MongoDB, Inc.

Good day and thank you for standing by. Welcome to the MongoDB's Q1 FY26 earnings conference call. At this time, all participants are in listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. I would now like to hand the conference over to your speaker today, Brian Denue from ICR. Thank you, Josh.

Good afternoon, and thank you for joining us today to review MongoDB's first quarter fiscal 2026 financial results, which we announced in our press release issued after the close of market today. Joining me on the call today are Dave Itacheria, President and CEO of MongoDB, and Mike Berry, CFO of MongoDB. During this call, we will make four looking statements, including statements related to our market and future growth opportunities, our opportunity to win new business, our expectations regarding Atlas consumption growth, the impact of non-Atlas business and multi-year license revenue, the long-term opportunity of AI, the opportunity of application modernization, our expectations regarding our win rates and Salesforce productivity, our financial guidance and underlying assumptions, and our planned share repurchases and investments and growth opportunities in AI. These statements are subject to a variety of risks and uncertainties, including the results of operations and financial condition, They cause actual results to differ materially from our expectations. For a discussion of the material risks and uncertainties that could affect our actual results, please refer to the risk described in our annual report on Form 10-K for the year ended January 31st, 2025, filed with the SEC on March 20th, 2025. Any forward-looking statements made in this call reflect our views only as of today, and we undertake no obligation to update them except as required by law. Additionally, we'll discuss non-GAAP financial measures in this conference call. Please refer to the tables in our earnings release on the investor relations portion of our website for a reconciliation of these measures to the most directly comparable GAAP financial measure. With that, I'd like to turn the call over to Dave.

