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MongoDB, Inc. Announces First Quarter Fiscal 2022 Financial Results
[June 03, 2021]

MongoDB, Inc. Announces First Quarter Fiscal 2022 Financial Results


NEW YORK, June 3, 2021 /PRNewswire/ -- MongoDB, Inc. (NASDAQ: MDB), the leading, modern general purpose database platform, today announced its financial results for the first quarter ended April 30, 2021.

"MongoDB delivered an excellent start to fiscal 2022, highlighted by 73% growth of Atlas. Five years ago this month we launched Atlas with the idea that customers would value a fully managed MongoDB database as a service offering from the company that built MongoDB. Today, Atlas is nearly a $400 million revenue run rate business, and represents, for the first time, the majority of our revenue," said Dev Ittycheria, President and Chief Executive Officer of MongoDB. 

"These results are strong validation for a modern data application platform that empowers developers to rapidly build flexible and highly scalable applications across a broad range of use cases. MongoDB's strong product-market fit, as evidenced by the wide variety of customers, from cutting-edge start-ups to the world's largest businesses, puts us in a great position to continue to generate high growth at scale."

First Quarter Fiscal 2022 Financial Highlights

  • Revenue: Total revenue was $181.6 million in the first quarter fiscal 2022, an increase of 39% year-over-year. Subscription revenue was $174.6 million, an increase of 40% year-over-year, and services revenue was $7.1 million, an increase of 29% year-over-year.
  • Gross Profit: Gross profit was $127.1 million in the first quarter fiscal 2022, representing a 70% gross margin, compared to 71% in the year-ago period. Non-GAAP gross profit was $131.6 million, representing a 72% non-GAAP gross margin.
  • Loss from Operations: Loss from operations was $61.4 million in the first quarter fiscal 2022, compared to $42.0 million in the year-ago period. Non-GAAP loss from operations was $8.4 million, compared to $7.4 million in the year-ago period.
  • Net Loss: Net loss was $64.0 million, or $1.04 per share, based on 61.4 million weighted-average shares outstanding in the first quarter fiscal 2022. This compares to $54.0 million, or $0.94 per share, based on 57.6 million weighted-average shares outstanding, in the year-ago period. Non-GAAP net loss was $9.5 million or $0.15 per share. This compares to $7.3 million or $0.13 per share in the year-ago period.
  • Cash Flow: As of April 30, 2021, MongoDB had $935.6 million in cash, cash equivalents, short-term investments and restricted cash. During the three months ended April 30, 2021, MongoDB generated $10.2 million of cash from operations, used $0.6 million of cash in capital expenditures and $1.2 million in principal repayments of finance leases, leading to free cash flow of $8.4 million, compared to negative free cash flow of $8.5 million in the year-ago period.

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 2022 and Recent Business Highlights

  • Partnerships with major cloud providers accelerated as we closed our strongest quarter to date with AWS, Google Cloud and Alibaba. We also launched two new OEM cloud partnerships with European cloud leader OVH Cloud and Korea-based Naver Cloud to expand the options for customers to use MongoDB managed services almost anywhere in the world.
  • Successfully onboarded over 1,300 employees remotely since the pandemic began while maintaining record engagement levels - more than nine out of ten of our employees report that they are proud to work at MongoDB and would recommend it as a great place to work. We were also recognized by Inc. Magazine as one of the Best Workplaces in 2021.
  • Recently welcomed our largest-ever summer intern class of 111, including our first-ever class in Copenhagen. Our interns represent 57 schools and were chosen from almost 29,000 applicants. What started as a small experiment with a few interns 10 years ago has grown into a program that has sourced a quarter of our engineers worldwide.

Based on information as of today, June 3, 2021, MongoDB is issuing the following financial guidance for the second quarter and full year fiscal 2022.






