UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________
FORM 8-K
___________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 8, 2023
___________________
(Exact Name of Registrant as Specified in its Charter)
___________________
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||
| (Address of Principal Executive Offices) | (Zip Code) | ||||||||||
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
___________________
Securities registered pursuant to Section 12(b) of the Exchange Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| (Nasdaq Global Market) | ||||||||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On March 8, 2023, MongoDB, Inc. (the “Company”) issued a press release announcing its financial results for the three months ended January 31, 2023. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8‑K and is incorporated herein by reference.
The information furnished under this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that section. The information shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission made by the Company, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | |||||||
| 99.1 | ||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MONGODB, INC. | |||||||||||
Dated: March 8, 2023 | By: | /s/ Dev Ittycheria | |||||||||
Name: Dev Ittycheria Title: President and Chief Executive Officer | |||||||||||
Exhibit 99.1
MongoDB, Inc. Announces Fourth Quarter and Full Year Fiscal 2023 Financial Results
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 - 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.
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First Quarter Fiscal 2024 | Full Year Fiscal 2024 | |||||||
| Revenue | $344.0 million to $348.0 million | $1.480 billion to $1.510 billion | ||||||
| Non-GAAP Income from Operations | $10.0 million to $13.0 million | $69.0 million to $84.0 million | ||||||
| Non-GAAP Net Income per Share | $0.17 to $0.20 | $0.96 to $1.10 | ||||||
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
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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
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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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MONGODB, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
(unaudited)
| January 31, 2023 | January 31, 2022 | ||||||||||
Assets | |||||||||||
| Current assets: | |||||||||||
Cash and cash equivalents | $ | 455,826 | $ | 473,904 | |||||||
Short-term investments | 1,380,804 | 1,352,019 | |||||||||
| Accounts receivable, net of allowance for doubtful accounts of $6,362 and $4,966 as of January 31, 2023 and 2022, respectively | 285,192 | 195,383 | |||||||||
Deferred commissions | 83,550 | 63,523 | |||||||||
Prepaid expenses and other current assets | 31,212 | 32,573 | |||||||||
Total current assets | 2,236,584 | 2,117,402 | |||||||||
| Property and equipment, net | 57,841 | 62,625 | |||||||||
| Operating lease right-of-use assets | 41,194 | 41,745 | |||||||||
| Goodwill | 57,779 | 57,775 | |||||||||
| Acquired intangible assets, net | 11,428 | 20,608 | |||||||||
| Deferred tax assets | 2,564 | 1,939 | |||||||||
Other assets | 181,503 | 147,494 | |||||||||
Total assets | $ | 2,588,893 | $ | 2,449,588 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
Accounts payable | $ | 8,295 | $ | 5,234 | |||||||
Accrued compensation and benefits | 90,112 | 112,568 | |||||||||
Operating lease liabilities | 8,686 | 8,084 | |||||||||
Other accrued liabilities | 52,672 | 48,848 | |||||||||
Deferred revenue | 428,747 | 352,001 | |||||||||
Total current liabilities | 588,512 | 526,735 | |||||||||
| Deferred tax liability, non-current | 225 | 81 | |||||||||
Operating lease liabilities, non-current | 36,264 | 38,707 | |||||||||
Deferred revenue, non-current | 31,524 | 23,179 | |||||||||
Convertible senior notes, net | 1,139,880 | 1,136,521 | |||||||||
Other liabilities, non-current | 52,980 | 57,665 | |||||||||
Total liabilities | 1,849,385 | 1,782,888 | |||||||||
| Stockholders’ equity: | |||||||||||
| Common stock, par value of $0.001 per share; 1,000,000,000 shares authorized as of January 31, 2023 and 2022; 70,005,957 shares issued and 69,906,586 shares outstanding as of January 31, 2023 and 67,543,731 shares issued and 67,444,360 shares outstanding as of January 31, 2022 | 70 | 67 | |||||||||
