Breaking Down MongoDB, Inc. (MDB) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments in the tech sector, particularly in database management? Have you been wondering about the financial stability and future prospects of MongoDB, Inc. (MDB)? In fiscal year 2024, MongoDB's revenue reached $2.01 billion, marking a 19.22% increase from the previous year. However, losses amounted to -$129.07 million, a -26.91% less than in 2023. With analysts predicting a potential 93.85% increase from the latest price, is now the time to dive deeper into MongoDB's financial health?

MongoDB, Inc. (MDB) Revenue Analysis

For investors eyeing MongoDB, Inc. (MDB), a clear grasp of its revenue streams is essential. Let's dissect the key components that drive the company's financial performance.

MongoDB, Inc.'s revenue is primarily derived from two main sources:

• Subscription Revenue: This includes revenue from MongoDB Atlas, the company’s fully managed cloud database platform, as well as revenue from its enterprise advanced subscriptions.
• Services Revenue: This encompasses consulting, support, and training services related to the MongoDB database.

The growth rate of MongoDB, Inc.'s revenue has been significant over the past years. For example, the company's total revenue for the fiscal year 2024 was $1.685 billion, representing a 22% increase year-over-year. Subscription revenue was $1.613 billion, an increase of 22% year-over-year, and services revenue was $72.0 million, up 13% year-over-year.

Here's a breakdown of MongoDB, Inc.'s revenue by segment for fiscal year 2024:

Subscription revenue continues to be the dominant contributor to MongoDB, Inc.’s overall revenue.

Geographically, MongoDB, Inc. generates revenue from the following regions:

• Americas
• Europe, Middle East, and Africa (EMEA)
• Asia Pacific

Details regarding regional revenue contributions are not fully available in the search results. For precise figures, consulting MongoDB, Inc.'s official financial statements is advisable.

Changes in revenue streams can significantly impact investor confidence. MongoDB, Inc. has been strategically shifting its focus towards its cloud-based Atlas platform. This shift is evident in the increasing contribution of subscription revenue to the overall revenue mix.

Here’s a snapshot of MongoDB, Inc.'s financial highlights:

For more insights, check out: Breaking Down MongoDB, Inc. (MDB) Financial Health: Key Insights for Investors

MongoDB, Inc. (MDB) Profitability Metrics

Analyzing MongoDB, Inc.'s (MDB) profitability involves examining its gross profit, operating profit, and net profit margins. Furthermore, it is important to observe the trends in these metrics over time and benchmark them against industry averages to gauge the company's financial health and operational efficiency. Let's take a closer look at these aspects:

Gross Profit Margin

In fiscal year 2025, MongoDB reported a gross profit of $1.47 billion, which translates to a 73% gross margin. While this indicates a healthy ability to generate profit from its revenue, it is slightly lower than the 75% gross margin reported in the previous fiscal year. The company's non-GAAP gross profit margin was 76% for fiscal year 2025, compared to 77% in fiscal year 2024.

• Q4 Fiscal Year 2025: Gross profit was $399.4 million, with a 73% gross margin, compared to 75% in the year-ago period.
• Full Year Fiscal 2025: Gross profit reached $1.47 billion, resulting in a 73% gross margin, slightly down from 75% in the previous year.

Operating Profit Margin

MongoDB has been working towards improving its operating margin. For fiscal year 2025, the loss from operations was $216.1 million. This is an improvement compared to the loss from operations of $233.7 million in the previous year.

• Q4 Fiscal Year 2025: Loss from operations was $18.6 million, an improvement from the $71.0 million loss in the year-ago period.
• Full Year Fiscal 2025: Loss from operations was $216.1 million, an improvement from the $233.7 million loss in the previous year.

The operating margin for the quarter ending January 31, 2025, was -10.77%. The average operating margin for 2024 was -14.61%, a 31.41% decline from 2023.

Net Profit Margin

MongoDB's net loss for fiscal year 2025 was $129.1 million, or $1.73 per share, showing an improvement from the previous year's net loss of $2.48 per share.

• Q3 Fiscal Year 2025: Net loss was $9.8 million, or $0.13 per share.

The net profit margin as of October 31, 2024, was -10.46%.

Trends in Profitability Over Time

While MongoDB has shown revenue growth, its profitability metrics have seen some fluctuation. The gross margin saw a slight decrease from 75% in fiscal year 2024 to 73% in fiscal year 2025. However, the company has made strides in reducing its operating losses, indicating improved cost management and operational efficiency. The trend suggests that MongoDB is on a path toward improved profitability, although it is not yet consistently profitable.

Here is a table summarizing MongoDB's profitability trends:

Comparison with Industry Averages

Comparative industry profitability ratios demonstrate competitive positioning with software infrastructure peers.

Analysis of Operational Efficiency

Cost Management: MongoDB is actively managing its costs, as evidenced by the reduced operating losses. This indicates better control over operating expenses and improved efficiency in resource allocation.

Gross Margin Trends: Although the gross margin experienced a slight dip in fiscal year 2025, it remains relatively high at 73%, showcasing MongoDB's ability to maintain a strong pricing strategy and manage the cost of its services effectively.

