As ant and rdutt mention, the expansion of data usage of existing customers is key to their growth. This could be a newer company like Coinbase that may grow fast with an associated growth in data needs (lots of new transaction volume) or a large company like Verizon that has a lot of existing data usage that could be migrated to MongoDB over time.
The Q3 earnings call is full of comments on the expanding data needs of existing customers.
Dev Ittycheria – President and Chief Executive Officer
A key driver of our results is the healthy expansion of our customers as many of them are meaningfully increasing their adoption of MongoDB. As you’ll hear from Michael, some of our largest customers made increased multiyear commitments to MongoDB in Q3.
Coinbase, which is dedicated to increasing economic freedom in the world by building a more accessible, transparent, and equitable financial system, is the trusted choice of more than 73 million individuals, businesses, and institutions to interact with the crypto economy.
The company is moving more workloads to MongoDB Atlas so it can build new products and services quickly and meet the scale and availability requirements of the unprecedented growth in the cryptocurrency markets.
Verizon, is working with MongoDB to bring data closer to the edge as part of its multi-access edge computing and 5G data architecture. This can enable the next generation of low latency applications such as machine learning, intelligent edge, robotics, AR/VR, autonomous vehicle, telemedicine, and more.
Telecom Italia Mobile, or Tim, the communications industry leader in Italy and Brazil develops fixed, mobile, and cloud infrastructure, data centers, service offerings, and products for communications and entertainment. The company at the forefront of digital technologies, TIM selected MongoDB Atlas for fly together, its core digital service delivery platform to accelerate the transition to Google Cloud and enable flexible delivery of digital services through a microservices architecture.
Michael Gordon – Chief Operating Officer and Chief Financial Officer (responses to analyst questions)
In any given quarter, the sequential growth of Atlas is driven primarily by the expansion of the existing applications on our platform.
Within Atlas workloads, that new business doesn’t tend to have as big an impact immediately, whereas under Enterprise Advanced, you’ve got the term license component recognized under 606. And then as it relates to expansion, we’ve seen very consistent like good, strong cohort behavior across the expansion.
Dev Ittycheria – President and Chief Executive Officer (responses to analyst questions)
The bulk of our growth of Atlas is net new workloads.
And as you can imagine, in their market, they have a lot of periods where they have some intense trading days.
And then – so they need to scale up capacity very, very quickly to deal with those surges in trading volume and so on and so forth. So, they basically realize the only platform out there that could really address their need was MongoDB.
We have a lot of EA customers who are just expanding their usage of MongoDB in the enterprise
The revenue on Atlas is really all consumption-based. And so, what this is reflecting is the increasing strategic or mission-critical nature of Atlas in those accounts. And so those folks are looking at their run rate. They’re seeing their run rate increase. And while they may get whatever benefits are of the initial commercial deal that they’ve struck given that they’re at meaningfully higher run rates, they want to make sure that they’re getting sort of the best commercial terms out of the relationship and as a result, are entering into committed paying advance contracts for larger amounts to try and make sure they’re optimizing their spend levels with us.
But I also pay attention to the signals of start-ups who are using MongoDB. Because to me, when start-ups are betting on MongoDB, that’s a great sign for our future. Because the question I’d ask you is, how many start-ups today are using Oracle? And I can’t think of many.
So, yes, as we talked about in many of the quarterly calls that we’re trying to grow our sales capacity as fast as operationally possible. Q3 was another great quarter for hiring. And it’s basically – we’re running the same playbook.