Additional paid-in capital | 2,276,694 | 1,860,514 | |||||||||
| Treasury stock, 99,371 shares (repurchased at an average of $13.27 per share) as of January 31, 2023 and 2022 | (1,319) | (1,319) | |||||||||
| Accumulated other comprehensive loss | (905) | (2,928) | |||||||||
Accumulated deficit | (1,535,032) | (1,189,634) | |||||||||
| Total stockholders’ equity | 739,508 | 666,700 | |||||||||
| Total liabilities and stockholders’ equity | $ | 2,588,893 | $ | 2,449,588 | |||||||
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MONGODB, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
| Three Months Ended January 31, | Years Ended January 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Subscription | $ | 348,178 | $ | 258,225 | $ | 1,235,122 | $ | 842,047 | |||||||||||||||
Services | 13,134 | 8,269 | 48,918 | 31,735 | |||||||||||||||||||
Total revenue | 361,312 | 266,494 | 1,284,040 | 873,782 | |||||||||||||||||||
Cost of revenue(1): | |||||||||||||||||||||||
Subscription | 71,429 | 64,166 | 284,583 | 217,901 | |||||||||||||||||||
Services | 17,731 | 11,632 | 64,721 | 41,591 | |||||||||||||||||||
Total cost of revenue | 89,160 | 75,798 | 349,304 | 259,492 | |||||||||||||||||||
Gross profit | 272,152 | 190,696 | 934,736 | 614,290 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Sales and marketing(1) | 189,916 | 144,263 | 699,201 | 471,890 | |||||||||||||||||||
Research and development(1) | 110,891 | 89,417 | 421,692 | 308,820 | |||||||||||||||||||
General and administrative(1) | 44,294 | 35,635 | 160,498 | 122,944 | |||||||||||||||||||
Total operating expenses | 345,101 | 269,315 | 1,281,391 | 903,654 | |||||||||||||||||||
Loss from operations | (72,949) | (78,619) | (346,655) | (289,364) | |||||||||||||||||||
| Other income (expense), net | 11,465 | (4,263) | 13,401 | (13,525) | |||||||||||||||||||
| Loss before provision for income taxes | (61,484) | (82,882) | (333,254) | (302,889) | |||||||||||||||||||
| Provision for income taxes | 2,914 | 1,566 | 12,144 | 3,977 | |||||||||||||||||||
Net loss | $ | (64,398) | $ | (84,448) | $ | (345,398) | $ | (306,866) | |||||||||||||||
Net loss per share, basic and diluted | $ | (0.93) | $ | (1.26) | $ | (5.03) | $ | (4.75) | |||||||||||||||
Weighted-average shares used to compute net loss per share, basic and diluted | 69,525,238 | 66,972,991 | 68,628,267 | 64,563,032 | |||||||||||||||||||
(1) Includes stock‑based compensation expense as follows:
| Three Months Ended January 31, | Years Ended January 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Cost of revenue—subscription | $ | 5,190 | $ | 4,065 | $ | 19,682 | $ | 14,387 | |||||||||||||||
Cost of revenue—services | 2,966 | 1,852 | 10,565 | 6,325 | |||||||||||||||||||
Sales and marketing | 38,534 | 27,198 | 143,073 | 91,947 | |||||||||||||||||||
Research and development | 41,516 | 31,108 | 159,099 | 104,335 | |||||||||||||||||||
General and administrative | 13,930 | 9,519 | 49,035 | 34,075 | |||||||||||||||||||
Total stock‑based compensation expense | $ | 102,136 | $ | 73,742 | $ | 381,454 | $ | 251,069 | |||||||||||||||
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MONGODB, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| Three Months Ended January 31, | Years Ended January 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Cash flows from operating activities | |||||||||||||||||||||||
| Net loss | $ | (64,398) | $ | (84,448) | $ | (345,398) | $ | (306,866) | |||||||||||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||||||||||
| Depreciation and amortization | 4,198 | 3,682 | 16,110 | 13,671 | |||||||||||||||||||
| Stock-based compensation | 102,136 | 73,742 | 381,454 | 251,069 | |||||||||||||||||||
| Amortization of debt issuance costs | 845 | 844 | 3,375 | 4,005 | |||||||||||||||||||
| Amortization of finance right-of-use assets | 993 | 993 | 3,974 | 3,974 | |||||||||||||||||||
| Amortization of operating right-of-use assets | 2,309 | 1,800 | 9,098 | 6,810 | |||||||||||||||||||
| Deferred income taxes | (976) | 132 | (562) | (2,579) | |||||||||||||||||||
| Amortization of premium and accretion of discount on short-term investments, net | (8,908) | 2,562 | (5,954) | 7,540 | |||||||||||||||||||
| Unrealized gain on non-marketable securities | (163) | — | (1,857) | — | |||||||||||||||||||
| Unrealized foreign exchange loss | 2,814 | 1,016 | 1,260 | 1,519 | |||||||||||||||||||
