iot streaming and so on so forth as well as being able to also <unk>.

Brian: Some of these more modern use cases like AI and the fact that you can do this all in one platform, where you don't have to stitch together multiple tools that the underlying architecture is designed to really help you model the real world to be able to handle complex nested in evolving data to be able to scale elastically.

Dev Ittycheria: And the fact that you can do this all in one platform, where you don't have to stitch together modules, The underlying architecture is designed to really help you model the real world, to be able to handle complex, nested, and evolving data, to be able to scale elastic For more information visit www.nasa.gov to be able to run these applications on any cloud, across clouds, or on-prem, just makes MongoDB a very attractive platform. And we feel really good about the fact that we added a lot of customers. So what it really shows is that, you know, customers and developers are voting with their feet to really adopt Awesome.

Brian: <unk> two.

Brian: To be able to run these applications on any cloud across clouds on Prem just makes it model it would be a very attractive solution and we feel really good about the fact that we add a lot of customers. So what it really shows us that.

Brian: Customers and developers are voting with their feet to really adopt.

Mike: Awesome and then Mike for you congratulations on the CFO CFO role.

Mike Berry: And then, Mike, for you, congratulations on the CFO role. I would love to get just your sense of, like, the opportunity ahead from you. And mostly I want to get a sense of, like, how you're thinking about, like, on a first principles basis, how you plan to sort of manage and message the metrics and the numbers. You're a longtime, highly experienced CFO. This is your seventh stint. But this is a consumption model, right, which has, like, more variable components. So I'd love to see how you're thinking about that as you take on the role from a growth perspective, but also from an operational discipline perspective.

Speaker Change: I'd love to get just your sense of.

Speaker Change: The opportunity ahead from you and most of you want to get a sense of like how you're thinking about like on a first principle basis.

Speaker Change: You plan to sort of manage and message the metrics and the numbers you are long time highly experienced senior CFO. This is that your seven stent.

Brian: But this is a consumption model right, which has like a more more variable components. So would love to see how you are thinking about that as you take on the role from a growth perspective, but also from an operational discipline perspective.

Mike Berry: Yeah, so thank you for the question, Sanjay. It's actually a very interesting one. So I think the company does a wonderful job actually on the metrics that they give. You know, we had experience in a consumption business in my last role as well. And going through all the data and meeting with the team in the firehose that has been my onboarding, we have a lot of data. I think that the metrics that we talk to investors about are very relevant in terms of consumption, in terms of customer growth. So at this point, again, it's a non-excuse.

Speaker Change: Yes. So thank you for the questions Andre it's actually a very interesting one so I think the company does a wonderful job actually on the metrics that they give we had experienced in a consumption business at my last role as well and going through all the data and meeting with the team and the.

Speaker Change: The fire hose that has been my Onboarding.

Speaker Change: We have a lot of data I think that the metrics that we talk to investors about our very relevant in terms of consumption in terms of customer growth.

Speaker Change: So at this point again, the non excuse it's just a fact eight days and I would say not a lot of change there I do think that we will spend a lot more time going forward on a couple of things. One is just the capital structure the cash flow generation of the business as well as the operating margin improvements and this will certainly change.

Mike Berry: It's just a fact. Eight days in, I would say not a lot of change there. I do think that we will spend a lot more time going forward on a couple things. One is just the capital structure, the cash flow generation of the business, as well as the operating margin improvements. And this will certainly change. I would also underline, hey, come in September to the DOT local event.

Brian: <unk> I would also underline hey come in September to the Dot local event that will give us that will give me at least another quarter to under my belt, and we'll talk a little bit more about what you can expect from Mongo DB going forward.

Mike Berry: That will give me at least another quarter under my belt, and we'll talk a little bit more about what you can expect from MongoDB going forward. total sums. Congratulations again. Thank you.

Brian: It makes telephones congratulations again thank.

Brian: Thank you.

Raimo Lenschow: Our next question comes from Raimo Lenschow with Barclays, you may Hey, perfect. Thank you. I have two quick questions. One for Dave, one for Mike. Dave, if you look this week, we saw Snowflake kind of move and make the move towards Postgres, we saw Databricks kind of doing something there. Can you kind of frame that? Because obviously, like from the outset, it looks like, you know, there's like a big embrace going on, but like, maybe contrast and a little bit like, you know, where you fit in and where some of those moves could fit in.

Speaker Change: Our next question goes from Raimo <unk> with Barclays. You May proceed.

Speaker Change: Perfect. Thank you two quick questions one for Dave one for Mike.

Steve: Steve If you look this week.

Brian: It is.

Brian: We saw.

Brian: Snowflake kind of kind of move and make the move towards post crisis you saw.

Brian: Data breaks kind of doing something there can you kind of frame that because obviously like from the outside it looks like.

Brian: There is a big embrace going on but like maybe contrast.

Brian: A little bit like where you fit in where some of those moves could fit in.

Raimo Lenschow: And that's my first question.

Brian: That's my first question for Mike I know you have only had a deal but when you did your due diligence looking at the company and also looking at the strong performance on our profitability in Q1 like how do you think about this business because that's one of the things that people would have kind of talked with the previous team about is that profitability level of this and if there is something inherent there or if there.

Raimo Lenschow: And then for Mike, like, I know you have only had eight days, but when you did your due diligence, looking at the company and also looking at the strong performance on profitability in Q1, like, how do you think about this business? Because that's one of the things that people would have kind of talked with the previous team about is the profitability level of this and if there's something inherent there, or if there's something just that can be done about that. Thank you. Thanks, Raimo. To your first question, I think the moves by both Databricks and Snowflake, I think validate one thing that OLTP or the operational data store is the strategic high ground, especially for AI.

Brian: It's something that can be done about that thank you.

Brian: Thanks Raimo.

Speaker Change: To your first question.

Speaker Change: I think the moves by both dated bricks and Snowflake I think validate one thing that <unk> or the operational data store is the strategic high ground, especially for AI, that's where inference happens in for instance, the big market, that's where everyone wants to go and you need to have an operational data store to do that and I think the other thing it points out is building organically.

Dev Ittycheria: That's where inference happens. Inference is the big market. That's where everyone wants to go. And you need to have an operational data store to do that. And I think the other thing it points out is building organically an OLTP store is really hard, especially when you need to meet the requirements of enterprise scale, availability, resiliency, and security. And both organizations had a signal that they were working on organic approaches. You know, Snowflake talked about in a store, Databricks talked about their own organic efforts, and it's clear that they couldn't make it happen. So this is not an easy task.

Speaker Change: In <unk> store is really hard, especially when you need to meet the requirements of enterprise scale availability resiliency and security and both organizations.

Speaker Change: Signal that they were working on organic approaches snowflake talked about Ina store data breaks had talked about their own organic efforts and it's clear that they couldnt make it happen. So this is not an easy task. The second point I'd make is that just because they are buying a small small post stress companies I think.

Dev Ittycheria: The second point I'd make is that, you know, just because they're buying a small, small Postgres company, I think, you know, and NEON, I would say, was in the vibe coding space, and I would say Crunchy Data is a small relational company based in South Carolina. I would say that it's not clear to me why the world needs a 15th or 16th Postgres derivative database. I think we'll find that out. And I think there's also some noise about how NEON is, you know, 80% of its instances are provisioned via code. I should point out that nearly 80% of MongoDB instances on Atlas are provisioned via code.

Brian: Sure.

Brian: Neon I would say it was in the <unk> coating space and I would say crunchy data as a small relational company based in South Carolina, I would say that it's not clear to me why the world needs, a 15th or 16th post crest derivative database I think we'll find that out.

Brian: And I think there's some there's also some noise about how neon is.

Brian: 80% of its instances of provision via code I should point out that 80% nearly 80% of marketing be instances on the outlets are provisioned via code and so.

Dev Ittycheria: And so, you know, we do that to help our customers provision and scale, you know, clusters very, very quickly. And so the real advantage is architecture. And we believe that, you know, the fact that Postgres and other relational platforms are now adding JSON is a tacit admission that the core tabular architecture just doesn't get the job done in the world of AI. Developers need to be able to model the real-world data, which is complex, messy, nested, which means it has highly interdependent relationships and is constantly evolving and changing. And then when you look at the fact that they've bolted on these capabilities, if you add a document size greater than two kilobytes, it's going to deliver a very poor performance.

Brian: We do that to help our customers provision and scale clusters, very very quickly and so the real advantages architecture, and we believe that the fact that post crest and other relational platforms are now, adding Jason is a tacit admission.

Brian: The core tablet architecture, just doesn't get the job done in the world of AI.

Brian: Developers need to be able to model the real world data, which is complex messy nested, which means it has highly interdependent relationships and is constantly evolving and changing and then when you look at the fact that they're bolted on these capabilities.

Brian: If you've added document size greater than two kilobytes, it's going to deliver a very poor performance and so the superficial compatibility does not mean, it's native does not mean, it's production grade does that mean, it's designed for enterprises and so if the competition is now and who is who is going to compete for these complex AI workloads, we welcome Dr. Chan.

Dev Ittycheria: And so the superficial compatibility does not mean it's native, does not mean it's production grade, does not mean it's designed for enterprises. And so if the competition is now on who's going to compete for these complex AI workloads, we welcome that challenge, because architecturally, we think we have a huge advantage.

Dr. Chan: Because architecturally we think we have a huge advantage.

Mike Berry: So hey, Raimo, it's Mike. So thanks for the question. I would highlight kind of four areas when I did the diligence on MongoDB. And I can say in the first eight days, nothing has changed my mind on any of these. First of all, hey, there are few companies that are greater than $2 billion of revenue where their main business is growing 20% plus, the total business growing double digit with 70% plus gross margin. So stop there. That's a scale business that has a lot of leverage built in. So the three things that are the four things I looked at is already had the scale from an international and from a product perspective.

Brian: So raimo, it's Mike. Thanks for the question I would highlight kind of four areas when when I did the diligence on Mongo DB and I can say in the first eight days nothing has changed my mind on any of these first of all.

Brian: There are few companies that are.

Brian: Greater than $2 billion of revenue, where their main business is growing 20% plus the total business growing double digit with 70% plus gross margin. So I'll stop there. That's that's a scale business that has a lot of leverage built in so the three things that are the four things I would look that is already had the scale from an international and from <unk>.

Brian: Product perspective, and the main business now is growing very is 72% growing very quickly number. Two is this is a business model that has a leverage because you can bring additional revenue and it's going to come through the gross margin line at high margins that leaves a ton of room.

Mike Berry: And the main business now is growing very is 72% growing very quickly. Number two is, this is a business model that has a leverage, because you can bring additional revenue in, it's going to come through the gross margin line at high margins, that leaves a ton of room for investing in the business, but also candidly for driving more efficiency as well. And that was the third piece. When you look at it, and nothing against the company as it sits today, as we grow, I'm completely confident we can continue to invest in the business, but become more efficient.

Brian: We're investing in the business, but also candidly for driving more efficiency as well and that was the third piece when you look at it and nothing against.

Brian: The company as it sits today as we grow I am completely confident we can to continue to invest in the business to become more efficient and then the fourth part was hey, it's really nice to come to a business that has a super clean balance sheet and a bunch of cash on there as well that leaves a bunch of flexibility going forward. So all of that I looked at it and said Wow, what a great opportunity.

Mike Berry: And then the fourth part was, hey, it's really nice to come to a business that has a super clean balance sheet and a bunch of cash on there as well. That leaves a bunch of flexibility going forward. So all of that, I looked at and said, wow, what a great opportunity. And then of course, I looked at where you folks were valuing the business, and I said, wow, that's a really good opportunity. Perfect. Very clear. Thank you.

Brian: And then of course I looked at where you folks were valuing the business and I said Wow, that's a really good opportunity.

Brian: Okay very clear thank you.

Brian: Thank you.

Jason Ader: Our next question comes from Jason Ader with William Blair. Yeah, thank you. Sorry to beat the Postgres horse here, Dave.

Speaker Change: Our next question comes from Jason Ader with William Blair You May proceed.

Speaker Change: Yes. Thank you.

Speaker Change: Sorry to beat the Postgresql horse here, David but my question is a key part of the pool and there it is.

Jason Ader: But my question is, you know, a key part of the bull narrative for Mongo has been that document databases would steadily take share from relational, and then Mongo would become the default general purpose database for modern apps. I guess my question is, does the rising popularity of Postgres among developers and the strong ecosystem it has, you know, as we see Databricks did and what the cloud guys are doing. Does that suggest that relational just may have greater long-term relevance than initially anticipated?

Speaker Change: For Mongo has been that document databases, which steadily take share from relational and then <unk> would become the default general purpose database for modern apps I guess my question is does the rising popularity of Postgresql among developers and a strong ecosystem. It has as we see from what sounds like a NATO Brexit and what the cloud guys are doing I mean does that suggest that.

Speaker Change: <unk> just may have greater long term relevance than initially anticipated.

Dev Ittycheria: Yeah, Jason, thanks for the question. And I think, you know, I want to clarify some of these misconceptions that are out there. You know, one is that this is a big market, you know, it's $100 billion plus market, so there can be multiple winners, right? Second, the Postgres popularity is really a function of the consolidation of the SQL market. People are leaving Oracle, leaving SQL Server, leaving MySQL and going to Postgres. I think the third thing that I should mention is that Postgres does have this veneer of being an open, you know, open source, open standard, not owned by any one vendor, but there are literally every vendor, including the hyperscalers, have their own version of Postgres that build proprietary extensions and other capabilities that actually make it very difficult to go from one version of Postgres to another version of Postgres.

Jason: Yes, Jason Thanks for the question and I think.

Jason: I want to clarify some of these misconceptions that are out there. One is that this is a big market. It's a $100 billion plus market. So there can be multiple winners right second the postgresql popularity is really a function of the consolidation of the sequel market people are are leaving Oracle, leaving sequel server, leaving my sequel and <unk>.

Speaker Change: Going to post growth I think the third thing that I should mention is that post crisis does have this veneer of being an open one.

Speaker Change: <unk> source open standard not owned by any one vendor, but they are literally every vendor, including the hyperscale or have their own version of post stress that built proprietary extensions and other capabilities that actually make it very difficult to go from one version of post crest to another version of post stress with <unk> you can actually run.

Dev Ittycheria: With MongoDB, you can actually run any workload on any cloud across clouds and on-prem without changing a line of code. And last, I would say architecturally, we are far better optimized for this new world of complex, you know, modern applications, especially in the world of AI. JSON was designed to really address the needs of this modern world, how data is very messy, how it's very interdependent, how it changes often, there's no predictability in the format, there's no uniformity on the structure, and MongoDB is designed to handle that world. And when relational databases start trying to mimic our features, what does that tell you?

Speaker Change: The workload on any cloud across clouds and on Prem without changing a line of code and last I would say architecturally we are far better optimized for this new world of complex in a modern applications, especially in the world of AI, Jason was designed to be to really address the need.

Speaker Change: Needs of the modern world how data is very messy, how it's very interdependent, how it changes often theres no predictability in the format.

Speaker Change: No uniformity on the structure and Margarines designed to handle that world and when.

Speaker Change: When when relational databases start trying to mimic our features what does that tell you that tells you that their existing architecture is not designed for this world now Theres No question when that technology has been available for 40 50 years Theres, a large group of people who understand that technology, but we feel we are well positioned we have more work to do but we feel like well positioned to be a winner.

Dev Ittycheria: It tells you that their existing architecture is not designed for this world.

Speaker Change: And this next wave of.

Speaker Change: Applications are being built and where and we feel confident about our position.

Dev Ittycheria: One quick follow up to that, Dave. Thank you for that answer. Should we be thinking about then, I don't know, over the next five plus years or something that the two big winners in the database market in terms of architecture will be Postgres sort of for the relational crowd and Mongo for the non-relational crowd? Is that how we should be thinking about it? Is that how you're thinking about it? Yeah, I would say, I definitely think that there will be multiple winners, this is not a zero-sum game.

Speaker Change: One quick follow up to that thank you for that answer.

Speaker Change: Should we be thinking about then I don't know over the next five plus years or something that the two big winners in the database market in terms of architecture will be post grant sort of for the relational crowd and mongo for the non relational kind of is that how we should be thinking about it.

Speaker Change: How youre thinking about it.

Speaker Change: I would say.

Speaker Change: We think that there will be multiple winners. This is not a zero sum game I also believe that the other point I want to clarify is a lot of people compare <unk> to post <unk> and that's that's actually a false comparison by us embedding keyword search by US embedding a native vector search by US embedding embedding models youre really comparing <unk> to <unk>.

Dev Ittycheria: I also believe that, you know, the other point I want to clarify is a lot of people compare MongoDB to Postgres, and that's actually a false comparison. By us embedding, you know, keyword search, by us embedding a native vector search, by us embedding embedding models, you're really comparing MongoDB to Postgres, plus Elastic, plus Pinecone, plus something like Cohere. So the value for customers is that they don't have to stitch all these capabilities together, they get all these capabilities in a very elegant, natively built way that they can, you know, allows them to move fast, it's not a very complex architecture, and it's much more cost effective.

Speaker Change: <unk>, plus elastic plus pine cone, but something like co here. So the value for customers is that they don't have to stitch. All these capabilities together they get all these capabilities in a very elegant natively built way that they can now allows them to move fast that's not a very complex architecture and it's much more cost effective.

Dev Ittycheria: And so, but I do think there will be multiple winners, and for people who want to stay on relational, you know, Postgres is a very viable option, but we think that we have a big opportunity in front of us.

Speaker Change: And so but I do think there'll be multiple winners and for people who want to stay on relational post <unk> is a very viable option, but we think that we have a big opportunity in front of us.

Speaker Change: Thank you.

Dev Ittycheria: Thank you.

Speaker Change: Thank you.