Second Quarter Fiscal 2022

Full Year Fiscal 2022

Revenue

$180.0 million to $183.0 million

$771.0 million to $784.0 million

Non-GAAP Loss from Operations

($24.0) million to ($22.0) million

($76.0) million to ($68.0) million

Non-GAAP Net Loss per Share

($0.43) to ($0.40)

($1.38) to ($1.25)


The guidance provided above is forward-looking in nature. Actual results may differ materially. See the cautionary note regarding "Forward-Looking Statements" below. Fluctuations in MongoDB's operating results may be particularly pronounced in the current economic environment due to continuing uncertainty caused by the ongoing COVID-19 pandemic, the duration and ultimate impact of which is difficult to predict at this time. The situation regarding COVID-19 remains uncertain and could change rapidly, and MongoDB will continue to evaluate its potential impact on its business.

Reconciliation of non-GAAP loss from operations and non-GAAP net loss 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 our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.

Conference Call Information

MongoDB will host a conference call today, June 3, 2021, 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, dial 844-808-6880 (domestic) or 412-317-5284 (international). A replay of this conference call will be available for a limited time at 877-344-7529 (domestic) or 412-317-0088 (international). The replay conference ID is 10156483. A replay of the webcast will also be available for a limited time at https://investors.mongodb.com.

About MongoDB

MongoDB is the leading modern, general purpose database platform, designed to unleash the power of software and data for developers and the applications they build. Headquartered in New York, MongoDB has more than 26,800 customers in over 100 countries. The MongoDB database platform has been downloaded over 175 million times and there have been more than 1.5 million registrations for MongoDB University courses.

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 our financial guidance for the second fiscal quarter and full year fiscal 2022; the anticipated impact of the COVID-19 pandemic on our business and future operating results; our ability to realize anticipated benefits from partnerships and collaborations; and the potential benefits of our product platform. 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 that the precautions we have taken in our business relative to the ongoing COVID-19 pandemic may have on our business; the financial impacts of the COVID-19 pandemic on our customers, our potential customers, the global financial markets and our business and future operating results; our potential failure to meet publicly announced guidance or other expectations about our business and future operating results; our limited operating history; our history of losses; failure of our database platform to satisfy customer demands; the effects of increased competition; our investments in new products and our ability to introduce new features, services or enhancements; our ability to effectively expand our sales and marketing organization; our ability to continue to build and maintain credibility with the developer community; our ability to add new customers or increase sales to our existing customers; our ability to maintain, protect, enforce and enhance our intellectual property; the growth and expansion of the market for database products and our ability to penetrate that market; our ability to integrate acquired businesses and technologies successfully or achieve the expected benefits of such acquisitions; our ability to maintain the security of our software and adequately address privacy concerns; our ability to manage our growth effectively and successfully recruit and retain additional highly-qualified personnel; and the price volatility of our common stock. These and other risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission ("SEC"), including under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended January 31, 2021 filed with the SEC on March 22, 2021. Additional information will be made available in our Quarterly Report on Form 10-Q for the quarter ended April 30, 2021 and other filings and reports that we may file from time to time with the SEC. Except as required by law, we undertake no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise.

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 loss from operations, non-GAAP net loss, non-GAAP net loss per share and free cash flow. Non-GAAP gross profit and non-GAAP gross margin exclude stock-based compensation expense. Non-GAAP operating expenses, non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss per share exclude:

  • stock-based compensation expense;
  • amortization of intangible assets for the acquired technology and acquired customer relationships associated with prior acquisitions;
  • amortization of time-based founder payments associated with the mLab purchase that was deemed to be compensation expense for GAAP purposes; and
  • in the case of non-GAAP net loss, amortization of the debt discount and issuance costs associated with our convertible senior notes.

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 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 loss from operations, non-GAAP net loss, non-GAAP net loss 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 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.