| Change in operating assets and liabilities: | |||||||||||||||||||||||
| Accounts receivable | (53,190) | (15,385) | (91,450) | (62,277) | |||||||||||||||||||
| Prepaid expenses and other current assets | (3,867) | (12,645) | 2,315 | (19,865) | |||||||||||||||||||
| Deferred commissions | (19,168) | (49,923) | (49,077) | (84,742) | |||||||||||||||||||
| Other long-term assets | 934 | 524 | (99) | 233 | |||||||||||||||||||
| Accounts payable | 527 | 19 | 3,163 | 1,146 | |||||||||||||||||||
| Accrued liabilities | 2,580 | 25,110 | (16,189) | 59,248 | |||||||||||||||||||
| Operating lease liabilities | (2,588) | (2,523) | (9,692) | (6,866) | |||||||||||||||||||
Deferred revenue | 61,786 | 78,743 | 85,759 | 137,241 | |||||||||||||||||||
Other liabilities, non-current | 7 | (1,932) | 800 | 3,719 | |||||||||||||||||||
| Net cash provided by (used in) operating activities | 25,871 | 22,311 | (12,970) | 6,980 | |||||||||||||||||||
| Cash flows from investing activities | |||||||||||||||||||||||
| Purchases of property and equipment | (711) | (3,556) | (7,244) | (8,072) | |||||||||||||||||||
| Acquisition, net of cash acquired | — | — | — | (4,469) | |||||||||||||||||||
| Investment in non-marketable securities | (375) | (2,000) | (3,098) | (4,343) | |||||||||||||||||||
| Proceeds from maturities of marketable securities | 350,000 | 150,000 | 1,425,000 | 550,000 | |||||||||||||||||||
Purchases of marketable securities | (933,919) | (453,008) | (1,447,966) | (1,385,258) | |||||||||||||||||||
| Net cash used in investing activities | (585,005) | (308,564) | (33,308) | (852,142) | |||||||||||||||||||
| Cash flows from financing activities | |||||||||||||||||||||||
| Proceeds from exercise of stock options | 1,367 | 2,074 | 5,707 | 9,665 | |||||||||||||||||||
| Proceeds from issuance of common stock, net of issuance costs | — | — | — | 889,184 | |||||||||||||||||||
| Proceeds from the issuance of common stock under the Employee Stock Purchase Plan | 13,226 | 12,246 | 29,003 | 25,209 | |||||||||||||||||||
Principal repayments of finance leases | (1,323) | (1,923) | (4,510) | (5,572) | |||||||||||||||||||
| Repayments of convertible senior notes attributable to principal | — | — | — | (27,594) | |||||||||||||||||||
| Net cash provided by financing activities | 13,270 | 12,397 | 30,200 | 890,892 | |||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 2,026 | (384) | (2,003) | (1,532) | |||||||||||||||||||
| Net (decrease) increase in cash, cash equivalents and restricted cash | (543,838) | (274,240) | (18,081) | 44,198 | |||||||||||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 1,000,177 | 748,660 | 474,420 | 430,222 | |||||||||||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 456,339 | $ | 474,420 | $ | 456,339 | $ | 474,420 | |||||||||||||||
8
MONGODB, INC.
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(in thousands, except share and per share data)
(unaudited)
| Three Months Ended January 31, | Years Ended January 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Reconciliation of GAAP gross profit to non-GAAP gross profit: | |||||||||||||||||||||||
| Gross profit on a GAAP basis | $ | 272,152 | $ | 190,696 | $ | 934,736 | $ | 614,290 | |||||||||||||||
| Gross margin (Gross profit/Total revenue) on a GAAP basis | 75 | % | 72 | % | 73 | % | 70 | % | |||||||||||||||
| Add back: | |||||||||||||||||||||||
| Expenses associated with stock-based compensation: Cost of Revenue—Subscription | 5,387 | 4,720 | 20,490 | 15,815 | |||||||||||||||||||
| Expenses associated with stock-based compensation: Cost of Revenue—Services | 3,280 | 1,493 | 10,802 | 8,431 | |||||||||||||||||||
| Non-GAAP gross profit | $ | 280,819 | $ | 196,909 | $ | 966,028 | $ | 638,536 | |||||||||||||||
| Non-GAAP gross margin (Non-GAAP gross profit/Total revenue) | 78 | % | 74 | % | 75 | % | 73 | % | |||||||||||||||
| Reconciliation of GAAP operating expenses to non-GAAP operating expenses: | |||||||||||||||||||||||
| Sales and marketing operating expense on a GAAP basis | $ | 189,916 | $ | 144,263 | $ | 699,201 | $ | 471,890 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Expenses associated with stock-based compensation | 40,575 | 34,211 | 149,778 | 109,582 | |||||||||||||||||||
| Amortization of intangible assets associated with acquisitions | 760 | 760 | 3,040 | 3,040 | |||||||||||||||||||
