MongoDB, Inc. Announces Third Quarter Fiscal 2018 Financial Results

12/12/2017
Total Revenue of $41.5 million, up 58% Year-over-Year
Over 4,900 Customers at End of Third Quarter, up ~88% Year-over-Year
Over 2,600 MongoDB Atlas Customers at End of Third Quarter, up ~37% Quarter-over-Quarter

NEW YORK, Dec. 12, 2017 /PRNewswire/ -- MongoDB, Inc. (NASDAQ: MDB), the leading modern, general purpose database platform, today announced its financial results for the three and nine months ended October 31, 2017.

MongoDB

"MongoDB delivered strong third quarter results, highlighted by 58% revenue growth," said Dev Ittycheria, President and Chief Executive Officer of MongoDB. "Some of the largest organizations in the world are increasingly embracing MongoDB's next-generation database due to the superior flexibility, scalability and developer productivity benefits offered, as well as the lower total cost of ownership realized. In addition, strong and growing demand for consuming MongoDB as a service is driving rapid growth of MongoDB Atlas, our database-as-a-service offering."

Ittycheria added, "Completing our initial public offering during the quarter was a milestone for MongoDB. The proceeds from the offering will enable us to execute against our long-term growth initiatives and position us to capture an increasing share of the $45 billion database market."

Third Quarter Fiscal 2018 Financial Highlights

  • Revenue: Total revenue was $41.5 million in the third quarter fiscal 2018, an increase of 58% year-over-year. Subscription revenue was $37.9 million, an increase of 59% year-over-year, and services revenue was $3.6 million, an increase of 44% year-over-year.
  • Gross Profit: Gross profit was $30.4 million in the third quarter fiscal 2018, representing a 73% gross margin consistent with the year-ago period. Non-GAAP gross profit was $30.7 million, representing a 74% non-GAAP gross margin.
  • Loss from Operations: Loss from operations was $24.1 million in the third quarter fiscal 2018, compared to $19.3 million in the year-ago period. Non-GAAP loss from operations was $18.4 million, compared to $15.0 million in the year-ago period.
  • Net Loss: Net loss was $24.2 million, or $1.39 per share based on 17.4 million weighted-average shares outstanding, in the third quarter fiscal 2018. This compares to $19.5 million, or $1.57 per share based on 12.4 million weighted-average shares outstanding, in the year-ago period. Non-GAAP net loss was $18.5 million, or $0.44 per share based on 41.7 million non-GAAP weighted-average shares outstanding, which we refer to as non-GAAP net loss per share. This compares to $15.2 million, or $0.40 per share based on 38.3 million non-GAAP weighted-average shares outstanding, in the year-ago period.
  • Cash Flow: As of October 31, 2017, MongoDB had $289.1 million in cash, cash equivalents, short-term investments and restricted cash, which includes approximately $201.6 million of net proceeds, after deducting underwriting discounts and commissions and estimated offering expenses, from its initial public offering.  During the three months ended October 31, 2017, MongoDB used $10.3 million of cash in operations and $0.1 million in capital expenditures, leading to negative free cash flow of $10.4 million, compared to negative free cash flow of $6.5 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 2018 and Recent Business Highlights

  • Announced MongoDB 3.6, which includes a number of innovations and enhancements designed to make developers more productive, to expedite data-driven insights and to scale to run in any environment. Key innovations include: Change Streams, which enable developers to easily build event-driven, real-time applications; Retryable Writes, which ensure that if a database server goes down for just a millisecond, the user won't notice because the database will "retry" the operation in the background; Cross Region Replication for MongoDB Atlas, which ensures that an application stays up even if an entire cloud region goes down, while also allowing MongoDB customers to put data closer to their users for optimal user experience; new diagnostic and intelligence capabilities in MongoDB's management platform, such as quickly identifying slow running queries and auto-generating recommendations for new indexes, which make it easier than ever for teams to inspect and improve database and application performance.
  • Completed its initial public offering and listed its shares on the Nasdaq Global Market in October 2017. MongoDB sold 9,200,000 shares of its Class A common stock at a price of $24.00 per share, including the full exercise of the underwriters' option to purchase an additional 1,200,000 shares of Class A common stock, for a total of approximately $201.6 million in net proceeds after taking into account underwriting costs and offering costs.
  • Continued growth of the MongoDB ecosystem, including expanded partnerships with Infosys and Tableau. Together with Infosys, MongoDB launched a new mainframe offloading solution that builds upon the partnership the two companies announced last December to help enterprises accelerate their digital transformation and application modernization strategies. Partnered with Tableau to announce MongoDB Connector for BI is now certified by Tableau as a named connector. For the first time, users can visually analyze rich, modern data structures accessed directly from MongoDB Enterprise Advanced.