Thank you, Brian, and thank you to everyone joining us today. I'm pleased to report that we got off to a strong start in fiscal 2026 as we executed well against a large market opportunity. Let's begin by reviewing our first quarter results. before giving you a broader company update. We generated revenue of $549 million, a 22% year-over-year increase and above the high end of our guidance. Atlas revenue grew 26% year-over-year, representing 72% of revenue. We generated non-GAAP operating income of $87 million for a 16% non-GAAP operating margin, and we ended the quarter with over 57,100 customers. Overall, we posted a strong Q1 despite a dynamic and fast-changing macro environment. We had a solid new business quarter. We are beginning to see the benefit of our decision to focus our resources on the high end of the market, where we have the largest opportunity. Atlas consumption this quarter played out in line with our expectations. Mike will discuss consumption trends in more detail and our expectations for the remainder of the year. Our total customer net ads are the highest in over six years, reflecting the continued strong adoption of MongoDB across a wide range of industries and use cases. Self-serve customer additions were particularly strong this quarter, reinforcing MongoDB's position as the go-to platform for developers building the next generation of applications, including many focused on AI. While these accounts typically start small, the self-serve channel is a powerful engine for long-term growth. Finally, retention rates remain strong in Q1, demonstrating the quality of our product and the mission criticality of our platform. We are pleased with our Q1 performance. As I said before, companies leverage software to execute their business strategy, drive differentiation, and improve operational efficiency. As the operational database that is the core of software applications, MongoDB is undeniably a must-have component of the tech stack. We continue to make progress toward our goal of becoming the standard platform for enterprises and the default for developers building new applications. At the heart of this momentum is MongoDB's modern architecture, which delivers real and measurable advantages for the types of applications being built today, cloud native, distributed, real-time, and the AI-powered applications of tomorrow. MongoDB's document model and the associated platform enables developers to more easily represent the messiness of real-world data, which includes understanding relationships between structured and unstructured data, and managing data that is constantly evolving and changing. This fundamental architectural advantage provides customers greater flexibility, faster time to market, and the ability to scale without re-architecting. These capabilities are why customers continue to develop more and more mission-critical workloads in MongoDB, illustrated by our strong customer additions this quarter. As AI redefines how applications are built and how businesses operate, MongoDB is exceptionally well-positioned. Real-world AI applications require high quality, context-rich, and offer unstructured data to deliver trustworthy outputs. We continually hear from large enterprises that high accuracy is a critical requirement to drive wide-scale adoption of AI. Our recent acquisition of Voyage AI enhances our ability to serve this need. Embeddings are the bridge between a large language model and a customer's private data. Voyage's leading embedding and re-ranking models allow customers to feed precise and relevant context into LLMs, significantly improving the accuracy and reliability of the output of AI applications. By producing the most contextually rich domain-optimized embeddings, MongoDB sits at a gateway of meaning in an AI system. With the release of Voyage 3.5, we've taken another step forward, meaningfully outperforming the next best embedding models while reducing storage costs by more than 80%. This makes it not only powerful, but also cost-effective at scale. So what does this all mean? MongoDB now brings together three things that modern AI-powered applications need, real-time data, powerful search, and smart retrieval. By combining these into one platform, We make it dramatically easier for developers to build intelligent, responsive apps without stitching together multiple systems. In their desire to keep up with evolving customer needs, some vendors are retrofitting their products, such as adding JSON or vector support, as afterthoughts, which are superficial and brittle. This is a tacit admission that MongoDB's approach of using JSON and the document model is the best way to model real-world data. These features may check the box, but they fall apart in production, leading to performance bottlenecks, operational headaches, and spiraling infrastructure costs. Fundamentally, these vendors are constrained by the relational underpinnings. It's important to understand that superficial compatibility with modern data types is not the same as deeply integrated production-grade functionality. MongoDB, by contrast, was purpose-built to address these needs natively. We see this dynamic in our customer base every day. To bring this to life with an example, Zepto, an India-based quick commerce platform with 1.5 billion annual sales, migrated to MongoDB from Postgres after experiencing scalability challenges. Zepto offers users a choice of over 15,000 products with a promised 10-minute delivery and has grown rapidly since its founding in July 2021, recording 20% month-over-month growth. After this rapid growth, Zepto faced performance issues with its previous infrastructure powered by Postgres and Redis clusters that could no longer scale. By migrating to MongoDB Atlas, Zepto overcame these challenges through built-in features like in-memory caching, sharding, and real-time analytics. This transition enabled them to reduce latency by 40%, handle six times more traffic, and improve page load times by 14%, directly enhancing customer experience and enabling their fast growth. As we look ahead, we're confident MongoDB's combination of architectural advantage, enterprise trust, and broad developer adoption positions us to lead in both the current wave of digital transformation and the next wave powered by AI. We also remain focused on our other strategic priorities we've discussed in previous quarters, moving up market and modernizing legacy apps. We're seeing good progress on these initiatives, which will fuel growth into fiscal 27 and beyond. This quarter, we hired a new leader who has nearly 30 years of experience in technology transformation at Leading Systems Integrators to lead our application modernization program. We continue to see significant demand to modernize legacy applications and we're making great progress on tooling to automate this effort to standardize and productize this offering. While we continue to invest in the long term, we are also sharpening our focus on operating efficiency. We view this as healthy discipline, regularly reassessing the return on our spend, identify what's working and what's not, and reallocating resources to high conviction areas and improving profitability. To help usher in our next stage of growth, I'm delighted to introduce two new leaders to the executive team. Mike Berry, our new CFO, joins us from NetApp, where he has served in the same role for the past five years. Mike is a seven-time CFO with over 30 years' experience in technology and software and has a proven track record of driving profitable growth. We have also promoted May Petrie to be our new CMO. May joined MongoDB in early 2022 as VP of Digital and Growth Marketing and brings the right mix of enterprise experience and results orientation to lead our marketing organization. Now I'd like to spend a few minutes reviewing the adoption trends of MongoDB across our customer base. Customers across industries and around the world are running mission-critical projects in Atlas, leveraging the full power of our platform, including the European Commission, Lenovo, Nokia Networks, and CSX. CSX, a leading U.S. railroad transportation company, migrated its mission-critical Railroad Transportation Operations Portal, which is responsible for real-time monitoring and alerts across 21,000 miles of track and ensuring uninterrupted 24x7 availability onto MongoDB Atlas. CSX can now dynamically scale workloads and optimize the database management. With this modernization, CSX is positioned to achieve greater operational performance while driving long-term sustainable growth. Startups and mature companies are using MongoDB to help to deliver the next wave of AI-powered applications to their customers, including Cursor, Halion, Vonage, the Financial Times, and LG U+. LG U+, a South Korean mobile network operator owned by the LG Corporation, built its agent-assist AI solution on MongoDB Atlas, which supports thousands of agents in accessing information and delivering accurate responses to customers quickly. They use MongoDB Atlas Vector Search to enable real-time AI capabilities, such as identifying customer intent and providing guidelines on how to respond to inquiries. The solution has significantly enhanced customer experiences and decreased the average processing time per call. In summary, we had a strong Q1 and we remain confident in our ability to execute on a long-term opportunity. We're steadily advancing toward a vision of becoming the go-to platform for enterprises and the first choice for developers creating new applications. Before I turn it over to Mike, I would personally invite you to the investor session at the mongodb.localnyc to be held at the Javits Center on September 17th. Please email ir at mongodb.com if you're interested in attending. With that, here's Mike.