| Non-GAAP sales and marketing operating expense | $ | 148,581 | $ | 109,292 | $ | 546,383 | $ | 359,268 | |||||||||||||||
| Research and development operating expense on a GAAP basis | $ | 110,891 | $ | 89,417 | $ | 421,692 | $ | 308,820 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Expenses associated with stock-based compensation | 43,788 | 35,006 | 165,373 | 113,117 | |||||||||||||||||||
| Amortization of intangible assets and post-combination compensation expense associated with prior acquisitions | 1,535 | 2,782 | 6,140 | 10,527 | |||||||||||||||||||
| Non-GAAP research and development operating expense | $ | 65,568 | $ | 51,629 | $ | 250,179 | $ | 185,176 | |||||||||||||||
| General and administrative operating expense on a GAAP basis | $ | 44,294 | $ | 35,635 | $ | 160,498 | $ | 122,944 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Expenses associated with stock-based compensation | 14,779 | 12,673 | 53,006 | 41,364 | |||||||||||||||||||
| Non-GAAP general and administrative operating expense | $ | 29,515 | $ | 22,962 | $ | 107,492 | $ | 81,580 | |||||||||||||||
| Reconciliation of GAAP loss from operations to non-GAAP income from operations: | |||||||||||||||||||||||
| Loss from operations on a GAAP basis | $ | (72,949) | $ | (78,619) | $ | (346,655) | $ | (289,364) | |||||||||||||||
| Add back: | |||||||||||||||||||||||
| Expenses associated with stock-based compensation | 107,809 | 88,103 | 399,449 | 288,309 | |||||||||||||||||||
| Amortization of intangible assets and post-combination compensation expense associated with prior acquisitions | 2,295 | 3,542 | 9,180 | 13,567 | |||||||||||||||||||
| Non-GAAP income from operations | $ | 37,155 | $ | 13,026 | $ | 61,974 | $ | 12,512 | |||||||||||||||
9
| Three Months Ended January 31, | Years Ended January 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Reconciliation of GAAP net loss to non-GAAP net income (loss): | |||||||||||||||||||||||
| Net loss on a GAAP basis | $ | (64,398) | $ | (84,448) | $ | (345,398) | $ | (306,866) | |||||||||||||||
| Add back: | |||||||||||||||||||||||
| Expenses associated with stock-based compensation | 107,809 | 88,103 | 399,449 | 288,309 | |||||||||||||||||||
| Amortization of intangible assets and post-combination compensation expense associated with prior acquisitions | 2,295 | 3,542 | 9,180 | 13,567 | |||||||||||||||||||
| Amortization of debt issuance costs related to convertible senior notes | 845 | 844 | 3,375 | 4,005 | |||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Gain on non-marketable securities | 163 | — | 1,857 | — | |||||||||||||||||||
| Non-GAAP net income (loss) | $ | 46,388 | $ | 8,041 | $ | 64,749 | $ | (985) | |||||||||||||||
| Reconciliation of GAAP net loss per share, basic and diluted, to non-GAAP net income (loss) per share, basic and diluted: | |||||||||||||||||||||||
| Net loss per share, basic and diluted, on a GAAP basis | $ | (0.93) | $ | (1.26) | $ | (5.03) | $ | (4.75) | |||||||||||||||
| Add back: | |||||||||||||||||||||||
| Expenses associated with stock-based compensation | 1.55 | 1.32 | 5.82 | 4.46 | |||||||||||||||||||
| Amortization of intangible assets and post-combination compensation expense associated with prior acquisitions | 0.03 | 0.05 | 0.13 | 0.21 | |||||||||||||||||||
| Amortization of debt issuance costs related to convertible senior notes | 0.01 | 0.01 | 0.05 | 0.06 | |||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Gain on non-marketable securities | — | — | 0.03 | — | |||||||||||||||||||
| Non-GAAP net income (loss) per share, basic | $ | 0.66 | $ | 0.12 | $ | 0.94 | $ | (0.02) | |||||||||||||||
| Adjustment for fully diluted earnings per share | (0.09) | (0.02) | (0.13) | — | |||||||||||||||||||
| Non-GAAP net income (loss) per share, diluted * | $ | 0.57 | $ | 0.10 | $ | 0.81 | $ | (0.02) | |||||||||||||||
* Diluted non-GAAP net income per share is calculated based upon 80,773,902 and 80,174,413 of diluted weighted-average shares of outstanding common stock for the three and twelve months ended January 31, 2023, respectively. Diluted non-GAAP net income per share for the three months ended January 31, 2022 is calculated based upon 78,721,744 of diluted weighted-average shares of outstanding common stock. The GAAP and Non-GAAP net loss per share calculations exclude potentially dilutive shares as the inclusion of such shares would have been anti-dilutive due to the net loss reported.