Kasthuri Rangan: Our next question comes from Kasthuri Rangan with Goldman Sachs. Thank you very much, Dev. Upmarket Our value accounts, and I think you have discussed metrics such as the productivity, superiority, and moving up market.

Speaker Change: Our next question comes from Kash Rangan with Goldman Sachs. You May proceed.

Kash Rangan: Yes. Thank you very much Dave one for you and one for you Mike Congratulations on joining <unk> CFO, Dave can you give us a mark to market on where we are with.

Kash Rangan: Some of the growth initiatives, you undertook such as relation to migrate or move upmarket. The reconstitution of the refocusing of the sales force towards <unk>.

Kash Rangan: Higher value accounts, and I think you have discussed metrics such as the productivity.

Kash Rangan: Superiority and moving upmarket.

Kash Rangan: If you could just not only give them give us a mark to market, but how is that.

Kasthuri Rangan: Now I'm going to give us market to market, but how Customer Lines have been quite good but with respect to growth rate... It does not look like we're quite yet. more of your introspective analysis on that and then, Mike, one... talked about dynamic, which I'll expand upon that a little bit in a minute. could go right. After all, we didn't see upside in EA this particular quarter, so versus not yet. Thanks, Kash.

Kash Rangan: New push showing up in terms of incremental productivity metrics, obviously, the customer lines have been quite good but with respect to growth rate.

Kash Rangan: <unk> looked like we are quite yet at that inflection point, maybe if you could just give us a little bit more of your introspective analysis on that and then Mike One for you you talked about second half dynamic with respect to I believe it was the EAA business can you expand upon that a little bit and what could go right versus that asked here.

Kash Rangan: Because.

Kash Rangan: We see upside in.

Kash Rangan: This particular quarter sort of versus <unk>.

Speaker Change: Back to your guidance, but your producers and Scott. Thank you so much. Thanks.

Dev Ittycheria: So let me start. So when we talked about the strategic initiatives, we really called out three things. One, R&D investments. Two, moving up market. And three, putting more focus on awareness and education. So, on the R&D investments, I would tell you that we're already seeing returns on investment. You know, we said we're going to double down on the core. We introduced MongoDB 8.0, which is the most performant release we've ever issued. And I will also point out that it's also had the fastest uptake of any major release. Customers are adopting 8.0 two times faster than our last major release.

Speaker Change: Thanks, Kash, So let me start so when we talked about the strategic initiatives really called out three things one R&D investments to moving upmarket and three putting more focus on awareness and education.

Kash Rangan: On the R&D investments I would tell you that we're already seeing returns on investment we said, we're going to double down in the core we introduce among <unk> 8.0, which is the most performance release, we've ever issued and I will also point out that.

Kash Rangan: Also had the fastest uptake of any major releases customers are adopting <unk> two times faster than our last major release, we're also expanding our engineering efforts around AI and voyage.

Dev Ittycheria: We're also expanding our engineering efforts around AI and Voyage because that's a super exciting area for us. And we're also investing in product tooling for on-app modernization. And last but not least, we're bringing more senior talent to really complement the existing team so that we can really, you know, have a broader ambition. So, that investment is paying hands-on. The move up market is also, you know, going well because a part of our results are a function of the fact that we made that move starting in the, you know, last year, and we're starting to have, do bigger deals, we've signed some very, very large deals with some very, very large enterprises.

Kash Rangan: That's a super exciting.

Kash Rangan: Area for Us and we're also investing in product tooling around app monetization and last but not least we're bringing more senior talent to really complement the existing team. So that we can really.

Kash Rangan: Our broader ambition so that investment is paying handsomely to move up market is also.

Kash Rangan: Going well because a part of our results are a function of the fact that we.

Kash Rangan: We made that move starting in.

Kash Rangan: Last year, and we're starting to have do bigger deals. We've signed some very very large deal with some very very large enterprises and and the productivity that team has always been quite high and I would say on a.

Dev Ittycheria: And, and the productivity of that team has always been quite high. And I would say a complementary move is that our self serve business is starting to acquire mid market logos, serving them more efficiently without, you know, ceding ground to anyone else. So, and that shows up as you see in our customer account this quarter. And then in terms of awareness and education, we are aggressively investing in a few areas. One, we're aggressively investing in the Bay Area, that's where the next gen AI companies and the next gen AI developers are highly concentrated. And we're starting to see some traction there.

Kash Rangan: Our complementary move is that our self serve business is starting to acquire mid market logos, serving them more efficiently without ceding ground to anyone else so and that shows up as you see in our customer count this quarter and then in terms of awareness and education. We are aggressively investing in a few areas. One we're aggressively investing in the bay area, that's where with the Nexgen AI companies.

Kash Rangan: The Nexgen AI developers are highly concentrated and we're starting to see some traction there and we have some high profile AI customers already on our platform and lots of other smaller customers.

Dev Ittycheria: And you know, we have some high profile AI customers already on our platform and lots of other smaller customers. We're investing in attracting relational developers to learn more about MongoDB. So we're attending relational conferences, you know, putting together more training and more skills for people to upskill their, their abilities and also providing certifications. And what we also find is a lot of the new Atlas registrants are actually new to MongoDB. So we're spending a lot of time making sure they're onboarded properly and taking full advantage of all our capabilities. And then we're all, you know, as part of the training, we're upskilling developers on modern databases, right?

Kash Rangan: We are investing in attracting relational developers to learn more about <unk> sort of attending relational conferences.

Kash Rangan: Putting together more training and more skills.

Kash Rangan: For people to upskill their their abilities and also providing certifications and while we also fine as lot of the new Atlas registrants are actually new to <unk>. So we're spending a lot of time, making sure that onboarding properly and taking full advantage of all of our capabilities and then we're all as part of the training. We're upskilling developers on modern databases right as I mentioned.

Dev Ittycheria: As I mentioned, certifications, self paced courses and all that, and we also expanded our documentation to Mandarin, to Portuguese, to Korean and Japanese, because MongoDB truly has a global business. And there's developers all around the world who want to use MongoDB. And I think we're just getting started.

Kash Rangan: Occasions, self paced courses and all of that and we also expanded our documentation to Mandarin to Portuguese to Korean and Japanese because marketing be truly is a global business and as developers all around the world who want to use modeling to be and I think we're just getting started there is more things we're doing that I just can't talk about right now around especially on awareness and education, but the key point is there.

Dev Ittycheria: There's more things we're doing that I just can't talk about right now around, especially on awareness and education. But the key point is there are some misconceptions about MongoDB that we know we need to address. And we're quite excited about the opportunity. So thank you, Cash, for the question.

Kash Rangan: Some misconceptions about <unk> that we know we need to address and we're quite excited about the ability to do so.

Mike Raimo: So thank you cash for the question. This is Mike in for the kind words, so just for context.

Mike Berry: This is Mike, and for the kind words. So just for context, as we talked about in the prepared remarks, so for the full year, you know, we remain confident in the business. We took Q1, we exceeded our expectations, and we largely rolled the beat from the Atlas business into the full year number. As it relates to non-Atlas, and then specifically your question, we did do, we had a good quarter in the EEA business. Some of that was timing. So we adjusted the Q2 through Q4 non-Atlas business to take that into account. As it relates to the $50 million multi-year headwind you talked about, that's largely due to the renewals and the timing of those renewals from fiscal 25.

Mike Raimo: As we've talked about in the prepared remarks, so for the full year.

Mike Raimo: We remain confident in the business. We took Q1, we exceeded our expectations and we've largely rolled the beat from the Atlas business into the full year number as it relates to non Atlas and then specifically your question. We did do we had a good quarter in the business. Some of that was timing. So we adjusted.

Kash Rangan: The Q2 through Q4 non outlet business to take that into account as it relates to the $50 million multiyear headwind you talked about that's largely due to the renewals and the timing of those renewals from fiscal 'twenty five.

Kasthuri Rangan: So we have maintained that same guidance. To the extent that it could be better in May, then that would certainly be an upside. Keep in mind, though, that those are renewals based on when those customers come up, so it's not completely in our control. There may be upside, but at this point, we're still holding to the same guidance. Super. Very granular. Thank you so much.

Kash Rangan: We have maintained that same guidance to the extent that it could be better and it may.

Kash Rangan: Then that would certainly be an upside keep in mind, though that those are renewals based on when the when those customers come up. So it is not completely in our control there may be upside, but at this point, we're still holding to the same guidance.

Speaker Change: Super very granular. Thank you so much.

Kasthuri Rangan: Thank you.

Kash Rangan: Thank you.

Brad Reback: Our next question comes from Brad Reback with Stiefel, you may press start. Great, thanks very much. Dave, last quarter, you talked about AI only being modestly incremental to revenue growth in Is that the same expectation 90 days later? Um, yeah, so what I would say is the following, you know, we see, you know, thousands of customers building thousands of apps on MongoDB, and that's growing quarter over quarter. We are seeing some high-profile, well-known AI companies. I mentioned Cursor on the call, and there's a few other high-profile companies who are building on top of MongoDB. And obviously, those businesses are really taking off.

Speaker Change: Our next question comes from Brad Reback with Stifel. You May proceed.

Brad Reback: Great. Thanks, very much Dave last quarter, you talked about AI only being modestly incremental to revenue growth in 2026 here is that the same expectation 90 days later.

Kash Rangan: Yes, so what I would say is the following we see thousands of customers building thousands of apps on monitoring and that is growing quarter over quarter.

Kash Rangan: We are seeing some.

Kash Rangan: High profile, well known AI companies I mentioned cursor on the call and then a few other high profile companies, who are building on top of <unk> and obviously those businesses are really taking off.

Dev Ittycheria: But what we see is that enterprises are still early in the adoption of AI. The barriers include there's a limited set of skills and experience with AI, trust with AI systems that are probabilistic, which is another way of saying the risk of hallucinations. And so we see, obviously, some early use cases around operating efficiency, chatbots, code gen, and domain-specific ISVs like Harvey that customers are using. And we've already seen, as I mentioned on the call, LGU+, Swisscom, Novo Nordisk, Central Reach are a bunch of customers I mentioned in the past who have already deployed our AI capabilities.

Kash Rangan: But what we see is that enterprises are still early in the adoption of AI. The barriers include theirs.

Kash Rangan: Limited set of skills experience with AI Trust with AI systems that are probabilistic, which is another way of saying the risk of hallucinations and so we see obviously some early use cases around operating efficiency chat bots co Gen and domain specific Isps like Harvey but.

Kash Rangan: The customers are using but and.

Kash Rangan: We've already seen as I mentioned on the call.

Kash Rangan: <unk> plus.

Kash Rangan: Swisscom Novo Nordisk central reach are bunch of <unk>.

Speaker Change: Customers I mentioned in the past who have already deployed our AI capabilities, but the real enduring value will come when people start building custom AI apps and the point I want to make is that anyone can use <unk> to run their business, but that doesn't give them a competitive advantage because they are competitors could use the same ICT, what really gives them a competitive vantage the building cost.

Kash Rangan: <unk> solutions around using AI to transform their business, whether it's to seize new opportunities to respond to new threats to drive more operating efficiency and when people start really learning about <unk> going to be the document model can handle these complex data structures, we have best in class voyage embedding to improve the accuracy of these results to help.

Kash Rangan: Get comfortable but using AI.

Kash Rangan: And by integrating Tech search.

Kash Rangan: Search and embedding an operational data that's a unique differentiator. It makes the developers like easy reduces cost and complexity and so we feel we are well positioned for this but it's still early as most enterprises are still early in the adoption of AI.

Dev Ittycheria: And so we feel we're well-positioned for this, but it's still early. Most enterprises are still early in the adoption of AI.

Dev Ittycheria: Great.

Brad Reback: And then on the go-to-market side, any meaningful changes? on the kind of upper market comp plan that we should be aware of. No meaningful changes. We feel good about what's happening at the high end of the market, and we also feel good about our self-serve business being able to acquire customers more efficiently. So we feel like those motions are working. Great, thank you.

Speaker Change: Great and then on the go to market side any meaningful changes.

Speaker Change: On the kind of upper market comp plan that we should be aware of.

Speaker Change: No meaningful changes, we feel good about what's happening at the high end of the market and we also feel good about ourselves our business being able to acquire customers more efficiently. So we feel like those motions are working.

Speaker Change: Great. Thank you.

Brad Reback: Thank you, Brad.

Brad: Thank you Brad.

Brad: Thank you.

Brent Bracelin: Our next question comes from Brent Bracelin with Piper Sandler. Thank you. Good afternoon, Mike. Great to hear your voice again here. Welcome aboard.

Speaker Change: Our next question comes from Brent <unk> with Piper Sandler you May proceed.

Mike Raimo: Thank you good afternoon, Mike Great to hear your voice again here welcome aboard.

Speaker Change: One of the challenges.

Dev Ittycheria: Dave, one of the challenges that we've had with the story here is that the Atlas business has been decelerating here, moderating growth for about three years. This was the first quarter where we actually saw Atlas growth reaccelerate. Pretty big step up here in the number of net new Atlas customers. Would you now say you feel like you've kind of bottomed relative to the growth profile of Atlas and you're kind of now on a newer, more stable trajectory going forward. Just walk me through what looks like a meaningful reversal here in the Atlas business. Yeah, so we're very proud of our results in Q1.

Speaker Change: We have had with the story here is that the.

Speaker Change: The Atlas business has been decelerating here moderating growth for about three years.

Speaker Change: This was the first quarter, where we actually saw Atlas growth Reaccelerate pretty big step up here in the number of net new Atlas customers.

Speaker Change: Would you now say you feel like you've kind of.

Speaker Change: Bottom to relative to the growth profile of Atlas and you are kind of now.

Speaker Change: Our newer more stable trajectory going forward can you just walk me through.

Speaker Change: What looks like a meaningful reversal here in the Atlas business.

Speaker Change: Yes, so we're very proud of our results in Q1.

Dev Ittycheria: And, you know, much to what Mike mentioned earlier, when you look across the landscape, there's not many companies who have a core business growing at 26% year over year at, you know, at our scale, right? Atlas is a, you know, very large business. And, and so there's not many companies who are growing at that rate. And we feel like, you know, the what's on the horizon in terms of AI, in terms of, you know, I'm talking about app modernization, where we can help customers more efficiently, reduce the cost and significantly reduce the time to modernize legacy applications, that gives us easy access to a large market.

Mike Raimo: To what Mike mentioned earlier, when you look across the landscape, there's not many companies who have the core business growing at 26% year over year at at our scale right Atlas's.

Speaker Change: A very large business and and so there is not many companies who are growing at that rate.

Speaker Change: And we feel like.

Speaker Change: The.

Speaker Change: What's on the horizon in terms of AI in terms of.

Speaker Change: Im talked about App monetization, where we can help customers more efficiently.

Speaker Change: Reduce the cost and significantly reduce the time to modernize legacy applications that gives us easier access to a large market.

Mike Berry: And so, so those are, you know, also initiatives that we're spending a lot of time and investment on. And there's lots of customers who still need to run their business, and continue to build applications that are core to their business strategy. So we feel good about our opportunity. Our guide is our guide. We feel good about, you know, the quarter. And we also feel great about, you know, the fact that our the customer ads were very strong this quarter, which shows that, you know, people are embracing Mongo Thanks for that.

Speaker Change: So those are.

Speaker Change: Also initiatives that were spending a lot of time and investment and theres lots of customers still need to run their business and continue to build applications that are core to their business strategy. So we feel good about our opportunity our guidance. Our guide we feel good about the quarter and we.

Speaker Change: We also feel great about the fact that our customer adds were very strong this quarter, which shows that people are embracing Margaret.

Speaker Change: Thanks for that and then Mike I know Youre a days Inn fire holds here.

Mike Berry: And then, Mike, I know you're eight days in, fire holes here. Increased focus on margin improvement reads loud and clear. You did talk about kind of balance sheet. This company does have a lot of cash. I know you're putting a billion dollars of it to use to the buyback. But other uses of cash, you see an opportunity to maybe get a little more aggressive on M&A, small tech tuck-ins to also maybe help, you know, accelerate the AI opportunity. Walk me through kind of use of cash. Sure. And thanks for the comments. Great to hear your voice as well.

Speaker Change: Increased focus on margin improvement reads loud and clear.

Speaker Change: You did talk about kind of balance sheet.

Speaker Change: The company does have a lot of cash I know you are putting $1 billion of it to Houston the buyback, but other uses of cash do you see an opportunity to maybe get a little more aggressive on M&A small tech tuck ins to also maybe help.

Speaker Change: Accelerate the AI opportunity walk walk me through kind of use of cash. Thanks.

Speaker Change: Sure and thanks for the comments great to hear your voice as well so on the buybacks just to hit that Hey, we're super excited about the board.

Mike Berry: So, yeah, on the buybacks, just to hit that, hey, we're super excited about the board, expanding that up to a billion dollars, and we will be active as it relates to the buyback. For the rest of the cash, what I'd say is, hey, we feel really good about the organic growth story here. And that's the focus. To the extent that there are smaller tuck-ins, or we could do roadmap accelerations, and use some of it, not a lot of it, you know, that's certainly up for debate as well. So, it does give us that option. I would say we don't think we need to do M&A to achieve our targets, certainly, but to the extent that we think it can help, it is nice to have the available Good to hear.

Speaker Change: Okay.

Speaker Change: Expanding that up to $1 billion, and we will be active as it relates to the buyback for the rest of the cash what I'd say is hey, we feel really good about the organic growth story here and Thats. The focus to the extent that there are smaller tuck ins or we could do roadmap acceleration and use some of it not not a lot of it that's certainly up for.

Speaker Change: For debate as well so it does give us that option I would say, we don't think we need to do M&A to achieve our targets certainly but to the extent that we think it can help it is nice to have the available cash.

Speaker Change: Good to hear thank you.

Mike Berry: Thank you.

Speaker Change: Thank you.

Speaker Change: Okay.

