MongoDB, Inc. Announces First Quarter Fiscal 2020 Financial Results 06/05/2019 NEW YORK, June 5, 2019 /PRNewswire/ -- First Quarter Fiscal 2020 Total Revenue of $89.4 million, up 78% Year-over-Year Continued Strong Growth with Over 14,200 Customers at April 30, 2019 MongoDB Atlas Revenue 35% of Total Q1 Revenue, up over 340% Year-over-Year MongoDB, Inc. (NASDAQ: MDB), the leading, modern general purpose database platform, today announced its financial results for the first quarter ended April 30, 2019. "MongoDB delivered excellent first quarter results driven by strength across all products and geographies," said Dev Ittycheria, President and Chief Executive Officer of MongoDB. "Our success is being driven in part by growing customer interest in a modern, general purpose database for use on premise and in hybrid and multi-cloud environments to help users innovate more quickly and efficiently." Ittycheria added, "The continued success of MongoDB Atlas, our fully managed global, multi-cloud database service, reflects the powerful combination of the move to the cloud and customers' desire for sophisticated managed database offerings. These trends are reshaping the market and we believe will provide a significant growth opportunity for MongoDB for the foreseeable future." First Quarter Fiscal 2020 Financial Highlights Revenue: Total revenue was $89.4 million in the first quarter fiscal 2020, an increase of 78% year-over-year. Subscription revenue was $84.0 million, an increase of 82% year-over-year, and services revenue was $5.4 million, an increase of 33% year-over-year. Gross Profit: Gross profit was $61.2 million in the first quarter fiscal 2020, representing a 68% gross margin, compared to 73% in the year-ago period. Non-GAAP gross profit was $62.8 million, representing a 70% non-GAAP gross margin. Loss from Operations: Loss from operations was $30.6 million in the first quarter fiscal 2020, compared to $26.7 million in the year-ago period. Non-GAAP loss from operations was $12.6 million, compared to $18.9 million in the year-ago period. Net Loss: Net loss was $33.2 million, or $0.61 per share, based on 54.7 million weighted-average shares outstanding in the first quarter fiscal 2020. This compares to $26.6 million, or $0.53 per share, based on 50.4 million weighted-average shares outstanding, in the year-ago period. Non-GAAP net loss was $12.1 million or $0.22 per share. This compares to $18.8 million or $0.37 per share in the year-ago period. Cash Flow: As of April 30, 2019, MongoDB had $476.9 million in cash, cash equivalents, short-term investments and restricted cash. During the three months ended April 30, 2019, MongoDB generated $3.2 million of cash from operations and used $0.4 million in capital expenditures, leading to free cash flow of $2.8 million, compared to negative free cash flow of $8.4 million in the year-ago period. We recently adopted the new revenue recognition accounting standard Accounting Standards Codification 606 effective as of January 31, 2019 and applied as of February 1, 2018, on a full retrospective basis. All amounts and disclosures in this press release have been updated to comply with the new revenue standard. In addition, our results include the impact of our acquisition of mLab in November 2018. 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." First Quarter Fiscal 2020 and Recent Business Highlights Announced a new business partnership with Google Cloud Platform (GCP) that will provide deeper product integration and unified billing for joint customers. MongoDB Atlas will be integrated directly within the GCP Console and we have expanded our go to market relationship. Offering Atlas as a first class service on GCP means customers will get a seamless experience as Atlas will be tightly coupled with core GCP services such as identity and access management, logging and monitoring, as well as open source projects like Kubernetes and Tensorflow. Acquired Realm, the company behind the Realm mobile database and synchronization platform, to expand MongoDB's mobile product offerings and deepen its relationship with developer communities focused on mobile and serverless development. There are more than 100,000 active developers using Realm. Named a Leader by Forrester Research in two recent reports. The Forrester Wave™: Big Data NoSQL, Q1 2019 gave MongoDB the highest scores possible in the Data Security, Performance, Scalability, High Availability, Global Distribution and Ability to Execute criteria. The Forrester Wave™: Database-As-A-Service, Q2 2019 gave MongoDB the highest scores possible in the High Availability, Disaster Recovery, Multimodel Support, Automation, User Access and Roadmap criteria. Business Outlook Based on information as of today, June 5, 2019, MongoDB is issuing the following financial guidance for the second quarter and full year fiscal 2020. Second Quarter Fiscal 2020 Full Year Fiscal 2020 Revenue $90.0 million to $92.0 million $375.0 million to $381.0 million Non-GAAP Loss from Operations $(16.5) million to $(15.5) million $(63.0) million to $(59.0) million Non-GAAP Net Loss per Share $(0.29) to $(0.27) $(1.11) to $(1.04) 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, June 5, 2019, 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 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 7776211. 