MongoDB, Inc. Announces First Quarter Fiscal 2024 Financial Results
"MongoDB began fiscal 2024 with strong first quarter results, highlighted by
"We believe the recent breakthroughs in AI represent the next frontier of software development. The move to embed AI in applications requires a broad and sophisticated set of capabilities while enabling developers to move even faster to create a competitive advantage. We are confident MongoDB's developer data platform is well positioned to benefit from the next wave of AI applications in the years to come."
First Quarter Fiscal 2024 Financial Highlights
- Revenue: Total revenue was
$368.3 million 29% year-over-year. Subscription revenue was$354.7 million 29% year-over-year, and services revenue was$13.6 million 25% year-over-year. - Gross Profit: Gross profit was
$270.8 million 74% gross margin compared to73% in the year-ago period. Non-GAAP gross profit was$279.9 million 76% non-GAAP gross margin, compared to a non-GAAP gross margin of75% in the year-ago period. - Loss from Operations: Loss from operations was
$68.5 million $75.9 million $43.7 million $17.5 million - Net Loss: Net loss was
$54.2 million $0.77 $77.3 million $1.14 $45.3 million $0.56 $15.2 million $0.20 - Cash Flow: As of April 30, 2023, MongoDB had
$1.9 billion $53.7 million $11.6 million $51.8 million $8.4 million
A reconciliation of each Non-GAAP measure to the most directly comparable GAAP measure has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
First Quarter Fiscal 2024 and Recent Business Highlights
- MongoDB and Alibaba announced the extension of their strategic partnership through 2027. Since forming the partnership in 2019, this collaboration has led to an 8x growth in consumption. The two companies are now partnering to further integrate MongoDB and Alibaba Cloud services to provide an even better experience to tens of thousands of Alibaba customers.
- Temenos announced that the Temenos Banking Cloud on MongoDB Atlas processed a record-breaking 150,000+ banking transactions per second. Compared to the relational database used in the prior benchmark, MongoDB delivered twice the performance while using less than half the resources. These results demonstrate that the Temenos banking platform, coupled with MongoDB, can support the needs of even the largest global banks while offering superior price/performance.
- MongoDB is excited to take its in-person learning conferences on the road with a new MongoDB.local series to 29 cities across 19 countries and tens of thousands of expected attendees.
Second Quarter and Full Year Fiscal 2024 Guidance
Based on information available to management as of today, June 1, 2023, MongoDB is issuing the following financial guidance for the second quarter and full year fiscal 2024.
Second Quarter Fiscal 2024 | Full Year Fiscal 2024 | |
Revenue | ||
Non-GAAP Income from Operations | ||
Non-GAAP Net Income per Share |
Reconciliation of non-GAAP income from operations and non-GAAP net income per share guidance to the most directly comparable GAAP measures is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in MongoDB's stock price. MongoDB expects the variability of the above charges to have a significant, and potentially unpredictable, impact on its future GAAP financial results.
Conference Call Information
MongoDB will host a conference call today, June 1, 2023, at 5:00 p.m. (Eastern Time) to discuss its financial results and business outlook. A live webcast of the call will be available on the "Investor Relations" page of MongoDB's website at https://investors.mongodb.com. To access the call by phone, please go to this link (registration link), and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at http://investors.mongodb.com.
