MariaDB Announces Second Quarter Fiscal 2023 Financial Results

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05/08/2023 - 04:05 PM

REDWOOD CITY, Calif. & DUBLIN--(BUSINESS WIRE)-- MariaDB plc (NYSE: MRDB) today announced its financial results for the second quarter of fiscal year 2023, which ended March 31, 2023.

“The transformation of our business to the cloud is accelerating, reaching 101% year-over-year growth in cloud-related subscription revenue, up from 90% last quarter,” said Michael Howard, CEO at MariaDB plc. “Revenue increased 20% year-over-year, a result of our differentiated product offerings, continued innovation and the value we bring to our customers. This is only the beginning, as we expand our cloud database products to broaden the target audience.”

Second Quarter Fiscal 2023 Financial Highlights

Revenue: Total revenue was $13.5 million for the second quarter of fiscal 2023, an increase of 26% year-over-year, or 20% year-over-year after adjusting for out of period corrections. Cloud-related subscription revenue grew 101% year-over-year, after out of period corrections.
Annual recurring revenue (ARR): Total ARR as of March 31, 2023 was $52.9 million, an increase of 12% year-over-year.
Gross profit: Gross profit was $10.3 million for the second quarter of fiscal 2023, representing a 76.1% gross margin compared to 70.5% in the year-ago period.
Loss from operations: Loss from operations was $13.0 million for the second quarter of fiscal 2023, compared to a loss of $10.4 million in the year-ago period.
Net loss: Net loss was $11.9 million, or $0.18 per share. This compares to a net loss of $14.5 million, or $1.05 per share.

Business Highlights

Conor McCarthy joined MariaDB as CFO effective April 10, bringing over 30 years of experience leading finance organizations at high-growth companies and significant experience scaling SaaS businesses.
The company released a new version of SkySQL, a second generation cloud database, in March. This release exemplifies MariaDB’s leadership as a price point disruptor, adding functionality for customers to control cloud costs.
In April, SkySQL added a new option to monitor MariaDB community databases anywhere. Given the size of the MariaDB ecosystem, with over 1 billion software downloads, this represents a very meaningful opportunity.
MariaDB SkySQL won the prestigious DEVIES award validating MariaDB’s strategy to give developers more productivity through automation and cloud-native technology.
In February MariaDB released a new version of its distributed SQL database Xpand, adding differentiated features that result in uninterrupted scale and resilience. This version of Xpand is also available in SkySQL with automation to handle changes in demand automatically.
Xpand won a Gold Stevie® award in the 2023 American Business Awards® recognized for its high availability and flexibility.
Cash and cash equivalents at the end of April were $21.1 million.

Conference Call Information

MariaDB plc will host a conference call and webcast at 1:30 p.m. Pacific Time (or 4:30 p.m. Eastern Time) today, May 8, 2023 to discuss its financial results. The conference call can be accessed by dialing (888) 396-8049 from the United States and Canada or (416) 764-8646 internationally with conference ID 56385548. A live webcast and replay of the conference call can be accessed from MariaDB plc's investor relations website at investors.mariadb.com. An archived replay of the webcast will be available following the conclusion of the call. The Company will post on its investor relations website a reconciliation of US GAAP to non-GAAP numbers.

About MariaDB

MariaDB is a new generation cloud database company whose products are used by companies big and small, reaching more than a billion users through Linux distributions and have been downloaded over one billion times. Deployed in minutes and maintained with ease, leveraging cloud automation, our database products are engineered to support any workload, any cloud and any scale – all while saving up to 90% of proprietary database costs. Trusted by organizations such as Bandwidth, DigiCert, InfoArmor, Oppenheimer, Samsung, SelectQuote and SpendHQ, MariaDB’s software is the backbone of critical services that people rely on every day. Learn more at mariadb.com.

Key Business Metrics

We review a number of operating and financial metrics, including Annual Recurring Revenue (“ARR”), to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions.

We believe that our ARR is an important indicator of our financial performance and operating results given the renewable nature of our business. ARR does not have a standardized meaning and is therefore unlikely to be comparable to similarly titled metrics presented by other companies. We define ARR as the annualized revenue for our subscription customers, excluding revenue from nonrecurring contract services (e.g., time and material consulting services). For our annual subscription customers, we calculate ARR as the annualized value of their subscription contracts as of the measurement date, assuming any contract that expires during the next 12 months is renewed on its existing terms (including contracts for which we are negotiating a renewal). In the event that we are negotiating a renewal with a customer after the expiration of their subscription, we continue to include that revenue in ARR if we are actively in discussion with the customer for a new subscription or renewal, or until we are notified that the customer will not be renewing its subscription. Additionally, a subset of customers under the MariaDB SkySQL subscription service offering has monthly pay-as-you-go contract terms. We calculate ARR as their monthly recurring revenue as of the measurement date, multiplied by 12. We consider these annualized pay-as-you-go revenues relevant in the determination of ARR as it aligns with our strategic goal to convert the pay-as-you-go customers to annual subscription customers.

ARR should be viewed independently of revenue, and does not represent our revenue under U.S. GAAP on an annualized basis, as it is an operating metric that can be impacted by contract start and end dates and renewal dates. ARR is not intended to be a replacement for or forecast of revenue. Our calculation of ARR is not adjusted for the impact of any known or projected events that may cause any such contract not to be renewed on its existing terms. Consequently, our ARR may fluctuate within each quarter and from quarter to quarter.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements often contain words such as “expect,” “anticipate,” “intend,” “plan,” “project,” “estimate,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar or comparable expressions, and variations or negatives of such words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as the benefits of the recent business combination with Angel Pond Holdings Corporation and related transactions (the “Business Combination”), future opportunities for us and our products and services (including increased business in the cloud), the ultimate length and value of contractual relationships with our customers, and any other statements regarding MariaDB’s future operations, anticipated growth, financial or operating results or condition, capital allocation, market opportunities, strategies, anticipated business levels, future earnings, customer relationships (including terms), planned activities, competitions, and other expectations and targets for future periods.

