Bouncing back after my Nutanix experience, I thought I’d do a quick quarter compare of MDB and ESTC, since they’re such similar companies.
And threw in the Zoom (ZM) data as a comparison. I missed the conference call, so waiting for the transcript.
Zoom definitely stands out. Higher revenue. Faster growing yoy. Better gross margin. Lower R+D as % revenue. I think they’ve got a more focussed product, so their R+D spend is comparatively lower. Their low international % suggests that there might be significant international expansion to come. Obviously priced for awesomeness.
ESTC growth is lower than I would have expected which I guess is reflected in the EV/S.
Atlas growth is the highlight for MDB, although Atlas margins are lower than their subscription plans.
MDBs obvious question mark is their FY 2020 guidance, which is lower than Elastics, but up on their previous guidance. Either… lowballing? or ESTC is pretty optimistic for 2020. It’s a bit of a weird data point, given MDB is reporting Q1 2020, and ESTC is reporting Q4 2019.
But if your thesis on MDB relies on Atlas superb growth rate (+340%). ESTC is only up 76% constant currency.
But Zoom. Overall, wow. No position, but… wow.
Long ESTC > MDB no position in ZM
MDB ESTC ZM Revenue $89.4m $80.6m $122m YoY revenue increase +78% +68% +103% Operating profit -$12.6m -$17.5m $8.2m Customers 14200+ 8100+ 58500+ Customers >$100k 598+ 440+ 405+ (+120%) NER 120%+ 130%+ 130% International % ??? 43% 20% Subscriptions 82% 91% 100%? Assume so SaaS 35% 17% 100%? Assume so Gross margin 70% 73.8% 80.9% R+D % ?? 31% 10% S+M % ?? 50% 50% Operating Income (non GAAP) -$12.1m -$17.5m $8m Cash $477m $298m $737.2m Next quarter guidance Revenue $90-92m $82-84m $129-130m Full year Revenue $375m-$381 $397-403m $535-$540m EV/S 30 23 40+ (from Dreamer)