Business Outlook

Based on information as of today, December 12, 2017, MongoDB is issuing the following financial guidance for the fourth quarter and full year fiscal 2018 (both periods ending January 31, 2018):

 

Fourth Quarter Fiscal 2018 

Full Year Fiscal 2018

Revenue

$42.0 million to $42.5 million

$151.5 million to $152.0 million

Non-GAAP Loss from Operations

$(21.5) million to $(21.0) million

$(76.5) million to $(76.0) million

Non-GAAP Net Loss per Share

$(0.43) to $(0.42)

$(1.77) to $(1.76)

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 our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.

Conference Call Information

MongoDB will host a conference call today, December 12, 2017, 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 http://investors.mongodb.com. To access the call by phone, dial 800-239-9838 (domestic) or 323-794-2551 (international). A replay of this conference call will be available for a limited time at 844-512-2921 (domestic) or 412-317-6671 (international). The replay conference ID is 9688162.  A replay of the webcast will also be available for a limited time at http://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 4,900 customers in over 90 countries. The MongoDB database platform has been downloaded over 30 million times and there have been more than 700,000 MongoDB University registrations.

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 our financial guidance for the fourth quarter and full year fiscal 2018, our position to execute on our go-to-market strategy, and our ability to expand our leadership position and market opportunity. 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: our limited operating history; our history of losses; failure of our database platform to satisfy customer demands; the effects of increased competition; our ability to effectively expand our sales and marketing organization; our ability to add new customers or increase sales to our existing customers; our adoption strategies and licensing model; our investments in new products and our ability  to introduce new features, services or enhancements; our ability to manage our growth effectively and successfully recruit additional highly-qualified personnel; the price volatility of our common stock; and those risks detailed from time-to-time under the caption "Risk Factors" and elsewhere in our Securities and Exchange Commission ("SEC") filings and reports, including in our recently filed Registration Statement on Form S-1, which was declared effective by the SEC on October 18, 2017, as well as future filings and reports by us. 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 loss from operations, non-GAAP net loss, non-GAAP net loss per share and free cash flow. Non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations and non-GAAP net loss exclude stock-based compensation expense and, in the case of non-GAAP net loss, change in fair value of warrant liability. Non-GAAP net loss per share is calculated by dividing non-GAAP net loss by the weighted average shares used to compute net loss per share attributable to common stockholders, basic and diluted, giving effect to the conversion of preferred stock at the beginning of the period. 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 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 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 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 http://investors.mongodb.com.

Investor Relations
Brian Denyeau
ICR for MongoDB
646-277-1251
ir@mongodb.com

Media Relations
MongoDB
866-237-8815 x7186
communications@mongodb.com

 

 

MONGODB, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

(unaudited)

       
 

October 31, 2017

 

January 31, 2017

Assets

     

Current assets:

     

Cash and cash equivalents

$

242,745

   

$

69,305

 

Short-term investments

45,810

   

47,195

 

Accounts receivable, net of allowance for doubtful accounts of $1,456 and $958 as of October 31, 2017 and January 31, 2017, respectively

35,233

   

31,340

 

Deferred commissions

9,850

   

7,481

 

Prepaid expenses and other current assets

5,221

   

3,131

 