Ittai Kidron: Our next question comes from Ittai Kidron with Oppenheimer, you may Thanks, I appreciate it. Dev, I want to dig in a little bit into the high-end focus, the large enterprise. Is there any data you can provide proof points kind of under the surface data points that you're tracking internally about progress here? Anything about pipeline, number of Fortune 2000 logos? Help me think about the evolution here. And at what point do you think will be a full run rate here on this group? Well, I will tell you that I think we already have meaningful traction. I think we previously disclosed that 75% of the Fortune 100 are already MongoDB customers and 50% of the Fortune 500 are MongoDB customers.

Speaker Change: Our next question comes from <unk> Kidron with Oppenheimer you May proceed.

Speaker Change: Yes.

Speaker Change: Thanks I appreciate it.

Speaker Change: To begin a little bit into the high end focus to large enterprises is there any data you can provide proof points kind of under the surface data points that you are tracking internally about progress here anything about.

Speaker Change: Pipeline.

Speaker Change: Number of Fortune 2000 logos. It help me think about the evolution here and at what point do you think will be at full run rate here on this on this group.

Speaker Change: While I will tell you that I think we already have meaningful traction I think we previously disclosed that 75% of the fortune 100, our existing already marketing would be customers and 50% of the fortune 500 are among <unk> customers. So that tells you that we already have meaningful traction and what we realize is the biggest opportunity for us as.

Dev Ittycheria: So that tells you that we already have meaningful traction. And what we realize is the biggest opportunity for us is to expand in those accounts. I just recently had the CIO of one of the largest healthcare companies in the world in our office. I just met with the senior leadership team from one of the largest financial services companies here in New York. And then I met another team from another financial services company in New York, and they're bringing us in saying, we want to have a more strategic relationship with you. So I feel like the motion is working.

Speaker Change: And in those accounts I, just recently had the CIO of one of the largest healthcare companies in the world and our office I just met with the.

Speaker Change: The senior leadership team from one of the largest financial services companies here in New York and then I met.

Speaker Change: Other team from another financial services company in New York, and they bring us in saying we want to have a more strategic relationship with you. So I feel like the motion is working.

Dev Ittycheria: We're doing larger deals. And the productivity of the sales team focused on those accounts is materially higher than the typical sales rep. So we feel like it's a motion that we will invest on for the long term. And I think the results will obviously speak for themselves, but we feel really good about our move up market. And I also want to point out that our self-serve motion is a nice complement to that move because it allows us to acquire lower end customers, mid-market customers much more efficiently. So we're not like ceding ground to anyone in that segment.

Speaker Change: We're doing larger deals.

Speaker Change: And the productivity of our sales team focused on those accounts.

Speaker Change: Is materially higher than the typical sales reps. So we feel like it's a motion that we will invest for the long term and.

Speaker Change: And I think.

Speaker Change: The results will obviously speak for themselves, but we feel really good about our move up market and I also want to point out that our self serve motion is a nice complement to that move because it allows us to acquire lower end customers mid market customers much more efficiently.

Speaker Change: So we're not like ceding ground to anyone in that segment of the market.

Ittai Kidron: Yeah, that's great to see.

Speaker Change: Yes, that's great to see and Mike for you first of all congratulations and looking forward to working with you a couple of small ones first of all we've talked about slower than planned head. Count addition, in the quarter can you tell us in what areas.

Mike Berry: And Mike, for you, first of all, congratulations. I'm looking forward to working with you. A couple of small ones. First of all, you talked about the slurred and planned headcount addition in the quarter. Can you tell us in what areas and is this going to be an issue down the road in that you're kind of you're a little bit behind on headcount additions? And also, you guys raised it by $10 million. The bid was greater. Can you tell us when and where are you a little bit more conservative then on the reminder of the year and what part of your business?

Speaker Change: Is this going to be an issue down the road.

Speaker Change: In that you are kind of you're a little bit behind on head count additions and also your guidance for the year raise it by $10 million the beat was greater.

Speaker Change: Tell us when and where are you a little bit more conservative than on the reminder of the year.

Speaker Change: And what part of your business.

Mike Berry: Sure.

Speaker Change: Sure. So let's take the head count first so it was really broad based across across our whole team in terms of slower head count additions. There was nothing that we didnt pull back or say don't don't hire it just it takes longer so nothing there. We also don't have any concerns around does that mean lower for instance sales capacity largely due.

Mike Berry: So let's take the headcount first. So it was really broad-based across the whole team in terms of slower headcount additions. There was nothing that we didn't pull back or say, don't hire, it takes longer. So nothing there. We also don't have any concerns around, does that mean lower, for instance, sales capacity, largely due to what Dave talked about on the go-to-market. So do we think it goes forward? It certainly is a part of us, I would say, moderating our OPEX expectations for the rest of the year, hence the increased 200-basis So that's the headcount piece.

Speaker Change: To what Dave talked about on the go to market. So.

Speaker Change: Do we think it goes forward. It certainly is a part of US I would say moderating our opex expectations for the rest of the year, hence the increase 200 basis points. So that's head count piece on the beat and raise so we did beat by $20 million in the quarter as we talked about we largely rolled the Atlas.

Mike Berry: On the beat and raise, so we did beat by $20 million in the quarter. As we talked about, we largely rolled the Atlas beat into the full year number and left the rest of the year where we were. We felt good about what we guided to after Q4. Hey, there's a lot of uncertainty as it relates to the world, tariffs, the economic situation, and everything else. So we think it's prudent to leave that guy there. We did come down by $10 million in the non-Atlas business because that was largely timing. And as we said, we're still holding to the EA forecast that we did on a year-over-year basis.

Speaker Change: Beat into the full year number and left the rest of the year, where we were we felt good about what we guided to after Q4.

Speaker Change: Hey, there is a lot of uncertainty as it relates to the world tariffs the economic situation and everything else. So we think it's prudent to leave that guide there we did come down by $10 million and the non Atlas business, because that was largely timing and as we said, we're still holding to the EBITDA forecast that we did.

Speaker Change: On a year over year basis, now, we will see where that goes. It's also the hardest piece of the business to forecast.

Mike Berry: Now we'll see where that goes. It's also the hardest piece of the business to forecast because of those larger deals. So we thought that that was the prudent way to go. Appreciate it. Thank you.

Speaker Change: Because of those larger deals, but we thought that that was the prudent way to guide the year.

Speaker Change: I appreciate it thank you.

Speaker Change: Thank you.

Andrew Nowinski: Our next question comes from Andrew Nowinski with Wells Fargo. Great, thank you. Maybe I just wanted to follow up on the Atlas guidance. I know you're saying that, you know, consumption was in line with your expectations, but can you just provide any more color on sort of the mechanics of growth in that consumption segment? Because it would seem that the outperformance in Q1 . would set you on a higher trajectory for the full year. you know, due to the fact that it is a consumption model unless you unless there's some Drastic change in the, um, you know, global economy that would change a customer's consumption.

Speaker Change: Our next question comes from Andrew Nowinski with Wells Fargo. You May proceed.

Andrew Nowinski: Great. Thank you maybe I just wanted to follow up on the.

Speaker Change: Atlas guidance.

Speaker Change: I know youre seeing that consumption was in line with your expectations.

Speaker Change: Can you just provide any more color on sort of the mechanics of growth and that consumption segment, because it would seem that the outperformance in Q1.

Speaker Change: <unk> you want a higher trajectory for the full year.

Speaker Change: Due to the fact that it is a consumption model unless you unless there's some sort of.

Speaker Change: Drastic change in the.

Speaker Change: The global economy that would change your customer's consumption patterns.

Mike Berry: Sure. So, Andrew, it's Mike. So, thanks for the question. So, if you take a step back, and that's what we saw in Q1, we talked about the monthly consumption patterns there. We did a little bit better early in the quarter, and April was a little bit soft. The dynamic that you just talked about is exactly what's baked into the guidance for the rest of the year. We continue to expect Atlas growth to be strong as we go through the year. We're also cognizant of April's a little bit soft. May pop back. We'd like to see a couple more months of that going into the year.

Mike Raimo: Sure So Andrew it's Mike So thanks for the question. So if you take a step back and that's what we saw in Q1, we talked about the monthly.

Mike Raimo: Consumption patterns, there, we did a little bit better early in the quarter and April was a little bit soft the dynamic that you just talked about is exactly what's baked into the guidance for the rest of the year. We continue to expect Atlas growth to be strong as we go through the year.

Speaker Change: We're also cognizant of April was a little bit soft may pop back wed like to see a couple more months of that going into the year hopefully we feel more confident as we go into the second half.

Mike Berry: Hopefully, we feel more confident as we go into the second half. But at this point, given all the economic uncertainty, we certainly hope there's upside, but we'd like to get through another quarter. understood.

Speaker Change: But at this point given all of the economic uncertainty, we certainly hope there is upside, but we'd like to get through another quarter.

Mike Raimo: Understood and Mike Thank you.

Andrew Nowinski: And Mike, thank you. It's great to reconnect again from our days at NetApp.

Speaker Change: It's great to reconnect again from our from our data that net out.

Andrew Nowinski: My second question is really more on a higher level. I understand the performance and scalability advantages of MongoDB over, or I should say, a document database over a relational database. But have you maybe thought about or consider hurting sort of feedback from customers as to whether MQL might be simply maybe more difficult for a developer to use versus SQL? And maybe that's why you're seeing sort of this increase in interest in Postgres? Because it's certainly not a better performing database. I think everyone knows that. But maybe it's just a query language issue. So again, thanks for the question.

Speaker Change: My second question is really more on a at a higher level I understand the performance and scalability advantages of Mongo DB over or I should say a document database over a relational database, but have you.

Speaker Change: Maybe you thought about or considered hurting sort of feedback from customers as to whether.

Speaker Change: <unk> might be simply maybe more difficult for a developer to use versus SQL and maybe thats why youre seeing.

Speaker Change: This increase in interest and post <unk>, because it's certainly not a.

Speaker Change: Better performing database I think everyone knows that but maybe it's just a query language issue.

Speaker Change: So again thanks.

Speaker Change: Thanks for the question I just want to again say, we are going after a big market I think the post <unk> popularity is a function of people basically leaving other relational platforms in particular, Oracle sequel server and mice equal so thats why youre seeing developers kind of move to post crisis.

Dev Ittycheria: I just want to, again, say we're going after a big market. I think the Postgres popularity is a function of people basically leaving other relational platforms, in particular Oracle, SQL Server, and MySQL. So that's why you're seeing developers kind of move to Postgres. Postgres is a tabular database, much like all relational databases. So then the question you have to ask yourself is, they announced support for JSON. Why did they do that? And they did that because it was tacit admission that that architecture just doesn't get the job done in a world that has to deal with data in the real world.

Speaker Change: But I would tell you that.

Speaker Change: Post <unk> is a tabular.

Speaker Change: Database much like all relational databases. So then the question you have to ask yourself is this day announced support for Jason why did they do that and what they did that because it was tacit admission that that architecture, just doesn't get the job done in a world that has to deal with data in the real world.

Dev Ittycheria: Right? Data in the real world is complex. Data in the real world has a lot of dependencies. Like, I'll give you some examples. Like, you know, if you want to model a message that has attachments or reactions or part of a threaded conversation, how do you do that in a structured table? If you want to deal with, you know, adding new fields or, you know, new values and all that, how do you, you know, for example, if you have a user who has suddenly multiple phone numbers, how do you model that quickly? MongoDB is designed to scale, and the latest release is the most performed release.

Speaker Change: Right data in the real World is complex data and the rail World has a lot of dependencies like I'll give you some examples like.

Speaker Change: Do you want to model the message that has attachments of reactions are part of the threat of the conversation how do you do that in a structured table if you want to deal with.

Speaker Change: Adding new fields or.

Speaker Change: New values and all that how do you for example, if heavy users who has suddenly multiple phone numbers, how do you model that quickly.

Speaker Change: Do you deal with nested structures right where.

Speaker Change: Customer record could have.

Speaker Change: Include past orders.

Speaker Change: Each with their own line items in order history like how do you do that.

Speaker Change: With.

Speaker Change: With that it's much more difficult where you can model that is so much more easily and longer DB. How do you deal with like messy inconsistent data that there is no uniformity too and so we recognize that some people who don't know mom DB and were not really understand all these advantages, which is why we're putting more emphasis on it.

Speaker Change: Wariness and education, but fundamentally if you see why these relational databases or adding <unk> support it is acknowledgment that their existing architecture cannot.

Speaker Change: Evolve to natively evolve to serve these new needs and Thats why we think we're well positioned because <unk> is a native JSON on database. It's a document database and is distributed it has as.

Speaker Change: Is designed to scale and and the latest release is the most performed release, we're even more excited about <unk>, one that's coming out soon.

Dev Ittycheria: We're even more excited about 8.1 that's coming out soon. We acquired Voyage. That's going to be natively part of the platform. We're going to, you know, later this month, we'll enable people to seamlessly generate embeddings from data sitting inside MongoDB, and that'll be in private preview. So that's within four months of the acquisition. So we're moving fast, we're innovating quickly, and that doesn't even mention, you know, a core vector search engine, as well as our keyword search engine. So when you put all these things together, it becomes a very compelling platform, but we recognize that some customers and some users just don't understand all these things, and that's what we're focused That makes sense.

Speaker Change: Acquired voyage.

Speaker Change: It's going to be natively part of the platform we're going to.

Speaker Change: Later this month will enable people to seamlessly generate embedding from data sitting inside <unk> and that'll be in private preview. So thats within four months of the acquisition. So we are moving fast we're innovating quickly and that doesn't even mentioned in our core vector.

Speaker Change: Search engine as well as our keyword search engine. So when you put all these things together it becomes a very compelling platform, but we recognize that some customers and some users just don't understand all these things and that's what we're focused on addressing.

Speaker Change: That makes sense. Thank you so much.

Dev Ittycheria: Thank you so much.

Mike Cikos: Thank you.

Speaker Change: Thank you.

Mike Cikos: Our next question goes to Mike Cikos. Need a mu- Hey guys, thanks for taking the questions here. Mike, just to come back to the monthly trends that you guys saw on the Atlas consumption side, and I really, really appreciate all the color there. If you're talking about this rebound that we saw in May, and I know we don't see like consumption growth year on year or usage growth year on year to the detail that you do, but is that year on year growth and consumption in May back to the levels that we saw in February or March, or is it still lagging based on that April softness that you had described?

Speaker Change: Our next question goes from Mike cycles with Needham You May proceed.

Mike Raimo: Hey, guys. Thanks for taking my questions here.

Speaker Change: Mike just to come back to the monthly trends that you guys saw on the Atlas consumption side and I really really appreciate all the color there.

Speaker Change: If you are talking about this rebound that we saw in May and I know, we don't see like consumption growth year on year usage growth year on year to the detail that you do.

Speaker Change: But is that year on year growth in consumption in may.

Speaker Change: Back to the levels that we saw in February or March or is it still lagging based on that April softness that you had described.

Mike Cikos: So it's much more consistent with what we saw in in February. And in March, April was a little bit softer. And then as we said, it was a healthy rebound in Great.

Speaker Change: So it's much more consistent with what we saw in.

Speaker Change: In February and in March April was a little bit softer and then as we said it was a healthy rebound in may.

Mike Cikos: Thanks for that.

Speaker Change: Great. Thanks for that and then David just one for you I know that we have some of these go to market changes.

Dev Ittycheria: And then, Dave, just one for you. I know that we have some of these go-to-market changes, but I'm just wondering if you could talk a little bit more about what's going on in the market right now, and what are some of the things that you're trying to do to make sure that we're not going back to where we were in the beginning of the pandemic? I'm looking at the new logos that you added this quarter specifically, and I mean, you guys have been, you have been native JSON. You have been that NoSQL. Can you help me think about like, why?

Speaker Change:

Speaker Change: Im looking at the new logos that you added this quarter, specifically and I mean, you guys have been you have been native JSON database, you had been that notes equal vendor.

Speaker Change: Can you help me think about like why why are we seeing this meaningful bump in new logos acquired this quarter, specifically it really looks like the self serve was taking off but.

Dev Ittycheria: Why are we seeing this meaningful bump in the new logos acquired this quarter specifically? It really looks like the self-serve was taking off, but just interested in what you're seeing Thank you. Yeah, I mean, you have to remember, our self-serve business was a new skill that we, you know, developed, frankly, organically here. And then, actually, May Petrie, who's been promoted to CMO of the company, was the one who led our self-serve business since early 2022. She and her team have really done a great job of really growing that business, being much more sophisticated, running experiments, how to attract the right level of customers.

Speaker Change: Just interested in what youre seeing on that front. Thank you.

Speaker Change: You have to remember.

Speaker Change: Our self serve business was us new skill that we.

Speaker Change: Developed frankly organically here and then actually May Pietri who's been promoted to CFO of the company was the one who led our self serve business. Since early 2022. She has she and her team have really done a great job of really growing that business being much more sophisticated running experiments how to attract the right.

Speaker Change: Level of customers.

Dev Ittycheria: And, and that is showing up in the numbers. And so, and as we move up market, we want to take advantage of that, you know, self-serve capability to be able to acquire more customers in the mid-market. And so, that's something that we're going to do. And so, so we feel really good about the combination of our direct sales force, as well as our self-serve business, in terms of how we approach the market. And, and I would say that, you know, we're, you know, when we are able to get in front of customers, explain our differentiation, customers understand and, you know, want to use MongoDB.

Speaker Change: And that is showing up in the numbers and so and as we move up market, we want to take advantage of that.

Speaker Change: Self serve capability to be able to acquire more customers in the mid market and so that's something that we're going to do and so so we feel really good about the combination of our direct sales force as well as our self serve business in terms of how we approach the market and.

Speaker Change: And I would say that.

Speaker Change: Where when we are able to get in front of customers explained our differentiation customers understand and.

