MongoDB - Bert Article

https://seekingalpha.com/article/4137172-mongodb-catchy-name…

A new IPO in the database market who lists the “big boys” as their primary competitors.

From their 10-Q:

We primarily compete with legacy relational database software providers such as IBM, Microsoft, Oracle and other similar companies. We also compete with non-relational database software providers and certain cloud providers such as Amazon (“AWS”), Google Cloud Platform (“GCP”) and Microsoft Azure.

According to Bert’s article, MongoDB has struck a balance between SQL and noSQL databases, essentially delivering the best that both have to offer to sum it up to the best of my ability. The article discusses these points in further detail, yet those words have little meaning outside of the synopsis of them, at least for me.

For the database uninitiated such as myself. SQL is a relational database and NoSQL is non-relational and MongoDB plays in the latter. Based on Bert’s expectation of $220M in revenues next year, the company sports a forward EV/S of 4.4x. The company isn’t richly valued for its growth, but is losing money with no path to profitability in sight as losses are growing along with revenues.

Recurring revenues are north of 90% and dollar based net retention is around 120%.

The noSQL market is expected to reach $4B by 2020 and grow at 35% CAGR.

To sum up, the TAM compared to current revenues is decent in a fast growing market and the company appears to be picking up share but faces stiff competition. AWS and Azure offer NoSQL packages that apparently don’t have the functionality MongoDB offers. But will they catch up? The valuation is attractive if they can turn the ship around. As a small company, they may find difficulty getting a seat at the table and before it is too late, Google develops a NoSQL software and offers for it for a fraction of the cost (example).

Hopefully the above creates some interest in reading Bert’s article to create further discussion.

Regards,
A.J.

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Google develops a NoSQL software and offers for it for a fraction of the cost

Google already offers Spanner and BigTable. The promote Spanner as relational, but the technology has similarities (https://static.googleusercontent.com/media/research.google.c…).

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