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 14,200 customers in over 100 countries. The MongoDB database platform has been downloaded over 65 million times and there have been more than one million 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 second fiscal quarter and full year fiscal 2020, the impact of market trends on prospects for future growth and the benefits from the acquisition of Realm. 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 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 maintain the security of our software and adequately address privacy concerns; 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 our Annual Report on Form 10-K filed on April 1, 2019, 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 and non-GAAP gross margin exclude stock-based compensation expense. 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 recently acquired customer relationships and acquired technology associated with the acquisitions of mLab and WiredTiger; amortization of the founder holdback associated with the mLab acquisition, that was deemed to be compensation expense for GAAP purposes; acquisition costs associated with the purchase of Realm; and in the case of non-GAAP net loss and non-GAAP net loss per share, non-cash interest expense related to 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 provided by or 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 https://investors.mongodb.com. Investor RelationsBrian DenyeauICR for MongoDB646email@example.com Media RelationsMark WheelerMongoDB866-237-8815 firstname.lastname@example.org MONGODB, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) (unaudited) April 30, 2019 January 31, 2019 Assets Current assets: Cash and cash equivalents $ 158,060 $ 147,831 Short-term investments 318,346 318,139 Accounts receivable, net of allowance for doubtful accounts of $1,770 and $1,539 as of April 30, 2019 and January 31, 2019, respectively 61,600 72,808 Deferred commissions 16,932 15,878 Prepaid expenses and other current assets 12,251 11,580 Total current assets 567,189 566,236 Property and equipment, net 60,309 73,664 Operating lease right-of-use assets 12,378 — Goodwill 41,878 41,878 Acquired intangible assets, net 14,223 15,894 Deferred tax assets 1,753 1,193 Other assets 36,511 34,611 Total assets $ 734,241 $ 733,476 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 2,080 $ 2,153 Accrued compensation and benefits 24,122 25,982 Operating lease liabilities 3,575 — Other accrued liabilities 20,138 14,169 Deferred revenue 128,252 122,333 Total current liabilities 178,167 164,637 Deferred rent, non-current — 2,567 Deferred tax liability, non-current 109 106 Operating lease liabilities, non-current 9,827 — Deferred revenue, non-current 15,443 15,343 Convertible senior notes, net 220,079 216,858 Other liabilities, non-current 62,748 69,399 Total liabilities 486,373 468,910 Stockholders' equity: Class A common stock, par value of $0.001 per share; 1,000,000,000 shares authorized as of April 30, 2019 and January 31, 2019; 41,843,367 and 36,286,573 shares issued and outstanding as of April 30, 2019 and January 31, 2019, respectively 42 36 Class B common stock, par value of $0.001 per share; 100,000,000 shares authorized as of April 30, 2019 and January 31, 2019; 13,532,080 and 18,134,608 shares issued as of April 30, 2019 and January 31, 2019, respectively; 13,432,709 and 18,035,237 shares outstanding as of April 30, 2019 and January 31, 2019, respectively 13 18 Additional paid-in capital 775,185 754,612 Treasury stock, 99,371 shares (repurchased at an average of $13.27 per share) as of April 30, 2019 and January 31, 2019 (1,319) (1,319) Accumulated other comprehensive loss (103) (174) Accumulated deficit (525,950) (488,607) Total stockholders' equity 247,868 264,566 Total liabilities and stockholders' equity $ 734,241 $ 733,476 MONGODB, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) (unaudited) Three Months Ended April 30, 2019 2018 Revenue: Subscription $ 83,994 $ 46,069 Services 5,394 4,070 Total revenue 89,388 50,139 Cost of revenue(1): Subscription 22,595 10,070 Services 5,577 3,679 Total cost of revenue 28,172 13,749 Gross profit 61,216 36,390 Operating expenses: Sales and marketing(1) 46,120 33,197 Research and development(1) 30,868 18,645 General and administrative(1) 14,805 11,227 Total operating expenses 91,793 63,069 Loss from operations (30,577) (26,679) Other income (loss), net (2,801) 591 Loss before provision for income taxes (33,378) (26,088) Provision (benefit) for income taxes (138) 467 Net loss $ (33,240) $ (26,555) Net loss per share, basic and diluted $ (0.61) $ (0.53) Weighted-average shares used to compute net loss per share, basic and diluted 54,710,746 50,350,052 _____________________ (1) Includes stock‑based compensation expense as follows: Three Months Ended April 30, 2019 2018 Cost of revenue—subscription $ 988 $ 359 Cost of revenue—services 593 184 Sales and marketing 4,940 2,218 Research and development 4,520 2,206 General and administrative 2,968 2,610 Total stock‑based compensation expense $ 14,009 $ 7,577 MONGODB, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended April 30, 2019 2018 Cash flows from operating