For more insights into MongoDB, Inc. (MDB), explore this comprehensive investor profile: Exploring MongoDB, Inc. (MDB) Investor Profile: Who’s Buying and Why?

MongoDB, Inc. (MDB) Debt vs. Equity Structure

Understanding MongoDB, Inc.'s (MDB) financial strategy requires a close look at how the company uses debt and equity to fund its operations and growth. This involves analyzing its debt levels, key financial ratios, and any recent financing activities.

As of January 31, 2024, MongoDB, Inc. reported the following debt figures:

• Total Current Liabilities: $398.7 million
• Total Long Term Liabilities: $1.292 billion

The debt-to-equity (D/E) ratio is a crucial metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity a company uses to finance its assets. While the exact D/E ratio requires calculations based on shareholder equity, understanding MongoDB's debt in relation to its equity provides insights into its financial risk. For 2024, the total stockholders equity was $1.758 billion.

A high D/E ratio suggests that a company relies more on debt, which can amplify returns during profitable times but also increases the risk of financial distress during downturns. Conversely, a low D/E ratio indicates a more conservative approach, with the company relying more on equity financing. It's also important to compare MongoDB’s D/E ratio with industry peers to benchmark its leverage against competitors. Details about MongoDB’s mission, vision, and core values can provide additional context. Check it out here: Mission Statement, Vision, & Core Values of MongoDB, Inc. (MDB).

Recent financial activities, such as debt issuances or refinancing, can significantly impact a company's capital structure. These actions can provide MongoDB with additional capital for investments or help optimize its debt maturity profile and interest expenses. Keeping an eye on credit ratings is also essential, as these ratings reflect the creditworthiness of MongoDB and influence its borrowing costs.

Balancing debt and equity is a strategic decision for MongoDB. Debt financing can be attractive due to its lower cost of capital compared to equity, as interest payments are tax-deductible. However, excessive debt can increase financial risk. Equity financing, on the other hand, doesn't require fixed payments and can provide a cushion during challenging times, but it can dilute existing shareholders' ownership.

Here is a summary of MongoDB, Inc.'s liabilities as of January 31, 2024:

MongoDB, Inc. (MDB) Liquidity and Solvency

Understanding MongoDB, Inc.'s (MDB) financial health requires a close look at its liquidity and solvency, which reveal its ability to meet short-term obligations and long-term financial stability. Here’s an analysis of key financial metrics and trends based on the latest available data.

Assessing MongoDB, Inc.'s Liquidity:

Liquidity ratios provide insights into a company's ability to cover its short-term liabilities with its short-term assets. Key ratios to consider include the current ratio and the quick ratio.

• Current Ratio: This ratio measures a company's ability to pay off its current liabilities with its current assets. A current ratio of greater than 1 indicates that a company has more current assets than current liabilities.
• Quick Ratio: Also known as the acid-test ratio, this is a more conservative measure than the current ratio, as it excludes inventories from current assets. This ratio assesses a company's ability to meet its short-term obligations with its most liquid assets.

Analysis of Working Capital Trends:

Working capital, calculated as current assets minus current liabilities, is a crucial indicator of a company's operational efficiency and short-term financial health. Monitoring the trends in working capital helps in understanding whether the company is efficiently managing its resources. A positive working capital balance suggests that a company has enough liquid assets to cover its short-term liabilities.

Cash Flow Statements Overview:

An examination of cash flow statements provides a clear picture of how MongoDB, Inc. generates and uses cash. The cash flow statement is divided into three main sections:

• Operating Activities: This section shows the cash generated from the company's core business operations. A positive cash flow from operations indicates that the company is generating enough cash from its regular business activities to cover its operating expenses.
• Investing Activities: This includes cash flow from the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E). These activities can consume cash when the company is investing in growth, or generate cash when assets are sold.
• Financing Activities: This section reports cash flow from debt, equity, and dividends. It reflects how the company is funding its operations, whether through borrowing, issuing stock, or paying dividends.

Potential Liquidity Concerns or Strengths:

Based on the analysis of liquidity ratios, working capital trends, and cash flow statements, it’s possible to identify potential liquidity concerns or strengths. For instance:

• If the current and quick ratios are consistently declining, it may indicate a potential liquidity risk.
• A negative trend in operating cash flow could signal issues with the company's ability to generate cash from its core operations.
• Conversely, a strong positive trend in operating cash flow, coupled with healthy liquidity ratios, would indicate financial strength.

For more in-depth insights, you can explore this comprehensive analysis: Breaking Down MongoDB, Inc. (MDB) Financial Health: Key Insights for Investors

MongoDB, Inc. (MDB) Valuation Analysis

Determining whether MongoDB, Inc. (MDB) is overvalued or undervalued requires analyzing various financial metrics and market indicators. Key ratios like price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) provide insights into the company's valuation relative to its earnings, book value, and operational cash flow.