Total current assets

338,859

   

158,452

 

Property and equipment, net

4,430

   

4,877

 

Goodwill

1,700

   

1,700

 

Acquired intangible assets, net

1,848

   

2,511

 

Deferred tax assets

102

   

114

 

Other assets

7,056

   

6,778

 

Total assets

$

353,995

   

$

174,432

 

Liabilities, Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit)

     

Current liabilities:

     

Accounts payable

$

3,147

   

$

2,841

 

Accrued compensation and benefits

10,870

   

11,402

 

Other accrued liabilities

10,788

   

5,269

 

Deferred revenue

92,447

   

78,278

 

Total current liabilities

117,252

   

97,790

 

Redeemable convertible preferred stock warrant liability

   

1,272

 

Deferred rent, non-current

973

   

1,058

 

Deferred tax liability, non-current

259

   

108

 

Deferred revenue, non-current

22,326

   

15,461

 

Total liabilities

140,810

   

115,689

 

Redeemable convertible preferred stock, par value $0.001 per share; no shares authorized, issued or outstanding as of October 31, 2017; 41,234,841 shares authorized as of January 31, 2017; 41,148,282 shares issued and outstanding with aggregate liquidation preference of $345,997 as of January 31, 2017

   

345,257

 

Stockholders' (deficit) equity:

     

Class A common stock, par value of $0.001 per share; 1,000,000,000 and 162,500,000 shares authorized as of October 31, 2017 and January 31, 2017, respectively; 9,325,098 and no shares issued and outstanding as of October 31, 2017 and January 31, 2017, respectively

9

   

 

Class B common stock, par value of $0.001 per share; 100,000,000 and 113,000,000 shares authorized as of October 31, 2017 and January 31, 2017, respectively; 41,341,283 and 13,192,992 shares issued as of October 31, 2017 and January 31, 2017, respectively; 41,241,912 and 13,093,621 shares outstanding as of October 31, 2017 and January 31, 2017, respectively

42

   

13

 

Additional paid-in capital

632,055

   

62,557

 

Treasury stock, 99,371 shares as of October 31, 2017 and January 31, 2017

(1,319)

   

(1,319)

 

Accumulated other comprehensive loss

(216)

   

(364)

 

Accumulated deficit

(417,386)

   

(347,401)

 

Total stockholders' (deficit) equity

213,185

   

(286,514)

 

Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit)

$

353,995

   

$

174,432

 

 

 

MONGODB, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(unaudited)

       
 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2017

 

2016

 

2017

 

2016

Revenue:

             

Subscription

$

37,885

   

$

23,805

   

$

99,603

   

$

64,018

 

Services

3,603

   

2,500

   

9,875

   

7,406

 

Total revenue

41,488

   

26,305

   

109,478

   

71,424

 

Cost of revenue(1):

             

Subscription

7,904

   

4,981

   

21,669

   

13,656

 

Services

3,167

   

2,238

   

8,789

   

7,866

 

Total cost of revenue

11,071

   

7,219

   

30,458

   

21,522

 

Gross profit

30,417

   

19,086

   

79,020

   

49,902

 

Operating expenses:

             

Sales and marketing(1)

28,050

   

18,656

   

77,087

   

56,110

 

Research and development(1)

16,588

   

13,300

   

45,414

   

38,540

 

General and administrative(1)

9,829

   

6,385

   

26,533

   

19,916

 

Total operating expenses

54,467

   

38,341

   

149,034

   

114,566

 

Loss from operations

(24,050)

   

(19,255)

   

(70,014)

   

(64,664)

 

Other income (expense), net

170

   

(177)

   

846

   

56

 

Loss before provision for income taxes

(23,880)

   

(19,432)

   

(69,168)

   

(64,608)

 

Provision for income taxes

336

   

103

   

817

   

253

 

Net loss

$

(24,216)

   

$

(19,535)

   

$

(69,985)

   

$

(64,861)

 

Net loss per share attributable to common stockholders, basic and diluted

$

(1.39)