Dev Ittycheria: Our biggest challenge is making sure people really understand the differentiation and don't have certain misconceptions of what we do or what others Great, congrats on the demonstrated success on that front.

Speaker Change: I want to use <unk>, our biggest challenge is making sure people really understand the differentiation and don't have certain misconceptions of what we do or what others do.

Speaker Change: Great Congrats on the on the demonstrated success on that front. Thank you. Thank you.

Dev Ittycheria: Thank you.

Operator: Thanks, Mike.

Mike Raimo: Thanks, Mike.

Operator: Thank you.

David: Thank you I would now like to turn the call back over to David <unk> for any closing remarks.

Dev Ittycheria: I would now like to turn the call back over to David Ittycheria for any closing Well, thank you for joining our call.

Speaker Change: Well. Thank you for joining our call first of all I would like to thank Mike eight days and it's obviously preparing for our earnings call is hard work and to do it in eight days, it's pretty impressive certainly appreciate everything he has done.

Dev Ittycheria: First of all, I would like to thank Mike. Eight days in, it's obviously, you know, preparing for today's call is hard work and to do it in eight days, it's pretty impressive. So I really appreciate everything he's done to prepare for the call today. You know, again, we had a strong quarter with a record total customer net additions. We're raising our revenue and operating margin guidance for the full year. We're moving forward with a billion dollar total share repurchase program reflecting our confidence in the business and our commitment to delivering value to shareholders. And we're more excited than ever about our long term outlook, particularly our, you know, our position to fundamentally address the needs of workloads in both today's era and tomorrow's era driven by AI.

Mike Raimo: To prepare for the call today.

Mike Raimo: Again, we had a strong quarter with a record total customer net additions.

Mike Raimo: We're raising our revenue and operating margin guidance for the full year. We are moving forward with a $1 billion total share repurchase program reflects confidence in the business and our commitment to delivering value to shareholders and we're more excited than ever about our long term outlook, particularly are are positioned to fundamentally address the needs of workloads in both today's and Tomorrow's there.

Operator: So thank you very much for the call and we'll talk. Thank you.

Mike Raimo: Driven by AI. So thank you very much for the call and we will talk to you soon.

Speaker Change: Thank you. This concludes the conference. Thank you for your participation you may now disconnect.

Operator: This concludes the conference. Thank you for your participation.

Mike Raimo: Okay.

Mike Raimo: [music].

Mike Raimo: Okay.

Mike Raimo: Yes.

Mike Raimo: Okay.

Mike Raimo: Yes.

Mike Raimo: Okay.

Mike Raimo: Sure.

Mike Raimo: Thank you.

Mike Raimo: Yes.

Mike Raimo: Yeah.

Mike Raimo: Okay.

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Mike Raimo: [music].

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Operator: Thanks for watching!

Mike Raimo: Okay.

Mike Raimo: [music].

Operator: Good day, and thank you for standing by. Welcome to the MongoDB's Q1 FY26 earnings conference call. At this time, all participants are in listen-only mode.

Speaker Change: Good day and thank you for standing by welcome to the Mungo D vs Q1, FY 'twenty six earnings conference call. At this time all participants are in listen only mode. Please be advised that today's conference is being recorded after the speaker's presentation there'll be a question and answer session to ask a question. Please press star one one.

Operator: Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again.

Mike Raimo: And your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again I would now like to hand, the conference over to your Speaker today, Brian then you from ICR.

Brian Denyeau: I would now like to hand the conference over to your speaker today, Brian Denyeau from ICPSR. Thank you, Josh. Good afternoon and thank you for joining us today to review MongoDB's first quarter fiscal 2026 financial results. which we announced in our press release issued after the close of the market today. Joining me on the call today are Dave Ittycheria, President and CEO of MongoDB, and Mike Berry, CFO of MongoDB.

Speaker Change: Thank you Josh.

Speaker Change: Good afternoon, and thank you for joining us today to review <unk> first quarter fiscal 2026 financial results, which we announced in our press release issued after the close of market today.

Speaker Change: Joining me on the call today are Dave <unk>, President and CEO, Margaret ebay, and Mike Berry CFO of Margaret ebay.

Operator: During this call, we will make four looking statements, including statements related to our market and future growth opportunities, our opportunity to win new business, our expectations regarding Atlas consumption growth, the impact of non-Atlas business and multi-year license revenue, the long-term opportunity of AI, the opportunity of application modernization, our expectations regarding our win rates and Salesforce productivity, our financial guidance and underlying assumptions, and our planned share repurchases and investments and growth opportunities in AI. These statements are subject to a variety of risks and uncertainties, including the results of operations and financial conditions that cause actual results to differ materially from our expectations.

Speaker Change: During this call we will make forward looking statements, including statements related to our market and our future growth opportunities.

Speaker Change: Our opportunity to win new business, our expectations regarding Atlas consumption growth the impact of non Atlas business and multi year license revenue the long term opportunity.

Speaker Change: The opportunity of application modernization and our expectations regarding our win rates on sales force productivity, our financial guidance and underlying assumptions and our planned share repurchases and investments in growth opportunities NII.

Speaker Change: These statements are subject to a variety of risks and uncertainties, including the results of operations and financial condition.

Speaker Change: <unk> actual results to differ materially from our expectations.

Operator: For a discussion of material risks and uncertainties that could affect our actual results, please refer to the risks described in our Annual Report on Form 10-K for the year ended January 31, 2025, filed to the SEC on March 20, 2025. Any forward-looking statements made in this call reflect our views only as of today, and we undertake no obligation to update them, except as required by law.

Speaker Change: For a discussion of the material risks uncertainty as it could affect our actual results. Please refer to the risks described in our annual report on Form 10-K for the year ended January 31, 2025 filed with the SEC on March 22025.

Speaker Change: Any forward looking statements made on this call reflect our views only as of today and we undertake no obligation to update them, except as required by law.

Operator: Additionally, we'll discuss non-GAAP financial measures in this conference call. Please refer to the tables in our earnings release on the investor relations portion of our website for a reconciliation of these measures, the most directly comparable GAAP financial measures.

Speaker Change: We will discuss non-GAAP financial measures on this conference call. Please refer to the tables in our earnings release on the Investor Relations portion of our website for a reconciliation of these measures the most directly comparable GAAP financial measure.

Operator: With that, I'd like to turn the call over to Dev. Thank you, Brian, and thank you to everyone joining us today. I'm pleased to report that we got off to a strong start in fiscal 2026 as we executed well against a large market opportunity.

Dave: I'd like to turn the call over to Dave.

Dave: Thank you, Brian and thank you to everyone. Joining us today I am pleased to report that we got off to a strong start in fiscal 2026, as we executed well against our large market opportunity, let's begin by reviewing our first quarter results before giving you a broader company update we generated revenue of $549 million or 22% year over year increase in <unk>.

Dev Ittycheria: Let's begin by reviewing our first quarter results before giving you a broader company update. We generated revenue of $549 million, a 22% year-over-year increase and above the high end of our guidance. Atlas revenue grew 26% year-over-year, representing 72% of revenue. We generated non-GAAP operating income of $87 million for a 16% non-GAAP operating margin, and we ended the quarter with over $57,100.

Mike Raimo: Love the high end of our guidance Atlas revenue grew 26% year over year, representing 72% of revenue, we generated non-GAAP operating income of $87 million or 16% non-GAAP operating margin and we ended the quarter with over 57100 customers.

Dev Ittycheria: Overall, we posted a strong Q1 despite a dynamic and fast-changing macro environment. We had a solid new business quarter. We are beginning to see the benefit of our decision to focus our resources on the high end of the market, where we have the largest opportunity. Atlas consumption this quarter played out in line with our expectations. Mike will discuss consumption trends in more detail and our expectations for the remainder of the year.

Mike Raimo: Overall, we posted a strong Q1, despite a dynamic and fast changing macro environment, we had a solid new business quarter, we're beginning to see the benefit of our decision to focus our resources on the high end of the market, where we have the largest opportunity Atlas consumption. This quarter played out in line with our expectations, Mike will discuss consumption trends in more.

Mike Raimo: <unk> and our expectations for the remainder of the year.

Dev Ittycheria: Our total customer net ads are the highest in over six years, reflecting the continued strong adoption of MongoDB across a wide range of industries and use Self-serve customer additions were particularly strong this quarter, reinforcing MongoDB's position as the go-to platform for developers building the next generation of applications, including many focused on AI. While these accounts typically start small, the self-serve channel is a powerful engine for long-term growth. Finally, retention rates remain strong in Q1, demonstrating the quality of our product and the mission criticality of our platform.

Mike Raimo: Our total customer net adds are the highest in over six years, reflecting the continued strong adoption of <unk> across a wide range of industries and use cases.

Mike Raimo: Self serve customer additions were particularly strong this quarter reinforcing <unk> position as the go to platform for developers building. The next generation of applications, including many focused on AI.

Mike Raimo: These accounts typically start small the self serve channel as a powerful engine for long term growth.

Mike Raimo: Finally, our retention rates remained strong in Q1, demonstrating the quality of our product and the mission criticality of our platform.

Dev Ittycheria: We are pleased with our Q1 performance. As I said before, companies leverage software to execute their business strategy, drive differentiation, and improve operational efficiency. As the operational database that is the core of software applications, MongoDB is undeniably a must-have component of the tech .

Mike Raimo: We are pleased with our Q1 performance as I said before companies leveraged software to execute their business strategy drive differentiation and improve operational efficiency as the operational database that is the core of software applications. <unk> is undeniably a must have component of the tech stack.

Dev Ittycheria: We continue to make progress toward our goal of becoming the standard platform for enterprises and the default for developers building new applications. At the heart of this momentum is MongoDB's modern architecture. which delivers real and measurable advantages for the types of applications being built today, cloud native, distributed, real time, and the AI powered applications of tomorrow. MongoDB's document model and the associated platform enable developers to more easily represent the meshiness of real-world data, which includes understanding relationships between structured and unstructured data, and managing data that is constantly evolving and changing. This fundamental architectural advantage provides customers greater flexibility, faster time to market, and the ability to scale without re-architecting.

Mike Raimo: We continue to make progress toward our goal of becoming the standard platform for enterprises and the default for developers building new applications at the heart of this momentum is monitored these modern architecture, which delivers real and measurable advantages for the types of applications being built today cloud native distributed real time, and the AI powered applications of tomorrow.

Mike Raimo: <unk> document model and the associated platform enables developers to more easily represent the messiness of real world data, which includes understanding relationships between structured and unstructured data and managing data that is constantly evolving and changing.

Mike Raimo: This fundamental architectural advantage provides customers greater flexibility faster time to market and the ability to scale without re architected. These capabilities are why customers continue to develop more and more mission critical workloads among the be illustrated by our strong customer additions this quarter.

Dev Ittycheria: These capabilities are why customers continue to develop more and more mission-critical workloads on MongoDB, illustrated by our strong customer additions this quarter. As AI redefines how applications are built and how businesses operate, MongoDB is exceptionally well-positioned. Real-world AI applications require high-quality, context-rich, and offered unstructured data to deliver trustworthy output. We continually hear from large enterprises that high accuracy is a critical requirement to drive wide-scale adoption of AI. Our recent acquisition of Voyage AI enhances our ability to serve this Embeddings are the bridge between a large language model and a customer's private data. Voyage's leading embedding and re-ranking models allow customers to feed precise and relevant context into LLMs, significantly improving the accuracy and reliability of the output of AI applications.

Mike Raimo: As AI redefines, our applications are built and how businesses operate among DB is exceptionally well positioned really.

Mike Raimo: <unk> World AI applications require high quality contacts rich and offered unstructured data to delivered trustworthy outputs.

Mike Raimo: We continually hear from large enterprises that high accuracy is a critical requirement to drive widescale adoption of AI.

Mike Raimo: Our recent acquisition of Voyager enhances our ability to serve this need.

Mike Raimo: Embedding are the bridge between the large language model and our customers' private data voyages, leading embedding and re ranking models allow customers to feed precise and relevant context to LMS significant improving the accuracy and reliability of the output of AI applications by producing the most contextually rich domain optimized embedding <unk>.

Dev Ittycheria: By producing the most contextually-rich, domain-optimized embeddings, MongoDB sits at a gateway of meaning in an AI system. With the release of Voyage 3.5, we've taken another step forward, meaningfully outperforming the next best embedding models while reducing storage costs by more than 80%. This makes it not only powerful, but also cost effective at scale.

Mike Raimo: <unk> sits at the gateway of meaning in an AI system.

Mike Raimo: With the release of voyage three five we've taken another step forward meaningfully outperforming the next best embedding models, while reducing storage costs by more than 80%. This makes it not only powerful but also cost effective at scale.

Mike Raimo: So what does this all mean.

Mike Raimo: <unk> brings together three things that modern AI powered applications need real time data powerful search and smart retrieval by combining these into one platform, we make it dramatically easier for developers to build intelligent responsive apps without stitching together multiple systems.

Mike Raimo: And their desire to keep up with evolving customer needs. Some vendors are retrofitting their products, such as adding Jason on a vector support as after thoughts which are superficial and brittle.

Mike Raimo: This is a tacit admission that <unk> approach of using Jason in the document is the best way to model real real World data.

Mike Raimo: These features may check the box, but they fall apart in production leading to performance bottlenecks operational headaches and spiraling infrastructure costs fundamentally these vendors are constrained by the relational underpinnings, it's important to understand at superficial compatibility with modern data types is not the same as deeply integrated production grade functionality.

Dev Ittycheria: Fundamentally, these vendors are constrained by their relational underprivileges. It's important to understand that superficial compatibility with modern data types is not the same as deeply integrated production-grade functionality. MongoDB, by contrast, was purpose-built to address these needs natively.

Mike Raimo: <unk> by contrast was purpose built to address these needs natively.

Dev Ittycheria: We see this dynamic in our customer base every day.

Mike Raimo: We see this dynamic in our customer base to everyday to bring this to life with an example, <unk> an India based quick commerce platform with $1 5 billion in annual sales migrated among DB from Postgresql after experiencing scalability challenges.

Dev Ittycheria: To bring this to life with an example, Zepto, an India-based quick commerce platform with 1.5 billion in annual sales, migrated to MongoDB from Postgres after experiencing scalability challenges. Zepto offers users a choice of over 15,000 products with a promised 10-minute delivery and has grown rapidly since its founding in July 2021, recording 20% month-over-month growth. After this rapid growth, Zepto faced performance issues with its previous infrastructure powered by Postgres and Redis clusters that could no longer scale. By migrating to MongoDB Atlas, Zepto overcame these challenges through built-in features like in-memory caching, sharding, and real-time analytics. This transition enabled them to reduce latency by 40%, handle six times more traffic, and improve page load times by 14%, directly enhancing customer experience and enabling their fast growth.

Mike Raimo: <unk> offers users a choice of over 15000 products with a promise 10 minute delivery and has grown rapidly since its founding in July 2021, recording 20% month over month growth.

Mike Raimo: After this rapid growth <unk> faced performance issues with its previous infrastructure power by post <unk> clusters that could no longer scale.

Mike Raimo: Migrating to <unk> Atlas receptor overcame these challenges through built in features like in memory caching charting and real time analytics. This transition enabled them to reduce latency by 40% handle six times more traffic and improved page load times by 14% directly enhancing customer experience and enabling their fast growth.

Mike Raimo: As we look ahead, we're confident that <unk> combination of architectural advantage enterprise trust and broad developer adoption positions us to lead us to lead in both the current wave of digital transformation and the next wave powered by AI.

Speaker Change: We also remain focused on our other strategic priorities, we've discussed in previous quarters, moving upmarket and modernizing legacy apps, we're seeing good progress on these initiatives, which will fuel growth into fiscal 'twenty seven and beyond this quarter, we hired a new leader who has nearly 30 years of experience in technology transformation and leading systems integrators to lead our <unk>.

Mike Raimo: Application modernization program, we continue to see significant demand to modernize legacy applications, and we're making great progress on tooling to automate this effort to standardize and prioritizes offering.

Dev Ittycheria: While we continue to invest in the long term, we are also sharpening our focus on operating efficiency. We view this as healthy discipline, regularly reassessing the return on our spend, identifying what's working and what's not, and reallocating resources to high conviction areas and improving profitability.

Mike Raimo: While we continue to invest long term. We are also sharpening our focus on operating efficiency. We view this as healthy discipline regulated reassessing the return on our spend identify what's working and what's not and reallocating resources to high conviction areas and improving profitability.

Dev Ittycheria: To help usher in our next stage of growth, I'm delighted to introduce two new leaders to the Executive Mike Berry, our new CFO, joins us from NetApp, where he has served in the same role for the past five years. Mike is a seven-time CFO with over 30 years' experience in technology and software and has a proven track record of driving profitable growth.

Mike Raimo: To help Usher in our next stage of growth I'm delighted to introduce two new leaders to the executive team.

Speaker Change: <unk>, our new CFO joins us from net App, where he had served in the same role for the past five years, Mike has a seven times CFO with over 30 years experience in technology and software and has a proven track record of driving profitable growth.

Speaker Change: We have also promoted may petri to be our new CMO main joined <unk> in early 2022, as VP of digital and growth marketing and brings the right mix of enterprise experience and results orientation to lead our marketing organization.

Dev Ittycheria: Now I'd like to spend a few minutes reviewing the adoption trends of MongoDB across our customers. Customers across industries and around the world are running mission-critical projects in Atlas, leveraging the full power of our platform, including the European Commission, Lenovo, Nokia Networks, and CSX. CSX, a leading U.S. railroad transportation company, migrated its mission-critical Railroad Transportation Operations Portal, which is responsible for real-time monitoring and alerts across 21,000 miles of track and ensuring uninterrupted 24x7 availability onto MongoDB apps. CSX can now dynamically scale workloads and optimize its database management. With this modernization, CSX is positioned to achieve greater operational performance while driving long-term sustainable growth.