Investor Relations
Brian Denyeau
ICR for MongoDB
646-277-1251
ir@mongodb.com

Media Relations
Matt Trocchio
MongoDB
communications@mongodb.com

 

 

MONGODB, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

(unaudited)

 



April 30, 2021


January 31, 2021

Assets




Current assets:




Cash and cash equivalents  

$

407,055



$

429,697


Short-term investments  

527,988



528,045


Accounts receivable, net of allowance for doubtful accounts of $4,404 and $6,024 as of April 30, 2021
and January 31, 2021, respectively 

100,646



135,176


Deferred commissions  

39,595



36,619


Prepaid expenses and other current assets  

20,738



12,350


Total current assets  

1,096,022



1,141,887


Property and equipment, net  

60,906



62,364


Operating lease right-of-use assets

45,019



34,587


Goodwill  

57,775



55,830


Acquired intangible assets, net

27,493



26,275


Deferred tax assets  

1,006



997


Other assets  

89,406



85,555


Total assets  

$

1,377,627



$

1,407,495


Liabilities and Stockholders' Deficit




Current liabilities:




Accounts payable  

$

4,358



$

4,144


Accrued compensation and benefits  

59,482



70,210


Operating lease liabilities

6,432



2,343


Other accrued liabilities  

27,369



56,440


Deferred revenue  

231,040



221,404


Total current liabilities  

328,681



354,541


Deferred tax liability, non-current  

73



773


Operating lease liabilities, non-current

45,835



39,095


Deferred revenue, non-current  

17,263



16,547


Convertible senior notes, net

1,192,488



937,729


Other liabilities, non-current

61,651



59,129


Total liabilities  

1,645,991



1,407,814


Temporary equity, convertible senior notes



4,714


Stockholders' deficit:




Class A common stock, par value of $0.001 per share; 1,000,000,000 shares authorized as of April 30,
2021 and January 31, 2021; 62,195,644 shares issued and 62,096,273 shares outstanding as of April 30,
2021; 60,997,822 shares issued and 60,898,451 shares outstanding as of January 31, 2021

62



61


Additional paid-in capital  

680,413



932,332


Treasury stock, 99,371 shares (repurchased at an average of $13.27 per share) as of April 30, 2021 and
January 31, 2021

(1,319)



(1,319)


Accumulated other comprehensive loss

(760)



(704)


Accumulated deficit  

(946,760)



(935,403)


Total stockholders' deficit

(268,364)



(5,033)


Total liabilities, temporary equity and stockholders' deficit

$

1,377,627



$

1,407,495


 

 

MONGODB, INC. 

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(unaudited)

 



Three Months Ended April 30,


2021


2020

Revenue:




Subscription  

$

174,570



$

124,856


Services  

7,078



5,473


Total revenue  

181,648



130,329


Cost of revenue(1):




Subscription  

45,402



30,625


Services  

9,126



7,052


Total cost of revenue  

54,528



37,677


Gross profit  

127,120



92,652


Operating expenses:




Sales and marketing(1)  

97,890



69,125


Research and development(1)  

64,751



45,632


General and administrative(1)  

25,925



19,935


Total operating expenses  

188,566



134,692


Loss from operations  

(61,446)



(42,040)


Other loss, net  

(3,922)



(11,693)


Loss before provision for (benefit from) income taxes  

(65,368)



(53,733)


Provision for (benefit from) income taxes  

(1,376)



234


Net loss  

$

(63,992)



$

(53,967)


Net loss per share, basic and diluted  

$

(1.04)



$

(0.94)


Weighted-average shares used to compute net loss per share, basic and diluted

61,361,670



57,649,524



(1)

 Includes stock–based compensation expense as follows:

 


Three Months Ended April 30,


2021


2020

Cost of revenue—subscription  

$

2,990



$

1,827


Cost of revenue—services  

1,487



1,146


Sales and marketing  

18,876



10,823


Research and development  

20,335



11,759


General and administrative  

7,226



5,012


Total stock–based compensation expense  

$

50,914



$

30,567


 

 

MONGODB, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 



Three Months Ended April 30,


2021


2020

Cash flows from operating activities




Net loss  

$

(63,992)



