Fortnite appears to be one of the higher profile public uses of MongoDB. Does anyone have information about what kind of financial contribution Fortnite has to MDB, and whether it’s usage based (I assume so).
By all accounts Fortnite has seen much higher usage with quarantine, even hosting premiers of movie trailers and concert like events. Might be a nice boost to MDB for their upcoming earnings.
Fortnite appears to be one of the higher profile public uses of MongoDB. Does anyone have information about what kind of financial contribution Fortnite has to MDB, and whether it’s usage based (I assume so).
By all accounts Fortnite has seen much higher usage with quarantine, even hosting premiers of movie trailers and concert like events. Might be a nice boost to MDB for their upcoming earnings.
MongoDB pricing is based on RAM, I/O and storage, so Fortnite’s rapid growth would definitely increase MongoDB’s revenue. Fortnite’s popularity has grown enormously in the past few years – back in early 2018, Fortnite reached 3.4 million concurrent players; two years later (early this year) they set a concurrent player peak of 12.3 players, driven by a concert event as IRdoc mentioned. That’s not counting the much higher usage that presumably has resulted from the quarantine.
I read the transcript of MongoDB’s last earnings call (Q4 2020 earnings) posted on fool.com. You can check it out at https://www.fool.com/earnings/call-transcripts/2020/03/17/mo….
The call took place on 3/17/2020 so the execs had the opportunity to offer an assessment of the coronavirus impact on the next quarter, which would close in another month on 4/30/2020. They were in fact bold enough to offer their guidance at that time:
- The disruption caused by COVID-19 will impact Q1 revenues by approximately $1 million to $2 million, primarily on the sales side (not the self-service side).
- They are seeing minimal impact across their sales channels around the world, including closing transactions in the first quarter even in the countries hardest hit by COVID-19.
- Fiscal '21 revenues would be impacted by approximately $15 million to $25 million due to anticipated weaker bookings in the first half of the year.
- For the full fiscal year 2021, we expect revenues will be in the range of $510 million to $530 million.
Given that their revenue for the full 2020 fiscal year was $421.7 million, a 58% yoy increase from the prior year, their guidance for the full fiscal year 2021 would correspond to a yoy increase between 21% - 26%. That’s not bad considering it will probably encompass the major impact of COVID-19.
I’m not expecting tomorrow’s earnings report to be a barn burner like the ZM and CRWD reports yesterday, but I am expecting to hear minimal impact due to COVID-19 and positive forward-looking forecasts. Given that IDC projects the database market to be $71 billion in 2020, growing to $97 billion in 2023, and given that MongoDB has less than 1% of the global database market, they have huge market growth potential. As an avid user of their technology, I can attest to their claims that they are the fastest-growing modern database vendor in the industry, and they are definitely the database of choice among the latest generation of developers. I could write pages of geeky techno-babble about their technology advantages, but that’s for another forum.
(long MDB)
Thanks. I figured as much but was interested if they had ever disclosed the information regarding Fortnite. All I could find was a response to a user question from a MDB representative saying Fortnite was on Atlas.
https://stackoverflow.com/questions/55164501/is-it-okay-to-u…
I honestly don’t know how much MongoDB revenue is attributable to Fortnite. However, we do have some clues. MongoDB reported that their net ARR expansion in the last reported quarter was above 120%, and they ended the quarter with 15,400 customers compared to 11,400 in the year-ago period. That includes 62 customers with at least $1 million in ARR which is up from 39 in the previous year. Epic Games / Fortnite would be one of those 62 customers. I do know that Fortnite runs on thousands of large concurrent AWS servers, which suggests heavy database usage so it wouldn’t be surprising if Fortnite is at the upper end of MDB’s 62 large customers. Maybe MDB will comment on the stay-at-home / gaming impact on their revenue when they report tomorrow. I’m definitely looking forward to the report!
MDB and Okta were the two companies with slowing growth rates I was most concerned about and whilst the share price of both have continued to do well, Okta clearly benefits from working from home although at the same time sports a fairly insane multiple given its growth cohort. Whilst it has reached the 40s growth level it has plateaued there rather than crashing through it and is within touch of profitability.
MDB really was slowing too far and without the compelling CV-19 potential uplift that I can see elsewhere. I have been top slicing this at it reached the 200-220 level producing some nice gains (although not as great had I left some of those tranches in Shopify), nevertheless MDB is the holding I am most concerned about in this reporting period.
I just don’t have the conviction in MDB that I do in other stocks. Sure its TAM is enormous but the competition is fierce, it has no cushion of profitability and leverage that TTD has and it has already reported huge drops in growth into the 40s from ~70% and forecasts to hit the 30s this Q.
Ant