Company Overview
MongoDB, Inc. operates as a provider of a general-purpose database platform globally, offering solutions such as MongoDB Atlas for hosted multi-cloud deployment and MongoDB Enterprise Advanced for on-premise enterprise usage. The company functions within the Technology sector, specifically classified under the Software - Infrastructure industry, which implies a focus on foundational tools essential for modern digital operations. With a market capitalization of $21.99B and annual revenue of $2.46B, MongoDB demonstrates significant scale supported by a workforce of 5,636 employees. These valuation and revenue figures indicate that the market assigns a substantial premium to the company's infrastructure capabilities, reflecting high expectations for its role in the broader software ecosystem despite current profitability challenges.
Financial Health
The company reported revenue of $2.46B over the trailing twelve months, yet this generated a net income of -$71,151,000 and an EBITDA of -$109,100,000, revealing a cost structure where expenses significantly outweigh operating profits. Despite the negative net income, the company maintains positive free cash flow of $463.32M, which provides critical financial flexibility to fund operations and strategic initiatives without relying on external financing. The gross margin stands at 71.7%, indicating strong pricing power and efficiency in cost of goods sold, while the operating margin is 0.0% and the profit margin is -2.9%, highlighting that operating expenses currently consume all operating earnings. On the balance sheet, cash holdings of $2.39B vastly exceed total debt of $62.83M, supported by a debt-to-equity ratio of 2.13 and a current ratio of 4.65. The elevated current ratio suggests robust short-term liquidity, ensuring the company can easily meet its obligations with current assets, even though the debt-to-equity ratio appears high relative to the low absolute debt level. Furthermore, the return on equity is -2.5% and the return on assets is -2.4%, metrics that reveal management is currently utilizing the company's capital base to generate losses rather than positive returns on invested equity or assets.
Valuation Assessment
The valuation metrics present a complex picture, with a trailing P/E ratio of N/A due to negative earnings, contrasted by a forward P/E of 38.37 that implies the market anticipates a significant recovery in profitability in the coming period. The price-to-book ratio is 7.37, suggesting that the market values the company at more than seven times its book value, which indicates a high premium assigned to its intangible assets and growth potential rather than tangible net worth. Alternative valuation metrics such as the price-to-sales ratio of 8.92 and an EV/EBITDA of -177.71 further illustrate that the stock is priced based on revenue multiples and future expectations rather than current earnings power. The stock has traded within a 52-week range between a low of $140.78 and a high of $444.72, meaning the current price sits at a level that reflects significant volatility and distance from recent lows. With a beta of 1.51, the stock exhibits 51% higher volatility than the broader market, indicating that price movements will be amplified relative to general market shifts.
Growth & Income
MongoDB demonstrates robust top-line expansion with revenue growth of 26.7% year-over-year, while earnings growth is recorded at 2.2%, indicating that earnings are growing significantly slower than revenue due to the drag of high operating costs and investment phases. As a non-dividend payer, the company has a dividend yield of N/A and a payout ratio of 0.0%, meaning it reinvests all available earnings back into the business to fuel growth initiatives rather than distributing cash to shareholders. This growth-oriented strategy aligns with the company's stage of development, prioritizing market share capture and product expansion over immediate income generation for investors. The overall growth and income profile is defined by high revenue acceleration and a complete focus on capital retention to support future profitability, rather than providing current yield or dividend income.