Mongo, My Take on its Oct Q Results
Revenue of $65 million, up 57% (flat with a year ago when it was up 58%)
Subscription revenue was $60 million, up 59%
Atlas revenue was 22% of total revenue, and up over 300% yoy
Deferred Revenue was $154 million, up 34%, but remember that Atlas is usage-based fees and thus generates less deferred revenue. And Atlas is often billed monthly in arrears versus the annual and advanced billing terms we see in our Enterprise Advanced customers.
Over 8,300 customers, up 69% from 4900 a year ago and up 12% sequentially, with 900 new in the quarter.
Net dollar based retention rate was over 120 for the 15th successive quarter.
“We delivered terrific quarterly results that reflect our growing position as the modern database platform of choice. We are seeing strong demand internationally and from customers in traditionally conservative markets and industries, which reflects our opportunity to continue generating strong growth.
“MongoDB Atlas, which now represents 22% of revenue, had another incredible quarter as customers embraced the ease of use and flexibility of a fully managed cloud database service. We also continue to extend the differentiation of our database platform with the recent release of Mobile, and enhancements to Stitch, which enables developers to innovate much faster than they can on other platforms.”
Adj Gross profit was $48 million, and was 74% of revenue.
Adj op loss was $16.8 million, improved from $18.4 million. It was 26% of revenue improved from 44%.
Adj net loss was $16.0 million, or $0.30 per share, improved from $18.5 million, a year ago
Cash: $523 million in cash
We used $7.6 million of cash in operations and $2.1 million in capital expenditures, leading to negative free cash flow of $9.7 million. (Pretty flat with $10.4 million a year-ago).
Introduced the Server Side Public License, or SSPL, a new licensing model for open source development in the public cloud era. MongoDB is in a unique position because titowns the full copyright of all underlying MongoDB database code, which gives it full control over the licensing of its software. MongoDB created this new license to make explicit the conditions for providing MongoDB as a service.
Conference Call
We ended the quarter with 490 customers with at least $100,000 in annual recurring revenue and annualized MRR, which is up from 438 in the second quarter and 320 a year ago.
We are pleased with our gross margin performance, particularly in light of Atlas’ growth. Atlas includes the underlying infrastructure and our success in reducing the infrastructure and support costs related to Atlas have resulted in improved Atlas gross margins. However, we continue to expect that we’ll see some modest reduction in overall gross margin as Atlas continues to become a bigger portion of our revenue.
Saul - Mongo is just starting out and has only about $200 million in revenue this last year. That’s tiny and very early, and companies just starting out have much higher losses compared to revenue until they get some scale. However, their adjusted net loss as a percent of revenue last quarter was about 24.5%, improved from 37.0% and 45.0% sequentially. And if you look back year-over-year it’s improved from 44.5% the year before, and from 58.5% the year before that. They are clearly getting operating leverage in spite of very rapid growth.