NEW YORK – MongoDB , Inc. (NASDAQ:MDB), a leader in prepackaged software services, announced today the redemption of all its outstanding 0.25% Convertible Senior Notes due in 2026. The total principal amount of the notes to be redeemed is $1,149,972,000. This action is in accordance with the terms set forth in the Indenture agreement dated January 14, 2020, with U.S. Bank Trust Company, National Association, as Trustee.
The company has scheduled the redemption for December 16, 2024, at which point holders of the notes will receive 100% of the principal amount plus accrued and unpaid interest from July 15, 2024, up to but not including the redemption date. Interest on the notes will cease to accrue following the redemption date.
Noteholders have the option to convert their notes into shares of MongoDB's Common Stock at any time before the conversion deadline at 5:00 p.m. (New York City time) on December 13, 2024. The conversion rate has been set at 4.9260 shares of Common Stock per $1,000 principal amount of the notes. This rate includes an additional 0.1911 shares per $1,000 principal as a result of the redemption call. The conversion rate is subject to adjustment in certain circumstances as described in the Indenture.
MongoDB has elected to settle conversions with shares of its Common Stock, along with cash in lieu of any fractional shares, following the issuance of the redemption notice up to the conversion deadline.
This financial maneuver is part of MongoDB's strategic financial management and is detailed in the company's latest filing with the Securities and Exchange Commission. The information is based on a press release statement issued by MongoDB, Inc. on Wednesday. Investors and note holders are advised to review the terms of the redemption and conversion options as they make their financial decisions regarding the company's notes.
In other recent news, MongoDB, a leading database platform, has been the subject of numerous analyst reviews following robust second-quarter earnings. The company reported a 13% year-over-year revenue increase, amounting to $478 million, primarily driven by the success of its Atlas (NYSE:ATCO) and Enterprise Advanced offerings. This impressive performance led to an addition of over 1,500 new customers, bringing MongoDB's total customer base to over 50,700.
Analysts from DA Davidson, Piper Sandler, and KeyBanc Capital Markets have respectively raised their price targets for MongoDB to $340, $335, and $330, while maintaining their positive ratings. Oppenheimer has also increased its price target to $350, maintaining an Outperform rating. These adjustments reflect the company's strong performance and the belief in its continued growth.
Looking forward, MongoDB's management anticipates third-quarter revenue to range between $493 million and $497 million. The full fiscal year 2025 revenue is projected to be between $1.92 billion and $1.93 billion, based on the company's recent performance and analyst expectations. These recent developments underscore the confidence in MongoDB's potential and its capacity to maintain a positive growth trajectory.
InvestingPro Insights
MongoDB's decision to redeem its convertible notes aligns with its strong financial position, as highlighted by recent InvestingPro data. The company's market capitalization stands at $20.55 billion, reflecting its significant presence in the prepackaged software services sector. An InvestingPro Tip reveals that MongoDB holds more cash than debt on its balance sheet, which likely supports its ability to redeem these notes.
Despite the substantial redemption amount of over $1.1 billion, MongoDB's financial health appears robust. The company's revenue for the last twelve months as of Q2 2025 reached $1.82 billion, with a notable revenue growth of 22.37% over the same period. This growth trajectory is further supported by another InvestingPro Tip indicating that net income is expected to grow this year.
For investors considering the conversion option, it's worth noting that MongoDB's stock has shown resilience with a 10.22% price return over the past three months. However, the company's high Price / Book multiple of 15.09 suggests that the stock is trading at a premium relative to its book value.
These insights are just a snapshot of the comprehensive analysis available on InvestingPro, which offers 11 additional tips for MongoDB, providing a more complete picture for investors evaluating the company's financial strategies and market position.
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