Forward-Looking Statements
This press release includes certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning MongoDB's financial guidance for the second fiscal quarter and full year fiscal 2024 and our ability to capitalize on our market opportunity and deliver strong growth for the foreseeable future. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "project," "will," "would" or the negative or plural of these words or similar expressions or variations. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and factors that are beyond our control including, without limitation: the impact the COVID-19 pandemic may have on our business and on our customers and our potential customers; the effects of the ongoing military conflict between
Non-GAAP Financial Measures
This press release includes the following financial measures defined as non-GAAP financial measures by the SEC: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP net income, non-GAAP net income per share and free cash flow. Non-GAAP gross profit and non-GAAP gross margin exclude expenses associated with stock-based compensation. Non-GAAP operating expenses, non-GAAP income from operations, non-GAAP net income and non-GAAP net income per share exclude:
- expenses associated with stock-based compensation including employer payroll taxes upon the vesting and exercising of stock-based awards and expenses related to stock appreciation rights previously issued to our employees in
China ; - amortization of intangible assets for the acquired technology and acquired customer relationships associated with prior acquisitions;
- amortization of time-based payments associated with prior acquisitions that were deemed to be post-combination compensation expense for
U.S. GAAP purposes; and - in the case of non-GAAP net income and non-GAAP net income per share, amortization of the debt issuance costs associated with our convertible senior notes and gains or losses on investments;
- additionally, non-GAAP net income and non-GAAP net income per share for the fiscal year 2024 period are adjusted for an assumed provision for income taxes based on an estimated long-term non-GAAP tax rate. The non-GAAP tax rate was calculated utilizing a three-year financial projection that excludes the direct impact of the GAAP to non-GAAP adjustments and considers other factors such as operating structure and existing tax positions in various jurisdictions. We intend to periodically reevaluate the projected long-term tax rate, as necessary, for significant events and our ongoing analysis of relevant tax law changes.
MongoDB uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating MongoDB's ongoing operational performance. MongoDB believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in MongoDB's industry, many of which may present similar non-GAAP financial measures to investors.
Free cash flow represents net cash used in operating activities, less capital expenditures, principal repayments of finance lease liabilities and capitalized software development costs, if any. MongoDB uses free cash flow to understand and evaluate its liquidity and to generate future operating plans. The exclusion of capital expenditures, principal repayments of finance lease liabilities and amounts capitalized for software development facilitates comparisons of MongoDB's liquidity on a period-to-period basis and excludes items that it does not consider to be indicative of its liquidity. MongoDB believes that free cash flow is a measure of liquidity that provides useful information to investors in understanding and evaluating the strength of its liquidity and future ability to generate cash that can be used for strategic opportunities or investing in its business in the same manner as MongoDB's management and board of directors.
Non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. In particular, other companies may report non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP net income, non-GAAP net income per share, free cash flow or similarly titled measures but calculate them differently, which reduces their usefulness as comparative measures. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, as presented below. This earnings press release and any future releases containing such non-GAAP reconciliations can also be found on the Investor Relations page of MongoDB's website at https://investors.mongodb.com.
