September 26, 2022

NORDchinaz

The Business & Finance guru

MongoDB, Inc. Announces Third Quarter Fiscal 2022 Financial Results

Third Quarter Fiscal 2022 Total Revenue of $227 million, up 50% Year-over-Year

Continued Strong Customer Growth with Over 31,000 Customers as of October 31, 2021

MongoDB Atlas Revenue up 84% Year-over-Year; 58% of Total Q3 Revenue

NEW YORK, Dec. 6, 2021 /PRNewswire/ — MongoDB, Inc. (NASDAQ: MDB), the leading modern, general purpose database platform, today announced its financial results for the third quarter ended October 31, 2021.

MongoDB

“MongoDB delivered another fantastic quarter, highlighted by 84% Atlas revenue growth and increasing our customer count to over 31,000. Our continued success reflects the adoption of our application data platform by customers who need to innovate faster to compete in today’s marketplace,” said Dev Ittycheria, President and Chief Executive Officer of MongoDB.

“We believe a key driver of our success has been the early, but growing, trend of customers choosing MongoDB as an enterprise standard for their future application development. Our success across industries and a wide variety of use cases puts us in a great position to build even deeper relationships with our customers over time.”

Third Quarter Fiscal 2022 Financial Highlights

  • Revenue: Total revenue was $226.9 million in the third quarter fiscal 2022, an increase of 50% year-over-year. Subscription revenue was $217.9 million, an increase of 51% year-over-year, and services revenue was $9.0 million, an increase of 35% year-over-year.

  • Gross Profit: Gross profit was $158.4 million in the third quarter fiscal 2022, representing a 70% gross margin, up from 69% gross margin in the year-ago period. Non-GAAP gross profit was $163.9 million, representing a 72% non-GAAP gross margin.

  • Loss from Operations: Loss from operations was $76.8 million in the third quarter fiscal 2022, compared to $58.1 million in the year-ago period. Non-GAAP loss from operations was $3.5 million, compared to $16.0 million in the year-ago period.

  • Net Loss: Net loss was $81.3 million, or $1.22 per share, based on 66.4 million weighted-average shares outstanding in the third quarter fiscal 2022. This compares to $72.7 million, or $1.22 per share, based on 59.4 million weighted-average shares outstanding, in the year-ago period. Non-GAAP net loss was $7.2 million or $0.11 per share. This compares to $18.2 million or $0.31 per share in the year-ago period.

  • Cash Flow: As of October 31, 2021, MongoDB had $1.8 billion in cash, cash equivalents, short-term investments and restricted cash. During the three months ended October 31, 2021, MongoDB used $5.8 million of cash from operations, used $2.2 million of cash in capital expenditures and used $1.2 million of cash in principal repayments of finance leases, leading to negative free cash flow of $9.2 million, compared to negative free cash flow of $14.9 million in the year-ago period.

A reconciliation of each Non-GAAP measure to the most directly comparable GAAP measure has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Third Quarter Fiscal 2022 and Recent Business Highlights

  • MongoDB 5.1, our first-ever quarterly release, brings users time series support for sharding, improved capabilities for sophisticated analytics on real-time data, and enhancements to Client-Side Field Level Encryption. In addition, MongoDB announced a preview of its new facet operator in Atlas Search, which makes workloads such as e-commerce product catalogs and content libraries run significantly faster.

  • MongoDB Atlas for Government achieved the FedRAMP designation of “In process,” with the Department of Health and Human Services (HHS) serving as the initial agency partner. Once MongoDB Atlas for Government becomes FedRAMP Authorized, MongoDB will be positioned to better capitalize on the significant popularity of MongoDB across a number of U.S. federal government agencies.

  • MongoDB announced the appointment of Peder Ulander as Chief Marketing Officer. Ulander was previously at Amazon Web Services (AWS), where he led Developer and Enterprise Marketing. Ulander brings deep experience in cloud, open source, and developer engagement with an established track record of helping start-ups and large technology companies take advantage of major market transitions.

Based on information as of today, December 6, 2021, MongoDB is issuing the following financial guidance for the fourth quarter and full year fiscal 2022.

