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MongoDB (Nasdaq: MDB) reported its second quarter results earlier this week that surpassed market expectations. The company continues to invest in AI tools and capabilities that are helping drive the adoption of Atlas.
 

MongoDB’s Financials

MongoDB’s revenues for the second quarter grew 13% to $478.1 million, ahead of the market’s forecast of $464.2 million. Adjusted net income was $0.70 per share compared with the market’s forecast of $0.48.

By segment, Subscription revenue grew 13% to $463.8 million, and services revenue fell 1% to $14.3 million. Atlas revenues grew 27% and accounts for 71% of Q2 revenues.

For the third quarter, MongoDB expects revenues of $493-$497 million and net income of $0.65-$0.68 per share. It expects to end the year with revenues of $1.92-$1.93 billion and net income of $2.33-$2.47 per share. The market was looking for revenues of $1.90 billion and earnings of $2.28 per share for the year.

MongoDB’s AI Product Growth

Last quarter, MongoDB had announced its plans to expand the AI ecosystem with the release of MongoDB AI Applications Program (MAAP). In July, MAAP was made generally available to its customers. MAAP is an AI-focused ecosystem that features companies like AWS, Google Cloud, Microsoft Azure, and Accenture along with gen AI innovators like Anthropic, Cohere, and Fireworks AI to provide an end-to-end technology stack and access to professional services and tools that can help organizations build and launch AI solutions at scale. It is too early to see the benefits of this offering reflect in MongoDB’s performance.

MongoDB continues to expand its ties with Google, and recently announced new capabilities with Google cloud for the public sector. MongoDB Atlas for Government now supports Google Cloud’s Assured Workloads in the US for government agencies, public sector organizations, and independent software vendors (ISVs) who develop software for the public sector. The integration of support for Google Cloud onto MongoDB’s other cloud solutions makes MongoDB Atlas for Government the first fully managed multi-cloud data platform authorized at FedRAMP Moderate. The capability will enhance MongoDB Atlas’s capabilities to contract with government agencies.

According to a recent report, the NoSQL database market is expected to grow at 30% CAGR to $44.66 billion by 2031 from $6.47 billion in 2024. These database services are expected to see the highest growth as they are helping reduce the time and costs associated with optimizing systems in the initial phase of deployment. MongoDB is not the only player in the market. It competes with the likes of CouchDB, Amazon DynamoDB, and even Oracle’s NoSQL offering.

MongoDB continues to see strong growth for its Atlas product. It ended the quarter with over 49,200 Atlas customers compared with 43,500 a year ago. Reports estimate that Atlas accounts for nearly 45% of the non-SQL data base market globally.

MongoDB recently announced how Iron Mountain had used the Atlas offerings to build InSight Digital Experience Platform (DXP), a unified asset management system for document processing, workflow automation, and information governance tasks. MongoDB’s Atlas has become one of the leading database solutions that provides advanced search capabilities through Atlas Vector Search and Atlas Search Nodes and integrates gen AI capabilities into its tools through the MAAP.

Its stock is trading at $286.44 with a market capitalization of $20.8 billion. It touched a 52-week high of $509.62 in February. It hit a 52-week low of $212.74 in June.

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