About MongoDB
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Investor Relations
Brian Denyeau
ICR for MongoDB
646-277-1251
ir@mongodb.com
Media Relations
MongoDB
Press@mongodb.com
MONGODB, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) (unaudited) | |||
April 30, 2023 | January 31, 2023 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 721,787 | $ 455,826 | |
Short-term investments | 1,181,641 | 1,380,804 | |
Accounts receivable, net of allowance for doubtful accounts of | 211,575 | 285,192 | |
Deferred commissions | 82,867 | 83,550 | |
Prepaid expenses and other current assets | 34,424 | 31,212 | |
Total current assets | 2,232,294 | 2,236,584 | |
Property and equipment, net | 55,212 | 57,841 | |
Operating lease right-of-use assets | 40,072 | 41,194 | |
Goodwill | 57,779 | 57,779 | |
Acquired intangible assets, net | 9,133 | 11,428 | |
Deferred tax assets | 3,041 | 2,564 | |
Other assets | 182,994 | 181,503 | |
Total assets | $ 2,580,525 | $ 2,588,893 | |
Liabilities and Stockholders' Equity | |||
Current liabilities: | |||
Accounts payable | $ 7,986 | $ 8,295 | |
Accrued compensation and benefits | 78,300 | 90,112 | |
Operating lease liabilities | 8,605 | 8,686 | |
Other accrued liabilities | 50,470 | 52,672 | |
Deferred revenue | 387,206 | 428,747 | |
Total current liabilities | 532,567 | 588,512 | |
Deferred tax liability, non-current | 598 | 225 | |
Operating lease liabilities, non-current | 35,611 | 36,264 | |
Deferred revenue, non-current | 25,547 | 31,524 | |
Convertible senior notes, net | 1,140,727 | 1,139,880 | |
Other liabilities, non-current | 53,046 | 52,980 | |
Total liabilities | 1,788,096 | 1,849,385 | |
Stockholders' equity: | |||
Common stock, par value of | 71 | 70 | |
Additional paid-in capital | 2,382,121 | 2,276,694 | |
Treasury stock, 99,371 shares (repurchased at an average of | (1,319) | (1,319) | |
Accumulated other comprehensive income (loss) | 834 | (905) | |
Accumulated deficit | (1,589,278) | (1,535,032) | |
Total stockholders' equity | 792,429 | 739,508 | |
Total liabilities and stockholders' equity | $ 2,580,525 | $ 2,588,893 | |
MONGODB, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) (unaudited) | ||||
Three Months Ended April 30, | ||||
2023 | 2022 | |||
Revenue: | ||||
Subscription | $ 354,714 | $ 274,581 | ||
Services | 13,566 | 10,866 | ||
Total revenue | 368,280 | 285,447 | ||
Cost of revenue(1): | ||||
Subscription | 78,173 | 64,569 | ||
Services | 19,276 | 13,646 | ||
Total cost of revenue | 97,449 | 78,215 | ||
Gross profit | 270,831 | 207,232 | ||
Operating expenses: | ||||
Sales and marketing(1) | 182,733 | 150,268 | ||
Research and development(1) | 116,817 | 96,372 | ||
General and administrative(1) | 39,828 | 36,532 | ||
Total operating expenses | 339,378 | 283,172 | ||
Loss from operations | (68,547) | (75,940) | ||
Other income (expense), net | 16,788 | (208) | ||
Loss before provision for income taxes | (51,759) | (76,148) | ||
Provision for income taxes | 2,487 | 1,146 | ||
Net loss | $ (54,246) | $ (77,294) | ||
Net loss per share, basic and diluted | $ (0.77) | $ (1.14) | ||
Weighted-average shares used to compute net loss per share, basic and diluted | 70,177,499 | 67,706,502 | ||
(1) Includes stock–based compensation expense as follows: | ||||
Three Months Ended April 30, | ||||
2023 | 2022 | |||
Cost of revenue—subscription | $ 5,514 | $ 4,467 | ||
Cost of revenue—services | 2,948 | 2,212 | ||
Sales and marketing | 37,606 | 30,534 | ||
Research and development | 44,066 | 35,483 | ||
General and administrative | 13,821 | 10,870 | ||
Total stock–based compensation expense | $ 103,955 | $ 83,566 | ||
MONGODB, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | ||||
Three Months Ended April 30, | ||||
2023 | 2022 | |||
Cash flows from operating activities | ||||
Net loss | $ (54,246) | $ (77,294) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Depreciation and amortization | 4,373 | 3,787 | ||
Stock-based compensation | 103,955 | 83,566 | ||
Amortization of debt issuance costs | 847 | 840 | ||
Amortization of finance right-of-use assets | 994 | 994 | ||
Amortization of operating right-of-use assets | 2,225 | 2,018 | ||