activities Net loss $ (33,240) $ (26,555) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 2,300 817 Stock-based compensation 14,009 7,508 Amortization of debt discount and issuance costs 3,221 — Amortization of finance right-of-use assets 994 — Non-cash interest on finance lease liabilities 905 — Deferred income taxes (557) 4 Accretion of discount on short-term investments (1,509) (381) Change in operating assets and liabilities: Accounts receivable 10,960 14,018 Prepaid expenses and other current assets (260) (2,865) Deferred commissions (2,987) (1,268) Operating lease right-of-use assets (2,051) — Other assets 32 (70) Accounts payable (268) (639) Deferred rent 251 472 Accrued liabilities 3,073 (1,967) Operating lease liabilities 2,074 — Deferred revenue 6,267 2,877 Net cash provided by (used in) operating activities 3,214 (8,049) Cash flows from investing activities Purchases of property and equipment (389) (367) Proceeds from maturities of marketable securities 140,000 58,000 Purchases of marketable securities (139,024) — Net cash provided by investing activities 587 57,633 Cash flows from financing activities Proceeds from exercise of stock options, including early exercised stock options 6,437 288 Repurchase of early exercised stock options (30) (152) Net cash provided by financing activities 6,407 136 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 19 (8) Net increase in cash, cash equivalents, and restricted cash 10,227 49,712 Cash, cash equivalents, and restricted cash, beginning of period 148,347 62,427 Cash, cash equivalents, and restricted cash, end of period $ 158,574 $ 112,139 MONGODB, INC. RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (in thousands, except share and per share data) (unaudited) Three Months Ended April 30, 2019 2018 Reconciliation of GAAP gross profit to non-GAAP gross profit: Gross profit on a GAAP basis $ 61,216 $ 36,390 Gross margin (Gross profit/Total revenue) on a GAAP basis 68 % 73 % Add back: Stock-based compensation expense: Cost of Revenue—Subscription 988 359 Stock-based compensation expense: Cost of Revenue—Services 593 184 Non-GAAP gross profit $ 62,797 $ 36,933 Non-GAAP gross margin (Non-GAAP gross profit/Total revenue) 70 % 74 % Reconciliation of GAAP loss from operations to non-GAAP loss from operations: Loss from operations on a GAAP basis $ (30,577) $ (26,679) Add back: Stock-based compensation expense 14,009 7,577 Amortization of intangible assets and Founder Holdback associated with acquisitions 3,580 221 Acquisition costs 346 — Non-GAAP loss from operations $ (12,642) $ (18,881) Reconciliation of GAAP net loss to non-GAAP net loss: Net loss on a GAAP basis $ (33,240) $ (26,555) Add back: Stock-based compensation expense 14,009 7,577 Amortization of intangible assets and Founder Holdback associated with acquisitions 3,580 221 Acquisition costs 346 — Non-cash interest expense related to convertible senior notes 3,221 — Non-GAAP net loss $ (12,084) $ (18,757) Reconciliation of GAAP net loss per share, basic and diluted, to non-GAAP net loss per share, basic and diluted: Net loss per share, basic and diluted, on a GAAP basis $ (0.61) $ (0.53) Add back: Stock-based compensation expense 0.26 0.15 Amortization of intangible assets and Founder Holdback associated with acquisitions 0.06 0.01 Acquisition costs 0.01 — Non-cash interest expense related to convertible senior notes 0.06 — Non-GAAP net loss per share, basic and diluted $ (0.22) $ (0.37) 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 (unaudited, in thousands): Three Months Ended April 30, 2019 2018 Net cash provided by (used in) operating activities $ 3,214 $ (8,049) Capital expenditures (389) (367) Capitalized software — — Free cash flow $ 2,825 $ (8,416) MONGODB, INC. CUSTOMER COUNT METRICS The following table presents certain customer count information as of the periods indicated: As of 4/30/2017 7/31/2017 10/31/2017 1/31/2018 4/30/2018 7/31/2018 10/31/2018 1/31/2019 4/30/2019 Total Customers 3,700+ 4,300+ 4,900+ 5,700+ 6,600+ 7,400+ 8,300+ 13,400+ 14,200+ Direct Sales Customers(a) 1,300+ 1,350+ 1,400+ 1,450+ 1,550+ 1,600+ 1,700+ 1,750+ 1,800+ MongoDB Atlas Customers 1,300+ 1,900+ 2,600+ 3,400+ 4,400+ 5,300+ 6,200+ 11,400+ 12,300+ Customers over $100K(b) 268 296 320 354 394 438 490 557 598 (a) Direct Sales Customers are customers that were sold through our direct sales force and channel partners. (b) Represents the number of customers with $100,000 or greater in annualized recurring revenue ("ARR") and annualized monthly recurring revenue ("MRR"). We define ARR as the subscription revenue we would contractually expect to receive from customers over the following 12 months assuming no increases or reductions in their subscriptions. ARR excludes self-service products, including MongoDB Atlas not sold on a commitment basis. ARR also excludes professional services. For customers who utilize our self-service offerings, we measure the annualized MRR, which is calculated by annualizing their usage of our self-serve products in the prior 30 days and assuming no increases or reductions in their usage. View original content to download multimedia:http://www.prnewswire.com/news-releases/mongodb-inc-announces-first-quarter-fiscal-2020-financial-results-300862817.html SOURCE MongoDB, Inc.