Speaker Change: Now I'd like to spend a few minutes reviewing the adoption trends among <unk> across our customer base cuts.

Speaker Change: Customers across industries and around the world are running mission critical projects and the Atlas leveraging the full power of our platform, including the European Commission, Lenovo Nokia networks and <unk> <unk>.

Speaker Change: <unk>, a leading U S Railroad transportation company migrated its mission critical railroad transportation operations portal, which is responsible for real time monitoring of alerts across 21000 miles of track and ensuring uninterrupted 24 by seven availability on demand among <unk> Atlas.

Speaker Change: <unk> can now dynamically scale workloads and Optimizes database management with this monetization <unk> is positioned to achieve greater operational performance, while driving long term sustainable growth.

Dev Ittycheria: Startups and mature companies are using MongoDB to help deliver the next wave of AI-powered applications to their customers, including Cursor, Halion, Vonage, The Financial Times, and LG U+. www.microsoft.com LG U+, a South Korean mobile network operator owned by the LG Corporation, built its Agent Assist AI solution on MongoDB Atlas, which supports thousands of agents in accessing information and delivering accurate responses to customers quickly. They use MongoDB Atlas Vector Search to enable real-time AI capabilities such as identifying customer intent and providing guidelines on how to respond to inquiries. The solution has significantly enhanced customer experiences and decreased the average processing time per call.

Speaker Change: Startups and mature companies are using marketing to help to deliver the next wave of AI powered applications to their customers, including cursor alien vantage, the financial times and LG <unk> plus LNG.

Speaker Change: LNG, you plus a south Korean mobile network operator owned by the LG Corporation built its agent assist AD solution on <unk> Atlas, which supports thousands of agents in accessing information and delivering accurate responses to customers quickly.

Speaker Change: They use modeling to be outlets vector search to enable real time, AI capabilities, such as identifying customer intent and providing guidelines and how to respond to inquiries. The solution has significantly enhanced customer experiences and decrease the average processing time for call.

Speaker Change: In summary, we had a strong Q1 and we remain confident in our ability to execute our long term opportunity for steadily advancing toward a vision of becoming the go to platform for enterprises and the first choice for developers, creating new applications.

Dev Ittycheria: Before I turn it over to Mike, I would personally invite you to the investor session at the MongoDB.local NYC to be held at the Javits Center on September 17. Please email ir at mongodb.com if you are interested in attending.

Speaker Change: I turn it over to Mike I would personally invite you to the investor session at the moment would be that local NYSE to be held at the Javits Center on September 17, Please email IR at <unk> Dot com, if youre interested in attending with that peers Mike.

Speaker Change: Thank you Dave for that Great introduction, I am thrilled to join Mongo DB at such an exciting moment in its growth journey. The company's incredible track record of product innovation and established leadership position and what are the largest most strategic markets and software provide significant growth drivers that we expect to benefit our business.

Speaker Change: For years to come the opportunity to join a company of the caliber of Mongo DB was incredibly compelling.

Speaker Change: I would like to thank Dave and the entire board for giving me this opportunity I am extremely excited and look forward to working alongside the talented team to create long term value for our customers shareholders and employees.

Speaker Change: Diving profitable growth with operational excellence and discipline is a priority for the whole leadership team.

Mike Berry: With that said, let's move on to the financial results. I'll begin with a detailed review of our first quarter results and then finish with our outlook for the second quarter and fiscal year 26. I will be discussing our results on a non-GAAP basis unless otherwise noted. In the first quarter, total revenue was $549 million, up 22% year over year, and above the high end of our guidance. Shifting to product mix, Atlas grew 26% in the quarter compared to the year ago period and now represents 72% of total revenue. This compares to 70% in the first quarter of fiscal 25 and 71% last quarter.

Speaker Change: With that said, let's move on to the financial results I'll begin with a detailed review of our first quarter results and then finish with our outlook for the second quarter and fiscal year 'twenty six.

Speaker Change: Ill be discussing our results on a non-GAAP basis, unless otherwise noted and.

Speaker Change: In the first quarter total revenue was $549 million up 22% year over year and above the high end of our guidance.

Speaker Change: Shifting the product mix Atlas grew 26% in the quarter compared to the year ago period, and now represents 72% of total revenue.

Speaker Change: This compares to 70% in the first quarter of fiscal 'twenty, five and 71% last quarter.

Mike Berry: Let me provide some context on Atlas consumption in the quarter. In Q1, consumption growth was in line with our expectations.

Speaker Change: Let me provide some context on Atlas consumption in the quarter and Q1 consumption growth was in line with our expectations.

Mike Berry: Given the unique macroeconomic backdrop, I will provide some detail on the month-over-month trends, but please note that I do not expect to give this level of detail going forward. Specifically, we saw good consumption growth in February and March. Some softness in April as macroeconomic volatility increased, followed by a healthy rebound in May. Turning to non-ATLAS, revenue came in ahead of our expectations in the quarter as we continue to have success selling incremental workloads into our existing EA customer base. Turning to customer growth, during the first quarter we grew our customer base by approximately 2,600 sequentially, bringing our total customer count to over 57,100, which is up from over 49,200 in the year-ago period.

Speaker Change: Given the unique macroeconomic backdrop I will provide some detail on the month over month trends, but please note that I do not expect to give this level of detail going forward.

Speaker Change: Specifically, we saw good consumption growth in February and March.

Speaker Change: Some softness in April as macroeconomic volatility increased followed by a healthy rebound in may.

Speaker Change: Turning to non Atlas revenue came in ahead of our expectations in the quarter as we continue to have success selling incremental workloads into our existing EAA customer base.

Speaker Change: Turning to customer growth during the first quarter, we grew our customer base by approximately 2600 sequentially, bringing our total customer count to over five <unk>.

Speaker Change: <unk> 57100, which is up from over 49200 and the year ago period.

Mike Berry: The growth in our total customer count is being driven primarily by Atlas, which had over 55,800 customers at the end of the quarter, compared to over 47,700 in the year-ago period. It is important to keep in mind that the growth in our Atlas customer count reflects new customers to MongoDB, in addition to existing EA customers deploying workloads on Atlas for the first time. of our total customer count, over 7,500 are direct sales customers, relatively flat the last quarter and up 5% year over year. These metrics are largely due to our decision to reallocate a portion of our go-to-market resources from the mid-market to the enterprise channel starting in the second half of last year.

Speaker Change: The growth in our total customer count is being driven primarily by Atlas, which had over 55800 customers at the end of the quarter compared to over 47700 in the year ago period. It is important to keep in mind that the growth in our Atlas customer count reflects new customers to Mongo DB.

Speaker Change: In addition to existing EAA customers deploying workloads on Atlas for the first time.

Speaker Change: Of our total customer count over 7500 are direct sales customers relatively flat to last quarter and up 5% year over year.

Speaker Change: These metrics are largely due to our decision to reallocate a portion of our go to market resources from the mid market to the enterprise channel starting in the second half of last year. We expect this dynamic will continue going forward as we capture more mid market customers with our self serve motion.

Mike Berry: We expect this dynamic will continue going forward as we capture more mid-market customers with our self-serve motion. In Q1, our net ARR expansion rate was approximately 119%, which is consistent with recent quarters. We ended the quarter with 2,506 customers with at least $100,000 in ARR, a 17% growth versus the year-ago period. Moving down the income statement, gross profit in the first quarter was $407 million, representing a gross margin of 74%, which is down from 75% in the year-ago period. Our year-over-year gross margin decline is primarily driven by Atlas growing as a percent of the overall business and the impact of the Voyage acquisition.

Speaker Change: In Q1, our net expansion rate was approximately 119%, which is consistent with recent quarters. We ended the quarter with 2506 customers with at least $100000.

Speaker Change: <unk>, a 17% growth versus the year ago period.

Speaker Change: Moving down the income statement gross profit in the first quarter was $407 million, representing a gross margin of 74%, which is down from 75% in the year ago period our.

Speaker Change: Our year over year gross margin decline is primarily driven by Atlas growing as a percent of the overall business and the impact of the voyage acquisition.

Mike Berry: Our income from operations was $87 million for a 16% operating margin compared to a 7% operating margin in the year-ago period. We are very pleased with our stronger-than-expected operating margin results, which benefited from our revenue outperformance, as well as the timing of expenses, particularly slower than planned headcount additions. Net income in the first quarter was $86 million, or $1 per share, based on 86 million diluted shares outstanding. This compares to a net income of $43 million, or $0.51 per share, on 83 million diluted shares outstanding in the year-ago period.

Speaker Change: Our income from operations was $87 million for a 16% operating margin compared to a 7% operating margin in the year ago period.

Speaker Change: We are very pleased with our stronger than expected operating margin results, which benefited from our revenue outperformance as well as the timing of expenses, particularly slower than planned head count additions.

Speaker Change: Net income in the first quarter was $86 million or $1 per share based on 86 million diluted shares outstanding. This compares to a net income of $43 million or <unk> 51 per share on 83 million diluted shares outstanding in the year ago period.

Mike Berry: Turning to the balance sheet and cash flow, we ended the quarter with $2.5 billion in cash, cash equivalents, short-term investments, and restricted cash. Operating cash flow was $110 million, and free cash flow was $106 million in the first quarter, which compares to $64 and $61 million, respectively, in the year-ago period. The strong start for cash flow in Fiscal 26 was driven primarily by strong operating profit results and higher cash collection.

Speaker Change: Turning to the balance sheet and cash flow, we ended the quarter with $2 $5 billion in cash cash equivalents short term investments and restricted cash.

Speaker Change: Operating cash flow was $110 million in free cash flow was $106 million in the first quarter, which compares to 64 and $61 million respectively in the year ago period the.

Speaker Change: The strong start for cash flow in fiscal 2006 was driven primarily by strong operating profit results and higher cash collections.

Speaker Change: Before turning to our outlook in greater detail I would like to share the key points driving how we're looking at the rest of fiscal year 'twenty six.

Speaker Change: Number one we are raising our expectations for revenue based on our strong start to the year.

Speaker Change: Number two we are increasing our operating margin guidance by 200 basis points, reflecting an increased focus on margin improvement.

Speaker Change: And number three we are announcing a significant expansion to our share repurchase program.

Mike Berry: I would like to take a minute to provide some color on the share repurchase. Today, we are pleased to announce that our Board of Directors has authorized an increase to our share repurchase program, under which we may repurchase up to an additional $800 million of our common stock. Please note this authorization is in addition to the $200 million buyback the board authorized last quarter to offset the dilutive impact of the Voyage AI acquisition, bringing the total authorization to $1 billion. This decision reflects our confidence in the long-term potential of our business and underscores our commitment to delivering value to our shareholders while maintaining a flexible capital structure.

Speaker Change: I would like to take a minute to provide some color on the share repurchases.

Speaker Change: We are pleased to announce that our board of directors has authorized an increase to our share repurchase program under which we may repurchase up to an additional $800 million of our common stock.

Speaker Change: Note. This authorization is in addition to the $200 million buyback the board authorized last quarter to offset the dilutive impact of the voyage AIA acquisition, bringing the total authorization to $1 billion.

Speaker Change: This decision reflects our confidence in the long term potential of our business and underscores our commitment to delivering value to our shareholders, while maintaining a flexible capital structure.

Speaker Change: I would note that we did not repurchase any shares in Q1 as the CFO search process prevented us from initiating the repurchase program.

Speaker Change: It is our intention to begin repurchasing shares in Q2.

Speaker Change: Now moving onto our full year guidance I'd like to provide some incremental comments on our expectations.

Speaker Change: First as we discussed we had a strong start to the year and feel good about our ability to drive continued revenue and profitability growth, even with the more uncertain macroeconomic environment.

Speaker Change: We are raising our full year revenue guidance by $10 million, which reflects the continued confidence in atlas, while incorporating some timing differences in our EA business.

Speaker Change: Second our expectations for non outlet subscription revenue have not changed we continue to expect it will be down in the high single digits for the year, though we will continue to expect non Atlas ALR will grow year over year.

Mike Berry: As a reminder, we expect an approximately $50 million headwind from multi-year license revenue in fiscal year 26, primarily impacting the second half of the year. Finally, we are raising our expectations for operating margin to 12% at the midpoint, up from 10% in our initial fiscal year guidance. We remain committed to a balanced investment approach that supports our key long-term growth initiatives. As CFO, one of my key priorities will be working closely with leaders across the business to identify ways to both reallocate existing spend to higher ROI opportunities and be more disciplined about incremental spending. We are focused on running an efficient, scalable business that supports growth in revenue and profitability to drive long-term shareholder value.

Speaker Change: As a reminder, we expect an approximately $50 million headwind from multi year license revenue in fiscal year 2006, primarily impacting the second half of the year.

Speaker Change: Finally, we are raising our expectations for operating margin to 12% at the midpoint up from 10% in our initial fiscal year guidance.

Speaker Change: We remain committed to a balanced investment approach that supports our key long term growth initiatives.

Speaker Change: As CFO one of my key priorities will be working closely with leaders across the business to identify ways to reallocate existing spend to higher ROI opportunities.

Speaker Change: And be more disciplined about incremental spending.

Speaker Change: We are focused on running an efficient scalable business that supports growth in revenue.

Speaker Change: And profitability to drive long term shareholder value.

Mike Berry: Moving on to our Q2 guidance, a few things to keep in mind. First, I want to remind you that Q2 has three more days than Q1, which is a sequential tailwind for Q2 Atlas Revenue. Second, we expect to see high single digit year over year decline in the non Atlas business after a stronger than expected Q1. And third, we expect operating margin will be lower than in Q1 as we have invested in targeted areas to drive growth. In addition, the expected sequential decline in non-Atlas revenue will be a headwind to profitability in Q2.

Speaker Change: Moving are moving onto our Q2 guidance a few things to keep in mind.

Speaker Change: First I want to remind you that Q2 has three more days in Q1, which is a sequential tailwind for Q2 Atlas revenue.

Speaker Change: Second we expect to see high single digit year over year decline in the non Atlas business after a stronger than expected Q1 and.

Speaker Change: And third we expect operating margin will be lower than in Q1, as we have invested in targeted areas to drive growth.

Speaker Change: In addition, the expected sequential decline in non Atlas revenue will be a headwind to profitability in Q2.

Mike Berry: With that context, I will now turn to our outlook for the second quarter in fiscal year 26. For the second quarter, we expect revenue to be in the range of $548 to $553 million. We expect non-GAAP income from operations to be in the range of $55 to $59 million, and non-GAAP net income per share to be in the range of $0.62 to $0.66 based on $87.5 million estimated diluted shares outstanding. For FY26, we now expect revenue to be in the range of $2.25 to $2.29 billion, an increase of $10 million from our prior guide. We are raising our non-GAAP income from operations expectations by $57 million and are now targeting a range of $267 to $287 million and non-GAAP net income per share to be in the range of $2.94 to $3.12 based on 87.6 million estimated diluting shares out Note that the non-GAAP net income per share guidance for the second quarter and fiscal year 26 assumes a non-GAAP tax provision of approximately 20%.

Speaker Change: With that context, I will now turn to our outlook for the second quarter and fiscal year 2006.

Speaker Change: For the second quarter, we expect revenue to be in the range of $548 million to $553 million.

Speaker Change: We expect non-GAAP income from operations to be in the range of $55 million to $59 million and non-GAAP net income per share to be in the range of 62 to 66.

Speaker Change: Based on $87 5 million estimated diluted shares outstanding.

Speaker Change: For fiscal year 2006, we now expect revenue to be in the range of 225 to $2. Two 9 billion, an increase of $10 million from our prior guide.

Speaker Change: We are raising our non-GAAP income from operations expectations by $57 million and are now targeting a range of $267 million to $287 million and non-GAAP net income per share to be in the range of $2 94.

Speaker Change: So $3 12.

Speaker Change: Based on $87 6 million estimated diluted shares outstanding.

Speaker Change: Note that the non-GAAP net income per share guidance for the second quarter and fiscal year 2006 assumes a non-GAAP tax provision of approximately 20%.

Speaker Change: To summarize Mongo DB delivered strong first quarter results. We are pleased with our ability to drive growth across the business and increase our operating profitability expectations.

Speaker Change: We have a small share in one of the largest and fastest growing markets in all of software with a number of secular tailwind at our back.

Speaker Change: We remain incredibly excited about the opportunity ahead, and we will continue to invest responsibly to drive long term shareholder value.

Speaker Change: With that Josh we'd like to open it up for questions.

Speaker Change: Thank you.

Speaker Change: As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please limit yourself to one question and one follow up one moment for questions.

Speaker Change: Our first question comes from Sanjay Singh with Morgan Stanley You May proceed.

Sanjay Singh: Yes, thank you for taking that.

Speaker Change: A question and congrats on the strong Q1, and really nice to see the Atlas growth accelerating on a.

Speaker Change: Days' adjusted basis, and on a reported basis as well Dave I had a question for you and then I got a question.

Dev Ittycheria: Dave, I had a question for you and then I got a question for Mike as well. Dave, to start, when we think about what's driving Atlas growth, can you frame it in terms of the type of applications that are being built? In your script, you sort of distinguished cloud native distributed real time today versus, you know, the AI apps for tomorrow. And so I just love to get a sense of the nature and style of applications that are being built on Mongo that's driving this accelerated growth. Yes. So, Sanjit, thanks for the question. What I would say is that, you know, we still talk to customers who have very near, you know, needs for running their business, building new applications to drive operational efficiency, building new products and services through software to drive, to take advantage of new revenue Thank you.

Speaker Change: One for Mike.

Speaker Change: Well David to start when we think about what's driving Atlas goods can you frame. It in terms of the type of applications that are being built in your script, you sort of distinguished cloud native distributed real time.

Speaker Change: Today versus the AI ops for tomorrow, and so I'd, just love to get a sense of the nature and style of applications that are being built on monitor that's driving this accelerated growth.

Speaker Change: Yes so.

