[Management View]
MongoDB, Inc. reported a strong start to FY2026 with total revenue of $549 million, a 22% YoY increase, surpassing guidance. Atlas revenue grew 26% YoY, comprising 72% of total revenue. The company added approximately 2,600 net new customers, the highest in over six years, ending with over 57,100 customers. Management emphasized the strategic integration of Voyage AI and ongoing investments in application modernization as key growth drivers.

[Outlook]
MongoDB raised its full-year revenue guidance to $2.25 billion to $2.29 billion and increased its non-GAAP operating margin guidance by 200 basis points to a midpoint of 12%. The company plans to expand its share repurchase program by $800 million, totaling $1 billion. Non-Atlas subscription revenue is expected to decline in the high single digits, with a $50 million headwind from multiyear license revenue anticipated in the second half.

[Financial Performance]
The company reported a non-GAAP operating income of $87 million, resulting in a 16% non-GAAP operating margin, up from 7% in the prior year. Gross profit was $407 million at a 74% gross margin, slightly down from 75% a year ago. Net income was $86 million, or $1.00 per diluted share, compared to $43 million, or $0.51 per share, in Q1 FY2025. Operating cash flow and free cash flow were $110 million and $106 million, respectively, up from $64 million and $61 million in the prior year.

[Q&A Highlights]
Question 1: What is driving Atlas growth in terms of application types?
Answer: Atlas supports a wide variety of use cases, including transactional, IoT, streaming, and AI applications. Its architecture allows for elastic scaling and cross-cloud operations, making it attractive for diverse needs.

Question 2: How do you plan to manage and message metrics in a consumption model?
Answer: The focus will be on capital structure, cash flow generation, and operating margin improvements. The company will provide more insights at the upcoming MongoDB.local event.

Question 3: How do you view recent moves by Snowflake and Databricks towards Postgres?
Answer: These moves validate the importance of OLTP for AI. Building an organic OLTP store is challenging, and MongoDB's architecture offers a significant advantage for complex AI workloads.

Question 4: Does the popularity of Postgres suggest greater long-term relevance for relational databases?
Answer: Postgres popularity is due to SQL consolidation. MongoDB's architecture is better suited for modern, complex applications, especially in AI, offering integrated capabilities that reduce complexity and cost.

Question 5: Can you provide an update on growth initiatives like Relational Migrator and moving upmarket?
Answer: Investments in R&D, moving upmarket, and awareness are yielding returns. MongoDB 8.0 has seen rapid adoption, and the company is signing larger deals with enterprises.

Question 6: Is AI still expected to be modestly incremental to revenue growth in 2026?
Answer: AI adoption is still early, with enterprises facing barriers like skills and trust. The real value will come from custom AI apps, where MongoDB's capabilities offer a competitive advantage.

Question 7: Have there been any changes to the go-to-market strategy for upper market accounts?
Answer: No significant changes. The company is confident in its high-end market strategy and self-serve business for efficient customer acquisition.

Question 8: What is driving the increase in new Atlas customers?
Answer: The self-serve business has been a key driver, with sophisticated strategies to attract the right customers, complemented by a strong direct sales force.

[Sentiment Analysis]
Analysts and management expressed optimism about MongoDB's growth prospects, particularly in AI and application modernization. The tone was positive, with confidence in the company's strategic direction and financial performance.

[Quarterly Comparison]
| Metric | Q1 FY2026 | Q1 FY2025 |
|-------------------------------|-----------|-----------|
| Total Revenue | $549M | $450M |
| Atlas Revenue | $395M | $313M |
| Non-GAAP Operating Income | $87M | $31.5M |
| Net Income | $86M | $43M |
| Operating Cash Flow | $110M | $64M |
| Free Cash Flow | $106M | $61M |

[Risks and Concerns]
The company faces macroeconomic volatility, which could impact consumption patterns. There is also a $50 million headwind from multiyear license revenue expected in the second half. The competitive landscape with relational databases like Postgres remains a challenge.

[Final Takeaway]
MongoDB, Inc. delivered a strong Q1 performance, driven by robust customer growth and strategic investments in AI and application modernization. The company raised its full-year guidance, reflecting confidence in its growth trajectory. While challenges remain, particularly in the competitive landscape and macroeconomic environment, MongoDB's integrated platform and strategic initiatives position it well for continued success. The expanded share repurchase program underscores management's confidence in the company's long-term potential.