The following table presents a reconciliation of free cash flow to net cash provided by (used in) operating activities, the most directly comparable GAAP measure, for each of the periods indicated (unaudited, in thousands):
| Three Months Ended January 31, | Years Ended January 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 25,871 | $ | 22,311 | $ | (12,970) | $ | 6,980 | |||||||||||||||
| Capital expenditures | (711) | (3,556) | (7,244) | (8,072) | |||||||||||||||||||
| Principal repayments of finance leases | (1,323) | (1,923) | (4,510) | (5,572) | |||||||||||||||||||
| Capitalized software | — | — | — | — | |||||||||||||||||||
Free cash flow | $ | 23,837 | $ | 16,832 | $ | (24,724) | $ | (6,664) | |||||||||||||||
10
MONGODB, INC.
CUSTOMER COUNT METRICS
The following table presents certain customer count information as of the periods indicated:
| 1/31/2021 | 4/30/2021 | 7/31/2021 | 10/31/2021 | 1/31/2022 | 4/30/2022 | 7/31/2022 | 10/31/2022 | 1/31/2023 | |||||||||||||||||||||||||||||||||||||||||||||
Total Customers (a) | 24,800+ | 26,800+ | 29,000+ | 31,000+ | 33,000+ | 35,200+ | 37,000+ | 39,100+ | 40,800+ | ||||||||||||||||||||||||||||||||||||||||||||
Direct Sales Customers(b) | 3,000+ | 3,300+ | 3,600+ | 3,900+ | 4,400+ | 4,800+ | 5,400+ | 5,900+ | 6,400+ | ||||||||||||||||||||||||||||||||||||||||||||
MongoDB Atlas Customers | 23,300+ | 25,300+ | 27,500+ | 29,500+ | 31,500+ | 33,700+ | 35,500+ | 37,600+ | 39,300+ | ||||||||||||||||||||||||||||||||||||||||||||
Customers over $100K(c) | 975 | 1,057 | 1,126 | 1,201 | 1,307 | 1,379 | 1,462 | 1,545 | 1,651 | ||||||||||||||||||||||||||||||||||||||||||||
(a) Our definition of “customer” excludes users of our free offerings and all affiliated entities are counted as a single customer. As of and prior to January 31, 2022, our definition of “customer” excluded (1) users of our free offerings, (2) mLab users who spend $20 or less per month with us and (3) self-serve users acquired from Realm. The excluded mLab and Realm users collectively represented an immaterial portion of the revenue associated with users acquired from those acquisitions.
(b) Direct Sales Customers are customers that were sold through our direct sales force and channel partners.
(c) Represents the number of customers with $100,000 or greater in annualized recurring revenue (“ARR”) and annualized monthly recurring revenue (“MRR”). ARR includes the revenue we expect to receive from our customers over the following 12 months based on contractual commitments and, in the case of Direct Sales Customers of MongoDB Atlas, by annualizing the prior 90 days of their actual consumption of MongoDB Atlas, assuming no increases or reductions in their subscriptions or usage. For all other customers of our self-serve products, we calculate annualized MRR by annualizing the prior 30 days of their actual consumption of such products, assuming no increases or reductions in usage. ARR and annualized MRR exclude professional services.
11
MONGODB, INC.
SUPPLEMENTAL REVENUE INFORMATION
The following table presents certain supplemental revenue information as of the periods indicated:
1/31/2021 | 4/30/2021 | 7/31/2021 | 10/31/2021 | 1/31/2022 | 4/30/2022 | 7/31/2022 | 10/31/2022 | 1/31/2023 | |||||||||||||||||||||||||||||||||||||||||||||
MongoDB Enterprise Advanced: % of Subscription Revenue | 41 | % | 40 | % | 36 | % | 34 | % | 33 | % | 33 | % | 28 | % | 29 | % | 28 | % | |||||||||||||||||||||||||||||||||||
Direct Sales Customers(a) Revenue: % of Subscription Revenue | 83 | % | 84 | % | 84 | % | 85 | % | 86 | % | 87 | % | 86 | % | 87 | % | 88 | % | |||||||||||||||||||||||||||||||||||
(a) Direct Sales Customers are customers that were sold through our direct sales force and channel partners.
12