Speaker Change: Thanks for the question, what I would say is that we.

Speaker Change: We still talk to customers who have.

Speaker Change: Very near needs.

Speaker Change: Needs for running their business building, new applications to drive operational efficiency building, new products and services through software to drive to take advantage of new revenue opportunities and to continue to drive more innovation in their business I think what people find attractive among DB is that you really can use it for a wide variety of use cases.

Dev Ittycheria: and to continue to drive more innovation. I think what people find attractive about MongoDB is that you really can use it for a wide variety of things. You can support very transactional intensive use cases, you can support more modern use cases, things like IoT, streaming, and so on and so forth, as well as being able to also support some of these more modern use cases like AI. And the fact that you can do this all in one platform, where you don't have to stitch together modules, The underlying architecture is designed to really help you model the real world, to be able to handle complex, nested, and evolving data, to be able to scale elastic California Institute of Technology To be able to run these applications on any cloud, across clouds, or on-prem, just makes MongoDB a very attractive platform.

Speaker Change: You can support very transactional intensive use cases, you can support more modern use cases things like Iot streaming and so on and so forth as well as being able to support some of these more modern use cases like AI and the fact that you can do this all in one platform, where you don't have to stitch together multiple tools.

Speaker Change: The underlying architectures designed to really help you model the real world to be able to handle complex nested in evolving data to be able to scale elastically.

Speaker Change: To be able to run these applications on any cloud.

Speaker Change: Cross cloud or on Prem just makes it model it would be a very attractive solution and we feel really good about the fact that we added a lot of customers. So what it really shows us that.

Dev Ittycheria: And we feel really good about the fact that we added a lot of customers. So what it really shows is that, you know, customers and developers are voting with their feet to really adopt Awesome.

Speaker Change: Customers and developers are voting with their feet to really adopt mongo DB.

Speaker Change: Awesome and then Mike for you congratulations.

Mike Berry: And then Mike, for you, congratulations on the CFO role. I would love to get just your sense of like, the opportunity ahead from you. And mostly want to get a sense of like, how you're thinking about like, on a first principles basis, how you plan to sort of manage and message the metrics and the numbers. You're a longtime, highly experienced CFO, this is your seventh spin. But this is a consumption model, right, which has like, more variable components. So I'd love to see how you're thinking about that as you take on the role from a growth perspective, but also from an operational discipline perspective.

Speaker Change: The CFO CFO role I would love to get just your sense of.

Speaker Change: The opportunity ahead from you and mostly want to get a sense of like how you're thinking about like on a first principle basis.

Speaker Change: You plan to sort of manage and message the metrics and the numbers Youre a long time highly experienced senior CFO. This is your seven spin.

Speaker Change: But this is a consumption model right, which has like a more more available components. So would love to see how you're thinking about that as you take on the role from a growth perspective, but also from an operational discipline perspective.

Mike Berry: Yeah, so thank you for the question, Sanjay. It's actually a very interesting one. So I think the company does a wonderful job actually on the metrics that they give. You know, we had experience in a consumption business in my last role as well. In going through all the data and meeting with the team in the firehose that has been my onboarding, we have a lot of data. I think that the metrics that we talk to investors about are very relevant in terms of consumption, in terms of customer growth. So at this point, again, it's a non-excuse.

Speaker Change: Yes. So thank you for the question Sanjay it's actually a very interesting one so I think the company does a wonderful job actually on the metrics that they give we had experienced in a consumption business at my last role as well and going through all the data and meeting with the team and the.

Speaker Change: The fire hose that has been my Onboarding.

Speaker Change: We have a lot of data I think that the metrics that we talk to investors about our very relevant in terms of consumption in terms of customer growth.

Mike Berry: It's just a fact. Eight days in, I would say not a lot of change there. I do think that we will spend a lot more time going forward on a couple of things. One is just the capital structure, the cash flow generation of the business, as well as the operating margin improvements. And this will certainly change. I would also underline, hey, come in September to the DOT local event.

Speaker Change: <unk> I would also underline hey come in September to the Dot local event that will give us that will give me at least another quarter to under my belt, and we'll talk a little bit more about what you can expect from Mongo DB going forward.

Mike Berry: That will give me at least another quarter under my belt, and we'll talk a little bit more about what you can expect from MongoDB going forward. Congratulations again. Thank you.

Speaker Change: It makes telephones congratulations again thank.

Speaker Change: Thank you.

Raimo Lenschow: Our next question comes from Raimo Lenschow with Barclays, you may...

Speaker Change: Our next question comes from Raimo <unk> with Barclays. You May proceed.

Raimo Lenschow: Hey, perfect. Thank you. I have two quick questions.

Speaker Change: Perfect. Thank you two quick questions one for Dave one for Mike.

Raimo Lenschow: One for Dave, one for Mike. Dave, if you look this week, we saw Snowflake kind of move and make the move towards Postgres, we saw Databricks kind of doing something there. Can you kind of frame that? Because obviously, like from the outset, it looks like, you know, there's like a big embrace going on, but like, maybe contrast and a little bit like, you know, where you fit in and where some of those moves could fit in. And that's my first question.

Speaker Change: Steve If you look this week.

Speaker Change: It is.

Speaker Change: We saw.

Speaker Change: Snowflake kind of kind of move and make the move towards post crisis you saw.

Speaker Change: Data breaks kind of doing something there can you kind of frame that because obviously like from the outside it looks like.

Speaker Change: There is the big embrace going on but like maybe contrast.

Speaker Change: A little bit like where you fit in where some of those moves could fit in.

Speaker Change: That's my first question for Mike I know you have only had a deal but when you did your due diligence looking at the company and also looking at the strong performance on the profitability in Q1 like how do you think about this business because that's one of the things that people would have kind of talked with the previous team abound as the profitability level of this and if there is something inherent there or if there.

Dev Ittycheria: And then for Mike, like, I know you have only had eight days, but when you did your due diligence, looking at the company and also looking at the strong performance on profitability in Q1, like how do you think about this business? Because that's one of the things that people would have kind of talked with the previous team about is the profitability level of this and if there's something inherent there, or if there's something just that can be done about that. Thank you. Thanks, Raimo. To your first question, I think the moves by both Databricks and Snowflake, I think, validate one thing, that OLTP, or the operational data store, is the strategic high ground, especially for AI.

Speaker Change: It's something that can be done about that thank you.

Mike Raimo: Thanks Raimo.

Speaker Change: To your first question.

Dev Ittycheria: That's where inference happens. Inference is the big market. That's where everyone wants to go. And you need to have an operational data store to do that. And I think the other thing it points out is building organically an OLTP store is really hard, especially when you need to meet the requirements of enterprise scale, availability, resiliency, and security. And both organizations had signaled that they were working on organic approaches. You know, Snowflake talked about in a store, Databricks talked about their own organic efforts, and it's clear that they couldn't make it happen. So this is not an easy task.

Speaker Change: In <unk> store is really hard, especially when you need to meet the requirements of enterprise scale availability, Brazil, and security and both organizations had at <unk>.

Speaker Change: Signal that they were working on organic approaches snowflake to talk about in a store data bricks have talked about their own organic efforts and it's clear that they couldnt make it happen. So this is not an easy task. The second point I'd make is that just because they are buying a small small post stress companies I think.

Dev Ittycheria: The second point I'd make is that, you know, just because they're buying a small, small Postgres company, I think, you know, and NEON, I would say, was in the vibe coding space, and I would say Crunchy Data is a small relational company based in South Carolina. I would say that it's not clear to me why the world needs a 15th or 16th Postgres derivative database. I think we'll find that out. I think there's also some noise about how NEON is, you know, 80% of its instances are provisioned via code. I should point out that nearly 80% of MongoDB instances on Atlas are provisioned via code.

Speaker Change: <unk>.

Speaker Change: Neon I would say it was in the <unk> coating space and I would say crunchy data as a small relational company based in South Carolina, I would say that it's not clear to me why the world needs, a 15th or 16th post crest derivative database I think we'll find that out.

Speaker Change: And I think there's some there's also some noise about how neon is.

Speaker Change: 80% of the instances of provision via code I should point out that 80% nearly 80% of marketing be instances on the outlets are provisioned via code and so.

Dev Ittycheria: And so, you know, we do that to help our customers provision and scale, you know, clusters very, very quickly. And so the real advantage is architecture. And we believe that, you know, the fact that Postgres and other relational platforms are now adding JSON is a tacit admission that the core tabular architecture just doesn't get the job done in the world of AI. Developers need to be able to model the real-world data, which is complex, messy, nested, which means it has highly interdependent relationships, and is constantly evolving and changing. And then when you look at the fact that they bolted on these capabilities, if you add a document size greater than two kilobytes, it's going to deliver a very poor performance.

Speaker Change: We do that to help our customers provision and scale cluster very very quickly and so the real advantages architecture, and we believe that the.

Speaker Change: Fact that post crest and other relational platforms are now, adding Jason is a tacit admission.

Speaker Change: That the core tablet architecture, just doesn't get the job done in the world of AI developers need to be able to model the real world data, which is complex messy nested, which means it has highly interdependent relationships and is constantly evolving and changing and then when you look at the fact that they are bolted on these capabilities.

Speaker Change: If you've added document size greater than two kilobytes, it's going to deliver a very poor performance and so the superficial compatibility does not mean, it's native does not mean, it's production grade does that mean, it's designed for enterprises and so if the competition is now in who's who is going to compete for these complex AI workloads, we welcome Dr. Chang.

Dev Ittycheria: And so the superficial compatibility does not mean it's native, does not mean it's production grade, does not mean it's designed for enterprises. And so if the competition is now on who's going to compete for these complex AI workloads, we welcome that challenge because architecturally, we think we have a huge advantage.

Speaker Change: Because architecturally we think we have a huge advantage.

Speaker Change: So hey, Raimo, it's Mike. Thanks for the question I would highlight kind of four areas when when I did the diligence on Mongo DB and I can say in the first eight days nothing has changed my mind on any of these first of all there.

Speaker Change: There are few companies that are.

Speaker Change: Later than $2 billion of revenue, where their main business is growing 20% plus the total business growing double digit with 70% plus gross margin. So I'll stop there. That's that's a scale business that has a lot of leverage built in so the three things that are the four things I look that is already had the scale from an international lymphoma.

Speaker Change: Perspective, and the main business now is growing very is 72% growing very quickly number. Two is this is a business model that has a leverage because you can bring additional revenue and it's going to come through the gross margin line at high margins that leaves a ton of room for investing in the business, but also.

Mike Berry: And the main business now is growing very is 72% growing very quickly. Number two is, this is a business model that has leverage, because you can bring additional revenue in, it's going to come through the gross margin line at high margins, that leaves a ton of room for investing in the business, but also candidly for driving more efficiency as well. And that was the third piece. When you look at it, and nothing against the company as it sits today, as we grow, I'm completely confident we can continue to invest in the business, but become more efficient.

Speaker Change: Candidly for driving more efficiency as well and that was the third piece when you look at it and nothing against the company as it sits today as we grow I am completely confident we can to continue to invest in the business to become more efficient and then the fourth part was hey, it's really nice to come to a business that has a super clean balance sheet and <unk>.

Speaker Change: Our cash on there as well that leaves a bunch of flexibility going forward. So all of that I looked at it and said Wow, what a great opportunity and then of course I looked at where you folks were valuing the business and I said Wow, that's a really good opportunity.

Speaker Change: Perfect very clear thank you.

Speaker Change: Thank you.

Jason Ader: Our next question comes from Jason Ader with William Blair. Yeah, thank you. Sorry to beat the Postgres horse here, Dave.

Speaker Change: Our next question goes from Jason Ader with William Blair You May proceed.

Speaker Change: Yes. Thank you.

Speaker Change: Sorry to beat the post grass horse here, David but my question is a key part of the pool and there it is.

Speaker Change: NATO Brexit and what the cloud guys are doing I mean does that suggest that relational just may have greater long term relevance than initially anticipated.

Dev Ittycheria: Yeah, Jason, thanks for the question. And I think I, you know, I want to clarify some of these misconceptions that are out there. You know, one is that this is a big market, you know, it's $100 billion plus market, so there can be multiple winners, right? Second, the Postgres popularity is really a function of the consolidation of the SQL market. People are leaving Oracle, leaving SQL Server, leaving MySQL and going to Postgres. I think the third thing that I should mention is that Postgres does have this veneer of being an open, you know, open source, open standard, not owned by any one vendor.

Speaker Change: Yes, Jason Thanks for the question and I think.

Speaker Change: I want to clarify some of these misconceptions that are out there. One is that this is a big market. It's a $100 billion plus market. So there can be multiple winners right second the postgresql popularity is really a function of the consolidation of the sequel market people are are leaving Oracle, leaving sequel server, leaving my sequel and.

Speaker Change: Going to post growth I think the third thing that I should mention is that post stress does have this veneer of being an open.

Speaker Change: Often source open standard not owned by any one vendor, but they are literally every vendor, including the hyperscale or have their own version of post stress that built proprietary extensions and other capabilities that actually make it very difficult to go from one version of post crest to another version of post stress with <unk> you can actually run.

Dev Ittycheria: But there are literally every vendor, including the hyperscalers, have their own version of Postgres that build proprietary extensions and other capabilities that actually make it very difficult to go from one version of Postgres to another version of Postgres. With MongoDB, you can actually run any workload on any cloud, across clouds, and on-prem without changing a line of code. And last, I would say architecturally, we are far better optimized for this new world of complex, you know, modern applications, especially in the world of AI. JSON was designed to really address the needs of this modern world, how data is very messy, how it's very interdependent, how it changes often, there's no predictability in the format, there's no uniformity on the structure, and MongoDB is designed to handle that world.

Speaker Change: Any workload on any cloud across clouds and on Prem without changing a line of code and last I would say architecturally we are far better optimized for this new world of complex in a modern applications, especially in the world of AI, Jason was designed to be to really address the <unk>.

Speaker Change: <unk> of this modern world how data is very messy, how it's very interdependent, how it changes often theres no predictability in the format.

Speaker Change: No uniformity on the structure and Margarines designed to handle that world.

Dev Ittycheria: And when relational databases start trying to mimic our features, what does that tell you? It tells you that their existing architecture is not designed for this world.

Speaker Change: And when when when relational databases start trying to mimic our features what does that tell you tells you that their existing architecture is not designed for this world now Theres No question when that technology has been available for 40 50 years Theres, a large group of people who understand that technology, but we feel we are well positioned we have more work to do but we feel like well positioned to be.

Dev Ittycheria: Now, there's no question when a technology has been available for 40, 50 years, there's a large group of people who understand that technology, but we feel we're well-positioned, we have more work to do, but we feel like we're well-positioned to be a winner in this next wave of applications that are being built, and we feel confident about our potential. One quick follow up to that, Dave. Thank you for that answer. Should we be thinking about then, I don't know, over the next five plus years or something that the two big winners in the database market in terms of architecture will be Postgres sort of for the relational crowd and Mongo for the non-relational crowd?

Speaker Change: A winner in this next wave.

Speaker Change: <unk>.

Speaker Change: Applications are being built and where and we feel confident about our position.

Speaker Change: One quick follow up to that thank you for that answer.

Speaker Change: Should we be thinking about and I don't know over the next.

Speaker Change: Five plus years or something that the two big winners in the database market in terms of architecture will be post grant sort of for the relational crowd and mongo for the non relational kind of is that how we should be thinking about it is that how youre thinking about it.

Dev Ittycheria: Is that how we should be thinking about it? Is that how you're thinking about it? Yeah, I would say, I definitely think that there will be multiple winners, this is not a zero-sum game. I also believe that, you know, the other point I want to clarify is a lot of people compare MongoDB to Postgres, and that's actually a false comparison. By us embedding, you know, keyword search, by us embedding a native vector search, by us embedding embedding models, you're really comparing MongoDB to Postgres, plus Elastic, plus Pinecone, plus something like Cohere. So the value for customers is that they don't have to stitch all these capabilities together, they get all these capabilities in a very elegant, natively built way that they can, you know, allows them to move fast, it's not a very complex architecture, and it's much more cost effective.

Speaker Change: Yes, I would say.

Speaker Change: We think that there will be multiple winners. This is not a zero sum game I also believe that the other point I want to clarify is a lot of people compare <unk> to post question, that's actually a false comparison by us embedding keyword search by US embedding a native vectors search by US embedding embedding models youre really comparing <unk> to <unk>.

Speaker Change: <unk>, plus elastic plus pine cone, but something like co here so the value for customers. So that they don't have to stitch. All these capabilities together they get all these capabilities in a very elegant natively built way that they can now allows them to move fast that's not a very complex architecture and it's much more cost effective.

Speaker Change: And so but I do think there'll be multiple winners and for people who want to stay on relational post stress as a very viable option, but we think that we have a big opportunity in front of us.

Speaker Change: Thank you.

Kasthuri Rangan: Our next question comes from Kasthuri Rangan with Goldman Sachs. Thank you very much, Dev. migrator I think you have discussed metrics such as the productivity, superiority in moving up market. Not only give us market to market, but how Customer Lines have been quite good, but with respect to growth rate... It does not look like we're quite yet.

Speaker Change: Our next question comes from Kash Rangan with Goldman Sachs. You May proceed.

Kash Rangan: Yes. Thank you very much Dave one for you and one for you Mike Congratulations on joining <unk> CFO, Dave can you give us a mark to market on where we are with.

Speaker Change: Some of the growth initiatives, you undertook such as relation to migrate or move upmarket. The reconstitution of the refocusing of the sales force towards higher value accounts and I think you have discussed metrics such as the productivity.

Speaker Change: Superiority and moving upmarket.

Speaker Change: If you could just not only give them give us a mark to market, but how is that.

Speaker Change: New push showing up in terms of incremental productivity metrics, obviously, the customer lines have been quite good but with respect to growth rate.

