MongoDB (NASDAQ:MDB) shares exploded 14.50% to $228.70 in extended trading following a stellar first-quarter earnings beat that exceeded analyst expectations on both earnings and revenue.
The database software company delivered adjusted earnings per share of $1.00 versus estimates of $0.66, while revenue of $549 million topped consensus forecasts, demonstrating strong momentum in its cloud-native Atlas platform and robust customer growth.
MongoDB Shares Surge in Premarket on Strong Earnings
MongoDB shares closed regular trading at $199.73, up 3.09% for the day, before surging dramatically to $228.70 in premarket trading, representing a massive 14.50% gain following the earnings announcement.
Despite the strong after-hours performance, MongoDB has faced headwinds in 2025 with year-to-date losses of 14.21% compared to the S&P 500’s 1.52% gain. Over the past year, the stock has declined 13.97% versus the broader market’s 12.84% increase, while three-year performance shows a 26.87% decline compared to the S&P 500’s 45.33% rise.
The company’s market capitalization stands at $16.321 billion, reflecting its position as a significant player in the database and cloud infrastructure software market. MongoDB’s 52-week range spans a wide band, demonstrating the volatility typical of high-growth technology stocks in a challenging market environment.
Key valuation metrics highlight the premium investors place on the company’s growth prospects, including a forward P/E ratio of 75.76, price-to-sales ratio of 7.42, and enterprise value-to-revenue multiple of 6.99.
The dramatic after-hours surge suggests investors were positively surprised by the strength of the quarterly results and the company’s guidance, particularly given recent concerns about AI adoption rates and competitive pressures in the database market.
MongoDB’s Exceptional Q1 Results Drive Investor Enthusiasm
MongoDB delivered outstanding first-quarter results that significantly exceeded analyst expectations across all key metrics, demonstrating the continued strength of its cloud-native database platform. The company reported adjusted earnings per share of $1.00, crushing the analyst consensus estimate of $0.66 by an impressive $0.34 margin, representing a beat of over 50%.
Revenue for the quarter came in at $549.0 million, surpassing the consensus estimate of $528.07 million and representing robust 22% year-over-year growth. The revenue outperformance was driven primarily by subscription revenue of $531.5 million, up 22% year-over-year, while services revenue contributed $17.5 million with strong 28% growth.
MongoDB Atlas, the company’s cloud database service, continued to be the primary growth driver with revenue increasing 26% year-over-year and comprising 72% of total quarterly revenue. The company’s gross profit margin of 71% remained healthy, while non-GAAP gross margins of 74% demonstrated operational efficiency despite investments in growth.
MongoDB generated strong free cash flow of $105.9 million compared to $61.0 million in the prior year period, highlighting improved operational leverage and cash generation capabilities. The combination of strong top-line growth, margin performance, and cash generation provided a compelling narrative for investors who had been concerned about the company’s growth trajectory.
MongoDB Reports Strong Customer Acquisition and Expansion Metrics
MongoDB demonstrated impressive customer acquisition and expansion metrics that underscored the growing demand for its modern database platform among enterprises and developers.
The company added 2,600 new customers during the quarter, representing the highest quarterly customer additions in six years and bringing total customers to over 57,100 as of April 30, 2025. The strong customer growth included significant expansion in high-value segments, with customers generating over $100,000 in annual recurring revenue increasing to 2,506, up from 2,396 in the previous quarter.
MongoDB Atlas customers grew to 55,800, representing the vast majority of the company’s customer base and highlighting the successful transition to cloud-native database solutions. Direct sales customers, who typically represent larger enterprise accounts, remained stable at 7,500, indicating strong retention and expansion within existing high-value relationships.
The company’s land-and-expand strategy continued to show effectiveness, with existing customers increasing their usage and expanding to additional use cases within their organizations.
MongoDB’s platform demonstrated particular strength in supporting modern application development patterns, including cloud-native, distributed, and real-time applications that are increasingly important for digital transformation initiatives.
The customer metrics validated management’s strategy of focusing on both developer adoption and enterprise sales, creating a diversified customer base that provides multiple avenues for growth and reduced dependency on any single customer segment or use case.
***
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
This article was originally published on The Tokenist. Check out The Tokenist’s free newsletter, Five Minute Finance, for weekly analysis of the biggest trends in finance and technology.