   

$

(1.57)

   

$

(4.74)

   

$

(5.41)

 

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

17,421,642

   

12,418,879

   

14,749,500

   

11,983,324

 
               

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

             
 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2017

 

2016

 

2017

 

2016

Cost of revenue—subscription

$

183

   

$

131

   

$

503

   

$

425

 

Cost of revenue—services

123

   

70

   

292

   

397

 

Sales and marketing

1,704

   

1,095

   

4,400

   

4,346

 

Research and development

1,505

   

1,206

   

4,072

   

4,518

 

General and administrative

2,184

   

1,732

   

5,799

   

6,831

 

Total stock‑based compensation expense

$

5,699

   

$

4,234

   

$

15,066

   

$

16,517

 

 

 

MONGODB, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

       
 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2017

 

2016

 

2017

 

2016

Cash flows from operating activities

             

Net loss

$

(24,216)

   

$

(19,535)

   

$

(69,985)

   

$

(64,861)

 

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

             

Depreciation and amortization

929

   

901

   

2,789

   

2,781

 

Stock-based compensation

5,695

   

4,234

   

15,066

   

16,517

 

Deferred income taxes

101

   

17

   

163

   

37

 

Change in fair value of warrant liability

 

   

59

   

(101)

   

(144)

 

Change in operating assets and liabilities:

             

Accounts receivable

(3,007)

   

(3,841)

   

(4,653)

   

4,600

 

Prepaid expenses and other current assets

822

   

(384)

   

(2,120)

   

(1,435)

 

Deferred commissions

(1,848)

   

(1,714)

   

(2,217)

   

(2,344)

 

Other long-term assets

(36)

   

11

   

(670)

   

(203)

 

Accounts payable

675

   

(741)

   

687

   

(272)

 

Deferred rent

(275)

   

(207)

   

(85)

   

(493)

 

Accrued liabilities

918

   

1,692

   

2,163

   

2,057

 

Deferred revenue

9,942

   

13,834

   

21,794

   

15,768

 

Net cash used in operating activities

(10,300)

   

(5,674)

   

(37,169)

   

(27,992)

 

Cash flows from investing activities

             

Purchases of property and equipment

(88)

   

(785)

   

(1,714)

   

(1,422)

 

Proceeds from maturities of marketable securities

10,000

   

19,917

   

74,230

   

114,792

 

Purchases of marketable securities

(4,125)

   

   

(72,879)

   

(82,036)

 

Net cash provided by (used in) investing activities

5,787

   

19,132

   

(363)

   

31,334

 

Cash flows from financing activities

             

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

2,217

   

2,919

   

8,201

   

7,187

 

Repurchase of early exercised stock options

(75)

   

(22)

   

(149)

   

(22)

 

Proceeds from the IPO, net of underwriting discounts and commissions

205,494

   

   

205,494

   

 

Proceeds from exercise of redeemable convertible preferred stock warrants

 

   

   

1

   

 

Payment of offering costs

(1,167)

   

   

(2,344)

   

 

Net cash provided by financing activities

206,469

   

2,897

   

211,203

   

7,165

 

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

22

   

(74)

   

182

   

42

 

Net increase in cash, cash equivalents, and restricted cash

201,978

   

16,281

   

173,853

   

10,549

 

Cash, cash equivalents, and restricted cash, beginning of period

41,287

   

27,581

   

69,412

   

33,313

 

Cash, cash equivalents, and restricted cash, end of period

$

243,265

   

$

43,862

   

$

243,265

   

$

43,862

 

 

 

MONGODB, INC.