Speaker Change: <unk> looked like we're quite yet at that inflection point, maybe if you could just give us a little bit more of your introspective analysis on that and then Mike One for you you talked about second half dynamic with respect to I believe it was the EAA business can you expand upon that a little bit and what could go right versus that asked here.

Kasthuri Rangan: more of your introspective analysis on that and then Mike. dynamic with Spanned upon that a little bit in could go right. After all, we did see upside in EA this particular quarter, so versus Natyoga.

Speaker Change: Because.

Speaker Change: We see upside in.

Speaker Change: This particular quarter sort of versus <unk>.

Speaker Change: To your guidance, but you previously Scott. Thank you so much thanks.

Dev Ittycheria: Thanks, Cash. So let me start. So when we talked about the strategic initiatives, we really called out three things. One, R&D investments, two, moving up market, and three, putting more focus on awareness and education. So, on the R&D investments, I would tell you that we're already seeing returns on investment. We know we said we're going to double down on the core. We introduced MongoDB 8.0, which is the most performant release we've ever issued. And I will also point out that it's also had the fastest uptake of any major release. Customers are adopting 8.0 two times faster than our last major release.

Speaker Change: Thanks, Kash, So let me start so when we talked about the strategic initiatives, we really called out three things one R&D investments to moving upmarket and three putting more focus on awareness and education.

Speaker Change: On the R&D investments I would tell you that we're already seeing returns on investment we said, we're going to double down in the core we introduce among DB eight zero, which is the most performance release, we've ever issued and I will also point out that.

Speaker Change: I also had the fastest uptake of any major releases customers are adopting <unk> two times faster than our last major release, we're also expanding our engineering efforts around AI and voyage, because that's a super exciting.

Dev Ittycheria: We're also expanding our engineering efforts around AI and Voyage because that's a super exciting area for us. And we're also investing in product tooling for on-app modernization. And last but not least, we're bringing more senior talent to really complement the existing team so that we can really have a broader ambition. So that investment is paying hands-on. The move up market is also, you know, going well because a part of our results are a function of the fact that we made that move starting in the, you know, last year, and we're starting to have two bigger deals, we've signed some very, very large deals with some very, very large enterprises.

Speaker Change: Area for Us and we're also investing in product tooling for an app monetization and last but not least we're bringing more senior talent to really complement the existing team. So that we can really.

Speaker Change: Our broader ambition so that investment is paying handsomely to move up market is also.

Speaker Change: Going well because a part of our results are a function of the fact that we.

Speaker Change: We made that move starting in the <unk>.

Speaker Change: Last year, and we're starting to have do bigger deals. We've signed some very very large deal with some very very large enterprises and and the productivity that team as always been quite high and I would say on a.

Dev Ittycheria: And, and the productivity of that team has always been quite high. And I would say a complementary move is that our self serve business is starting to acquire mid market logos, serving them more efficiently without, you know, feeding ground to anyone else. So, and that shows up, as you see in our customer account this quarter. And then in terms of awareness and education, we are aggressively investing in a few areas. One, we're aggressively investing in the Bay Area, that's where the next gen AI companies and the next gen AI developers are highly concentrated. And we're starting to see some traction there.

Speaker Change: Our complementary move is that our self serve business is starting to acquire mid market logos, serving them more efficiently without ceding ground to anyone else so and that shows up as you see in our customer count this quarter and then in terms of awareness and education. We are aggressively investing in a few areas. One we're aggressively investing in the bay area, that's where the Nexgen AI companies.

Speaker Change: The Nexgen AI developers are highly concentrated and we're starting to see some traction there and we have some high profile AI customers already on our platform and lots of other smaller customers.

Dev Ittycheria: And, you know, we have some high profile AI customers already on our platform and lots of other smaller customers. We're investing in attracting relational developers to learn more about MongoDB. So we're attending relational conferences, you know, putting together more training and more skills for people to upskill their, their abilities and also providing certifications. And what we also find is a lot of the new Atlas registrants are actually new to MongoDB. So we're spending a lot of time making sure they're onboarded properly and taking full advantage of all our capabilities. And then we're all, you know, as part of the training, we're upskilling developers on modern databases, right?

Speaker Change: We are investing in attracting relational developers to learn more about <unk> sort of attending relational conferences.

Speaker Change: Putting together more training and more skills.

Speaker Change: For people to upskill their their abilities and also providing certifications and while we also find that a lot of the new Atlas registrants are actually new to <unk>. So we're spending a lot of time, making sure they're on boarded properly and taking full advantage of all of our capabilities and then we're all as part of the training. We're upskilling developers on modern databases right as I mentioned.

Dev Ittycheria: As I mentioned, certifications, self paced courses, and all that. And we also expanded our documentation to Mandarin, to Portuguese, to Korean and Japanese, because MongoDB truly has a global business. And there's developers all around the world who want to use MongoDB. And I think we're just getting started.

Speaker Change: Patients self paced courses and all of that and we also expanded our documentation to Mandarin to Portuguese to Korean and Japanese because marketing be truly is a global business and as developers all around the world who want to use modeling to be and I think we're just getting started there is more things we're doing that I just can't talk about right now around especially on awareness and education, but the key point is there.

Speaker Change: Some misconceptions about <unk> that we know we need to address and we're quite excited about the update to do so.

Mike Berry: Thank you.

Mike Berry: So thank you, Cass, for the question. This is Mike, and for the kind words. So just for context, as we talked about in the prepared remarks, so for the full year, you know, we remain confident in the business. We took Q1, we exceeded our expectations, and we largely rolled the beat from the Atlas business into the full year number. As it relates to non-Atlas, and then specifically your question, we did do, we had a good quarter in the EEA business. Some of that was timing. So we adjusted the Q2 through Q4 non-Atlas business to take that into account.

Mike Raimo: So thank you cash for the question. This is Mike in for the kind words, so just for context.

Mike Raimo: As we've talked about in the prepared remarks, so for the full year.

Mike Raimo: The Q2 through Q4 non outlet business to take that into account as it relates to the $50 million multiyear headwind you talked about that's largely due to the renewals and the timing of those renewals from fiscal 'twenty five.

Mike Berry: As it relates to the $50 million multi-year headwind you talked about, that's largely due to the renewals and the timing of those renewals from fiscal 25. So we have maintained that same guidance. To the extent that it could be better than it may, then that would certainly be an upside. Keep in mind, though, that those are renewals based on when those customers come up, so it's not completely in our control. There may be upside, but at this point we're still holding to the same guidance.

Mike Raimo: We have maintained that same guidance to the extent that it could be better and it may.

Mike Raimo: Then that would certainly be an upside keep in mind, though that those are renewals based on when the when those customers come up so it's not completely in our control there may be upside, but at this point, we're still holding to the same guidance.

Kasthuri Rangan: Super, very granular.

Mike Raimo: Super very granular. Thank you so much.

Kasthuri Rangan: Thank you so much.

Brad Reback: Thank you.

Mike Raimo: Thank you.

Dev Ittycheria: Our next question comes from Brad Reback with Stiefel, you may press start. Great, thanks very much. Dave, last quarter, you talked about AI only being modestly incremental to revenue growth in Is that the same expectation 90 days later? Um, yeah, so what I would say is the following, you know, we see, you know, thousands of customers building thousands of apps on MongoDB, and that's growing quarter over quarter. We are seeing some high-profile, well-known AI companies. I mentioned Cursor on the call, and there's a few other high-profile companies who are building on top of MongoDB, and obviously those businesses are really taking off.

Brad Reback: Our next question comes from Brad Reback with Stifel. You May proceed.

Brad Reback: Great. Thanks, very much Dave last quarter, you talked about AI only being modestly incremental to revenue growth in 2026 here is that the same expectation 90 days later.

Speaker Change: Yes, so what I would say is the following we see thousands of customers building thousands of apps on <unk> and that is growing quarter over quarter.

Brad Reback: We are seeing some.

Brad Reback: High profile, well known AI companies I mentioned cursor on the call and then a few other high profile companies, who are building on top of <unk> and obviously those businesses are really taking off.

Dev Ittycheria: But what we see is that enterprises are still early in the adoption of AI. The barriers include there's a limited set of skills and experience with AI, trust with AI systems that are probabilistic, which is another way of saying the risk of hallucinations. We see, obviously, some early use cases around operating efficiency, chatbots, code gen, and domain-specific ISVs like Harvey that customers are using. We've already seen, as I mentioned on the call, LGU+, Swisscom, Nova Nordisk, Central Reach, are a bunch of customers I mentioned in the past who have already deployed our AI capabilities. But the real enduring value will come when people start building custom AI apps.

Brad Reback: But what we see is that enterprises are still early in the adoption of AI. The barriers include theirs.

Mike Raimo: <unk> set of skills experience with AI Trust with AI systems that are probabilistic, which is another way of saying the risk of hallucinations and so we see obviously some early use cases around operating efficiency chat box co Gen and domain specific Isps like Harvey but.

Mike Raimo: The customers are using but and.

Mike Raimo: We've already seen as I mentioned on the call.

Mike Raimo: <unk> plus.

Mike Raimo: Swiss Com Novo Nordisk central reach are bunch of <unk>.

Brad Reback: Customers I mentioned in the past who have already deployed our AI capabilities, but the real enduring valuable com when people start building custom AI apps and the point I want to make is that anyone can use <unk> to run their business, but that doesn't give them a competitive advantage because they are competitors could use the same ICT, what really gives them a competitive vantage the building cost.

Dev Ittycheria: The point I want to make is that anyone can use an ISV to run their business, but that doesn't give them a competitive advantage because their competitors could use the same ISV. What really gives them a competitive advantage is building custom solutions around using AI to transform their business, whether it's to seize new opportunities, to respond to new threats, to drive more operating efficiency. When people start really learning about MongoDB, the document model can handle these complex data structures. We have best-in-class voyage embeddings to improve the accuracy of these results to help people get comfortable with using AI.

Brad Reback: <unk> solutions around using AI to transform their business, whether it's to seize new opportunities to respond to new threats to drive more operating efficiency and when people start really learning about <unk> going to be the document model can handle these complex data structures, we have best in class voyage embedding to improve the accuracy of these results to help.

Brad Reback: Get comfortable with using AI.

Dev Ittycheria: And by integrating text search, vector search, and embeddings and operational data, that's a unique differentiator. It makes the developer's life easy, reduces cost and complexity. And so we feel we're well-positioned for this, but it's still early. Most enterprises are still early in the adoption of AI.

Brad Reback: And by integrating Tech search.

Brad Reback: Search and embedding an operational data that's a unique differentiator. It makes the developer's life easy reduces cost and complexity and so we feel we are well positioned for this but it's still early as most enterprises are still early in the adoption of AI.

Brad Reback: Great.

Brad Reback: And then on the go-to-market side, any meaningful changes? on the kind of upper market comp plan that we should be aware of. No meaningful changes. We feel good about what's happening at the high end of the market and we also feel good about our self-serve business being able to acquire customers more efficiently. So we feel like those motions are working. Great, thank you.

Speaker Change: Great and then on the go to market side any meaningful changes.

Brad Reback: On the kind of upper market comp plan that we should be aware of.

Brad Reback: No meaningful changes, we feel good about what's happening at the high end of the market and we also feel good about our self serve business being able to acquire customers more efficiently. So we feel like those motions are working.

Brad Reback: Great. Thank you.

Brent Bracelin: Thank you, Brad. Thank you.

Brad Reback: Thank you Brad.

Brad Reback: Thank you.

Brent Bracelin: Our next question comes from Brent Bracelin with Piper Sandler. Thank you. Good afternoon, Mike. Great to hear your voice again here. Welcome aboard.

Speaker Change: Our next question comes from Brent <unk> with Piper Sandler you May proceed.

Speaker Change: Thank you good afternoon, Mike Great to hear your voice again here welcome aboard.

Speaker Change: One of the challenges.

Speaker Change: We have had with the story here is that the.

Mike Raimo: The Atlas business has been decelerating here moderating growth for about three years.

Mike Raimo: This was the first quarter, where we actually saw Atlas growth Reaccelerate pretty big step up here in the number of net new Atlas customers.

Mike Raimo: Would you now say you feel like you've kind of.

Mike Raimo: Bottom to relative to the growth profile of Atlas and you're kind of now.

Mike Raimo: Our newer more stable trajectory going forward can you just walk me through.

Mike Raimo: What looks like a meaningful reversal here in the Atlas business.

Dev Ittycheria: Um, yeah, so we're very proud of our results in Q1. And, you know, much to what Mike mentioned earlier, when you look across the landscape, there's not many companies who have a their core business growing at 26% year over year at, you know, at our scale, right? Atlas is a, you know, very large business. And, and so there's not many companies who are growing at that rate. And we feel like, you know, the what's on the horizon in terms of AI, in terms of, you know, I haven't talked about app modernization, where we can help customers more efficiently, reduce the cost and significantly reduce the time to modernize legacy applications that gives us easy access to a large market.

Mike Raimo: Yes, so we're very proud of our results in Q1 and much.

Mike Raimo: To what Mike mentioned earlier, when you look across the landscape, there's not many companies who have the core business growing at 26% year over year at at our scale right Atlas's.

Mike Raimo: Very large business and and so there is not many companies who are growing at that rate.

Mike Raimo: And we feel like.

Mike Raimo: The.

Mike Raimo: What's on the horizon in terms of AI in terms of.

Mike Raimo: Im talked about App monetization, where we can help customers more efficiently.

Mike Raimo: Reduce the cost and significantly reduced the time to modernize legacy applications that gives us easier access to a large market.

Dev Ittycheria: And so, so those are, you know, also initiatives that we're spending a lot of time and investment on. And there's lots of customers who still need to run their business, and continue to build applications that are core to their business strategy. So we feel good about our opportunity. Our guide is our guide. We feel good about, you know, the quarter. And we also feel great about, you know, the fact that our customer ads are very strong this quarter, which shows that, you know, people are embracing MongoDB. Thanks for that.

Mike Raimo: So those are.

Mike Raimo: Also initiatives that were spending a lot of time and investment and theres lots of customers still need to run their business and continue to build applications that are core to their business strategy. So we feel good about our opportunity our guide as our guide we feel good about the quarter and we.

Mike Raimo: We also feel great about the fact that our customer adds were very strong this quarter, which shows that people are embracing modeling.

Speaker Change: Thanks for that and then Mike I know Youre, a days inn or fire holds here.

Mike Berry: And then, Mike, I know you're eight days in, fire holes here. Increased focus on margin improvement reads loud and clear. You did talk about kind of balance sheet. This company does have a lot of cash. I know you're putting a billion dollars of it to use to the buyback. But other uses of cash, do you see an opportunity to maybe get a little more aggressive on M&A, small tech tuck-ins to also maybe help, you know, accelerate the AI opportunity? Walk me through kind of use of cash. Sure. And thanks for the comments. Great to hear your voice as well.

Mike Raimo: Increased focus on margin improvement reads loud and clear.

Mike Raimo: You did talk about kind of balance sheet.

Mike Raimo: The company does have a lot of cash I know you are putting $1 billion of it to Houston the buyback, but other uses of cash do you see an opportunity to maybe get a little more aggressive on M&A small tech tuck ins to also maybe help.

Mike Raimo: Accelerate the AI opportunity walk walk me through kind of use of cash. Thanks.

Mike Raimo: Sure and thanks for the comments great to hear your voice as well so on the buybacks just to hit that Hey, we're super excited about the board.

Mike Berry: So, yeah, on the buybacks, just to hit that, hey, we're super excited about the board, expanding that up to a billion dollars, and we will be active as it relates to the buyback. For the rest of the cash, what I'd say is, hey, we feel really good about the organic growth story here. And that's the focus. To the extent that there are smaller tuck ins, or we could do roadmap accelerations, and use some of it, not a lot of it, you know, that's certainly up for debate as well. So, it does give us that option.

Mike Raimo: Okay.

Mike Raimo: Spanning that up to $1 billion, and we will be active as it relates to the buyback for the rest of the cash what I'd say is hey, we feel really good about the organic growth story here and Thats. The focus to the extent that there are smaller tuck ins or we could do roadmap acceleration and use some of it not not a lot of it that's certainly up for.

Mike Raimo: For debate as well so it does give us that option I would say, we don't think we need to do M&A to achieve our targets certainly but to the extent that we think it can help it is nice to have the available cash.

Mike Berry: I would say we don't think we need to do M&A to achieve our targets, certainly, but to the extent that we think it can help, it is nice to have the available cash. Good to hear. Thank you.

Mike Raimo: Good to hear thank you.

Mike Raimo: Thank you.

Mike Raimo: Okay.

Ittai Kidron: Our next question comes from Ittai Kidron with Oppenheimer, you may press start. Thanks, I appreciate it. Dev, I want to dig in a little bit into the high-end focus, the large enterprise. Is there any data you can provide proof points kind of under the surface data points that you're tracking internally about progress here? Anything about pipeline, number of Fortune 2000 logos? Help me think about the evolution here. And at what point do you think we'll be at full run rate here on this group?

Speaker Change: Our next question comes from <unk> Kidron with Oppenheimer you May proceed.

Mike Raimo: Yeah.

Speaker Change: Thanks I appreciate it.

Speaker Change: Digging a little bit into the high end focus to large enterprises is there any data you can provide proof points kind of under the surface data points that you were tracking internally about progress here anything about.

Speaker Change: Pipeline.

Speaker Change: Number of Fortune 2000 logos helped me think about the evolution here and at what point do you think will be at full run rate here on this on this group.

Dev Ittycheria: Well, I will tell you that I think we already have meaningful traction. I think we previously disclosed that 75% of the Fortune 100 are existing already MongoDB customers and 50% of the Fortune 500 are MongoDB customers. So, that tells you that, you know, we already have meaningful traction. And what we realize is the biggest opportunity for us is to expand in those accounts. I just recently had the CIO of one of the largest healthcare companies in the world in our office. I just met with, you know, the senior leadership team from one of the largest financial services companies here in New York and then I met another team from another financial services company in New York and they're bringing us in saying, we want to have a more, you know, strategic relationship with you.