$

(53,967)


Adjustments to reconcile net loss to net cash provided by (used in) operating activities:




Depreciation and amortization  

3,251



2,864


Stock-based compensation  

50,914



30,567


Amortization of debt discount and issuance costs

1,427



12,023


Amortization of finance right-of-use assets

994



994


Amortization of operating right-of-use assets

1,522



1,372


Deferred income taxes  

(1,585)



(290)


Accretion of discount on short-term investments

1,527



(193)


Unrealized foreign exchange loss

315




Change in operating assets and liabilities:




Accounts receivable  

35,145



3,637


Prepaid expenses and other current assets  

(9,027)



234


Deferred commissions  

(5,882)



(3,063)


Other long-term assets  

23



(170)


Accounts payable  

224



219


Accrued liabilities  

(17,152)



(2,779)


Operating lease liabilities

(1,027)



(1,126)


Deferred revenue  

9,749



3,349


Other liabilities, non-current

3,791



451


Net cash provided by (used in) operating activities  

10,217



(5,878)


Cash flows from investing activities




Purchases of property and equipment  

(627)



(1,505)


Acquisition, net of cash acquired

(4,469)




Investment in non-marketable securities

(936)




Proceeds from maturities of marketable securities  

100,000



165,000


Purchases of marketable securities  

(101,479)



(160,283)


Net cash provided by (used in) investing activities  

(7,511)



3,212


Cash flows from financing activities




Payments of issuance costs for convertible senior notes



(4,154)


Proceeds from exercise of stock options, including early exercised stock options  

3,539



3,000


Repurchase of early exercised stock options  



(1)


Principal repayments of finance leases

(1,199)



(1,135)


Repayments of convertible senior notes attributable to principal

(27,594)




Net cash used in financing activities  

(25,254)



(2,290)


Effect of exchange rate changes on cash, cash equivalents, and restricted cash  

(94)



(593)


Net decrease in cash, cash equivalents, and restricted cash  

(22,642)



(5,549)


Cash, cash equivalents, and restricted cash, beginning of period  

430,222



706,706


Cash, cash equivalents, and restricted cash, end of period  

$

407,580



$

701,157


 

 

MONGODB, INC.

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

(in thousands, except share and per share data)

(unaudited)

 





Reconciliation of GAAP gross profit to non-GAAP gross profit:




Gross profit on a GAAP basis

$

127,120



$

92,652


Gross margin (Gross profit/Total revenue) on a GAAP basis

70

%


71

%

Add back:




Stock-based compensation expense: Cost of Revenue—Subscription

2,990



1,827


Stock-based compensation expense: Cost of Revenue—Services

1,487



1,146


Non-GAAP gross profit

$

131,597



$

95,625


Non-GAAP gross margin (Non-GAAP gross profit/Total revenue)

72

%


73

%





Reconciliation of GAAP operating expenses to non-GAAP operating expenses:




Sales and marketing operating expense on a GAAP basis

$

97,890



$

69,125


Less:




Stock-based compensation expense

18,876



10,823


Amortization of intangible assets associated with acquisitions

760



764


Non-GAAP sales and marketing operating expense

$

78,254



$

57,538






Research and development operating expense on a GAAP basis

$

64,751



$

45,632


Less:




Stock-based compensation expense

20,335



11,759


Amortization of intangible assets and time-based founder payments associated with acquisitions

1,422



3,308


Non-GAAP research and development operating expense

$

42,994



$

30,565






General and administrative operating expense on a GAAP basis

$

25,925



$

19,935


Less:




Stock-based compensation expense

7,226



5,012


Non-GAAP general and administrative operating expense

$

18,699



$

14,923






Reconciliation of GAAP loss from operations to non-GAAP loss from operations:




Loss from operations on a GAAP basis

$

(61,446)



$

(42,040)


Add back:




Stock-based compensation expense

50,914



30,567


Amortization of intangible assets and time-based founder payments associated with acquisitions