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

(in thousands, except share and per share data)

(unaudited)

       
 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2017

 

2016

 

2017

 

2016

Reconciliation of GAAP gross profit to non-GAAP gross
profit:

             

Gross profit on a GAAP basis

$

30,417

   

$

19,086

   

$

79,020

   

$

49,902

 

Add back:

             

   Stock-based compensation expense: Cost of Revenue—Subscription

183

   

131

   

503

   

425

 

   Stock-based compensation expense: Cost of Revenue—Services

123

   

70

   

292

   

397

 

Non-GAAP gross profit

$

30,723

   

$

19,287

   

$

79,815

   

$

50,724

 
               

Reconciliation of GAAP loss from operations to non-GAAP
loss from operations:

             

Loss from operations on a GAAP basis

$

(24,050)

   

$

(19,255)

   

$

(70,014)

   

$

(64,664)

 

Add back:

             

   Stock-based compensation expense

5,699

   

4,234

   

15,066

   

16,517

 

Non-GAAP loss from operations

$

(18,351)

   

$

(15,021)

   

$

(54,948)

   

$

(48,147)

 
               

Reconciliation of GAAP net loss to non-GAAP net loss:

             

Net loss on a GAAP basis

$

(24,216)

   

$

(19,535)

   

$

(69,985)

   

$

(64,861)

 

Add back:

             

   Stock-based compensation expense

5,699

   

4,234

   

15,066

   

16,517

 

   Change in fair value of warrant liability

   

59

   

(101)

   

(144)

 

Non-GAAP net loss

$

(18,517)

   

$

(15,242)

   

$

(55,020)

   

$

(48,488)

 
               

Reconciliation of GAAP weighted average shares
outstanding, basic and diluted, to non-GAAP weighted
average shares outstanding, basic and diluted:

             

Weighted average shares used to compute net loss per share
attributable to common stockholders, basic and diluted, on a
GAAP basis

17,421,642

   

12,418,879

   

14,749,500

   

11,983,324

 

Add back:

             

   Additional weighted average shares giving effect to
   conversion of preferred stock at the beginning of the period

24,316,192

   

25,853,450

   

26,064,330

   

25,853,450

 

   Non-GAAP weighted average shares used to compute net
   loss per share, basic and diluted

41,737,834

   

38,272,329

   

40,813,830

   

37,836,774

 

 

The following table presents a reconciliation of free cash flow to net cash used in operating activities, the most directly comparable GAAP measure, for each of the periods indicated:

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2017

 

2016

 

2017

 

2016

Net cash used in operating activities

$                        (10,300)

 

$                          (5,674)

 

$                        (37,169)

 

$                        (27,992)

Capital expenditures

(88)

 

(785)

 

(1,714)

 

(1,422)

Capitalized software

 

 

 

Free cash flow

$                        (10,388)

 

$                          (6,459)

 

$                        (38,883)

 

$                        (29,414)

               

 

 

MONGODB, INC.

CALCULATION OF CERTAIN NON-GAAP MEASURES

(in thousands, except share and per share data)

(unaudited)

       
 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

2017

 

2016

 

2017

 

2016

Calculation of net loss per share, basic and diluted, on a
GAAP basis

             

Net loss

$

(24,216)

   

$

(19,535)

   

$

(69,985)

   

$

(64,861)

 

Divided by:

             

   Weighted average shares used to compute net loss per share
   attributable to common stockholders, basic and diluted

17,421,642

   

12,418,879

   

14,749,500

   

11,983,324

 

Net loss per share attributable to common stockholders, basic
and diluted, on a GAAP basis

$

(1.39)

   

$

(1.57)

   

$

(4.74)

   

$

(5.41)

 
               

Calculation of non-GAAP net loss per share, basic and
diluted

             

Non-GAAP net loss

$

(18,517)

   

$

(15,242)

   

$

(55,020)

   

$

(48,488)

 

Divided by:

             

   Non-GAAP weighted average shares used to compute net
loss per share attributable to common stockholders, basic
and diluted

41,737,834

   

38,272,329

   

40,813,830

   

37,836,774

 

Non-GAAP net loss per share attributable to common
stockholders, basic and diluted

$

(0.44)

   

$

(0.40)

   

$

(1.35)

   

$

(1.28)

 

 

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/mongodb-inc-announces-third-quarter-fiscal-2018-financial-results-300570308.html

SOURCE MongoDB, Inc.