Release Details

Fourth Quarter Fiscal 2023 Total Revenue of $361.3 million, up 36% Year-over-Year

Full Year Fiscal 2023 Total Revenue of $1,284.0 million, up 47% Year-over-Year

Continued Strong Customer Growth with Over 40,800 Customers as of January 31, 2023

MongoDB Atlas Revenue up 50% Year-over-Year; 65% of Total Q4 Revenue

NEW YORK, March 8, 2023 /PRNewswire/ -- MongoDB, Inc. (NASDAQ: MDB) today announced its financial results for the fourth quarter and fiscal year ended January 31, 2023.

"MongoDB delivered a strong finish to fiscal 2023, highlighted by 50% Atlas revenue growth and continued strength in winning new customers and workloads. Our continued new business momentum is driven in part by an increasing number of enterprise customers looking to standardize on MongoDB's developer data platform to accelerate innovation while driving greater operational efficiency in their business," said Dev Ittycheria, President and Chief Executive Officer of MongoDB.

"As we enter fiscal 2024, we are incredibly optimistic about the opportunity ahead for MongoDB as we continue to disrupt one of the largest markets in software. We remain focused on acquiring new customers and workloads while driving greater efficiency across the business, which we are confident will enable us to further capitalize on our long-term opportunity when economic conditions normalize."

Fourth Quarter Fiscal 2023 Financial Highlights

• Revenue: Total revenue was $361.3 million for the fourth quarter of fiscal 2023, an increase of 36% year-over-year. Subscription revenue was $348.2 million, an increase of 35% year-over-year, and services revenue was $13.1 million, an increase of 59% year-over-year.
• Gross Profit: Gross profit was $272.2 million for the fourth quarter of fiscal 2023, representing a 75% gross margin compared to 72% in the year-ago period. Non-GAAP gross profit was $280.8 million, representing a 78% non-GAAP gross margin, compared to a non-GAAP gross margin of 74% in the year-ago period.
• Loss from Operations: Loss from operations was $72.9 million for the fourth quarter of fiscal 2023, compared to a loss from operations of $78.6 million in the year-ago period. Non-GAAP income from operations was $37.2 million, compared to a non-GAAP income from operations of $13.0 million in the year-ago period.
• Net Loss: Net loss was $64.4 million, or $0.93 per share, based on 69.5 million weighted-average shares outstanding, for the fourth quarter of fiscal 2023. This compares to a net loss of $84.4 million, or $1.26 per share, in the year-ago period. Non-GAAP net income was $46.4 million, or $0.57 per share, based on 80.8 million diluted weighted-average shares outstanding. This compares to a non-GAAP net income of $8.0 million, or $0.10 per share, in the year-ago period.
• Cash Flow: As of January 31, 2023, MongoDB had $1.8 billion in cash, cash equivalents, short-term investments and restricted cash. During the three months ended January 31, 2023, MongoDB generated $25.9 million of cash from operations compared to $22.3 million in the year-ago period. Free cash flow was $23.8 million for the three months ended January 31, 2023, compared to free cash flow of $16.8 million in the year-ago period.

Full Year Fiscal 2023 Financial Highlights

• Revenue: Total revenue was $1,284.0 million for the full year fiscal 2023, an increase of 47% year-over-year. Subscription revenue was $1,235.1 million, an increase of 47% year-over-year, and services revenue was $48.9 million, an increase of 54% year-over-year.
• Gross Profit: Gross profit was $934.7 million for the full year fiscal 2023, representing a 73% gross margin compared to 70% in the year-ago period. Non-GAAP gross profit was $966.0 million, representing a 75% non-GAAP gross margin, compared to a non-GAAP gross margin of 73% in the year-ago period.
• Loss from Operations: Loss from operations was $346.7 million for the full year fiscal 2023, compared to a loss from operations of $289.4 million in the year-ago period. Non-GAAP income from operations was $62.0 million, compared to a non-GAAP income from operations of $12.5 million in the year-ago period.
• Net Loss: Net loss was $345.4 million, or $5.03 per share, based on 68.6 million weighted-average shares outstanding, for the full year fiscal 2023. This compares to a net loss of $306.9 million, or $4.75 per share, in the year-ago period. Non-GAAP net income was $64.7 million, or $0.81 per share based on 80.2 million diluted weighted-average shares outstanding. This compares to a non-GAAP net loss of $1.0 million, or $0.02 per share, in the year-ago period.
• Cash Flow: During the year ended January 31, 2023, MongoDB used $13.0 million of cash in operations, compared to $7.0 million of cash provided from operations in the year-ago period. Free cash flow for the year ended January 31, 2023, was negative $24.7 million, compared to negative free cash flow of $6.7 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."

