MongoDB announces full redemption of 2026 convertible notes via Investing.com

NEW YORK – MongoDB Inc. (NASDAQ: ), a leader in prepackaged software services, announced today the issuance of all of its senior 0.25% convertible notes due 2026. The aggregate principal amount of the notes to be redeemed is $1,149,972,000. This action is pursuant to the terms set forth in the Indenture Agreement dated January 14, 2020, with US Bank Trust Company, a National Corporation, as Trustee.

The Company has scheduled a redemption on December 16, 2024, at which time holders of the notes will receive 100% of the principal amount and accrued and unpaid interest from July 15, 2024, up to but not including the date of redemption. Interest on the notes will cease to accrue after the redemption date.

Noteholders have the option to convert their notes into shares of MongoDB's Common Stock at any time prior to the conversion deadline at 5:00 pm (New York City time) on December 13, 2024. The conversion rate is set at 4.9260 shares of Common Stock. with a $1,000 principal amount of notes. This ratio includes an additional 0.1911 shares per $1,000 of 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 pay for the conversion in shares of its Common Stock, and in cash in lieu of any fractional shares, following the issuance of the redemption notice until the conversion deadline.

These financial controls are part of MongoDB's strategic financial management and are detailed in the company's most recent filing with the Securities and Exchange Commission. The information is based on a press release issued by MongoDB, Inc. on Wednesday. Investors and noteholders 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, has been the subject of many analyst reviews following strong second quarter earnings. The company reported a 13% increase in revenue year over year, to $478 million, driven primarily by the success of Atlas (NYSE: ) and Enterprise Advanced offerings. This impressive performance resulted in the 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 respectively raised their target prices for MongoDB to $340, $335, and $330, while maintaining their positive ratings. Oppenheimer also raised its price target to $350, maintaining an Outperform rating. These changes reflect the company's strong performance and faith in its continued growth.

Looking ahead, MongoDB management expects third-quarter revenue to be between $493 million and $497 million. Full year 2025 revenue is expected to be between $1.92 billion and $1.93 billion, based on the company's recent performance and analyst expectations. These latest developments reinforce confidence in MongoDB's potential and its ability to maintain a positive growth trajectory.

InvestingPro Insights

MongoDB's decision to use its convertible notes is consistent with its strong financial position, as highlighted by the latest InvestingPro data. The company's market capitalization reaches $20.55 billion, indicating its significant presence in the prepackaged software services sector. InvestingPro Tip points out that MongoDB has more cash than debt on its balance sheet, which likely supports its ability to leverage these notes.

Despite the massive redemption price of over $1.1 billion, MongoDB's financial health appears to be solid. The company's revenue for the last twelve months from Q2 2025 reached $1.82 billion, with a significant revenue growth of 22.37% over the same period. This growth trend is also supported by another InvestingPro Tip which shows that income is expected to grow this year.

For investors considering a conversion option, it's important to note that MongoDB stock has shown solidity with a price return of 10.22% 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.

This information is just a snapshot of the comprehensive analysis available from InvestingPro, which provides 11 additional tips for MongoDB, providing a complete picture for investors evaluating the company's financial strategies and market conditions.

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