Deferred income taxes | (188) | (61) | ||
Amortization of premium and accretion of discount on short-term investments, net | (13,230) | 2,231 | ||
Unrealized gain on non-marketable securities | (2,226) | (1,751) | ||
Unrealized foreign exchange loss | 429 | 581 | ||
Change in operating assets and liabilities: | ||||
Accounts receivable | 73,364 | 28,740 | ||
Prepaid expenses and other current assets | (2,909) | (3,293) | ||
Deferred commissions | 2,664 | (4,722) | ||
Other long-term assets | (46) | (358) | ||
Accounts payable | (304) | 1,023 | ||
Accrued liabilities | (12,631) | (23,016) | ||
Operating lease liabilities | (2,394) | (2,192) | ||
Deferred revenue | (47,266) | 152 | ||
Other liabilities, non-current | 319 | 329 | ||
Net cash provided by operating activities | 53,730 | 11,574 | ||
Cash flows from investing activities | ||||
Purchases of property and equipment | (623) | (2,538) | ||
Investment in non-marketable securities | (1,306) | (1,119) | ||
Proceeds from maturities of marketable securities | 280,000 | 75,000 | ||
Purchases of marketable securities | (66,789) | (100,146) | ||
Net cash provided by (used in) investing activities | 211,282 | (28,803) | ||
Cash flows from financing activities | ||||
Proceeds from exercise of stock options | 1,472 | 1,656 | ||
Principal repayments of finance leases | (1,342) | (595) | ||
Net cash provided by financing activities | 130 | 1,061 | ||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 709 | (1,467) | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | 265,851 | (17,635) | ||
Cash, cash equivalents, and restricted cash, beginning of period | 456,339 | 474,420 | ||
Cash, cash equivalents, and restricted cash, end of period | $ 722,190 | $ 456,785 | ||
MONGODB, INC. RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (in thousands, except share and per share data) (unaudited) | ||||
Three Months Ended April 30, | ||||
2023 | 2022 | |||
Reconciliation of GAAP gross profit to non-GAAP gross profit: | ||||
Gross profit on a GAAP basis | $ 270,831 | $ 207,232 | ||
Gross margin (Gross profit/Total revenue) on a GAAP basis | 74 % | 73 % | ||
Add back: | ||||
Expenses associated with stock-based compensation: Cost of Revenue—Subscription | 5,688 | 4,803 | ||
Expenses associated with stock-based compensation: Cost of Revenue—Services | 3,385 | 2,239 | ||
Non-GAAP gross profit | $ 279,904 | $ 214,274 | ||
Non-GAAP gross margin (Non-GAAP gross profit/Total revenue) | 76 % | 75 % | ||
Reconciliation of GAAP operating expenses to non-GAAP operating expenses: | ||||
Sales and marketing operating expense on a GAAP basis | $ 182,733 | $ 150,268 | ||
Less: | ||||
Expenses associated with stock-based compensation | 40,331 | 33,838 | ||
Amortization of intangible assets associated with acquisitions | 760 | 760 | ||
Non-GAAP sales and marketing operating expense | $ 141,642 | $ 115,670 | ||
Research and development operating expense on a GAAP basis | $ 116,817 | $ 96,372 | ||
Less: | ||||
Expenses associated with stock-based compensation | 45,724 | 37,504 | ||
Amortization of intangible assets and post-combination compensation expense associated with prior acquisitions | 1,535 | 1,535 | ||
Non-GAAP research and development operating expense | $ 69,558 | $ 57,333 | ||
General and administrative operating expense on a GAAP basis | $ 39,828 | $ 36,532 | ||
Less: | ||||
Expenses associated with stock-based compensation | 14,780 | 12,754 | ||
Non-GAAP general and administrative operating expense | $ 25,048 | $ 23,778 | ||
Reconciliation of GAAP loss from operations to non-GAAP income from operations: | ||||
Loss from operations on a GAAP basis | $ (68,547) | $ (75,940) | ||
Add back: | ||||
Expenses associated with stock-based compensation | 109,908 | 91,138 | ||
Amortization of intangible assets and post-combination compensation expense associated with prior acquisitions | 2,295 | 2,295 | ||
Non-GAAP income from operations | $ 43,656 | $ 17,493 | ||
Reconciliation of GAAP net loss to non-GAAP net income: | ||||
Net loss on a GAAP basis | $ (54,246) | $ (77,294) | ||
Add back: | ||||
Expenses associated with stock-based compensation | 109,908 | 91,138 | ||
Amortization of intangible assets and post-combination compensation expense associated with prior acquisitions | 2,295 | 2,295 | ||
