Been a lot of talk about mongodb so I figured I would quickly compare them to some of our other stocks for this last year
projected EV/S
MongoDB AYX OKTA SHOP
7ish 9.5ish 11ish 13.5ish
efficiency of capital (how much they have needed to spend to create their revenue. Ideally is above
0.6 but can be lower if your dollar revenue retention rate is really high
MongoDB AYX OKTA SHOP
0.45 0.45 0.7 0.6(a bit lower than normal because they just raised capital)
Efficiency score (how well they are creating revenue account for free cash flow). Good companies are 0.3 or higher.
<b> I don't have recent efficiency scores for ayx, okta and shop yet but I will
get the info and post it later. Old data for shop was >0.6 </b>
MongoDB AYX OKTA SHOP
0.21 (2018)
0.32 (q4 so improving)
You can see why their EV/S is lower than our other companies. Mongodb hasn't created as much growth with their invested money,their efficiency score is lower than "good" SaaS companies. Having said that I think we will see much better numbers over the coming years as mongodb's atlas product is pretty exciting. It is basically a fully managed database that they run with best practices so you don't have to. They upgrade, backup, secure etc the database. All you need to do is use it. Revenue from atlas grew 500% last year up to a total of 10% of mongo's revenue. The majority of customers are a pay as you go model with very large enterprise customers in a monthly contract. I think they may have a higher churn with that model but I also think databases are relatively sticky and this model provides a very lower barrier to entry way to try out their service. All in all pretty cool stuff.
-Ethan
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