As a result of a number of known and unknown risks and uncertainties, our actual results, condition, or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include: (a) our ability to continue as a going concern and to secure additional financing needed to meet short-term and long-term liquidity needs; (b) our ability to compete in an increasingly competitive environment; (c) our ability to retain and recruit qualified personnel, including officers, directors and other key personnel (including those with public company experience); (d) our ability to acquire and integrate technologies, personnel, and other assets (including those related to the acquisition of CubeWerx and Sector 42 by Legacy MariaDB; (e) our ability to retain existing customers and their business and attract additional customers and their business; (f) intellectual property, information technology and privacy requirements that may subject us to unanticipated liabilities; (g) our ability to realize the anticipated benefits of the Business Combination, which may be affected by, among other things, competition, and our ability to manage our operations, including potential growth and expansion of our business operations and building out controls, effectively; (h) our ability to effectively operate as a public company; (i) any regulatory actions or litigation relating to, among other things, the Business Combination; (j) our ability to maintain the listing of our Ordinary Shares, Public Warrants or other securities on the NYSE; (k) the effects of the ongoing coronavirus (COVID-19) pandemic or other infectious diseases, health epidemics, pandemics, and natural disasters on our business; and (l) other risks and uncertainties indicated from time to time in our SEC filings, such as on Forms 10-Q and 10-K, including those under “Risk Factors” therein, and other documents filed or to be filed with the SEC by us.

Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and we assume no obligation and, except as required by law, do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. We give no assurance that we will achieve our expectations or plans, which may change over time.

MariaDB plc
Condensed Consolidated Balance Sheets
(in thousands, except par value and share amounts)
(unaudited)

	March 31,			September 30,
	2023			2022¹
ASSETS
Current assets:
Cash and cash equivalents	$	9,703		$	4,756
Short-term investments		—			25,999
Accounts receivable, net		26,707			12,154
Prepaids and other current assets		5,952			15,463
Total current assets		42,362			58,372
Property and equipment, net		465			708
Goodwill		7,816			7,535
Intangible assets, net		980			1,120
Operating lease right-of-use assets		972			890
Other noncurrent assets		4,925			4,146
Total assets	$	57,520		$	72,771
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	3,885		$	3,267
Accrued expenses		6,919			8,902
Operating lease liabilities		868			496
Long-term debt, current		16,326			122
Deferred revenue		27,980			26,236
Total current liabilities		55,978			39,023
Long-term debt, net of current		—			14,622
Operating lease liabilities, net of current		148			433
Deferred revenue, net of current		17,265			5,321
Warrant liabilities		3,919			1,749
Deferred tax liability		173			—
Total liabilities		77,483			61,148
Commitments and contingencies
Convertible preferred shares, par value of $0 per share		—			206,969
Stockholders’ equity (deficit):
Ordinary shares, par value of $0.01 per share		668			—
Additional paid-in-capital		212,253			11,482
Accumulated deficit		(222,069	)		(197,523	)
Accumulated other comprehensive income (loss)		(10,815	)		(9,305	)
Total stockholders’ equity (deficit)		(19,963	)		(195,346	)
Total liabilities, convertible preferred shares and stockholders’ equity (deficit)	$	57,520		$	72,771

¹Reflects the impact of immaterial revisions to the financial statements.

MariaDB plc
Condensed Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except share and per share amounts)
(unaudited)

	Three Months Ended March 31,						Six Months Ended March 31,
	2023			2022¹			2023			2022¹
Revenue:
Subscription	$	12,021		$	9,510		$	23,298		$	19,019
Services		1,453			1,184			2,981			2,375
Total revenue		13,474			10,694			26,279			21,394
Cost of revenue:
Subscription		1,545			1,454			3,135			3,027
Services		1,674			1,705			3,449			3,041
Total cost of revenue		3,219			3,159			6,584			6,068
Gross profit		10,255			7,535			19,695			15,326
Operating expenses:
Research and development		9,274			8,886			18,747			17,356
Sales and marketing		7,289			5,975			14,175			12,248
General and administrative		6,716			3,059			12,219			7,092
Total operating expense		23,279			17,920			45,141			36,696
Loss from operations		(13,024	)		(10,385	)		(25,446	)		(21,370	)
Other (expense) income:
Interest expense		(282	)		(509	)		(514	)		(1,230	)
Change in fair value of warrant liabilities		2,297			(4,625	)		4,028			(4,745	)
Other income (expense), net		(779	)		1,005			(2,608	)		966
Loss before income tax expense		(11,788	)		(14,514	)		(24,540	)		(26,379	)
Income tax expense		(62	)		(13	)		(6	)		(28	)
Net loss	$	(11,850	)	$	(14,527	)	$	(24,546	)	$	(26,407	)
Net loss per share attributable to common shares – basic and diluted	$	(0.18	)	$	(1.05	)	$	(0.54	)	$	(2.04	)
Weighted-average shares outstanding – basic and diluted		66,575,652			13,864,320			45,125,926			12,963,436
Comprehensive Loss:
Net loss	$	(11,850	)	$	(14,527	)	$	(24,546	)	$	(26,407	)
Foreign currency translation adjustment, net of taxes		(1,220	)		(372	)		667			232
Unrealized gain (loss) from available-for-sale securities, net of taxes		—			—			(2,177	)		—
Total comprehensive loss	$	(13,070	)	$	(14,899	)	$	(26,056	)	$	(26,175	)