Fourth Quarter Fiscal 2022

Full Year Fiscal 2022

Revenue

$239.0 million to $242.0 million

$846.3 million to $849.3 million

Non-GAAP Loss from Operations

($13.0) million to ($11.0) million

($36.4) million to ($34.4) million

Non-GAAP Net Loss per Share

($0.24) to ($0.21)

($0.74) to ($0.71)

The guidance provided above is forward-looking in nature. Actual results may differ materially. See the cautionary note regarding “Forward-Looking Statements” below. Fluctuations in MongoDB’s operating results may be particularly pronounced in the current economic environment due to continuing uncertainty caused by the ongoing COVID-19 pandemic, the duration and ultimate impact of which is difficult to predict at this time. The situation regarding COVID-19 remains uncertain and could change rapidly, and MongoDB will continue to evaluate its potential impact on its business.

Reconciliation of non-GAAP loss from operations and non-GAAP net loss per share guidance to the most directly comparable GAAP measures is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in MongoDB’s stock price. MongoDB expects the variability of the above charges to have a significant, and potentially unpredictable, impact on its future GAAP financial results.

Conference Call Information

MongoDB will host a conference call today, December 6, 2021, at 5:00 p.m. (Eastern Time) to discuss its financial results and business outlook. A live webcast of the call will be available on the “Investor Relations” page of MongoDB’s website at https://investors.mongodb.com. To access the call by phone, dial 844-808-6880 (domestic) or 412-317-5284 (international). A replay of this conference call will be available for a limited time at 877-344-7529 (domestic) or 412-317-0088 (international). The replay conference ID is 10162079. A replay of the webcast will also be available for a limited time at https://investors.mongodb.com.

About MongoDB

MongoDB is the leading modern, general purpose database platform, designed to unleash the power of software and data for developers and the applications they build. Headquartered in New York, MongoDB has more than 31,000 customers in over 100 countries. The MongoDB database platform has been downloaded over 210 million times and there have been more than 1.5 million registrations for MongoDB University courses.

Forward-Looking Statements

This press release includes certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning MongoDB’s financial guidance for the fourth fiscal quarter and full year fiscal 2022; the anticipated impact of the COVID-19 pandemic on MongoDB’s business and future operating results; MongoDB’s anticipated future growth; the potential achievement of FedRAMP status for MongoDB Atlas and the potential advantages of such status; the potential benefits of MongoDB’s product platform and the specific features of its product offerings. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “will,” “would” or the negative or plural of these words or similar expressions or variations. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and factors that are beyond our control including, without limitation: the impact that the precautions we have taken in our business relative to the ongoing COVID-19 pandemic may have on our business; the financial impacts of the COVID-19 pandemic on our customers, our potential customers, the global financial markets and our business and future operating results; our potential failure to meet publicly announced guidance or other expectations about our business and future operating results; our limited operating history; our history of losses; failure of our database platform to satisfy customer demands; the effects of increased competition; our investments in new products and our ability to introduce new features, services or enhancements; our ability to effectively expand our sales and marketing organization; our ability to continue to build and maintain credibility with the developer community; our ability to add new customers or increase sales to our existing customers; our ability to maintain, protect, enforce and enhance our intellectual property; the growth and expansion of the market for database products and our ability to penetrate that market; our ability to integrate acquired businesses and technologies successfully or achieve the expected benefits of such acquisitions; our ability to maintain the security of our software and adequately address privacy concerns; our ability to manage our growth effectively and successfully recruit and retain additional highly-qualified personnel; and the price volatility of our common stock. These and other risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission (“SEC”), including under the caption “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended July 31, 2021 filed with the SEC on September 3, 2021. Additional information will be made available in our Quarterly Report on Form 10-Q for the quarter ended October 31, 2021 and other filings and reports that we may file from time to time with the SEC. Except as required by law, we undertake no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise.

Non-GAAP Financial Measures

This press release includes the following financial measures defined as non-GAAP financial measures by the SEC: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss per share and free cash flow. Non-GAAP gross profit and non-GAAP gross margin exclude stock-based compensation expense. Non-GAAP operating expenses, non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss per share exclude:

  • stock-based compensation expense;

  • amortization of intangible assets for the acquired technology and acquired customer relationships associated with prior acquisitions;

  • amortization of time-based payments associated with prior acquisitions that were deemed to be post-combination compensation expense for U.S. GAAP purposes; and

  • in the case of non-GAAP net loss and non-GAAP net loss per share, amortization of the debt discount and issuance costs associated with our convertible senior notes.