Amortization of debt issuance costs related to convertible senior notes | 847 | 840 | ||
Less: | ||||
Gain on non-marketable securities | 2,226 | 1,751 | ||
Income tax effects and adjustments ** | 11,316 | — | ||
Non-GAAP net income | $ 45,262 | $ 15,228 | ||
Reconciliation of GAAP net loss per share, basic and diluted, to non-GAAP net income per share, basic and diluted: | ||||
Net loss per share, basic and diluted, on a GAAP basis | $ (0.77) | $ (1.14) | ||
Add back: | ||||
Expenses associated with stock-based compensation | 1.57 | 1.35 | ||
Amortization of intangible assets and post-combination compensation expense associated with prior acquisitions | 0.03 | 0.03 | ||
Amortization of debt issuance costs related to convertible senior notes | 0.01 | 0.01 | ||
Less: | ||||
Gain on non-marketable securities | 0.03 | 0.03 | ||
Income tax effects and adjustments ** | 0.16 | — | ||
Non-GAAP net income per share, basic | $ 0.65 | $ 0.22 | ||
Adjustment for fully diluted earnings per share | (0.09) | (0.02) | ||
Non-GAAP net income per share, diluted * | $ 0.56 | $ 0.20 | ||
* | Diluted non-GAAP net income per share is calculated based upon 81.5 million of diluted weighted-average shares of outstanding common stock for the three months ended April 30, 2023. Diluted non-GAAP net income per share for the three months ended April 30, 2022, is calculated based upon 77.0 million of diluted weighted-average shares of outstanding common stock. The GAAP and Non-GAAP net loss per share calculations exclude potentially dilutive shares as the inclusion of such shares would have been anti-dilutive due to the net loss reported. |
** | Non-GAAP financial information for the fiscal 2024 period is adjusted for an assumed provision for income taxes based on our long-term projected tax rate of |
The following table presents a reconciliation of free cash flow to net cash provided by (used in) operating activities, the most directly comparable GAAP measure, for each of the periods indicated (unaudited, in thousands): | |
Three Months Ended April 30, | ||||
2023 | 2022 | |||
Net cash provided by operating activities | $ 53,730 | $ 11,574 | ||
Capital expenditures | (623) | (2,538) | ||
Principal repayments of finance leases | (1,342) | (595) | ||
Capitalized software | — | — | ||
Free cash flow | $ 51,765 | $ 8,441 | ||
MONGODB, INC. CUSTOMER COUNT METRICS | |||||||||||||||||
The following table presents certain customer count information as of the periods indicated: | |||||||||||||||||
4/30/2021 | 7/31/2021 | 10/31/2021 | 1/31/2022 | 4/30/2022 | 7/31/2022 | 10/31/2022 | 1/31/2023 | 4/30/2023 | |||||||||
Total Customers (a) | 26,800+ | 29,000+ | 31,000+ | 33,000+ | 35,200+ | 37,000+ | 39,100+ | 40,800+ | 43,100+ | ||||||||
Direct Sales Customers(b) | 3,300+ | 3,600+ | 3,900+ | 4,400+ | 4,800+ | 5,400+ | 5,900+ | 6,400+ | 6,700+ | ||||||||
MongoDB Atlas Customers | 25,300+ | 27,500+ | 29,500+ | 31,500+ | 33,700+ | 35,500+ | 37,600+ | 39,300+ | 41,600+ | ||||||||
Customers over | 1,057 | 1,126 | 1,201 | 1,307 | 1,379 | 1,462 | 1,545 | 1,651 | 1,761 | ||||||||
(a) Our definition of "customer" excludes users of our free offerings and all affiliated entities are counted as a single customer. As of and prior to January 31, 2022, our definition of "customer" excluded (1) users of our free offerings, (2) mLab users who spend |
(b) Direct Sales Customers are customers that were sold through our direct sales force and channel partners. |
(c) Represents the number of customers with |
MONGODB, INC. SUPPLEMENTAL REVENUE INFORMATION | |||||||||||||||||
The following table presents certain supplemental revenue information as of the periods indicated: | |||||||||||||||||
4/30/2021 | 7/31/2021 | 10/31/2021 | 1/31/2022 | 4/30/2022 | 7/31/2022 | 10/31/2022 | 1/31/2023 | 4/30/2023 | |||||||||
MongoDB Enterprise Advanced: % of Subscription Revenue | 40 % | 36 % | 34 % | 33 % | 33 % | 28 % | 29 % | 28 % | 28 % | ||||||||
Direct Sales Customers(a) Revenue: % of Subscription Revenue | 84 % | 84 % | 85 % | 86 % | 87 % | 86 % | 87 % | 88 % | 88 % | ||||||||
(a) Direct Sales Customers are customers that were sold through our direct sales force and channel partners. |
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SOURCE MongoDB, Inc.