Speaker Change: What I would tell you that I think we already have meaningful traction I think we previously disclosed that 75% of the fortune 100, our existing already monitor customers and 50% of the Fortune 500 are <unk> customers. So that tells you that we already have meaningful traction and what we realize is the biggest opportunity for us as.

Speaker Change: And in those accounts I, just recently had the CIO of one of the largest healthcare companies in the world and our office I just met with the.

Speaker Change: The senior leadership team from one of the largest financial services companies here in New York and then I met.

Dev Ittycheria: So, I feel like the motion is working. We're doing larger deals, you know, and the productivity of the sales team focused on those accounts is materially higher than the typical sales reps. So, we feel like it's a motion that we will invest on for the long term. And I think, you know, the results will obviously speak for themselves, but we feel really good about our move up market. And I also want to point out that our sell serve motion is a nice complement to that move because it allows us to acquire, you know, lower end customers, mid-market customers much more efficiently.

Speaker Change: We're doing larger deals.

Speaker Change: And the productivity of our sales team focus on those accounts.

Mike Raimo: Is materially higher than the typical sales reps. So we feel like it's a motion that we will invest for the long term and.

Mike Raimo: And I think.

Mike Raimo: The results will obviously speak for themselves, but we feel really good about our move up market and I also want to point out that our self serve motion is a nice complement to that move because it allows us to acquire lower end customers mid market customers much more efficiently.

Ittai Kidron: So, we're not like ceding ground to anyone in that segment of Yeah, that's great to see.

Mike Raimo: So we're not like ceding ground to anyone in that segment of the market.

Mike Raimo: That's great to see and Mike for you first of all congratulations and looking forward to working with you a couple of small ones first of all you talked about slower than planned head. Count addition, in the quarter can you tell us in what areas.

Mike Berry: And Mike, for you, first of all, congratulations. Looking forward to working with you. A couple of small ones. First of all, we talked about the slurred and planned headcount addition in the quarter. Can you tell us in what areas and is this going to be an issue down the road in that you're kind of you're a little bit behind on headcount additions? And also, you guys, you raised it by 10 million. The beat was greater. Can you tell us when and where are you a little bit more conservative then on the reminder of the year?

Speaker Change: Is this going to be an issue down the road.

Mike Raimo: In that you are kind of you're a little bit behind on head count additions and also your guidance for the year raise it by $10 million the beat was greater.

Mike Raimo: Tell us when and where are you a little bit more conservative than on the reminder of the year.

Mike Berry: And what part of your business? Sure. So let's take the headcount first. So it was really broad-based across the whole team in terms of slower headcount additions. There was nothing that we didn't pull back or say, don't hire, it takes longer. So nothing there. We also don't have any concerns around, does that mean lower, for instance, sales capacity, largely due to what Dave talked about on the go-to-market. So do we think it goes forward? It certainly is a part of us, I would say, moderating our OPEX expectations for the rest of the year, hence the increased 200-basis 1 So that's the headcount piece.

Mike Raimo: And what part of your business.

Mike Raimo: Sure. So let's take the head count first so it was really broad based across across our whole team in terms of slower head count additions. There was nothing that we didnt pull back or say don't don't hire it just it takes longer so nothing there. We also don't have any concerns around does that mean lower for instance sales capacity largely due.

Speaker Change: To what Dave talked about on the go to market. So.

Mike Raimo: Do we think it goes forward. It certainly is a part of US I would say moderating our opex expectations for the rest of the year, hence the increase 200 basis points. So that's head count piece on the beat and raise so we did beat by $20 million in the quarter as we talked about we largely rolled the Atlas.

Mike Berry: On the beat and raise, so we did beat by $20 million in the quarter. As we talked about, we largely rolled the Atlas beat into the full year number and left the rest of the year where we were. We felt good about what we guided to after Q4. Hey, there's a lot of uncertainty as it relates to the world, tariffs, the economic situation, and everything else. So we think it's prudent to leave that guide there. We did come down by $10 million in the non-Atlas business because that was largely timing. And as we said, we're still holding to the EA forecast that we did on a year-over-year basis.

Mike Raimo: <unk> ended the full year number and left the rest of the year, where we were we felt good about what we guided to after Q4.

Speaker Change: On a year over year basis, now, we will see where that goes. It's also the hardest piece of the business to forecast.

Mike Berry: Now we'll see where that goes. It's also the hardest piece of the business to forecast because of those larger deals. So we thought that that was the prudent way to go.

Speaker Change: Because of those larger deals, but we thought that that was the prudent way to guide the year.

Mike Berry: I appreciate it. Thank you.

Speaker Change: I appreciate it thank you.

Speaker Change: Thank you.

Andrew Nowinski: Our next question comes from Andrew Nowinski with Wells Fargo, you may... Great. Thank you. Um, maybe I just wanted to follow up on, uh, the Atlas guidance. Um, I know you're saying that, you know, consumptional is in line with your expectations, but can you just provide any more color on sort of the mechanics of growth in that consumption segment? Because it would seem that the outperformance in Q1 would set you on a higher trajectory for the full year. you know, due to the fact that it is a consumption model, unless you unless there's some sort Drastic change in the, um, you know, global economy that would would change a customer's consumption.

Andrew Nowinski: Our next question goes to remainder Nowitzki with Wells Fargo. You May proceed.

Speaker Change: Great. Thank you maybe I just wanted to follow up on the.

Andrew Nowinski: Atlas guidance.

Speaker Change: I know youre seeing that consumption was in line with your expectations.

Speaker Change: Can you just provide any more color on sort of the mechanics of growth and that consumption segment, because it would seem that the outperformance in Q1.

Andrew Nowinski: With such you want a higher trajectory for the full year.

Andrew Nowinski: Due to the fact that it is a consumption model unless you unless there's some sort of.

Andrew Nowinski: Drastic change in the.

Andrew Nowinski: The global economy that would would change a customer's consumption patterns.

Mike Berry: Sure.

Andrew Nowinski: Sure So Andrew it's Mike So thanks for the question. So if you take a step back and Thats. What we saw in Q1, we talked about the monthly.

Mike Berry: So, Andrew, it's Mike. So, thanks for the question. So, if you take a step back, and that's what we saw in Q1, we talked about the monthly consumption patterns there. We did a little bit better early in the quarter, and April was a little bit soft. The dynamic that you just talked about is exactly what's baked into the guidance for the rest of the year. We continue to expect Atlas growth to be strong as we go through the year. We are also cognizant of April is a little bit soft, may pop back. We'd like to see a couple more months of that going into the year.

Speaker Change: Consumption patterns, there, we did a little bit better early in the quarter and April was a little bit soft the dynamic that you just talked about is exactly what's baked into the guidance for the rest of the year. We continue to expect Atlas growth to be strong as we go through the year.

Speaker Change: We are also cognizant of April was a little bit soft may pop back wed like to see a couple more months of that going into the year hopefully we feel more confident as we go into the second half.

Speaker Change: But at this point given all of the economic uncertainty, we certainly hope there is upside, but we'd like to get through another quarter.

Speaker Change: Understood and Mike Thank you.

Andrew Nowinski: It's great to reconnect again from our days at NetApp. My second question is really more on a higher level. I understand the performance and scalability advantages of MongoDB over, or I should say, a document database over a relational database. But have you maybe thought about or consider hurting sort of feedback from customers as to whether MQL might be simply maybe more difficult for a developer to use versus SQL? And maybe that's why you're seeing sort of this increase in interest in Postgres? Because it's certainly not a better performing database. I think everyone knows that. But maybe it's just a query language issue.

Speaker Change: It's great to reconnect again from our from our data that net out.

Speaker Change: My second question is.

Speaker Change: It's really more on a at a higher level I understand the performance and scalability advantages of Mongo DB over.

Speaker Change: Or I should say a document database over a relational database, but have you.

Speaker Change: Maybe you thought about or considered hurting sort of feedback from customers as to whether.

Andrew Nowinski: <unk> might be simply maybe more difficult for a developer to use versus SQL and maybe thats why youre seeing.

Speaker Change: This increase in interest in post <unk>, because it's certainly not a.

Speaker Change: Better performing database I think everyone knows that but maybe it's just a query language issue.

Dev Ittycheria: So, again, thanks for the question. I just want to, again, say, you know, we're going after a big market. I think the Postgres popularity is a function of people basically leaving other relational platforms, in particular, Oracle, SQL Server, and MySQL. So that's why you're seeing developers kind of move to Postgres . But I would tell you that, you know, Postgres is a tabular, you know, database, much like all relational databases. So then the question you have to ask yourself is they announced support for JSON. Why did they do that? And what they did that because it was tacit admission that that architecture just doesn't get the job done in a world that, you know, has to deal with data in the real world.

Andrew Nowinski: So again thanks.

Speaker Change: But I would tell you that.

Speaker Change: Post <unk> is a tabular.

Speaker Change: Database much like all of relational databases. So then the question you have to ask yourself is this day announced support for Jason why did they do that and what they.

Speaker Change: They did that because it was tacit admission that that architecture, just doesn't get the job done in a world that has to deal with data in the real world data in the real World is complex data and the rail World has a lot of dependencies like I'll give you some examples like.

Dev Ittycheria: Right? Data in the real world is complex. Data in the real world has a lot of dependencies. Like, I'll give you some examples. Like, you know, if you want to model the message that has attachments or reactions or part of a threaded conversation, how do you do that in a structured table? If you want to deal with, you know, adding new fields or, you know, new values and all that, how do you, you know, for example, if you have a user who has suddenly multiple phone numbers, how do you model that quickly? How do you deal with nested structures, right, where a customer record could have, you know, include past orders, each with their own line items and order history?

Speaker Change: You want to model the message that has attachments of reactions are part of the threat of the conversation how do you do that in a structured table if you want to deal with.

Speaker Change: Adding new fields or.

Andrew Nowinski: New values into all of that how do you for example, if heavy users who has multiple phone numbers, how do you model that quickly.

Andrew Nowinski: How do you deal with nested structures right where.

Speaker Change: A customer record could have.

Speaker Change: Include past orders.

Speaker Change: Each with their own line items in order history like how do you do that.

Dev Ittycheria: Like, how do you do that, you know, with a relationship? It's much more difficult where you can model that so much more easily in MongoDB. How do you deal with, like, messy, inconsistent data that there's no uniformity to? And so we recognize that some people who don't know MongoDB may not really understand all these advantages, which is why we're putting more emphasis on awareness and education. But fundamentally, if you see why these relational databases are adding JSON support, it is acknowledgment that their existing architecture cannot, you know, evolve to natively evolve to serve these new needs.

Speaker Change: With.

Speaker Change: It's much more difficult where you can model that is so much more easily and longer DB, how do you deal with like messy inconsistent data.

Speaker Change: No uniformity too.

Speaker Change: So we recognize that some people who don't know marked DBM may not really understand all of these advantages, which is why we're putting more emphasis on awareness and education, but fundamentally if you see why these relational databases or adding <unk> support it is acknowledgment that their existing architecture cannot.

Speaker Change: No.

Dev Ittycheria: And that's why we think we're well-positioned, because MongoDB is a native JSON database. It's a document database, and it's distributed. MongoDB is designed to scale and the latest release is the most performed release. We're even more excited about 8.1 that's coming out soon.

Speaker Change: Is designed to scale and and the latest releases. The most perform release, we're even more excited about eight that one thats coming out soon.

Dev Ittycheria: We acquired Voyage. That's going to be natively part of the platform. We're going to, you know, later this month, we'll enable people to seamlessly generate embeddings from data sitting inside MongoDB. That'll be in private preview. So that's within four months of the acquisition. So we're moving fast, we're innovating quickly, and that doesn't even mention, you know, our core vector search engine, as well as our keyword search engine. So when you put all these things together, it becomes a very compelling platform, but we recognize that some customers and some users just don't understand all these things, and that's where we're focused.

Speaker Change: Acquired voyage.

Speaker Change: It's going to be natively part of the platform we're going to.

Speaker Change: Later this month will enable people to seamlessly generate embedding from data sitting inside Margaret Hebei and that'll be in private preview. So thats within four months of the acquisition. So we're moving fast we're innovating quickly and that doesn't even mentioned in our core vector.

Dev Ittycheria: That makes sense. Thank you so much. Thank you.

Speaker Change: That makes sense. Thank you so much.

Speaker Change: Thank you.

Mike Cikos: Our next question comes from Mike Cikos with Needham, UMass.

Speaker Change: Our next question goes from Mike cycles with Needham You May proceed.

Mike Cikos: Hey guys, thanks for taking the questions here. Um, Mike, just to come back to the, the monthly trends that you guys saw on the Atlas consumption side, and I really, really appreciate all the color there. Um, if you're talking about this rebound that we saw in May, and I know we don't see like, uh, consumption growth year on year or usage growth year on year to the detail that you do, but is that year on year growth and consumption in May, um, back to the levels that we saw in February or March, or is it still lagging based on that April softness?

Mike Raimo: Hey, guys. Thanks for taking the questions here.

Mike Raimo: Mike just to come back to the monthly trends that you guys saw on the Atlas consumption side and I really really appreciate all the color there.

Speaker Change: If youre talking about this rebound that we saw in May and I know, we don't see like.

Speaker Change: Consumption growth year on year usage growth year on year to the detail that you do.

Speaker Change: But is that year on year growth in consumption in may.

Speaker Change: Back to the levels that we saw in February or March or is it still lagging based on that April softness that you had described.

That you had described. So it's much more consistent with what we saw in in February. And in March, April was a little bit softer. And then as we said, it was a healthy rebound in Great.

Speaker Change: So it's much more consistent with what we saw in.

Speaker Change: In February and in March April was a little bit softer and then as we said it was a healthy rebound in may.

Speaker Change: Great. Thanks for that and then Dave just one for you I know that we have some of these go to market changes.

Thanks for that.

And then, Dave, just one for you. I know that we have some of these go-to-market changes. I'm looking at the new logos that you added this quarter specifically, and I mean, you guys have been, you have been native JSON. You have been let go.

Speaker Change:

Speaker Change: Im looking at the new logos that you added this quarter, specifically and I mean, you guys have been you have been native JSON database, you hadn't been that notes equaled vendor.

Speaker Change: Just interested in what youre seeing on that front. Thank you.

Thank you. Yeah, I mean, you have to remember, our self-serve business was a new skill that we, you know, developed, frankly, organically here. And then, actually, May Petrie, who's been promoted to CMO of the company, was the one who led our self-serve business since early 2022. She and her team have really done a great job of really growing that business, being much more sophisticated, running experiments, how to attract the right level of customers. And that is showing up in the numbers. And so, and as we move up market, we want to take advantage of that, you know, self-serve capability to be able to acquire more customers in the mid-market.

Speaker Change: You have to remember.

Speaker Change: Our self serve business was us new skill that we.

Speaker Change: Developed frankly organically here and then actually May Pietri, who has been promoted to CFO of the company was the one who led our self serve business. Since early 2022. She has she and her team have really done a great job of really growing that business being much more sophisticated and running experiments how to attract the right.

Speaker Change: Level of customers.

Speaker Change: And that is showing up in the numbers and so and as we move up market, we want to take advantage of that.

And so, that's something that we're going to do. And so, we feel really good about the combination of our direct sales force, as well as our self-serve business, in terms of how we approach the market. And I would say that, you know, when we are able to get in front of customers, explain our differentiation, customers understand and, you know, want to use MongoDB. Our biggest challenge is making sure people really understand the differentiation and don't have certain misconceptions of what we do or what others do.

Speaker Change: And I would say that.

Speaker Change: We are when we are able to get in front of customers explained our differentiation customers understand and.

Speaker Change: I want to use them on the DB. Our biggest challenge is making sure people really understand the differentiation and don't have certain misconceptions of what we do or what others do.

Great, congrats on the demonstrated success on that front.

Speaker Change: Great Congrats on the on the demonstrated success on that front. Thank you. Thank you.

Thank you.

Thanks, Mike.

Mike Raimo: Thanks, Mike.

Thank you.

David: Thank you I would now like to turn the call back over to David <unk> for any closing remarks.

I would now like to turn the call back over to David Ittycheria for any closing Well, thank you for joining our call. First of all, I would like to thank Mike. Eight days in, it's obviously, you know, preparing for today's call is hard work and to do it in eight days, it's pretty impressive. So I really appreciate everything he's done to prepare for the call today. You know, again, we had a strong quarter with a record total customer net additions. We're raising our revenue and operating margin guidance for the full year. We're moving forward with a billion dollar total share repurchase program reflecting our confidence in the business and our commitment to delivering value to shareholders.

Speaker Change: Thank you for joining our call first of all I would like to thank Mike eight days and it's obviously preparing for an earnings call. His hard work and do it in eight days, it's pretty impressive certainly appreciate everything he has done.

Speaker Change: To prepare for the call today.

Speaker Change: Again, we had a strong quarter with a record total customer net additions.

Speaker Change: We're raising our revenue and operating margin guidance for the full year. We are moving forward with our billion dollar total share repurchase program reflects our confidence in the business and our commitment to delivering value to shareholders and we're more excited than ever about our long term outlook, particularly are are positioned to fundamentally address the needs of workloads in both today's and Tomorrow's there.

And we're more excited than ever about our long-term outlook, particularly our, you know, our position to fundamentally address the needs of workloads in both today's era and tomorrow's era driven by AI.

So thank you very much for the call and we'll talk to you again soon.

Speaker Change: Driven by AI. So thank you very much for the call and we'll talk to you soon.

Thank you.

Speaker Change: Thank you. This concludes the conference. Thank you for your participation you may now disconnect.

This concludes the conference.

Thank you for your participation.

Q1 2026 MongoDB Inc Earnings Call

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