Q2Prep, MongoDB

It’s time to see if some of the numbers confirm the narritive🧐. Is MongoDB scaling customers and operations well?

Revenue growth in Q1 accelerated to 57.2%, up slightly from Q4’s strong performance of 55.8%. This beat the company’s prior estimate set in Q4 for 46% growth by over 11% of annualized growth. Revenue growth was up 7.1% sequentially from Q4
Revenue Growth Sequentially
Q3 21 +9%
Q4 21 +13%
Q1 22 +6%
Q2 22 +9%
Q3 22 +14%
Q4 22 +17%
Q1 23 +7%
Sequential Increases in Revenue Dollars
Q3 21 +$12m
Q4 21 +$20m
Q1 22 +$10m
Q2 22 +$17m
Q3 22 +$28m
Q4 22 +$39m
Q1 23 +$19m

Atlas Revenue (their cloud solution) increased 82% y/y and now makes up 60% of the total. This hypergrowth in demand for the cloud-hosted version of MongoDB is the driver of the overall revenue growth acceleration. Growth in Atlas has been above 80% for several quarters in a row now

Non-GAAP gross margin ticked up again sequentially in Q1 to 75%. This is up from 74% in Q4 and 72% a year ago.

Adjusted Operating Income jumped considerably in Q1, driven by the revenue outperformance and some costs that didn’t hit in the quarter. MongoDB delivered $17.5M in operating income in Q1, compared to a loss of $2.8M a year ago and $1.3M in Q4. Operating margin was 6.1% in Q1 versus -1.5% a year ago.

Free Cash Flow was positive $8.4M, the second quarter in a rows of positive FCF. That correlates to a FCF margin of 2.9%.

S&M Spend, On a GAAP basis, increased 53% year/year, while R&D increased by 49%.

Customers added 2,200 sequentially in Q1, bringing the total to 35,200. These numbers are up 6.7% over Q4 and 31% annually. In Q4, MongoDB did add about 2,000 customers, representing a some acceleration for Q1. Customer additions have been between 2,000 and 2,200 per quarter for over a year.

The the relative growth in the above is necessary. What I really want to see and would be nice, is if MongoDB is expanding use cases and partnerships with Hyperscalers are expanding also.