Fourth Quarter Fiscal 2023 and Recent Business Highlights

• MongoDB continues to gain momentum with hyperscale cloud partners. The Company signed a new 5-year strategic partnership agreement with Microsoft Azure, including commitments to technical integrations, acceleration of joint go-to-market activities, as well as joint focus and incentives to migrate MongoDB on-premises deployments to Atlas on Azure. Recently, MongoDB expanded its multi-year partnership with Google Cloud to include a number of new, joint go-to-market programs, along with an initiative to accelerate startups' data journeys. Additionally, AWS awarded MongoDB Marketplace Partner of the Year for the Europe, Middle East, and Africa (EMEA) region after witnessing strong growth among joint customers in that geography during the year.
• MongoDB was named a Leader in the 2022 Gartner® Magic Quadrant™ for Cloud Database Management Systems (DBMS).
• MongoDB announced that it achieved the FedRAMP Moderate Authorized designation for MongoDB Atlas for Government. As a result, thousands of  government organizations leveraging AWS will be able to use Atlas for Government to build and deploy secure, highly-scalable, distributed applications in the cloud.

First Quarter and Full Year Fiscal 2024 Guidance

Based on information available to management as of today, March 8, 2023, MongoDB is issuing the following financial guidance for the first quarter and full year fiscal 2024.

Note that due to the Company's expectation of future non-GAAP profitability, the non-GAAP net income per share guidance provided above for the first quarter and full year fiscal 2024 includes an additional non-GAAP tax provision.

Reconciliation of non-GAAP income from operations and non-GAAP net income 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, March 8, 2023, 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, please go to this link (registration link), and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at http://investors.mongodb.com.

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 first fiscal quarter and full year fiscal 2024 and our ability to capitalize on our market opportunity and deliver strong growth for the foreseeable future. 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 the COVID-19 pandemic may have on our business and  on our customers and our potential customers; the effects of the ongoing military conflict between Russia and Ukraine on our business and future operating results; economic downturns and/or the effects of rising interest rates, inflation and volatility in the global economy and financial markets on 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 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 October 31, 2022, filed with the SEC on December 8, 2022. Additional information will be made available in our Annual Report on Form 10-K for the year ended January 31, 2023 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 income (loss) from operations, non-GAAP net income (loss), non-GAAP net income (loss) per share and free cash flow. Non-GAAP gross profit and non-GAAP gross margin exclude expenses associated with stock-based compensation. Non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP net income (loss) and non-GAAP net income (loss) per share exclude:

• expenses associated with stock-based compensation including employer payroll taxes upon the vesting and exercising of stock-based awards and expenses related to stock appreciation rights previously issued to our employees in China;
• 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 income (loss) and non-GAAP net income (loss) per share, amortization of the debt issuance costs associated with our convertible senior notes and gains or losses on investments.

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 may 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 income (loss) from operations, non-GAAP net income (loss), non-GAAP net income (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 financial 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.

Disclosure

Gartner, Magic Quadrant for Cloud Database Management Systems, December 2022. GARTNER and Magic Quadrant are registered trademarks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

The Gartner content described herein, (the "Gartner Content") represent(s) research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and are not representations of fact. Gartner Content speaks as of its original publication date (and not as of the date of this press release) and the opinions expressed in the Gartner Content are subject to change without notice.

About MongoDB

MongoDB is the developer data platform company empowering innovators to create, transform, and disrupt industries by unleashing the power of software and data. Headquartered in New York, MongoDB has more than 40,800 customers in over 100 countries. The MongoDB database platform has been downloaded over 365 million times and there have been more than 1.8 million registrations for MongoDB University courses.

Investor Relations

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

Media Relations

MongoDB
communications@mongodb.com

 

 

 

 

 

 

 

 

 

 

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