MongoDB uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating MongoDB’s ongoing operational performance. MongoDB believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in MongoDB’s industry, many of which present similar non-GAAP financial measures to investors.

Free cash flow represents net cash used in operating activities, less capital expenditures, principal repayments of finance lease liabilities and capitalized software development costs, if any. MongoDB uses free cash flow to understand and evaluate its liquidity and to generate future operating plans. The exclusion of capital expenditures, principal repayments of finance lease liabilities and amounts capitalized for software development facilitates comparisons of MongoDB’s liquidity on a period-to-period basis and excludes items that it does not consider to be indicative of its liquidity. MongoDB believes that free cash flow is a measure of liquidity that provides useful information to investors in understanding and evaluating the strength of its liquidity and future ability to generate cash that can be used for strategic opportunities or investing in its business in the same manner as MongoDB’s management and board of directors.

Non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. In particular, other companies may report non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss per share, free cash flow or similarly titled measures but calculate them differently, which reduces their usefulness as comparative measures. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, as presented below. This earnings press release and any future releases containing such non-GAAP reconciliations can also be found on the Investor Relations page of MongoDB’s website at https://investors.mongodb.com.

Investor Relations
Brian Denyeau
ICR for MongoDB
646-277-1251
[email protected]

Media Relations
Matt Trocchio
MongoDB
[email protected]

MONGODB, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

(unaudited)

October 31,
2021

January 31,
2021

Assets

Current assets:

Cash and cash equivalents

$

748,140

$

429,697

Short-term investments

1,054,746

528,045

Accounts receivable, net of allowance for doubtful accounts of $4,996 and $6,024 as of October 31, 2021 and January 31, 2021, respectively

182,701

135,176

Deferred commissions

49,537

36,619

Prepaid expenses and other current assets

19,446

12,350

Total current assets

2,054,570

1,141,887

Property and equipment, net

61,797

62,364

Operating lease right-of-use assets

42,291

34,587

Goodwill

57,775

55,830

Acquired intangible assets, net

22,903

26,275

Deferred tax assets

2,170

997

Other assets

110,106

85,555

Total assets

$

2,351,612

$

1,407,495

Liabilities and Stockholders’ Equity (Deficit)

Current liabilities:

Accounts payable

$

5,237

$

4,144

Accrued compensation and benefits

93,951

70,210

Operating lease liabilities

7,298

2,343

Other accrued liabilities

46,472

56,440

Deferred revenue

279,241

221,404

Total current liabilities

432,199

354,541

Deferred tax liability, non-current

128

773

Operating lease liabilities, non-current

41,072

39,095

Deferred revenue, non-current

18,704

16,547

Convertible senior notes, net

1,135,684

937,729

Other liabilities, non-current

60,920

59,129

Total liabilities

1,688,707

1,407,814

Temporary equity, convertible senior notes

4,714

Stockholders’ equity (deficit):

Class A common stock, par value of $0.001 per share; 1,000,000,000 shares authorized as of October 31, 2021 and January 31, 2021; 66,816,084 shares issued and 66,716,713 shares outstanding as of October 31, 2021; 60,997,822 shares issued and 60,898,451 shares outstanding as of January 31, 2021

67

61

Additional paid-in capital

1,770,635

932,332

Treasury stock, 99,371 shares (repurchased at an average of $13.27 per share) as of October 31, 2021 and January 31, 2021

(1,319)

(1,319)

Accumulated other comprehensive loss

(1,292)

(704)

Accumulated deficit

(1,105,186)

(935,403)

Total stockholders’ equity (deficit)

662,905

(5,033)

Total liabilities, temporary equity and stockholders’ equity (deficit)

$

2,351,612

$

1,407,495

MONGODB, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2021

2020

2021

2020

Revenue:

Subscription

$

217,871

$

144,069

$

583,822

$

401,403

Services

9,022

6,702

23,466

17,978

Total revenue

226,893

150,771

607,288

419,381

Cost of revenue(1):

Subscription

57,378

38,642

153,735

103,240

Services

11,086

7,468

29,959

22,851

Total cost of revenue

68,464

46,110

183,694

126,091

Gross profit

158,429

104,661

423,594

293,290

Operating expenses:

Sales and marketing(1)

120,360

83,214

327,627

227,417

Research and development(1)

82,256

54,363

219,403

149,250

General and administrative(1)

32,581

25,175

87,309

66,534

Total operating expenses

235,197

162,752

634,339

443,201

Loss from operations

(76,768)

(58,091)

(210,745)

(149,911)

Other loss, net

(2,276)

(13,634)

(9,262)

(39,090)

Loss before provision for income taxes

(79,044)

(71,725)

(220,007)

(189,001)

Provision for income taxes

2,249

926

2,411

2,142

Net loss

$

(81,293)

$

(72,651)

$

(222,418)

$

(191,143)

Net loss per share, basic and diluted

$

(1.22)

$

(1.22)

$

(3.49)

$

(3.27)

Weighted-average shares used to compute net loss per share, basic and diluted

66,386,379

59,368,167

63,750,884

58,476,521

_________________

(1) Includes stock–based compensation expense as follows:

Three Months Ended October 31,

Nine Months Ended October 31,

2021

2020

2021

2020

Cost of revenue—subscription

$

3,934

$

2,446

$

10,322

$

6,508

Cost of revenue—services

1,521

1,513

4,473

4,142

Sales and marketing

24,790

14,696

64,749

38,754

Research and development

29,205

15,442

73,227

41,415

General and administrative

9,258

5,855

24,556

17,225

Total stock–based compensation expense

$

68,708

$

39,952

$

177,327

$

108,044

MONGODB, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2021

2020

2021

2020

Cash flows from operating activities

Net loss

$

(81,293)

$

(72,651)

$

(222,418)

$

(191,143)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

3,367

3,793

9,989

9,515

Stock-based compensation

68,708

39,952

177,327

108,044

Amortization of debt discount and issuance costs

842

12,360

3,161

36,577

Amortization of finance right-of-use assets

993

993

2,981

2,981

Amortization of operating right-of-use assets

1,778

1,893

5,010

4,747

Deferred income taxes

(333)

60

(2,711)

(88)

Accretion of discount on short-term investments

1,984

604

4,978

383

Unrealized foreign exchange gain (loss)

(541)

(1,915)

503

(1,915)

Change in operating assets and liabilities:

Accounts receivable

(63,215)

(1,749)

(46,892)

(4,157)

Prepaid expenses and other current assets

(1,371)

(1,599)

(7,220)

247

Deferred commissions

(18,363)

(8,168)

(34,819)

(17,161)

Other long-term assets

(239)

39

(291)

(117)

Accounts payable

680

2,153

1,127

743

Accrued liabilities

32,671

16,240

34,138

19,633

Operating lease liabilities

(1,748)

(2,699)

(4,343)

(2,737)

Deferred revenue

48,707

809

58,498

5,765

Other liabilities, non-current

1,583

1,765

5,651

4,655

Net cash used in operating activities

(5,790)

(8,120)

(15,331)

(24,028)

Cash flows from investing activities

Purchases of property and equipment

(2,184)

(5,646)

(4,516)

(10,942)

Acquisition, net of cash acquired

(4,469)

Investment in non-marketable securities

(1,207)

(500)

(2,343)

(500)

Proceeds from maturities of marketable securities

125,000

255,000

400,000

540,000

Purchases of marketable securities

(528,264)

(302,568)

(932,250)

(812,574)

Net cash used in investing activities

(406,655)

(53,714)

(543,578)

(284,016)

Cash flows from financing activities

Payments of issuance costs for convertible senior notes

(4,154)

Proceeds from exercise of stock options, including early exercised stock options

1,846

6,747

7,591

13,798

Proceeds from issuance of common stock, net of issuance costs

(380)

889,184

Proceeds from the issuance of common stock under the Employee Stock Purchase Plan

12,963

8,963

Repurchase of early exercised stock options