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 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 RelationsBrian Denyeau ICR for MongoDB email@example.com Media RelationsMongoDB 866-237-8815 firstname.lastname@example.org 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 revenueâ€”subscription $ 183 $ 131 $ 503 $ 425 Cost of revenueâ€”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 stockâ€‘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 Revenueâ€”Subscription 183 131 503 425 Stock-based compensation expense: Cost of Revenueâ€”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) 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.