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MongoDB's Enterprise Customer Base Grows: Can Atlas Sustain Momentum?
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Key Takeaways
MongoDB's customers generating at least $100,000 in ARR increased 17% year over year.
Atlas revenues grew approximately 29%, benefiting from strong large-enterprise demand.
Net ARR expansion improved to 122%, reflecting increasing customer spending.
MongoDB (MDB - Free Report) is benefiting from deeper adoption among large enterprises, strengthening recurring revenue growth and cloud database consumption. In the second quarter of fiscal 2027, the company had nearly 3,000 customers generating at least $100,000 in annual recurring revenues (ARR), up 17% year over year. Revenue growth from this cohort outpaced total company revenue growth, underscoring MongoDB’s success in moving upmarket.
Atlas remains central to this momentum. Revenues increased approximately 29% year over year for the fifth consecutive quarter, marking a record $127 million growth. Strength among its largest customers, particularly in North America, supported this performance. MongoDB’s total-company net ARR expansion rate rose to 122% from 119% a year earlier, indicating stronger expansion across its existing customer base.
Deeper platform adoption is also strengthening growth. Among Atlas customers generating at least $100,000 in ARR, 48% used two or more features, up from 42% a year earlier, driven by increasing Search and Vector Search adoption. Enterprise Advanced further supports expansion through regulated and hybrid deployments.
MongoDB raised its full-year fiscal 2027 Atlas growth outlook to approximately 27%, up 300 basis points from the midpoint of its previous guidance. Growing enterprise workloads, multiproduct adoption and AI-driven demand position the company for sustained revenue expansion.
How Do Competitors Fare Against MDB?
Amazon (AMZN - Free Report) competes with MongoDB through its fully managed DocumentDB service, which supports MongoDB-compatible applications and scalable document databases. Amazon offers automated database management, high availability and integration with AWS infrastructure, appealing to enterprises modernizing cloud workloads. Its established hyperscaler relationships position Amazon as a formidable competitor for large enterprise database spending.
Microsoft (MSFT - Free Report) challenges MongoDB through Azure Cosmos DB for MongoDB, which supports document databases, vector search and AI-powered applications. Microsoft benefits from Azure's extensive enterprise relationships and integration with cloud and AI services. As businesses consolidate database workloads within their cloud ecosystems, Microsoft presents significant competition for MongoDB's expanding large-enterprise customer base.
Shares of MDB have declined 15.1% year to date, significantly underperforming the broader Zacks Computer and Technology sector's 19.2% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, MDB stock is currently trading at a forward 12-month Price/Sales ratio of 8.41X compared with the Internet – Software industry’s 4.35X. MDB has a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate projects 2026 earnings of $6.50 per share, representing a substantial 30.78% year-over-year gain. Estimates have been raised over both the past 30 and 60 days, suggesting continued improvement in analysts’ expectations.
View the Zacks #1 Rank List
Image: Bigstock
MongoDB's Enterprise Customer Base Grows: Can Atlas Sustain Momentum?
Key Takeaways
MongoDB (MDB - Free Report) is benefiting from deeper adoption among large enterprises, strengthening recurring revenue growth and cloud database consumption. In the second quarter of fiscal 2027, the company had nearly 3,000 customers generating at least $100,000 in annual recurring revenues (ARR), up 17% year over year. Revenue growth from this cohort outpaced total company revenue growth, underscoring MongoDB’s success in moving upmarket.
Atlas remains central to this momentum. Revenues increased approximately 29% year over year for the fifth consecutive quarter, marking a record $127 million growth. Strength among its largest customers, particularly in North America, supported this performance. MongoDB’s total-company net ARR expansion rate rose to 122% from 119% a year earlier, indicating stronger expansion across its existing customer base.
Deeper platform adoption is also strengthening growth. Among Atlas customers generating at least $100,000 in ARR, 48% used two or more features, up from 42% a year earlier, driven by increasing Search and Vector Search adoption. Enterprise Advanced further supports expansion through regulated and hybrid deployments.
MongoDB raised its full-year fiscal 2027 Atlas growth outlook to approximately 27%, up 300 basis points from the midpoint of its previous guidance. Growing enterprise workloads, multiproduct adoption and AI-driven demand position the company for sustained revenue expansion.
How Do Competitors Fare Against MDB?
Amazon (AMZN - Free Report) competes with MongoDB through its fully managed DocumentDB service, which supports MongoDB-compatible applications and scalable document databases. Amazon offers automated database management, high availability and integration with AWS infrastructure, appealing to enterprises modernizing cloud workloads. Its established hyperscaler relationships position Amazon as a formidable competitor for large enterprise database spending.
Microsoft (MSFT - Free Report) challenges MongoDB through Azure Cosmos DB for MongoDB, which supports document databases, vector search and AI-powered applications. Microsoft benefits from Azure's extensive enterprise relationships and integration with cloud and AI services. As businesses consolidate database workloads within their cloud ecosystems, Microsoft presents significant competition for MongoDB's expanding large-enterprise customer base.
MDB’s Share Price Performance, Valuation & Estimates
Shares of MDB have declined 15.1% year to date, significantly underperforming the broader Zacks Computer and Technology sector's 19.2% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, MDB stock is currently trading at a forward 12-month Price/Sales ratio of 8.41X compared with the Internet – Software industry’s 4.35X. MDB has a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate projects 2026 earnings of $6.50 per share, representing a substantial 30.78% year-over-year gain. Estimates have been raised over both the past 30 and 60 days, suggesting continued improvement in analysts’ expectations.
Image Source: Zacks Investment Research
MongoDB currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.