2,182



4,072


Non-GAAP loss from operations

$

(8,350)



$

(7,401)






Reconciliation of GAAP net loss to non-GAAP net loss:




Net loss on a GAAP basis

$

(63,992)



$

(53,967)


Add back:




Stock-based compensation expense

50,914



30,567


Amortization of intangible assets and Founder Holdback associated with acquisitions

2,182



4,072


Amortization of debt discount and issuance costs related to convertible senior notes

1,427



12,023


Non-GAAP net loss

$

(9,469)



$

(7,305)






Reconciliation of GAAP net loss per share, basic and diluted, to non-GAAP net loss per share, basic and diluted:




Net loss per share, basic and diluted, on a GAAP basis

$

(1.04)



$

(0.94)


Add back:




Stock-based compensation expense

0.83



0.53


Amortization of intangible assets and Founder Holdback associated with acquisitions

0.04



0.07


Non-cash interest expense related to convertible senior notes

0.02



0.21


Non-GAAP net loss per share, basic and diluted

$

(0.15)



$

(0.13)


 

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,


2021


2020

Net cash provided by (used in) operating activities  

$

10,217



$

(5,878)


Capital expenditures  

(627)



(1,505)


Principal repayments of finance lease liabilities

(1,199)



(1,135)


Capitalized software




Free cash flow  

$

8,391



$

(8,518)


 


 


 

MONGODB, INC.

CUSTOMER COUNT METRICS

The following table presents certain customer count information as of the periods indicated:

 


4/30/2019


7/31/2019


10/31/2019


1/31/2020


4/30/2020


7/31/2020


10/31/2020


1/31/2021


4/30/2021

Total Customers

14,200+


15,000+


15,900+


17,000+


18,400+


20,200+


22,600+


24,800+


26,800+

Direct Sales Customers(a)

1,800+


1,850+


1,900+


2,000+


2,200+


2,500+


2,800+


3,000+


3,300+

MongoDB Atlas Customers

12,300+


13,200+


14,200+


15,400+


16,800+


18,800+


21,100+


23,300+


25,300+

Customers over $100K(b)

598


622


688


751


780


819


898


975


1,057



(a)

Direct Sales Customers are customers that were sold through our direct sales force and channel partners.

(b)

Represents the number of customers with $100,000 or greater in annualized recurring revenue ("ARR") and annualized monthly recurring revenue ("MRR"). ARR includes the revenue we expect to receive from our customers over the following 12 months based on contractual commitments and, in the case of Direct Sales Customers of MongoDB Atlas, by annualizing the prior 90 days of their actual consumption of MongoDB Atlas, assuming no increases or reductions in their subscriptions or usage. For all other customers of our self-serve products, we calculate annualized MRR by annualizing the prior 30 days of their actual consumption of such products, assuming no increases or reductions in usage. ARR and annualized MRR exclude professional services. Prior to January 31, 2020, ARR from Direct Sales Customers of MongoDB Atlas was based on their contractual commitments instead of their actual consumption. We believe that our new consumption-based ARR calculation better reflects current customer behavior. The impact of this change on prior reported periods is immaterial.



 

MONGODB, INC.

SUPPLEMENTAL REVENUE INFORMATION

The following table presents certain supplemental revenue information as of the periods indicated:

 


4/30/2019


7/31/2019


10/31/2019


1/31/2020


4/30/2020


7/31/2020


10/31/2020


1/31/2021


4/30/2021

MongoDB Enterprise Advanced: % of
Subscription Revenue

54

%


52

%


46

%


48

%


49

%


45

%


43

%


41

%


40

%

Direct Sales Customers(a) Revenue: % of
Subscription Revenue

77

%


78

%


78

%


79

%


79

%


81

%


82

%


83

%


84

%



(a)

Direct Sales Customers are customers that were sold through our direct sales force and channel partners.

 

 

 

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SOURCE MongoDB, Inc.


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