As of the latest data available, MongoDB's valuation metrics present a mixed picture:

• P/E Ratio: MongoDB's P/E ratio is currently unavailable as the company has negative earnings.
• P/B Ratio: The Price/Book ratio for MongoDB is 7.7x as of November 30, 2024.
• EV/EBITDA Ratio: As of January 31, 2024, MongoDB's Enterprise Value to EBITDA ratio is -72.5x.

Stock price trends offer another perspective on valuation. Over the past 12 months, MongoDB's stock has experienced significant volatility. As of April 19, 2024, MDB's stock closed at $324.28. The 52 week high was $424.84, and the 52 week low was $224.38.

Since MongoDB does not offer dividends, dividend yield and payout ratios are not applicable.

Analyst consensus provides an external viewpoint on MongoDB's valuation. Recent ratings include:

• As of April 15, 2024, Stifel Nicolaus maintains a 'Buy' rating with a price target of $425.00.
• As of April 12, 2024, RBC Capital maintains an 'Outperform' rating with a price target of $400.00.

Here’s a summary of recent analyst ratings:

For further insights, you might find this resource helpful: Breaking Down MongoDB, Inc. (MDB) Financial Health: Key Insights for Investors

MongoDB, Inc. (MDB) Risk Factors

Several factors could impact MongoDB, Inc.'s (MDB) financial health, stemming from both internal operations and the external environment. These risks span industry competition, regulatory changes, and overall market conditions. Understanding these potential challenges is crucial for investors.

Industry Competition: The database market is intensely competitive. MongoDB, Inc. (MDB) faces competition from:

• Established database vendors like Oracle, Microsoft, and IBM.
• Open-source database solutions such as MySQL and PostgreSQL.
• Cloud-based database services from Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure.

This competition could lead to pricing pressures, reduced market share, and decreased revenue for MongoDB, Inc. (MDB).

Regulatory Changes: Changes in data privacy regulations, such as GDPR or CCPA, could impact how MongoDB, Inc. (MDB) handles data and could increase compliance costs. Additionally, regulations regarding cloud computing and data localization could affect the company's ability to operate in certain regions.

Market Conditions: Economic downturns or periods of uncertainty can affect IT spending, which could reduce demand for MongoDB, Inc.'s (MDB) products and services. Changes in technology trends, such as the adoption of new database technologies or shifts in application development practices, could also impact the company's future prospects.

Operational, Financial, and Strategic Risks: Recent earnings reports and filings may highlight specific operational, financial, or strategic risks. These could include:

• Sales Execution: Risk associated with the ability to acquire new customers and expand existing customer relationships.
• Product Development: Challenges in developing and delivering new products and features that meet customer needs.
• Cloud Adoption: Risks related to the adoption of Atlas, its cloud database service, including security and reliability concerns.
• Financial Performance: Risks related to revenue growth, profitability, and cash flow.

Mitigation strategies or plans, if available, might include diversifying the customer base, investing in research and development, enhancing security measures, or implementing cost-control initiatives.

Here's a hypothetical overview of potential risks and mitigations based on general industry knowledge and what a company like MongoDB, Inc. (MDB) might face:

For more in-depth insights, read Breaking Down MongoDB, Inc. (MDB) Financial Health: Key Insights for Investors.

MongoDB, Inc. (MDB) Growth Opportunities

MongoDB, Inc. (MDB) demonstrates robust growth potential driven by several key factors. These include innovative product development, strategic market expansion, impactful acquisitions, and key partnerships.

Key growth drivers for MongoDB, Inc. (MDB) include:

• Product Innovation: Continuous development and enhancement of its database platform, including features like Atlas Vector Search and advancements in developer data platform capabilities.
• Market Expansion: MongoDB is expanding its reach in the database market, targeting diverse industries and use cases, supported by strategic partnerships and community engagement.
• Acquisitions: Strategic acquisitions that broaden its technology offerings and market presence.

Future revenue growth projections and earnings estimates for MongoDB, Inc. (MDB) are promising. For fiscal year 2024, MongoDB's total revenue increased 22% year-over-year to $1.68 billion. Looking ahead, the company anticipates continued growth, driven by its expanding product offerings and strong market demand.

Strategic initiatives and partnerships poised to drive future growth include:

• Partnerships: Collaborations with major cloud providers and technology companies to enhance its platform's reach and integration capabilities.
• AI Integration: Leveraging artificial intelligence to improve database performance and functionality, attracting more users and use cases.

MongoDB, Inc. (MDB) possesses several competitive advantages that position it favorably for sustained growth:

• Developer-Friendly Platform: Its flexible document-oriented database model and comprehensive developer tools enhance productivity and attract a wide range of users.
• Cloud-Native Architecture: MongoDB Atlas, its cloud database service, offers scalability, security, and ease of management, appealing to modern application development needs.
• Versatile Use Cases: MongoDB supports a wide array of applications, from transactional systems to analytics and content management, making it valuable across various industries.

Here's a look at MongoDB, Inc. (MDB)'s financial performance and future outlook:

Explore more about MongoDB, Inc. (MDB) and its investors: Exploring MongoDB, Inc. (MDB) Investor Profile: Who’s Buying and Why?