MongoDB, Inc. Announces Second Quarter Fiscal 2023 Financial Results

Second Quarter Fiscal 2023 Total Revenue of $303.7 million, up 53% Year-over-Year

Continued Strong Customer Growth with Over 37,000 Customers as of July 31, 2022

MongoDB Atlas Revenue up 73% Year-over-Year; 64% of Total Q2 Revenue

NEW YORK, Aug. 31, 2022 /PRNewswire/ -- MongoDB, Inc. (NASDAQ: MDB) today announced its financial results for the second quarter ended July 31, 2022.

"MongoDB delivered strong second quarter results, highlighted by 73% Atlas revenue growth and a record number of net additions of direct sales customers. We are seeing robust growth in new workloads being deployed on our platform, which is indicative of the critical role we play in enabling customers to build and run mission critical applications that transform their business,"  said Dev Ittycheria, President and Chief Executive Officer of MongoDB.

Second Quarter Fiscal 2023 Financial Highlights

• Revenue: Total revenue was $303.7 million for the second quarter of fiscal 2023, an increase of 53% year-over-year. Subscription revenue was $291.6 million, an increase of 52% year-over-year, and services revenue was $12.1 million, an increase of 64% year-over-year.
  
  
• Gross Profit: Gross profit was $215.4 million for the second quarter of fiscal 2023, representing a 71% gross margin compared to 69% in the year-ago period. Non-GAAP gross profit was $223.2 million, representing a 73% non-GAAP gross margin, compared to a non-GAAP gross margin of 72% in the year-ago period.
  
  
• Loss from Operations:  Loss from operations was $114.8 million for the second quarter of fiscal 2023, compared to a loss of $72.5 million in the year-ago period. Non-GAAP loss from operations was $12.4 million, compared to a non-GAAP loss of $4.0 million in the year-ago period.
  
  
• Net Loss: Net loss was $118.9 million, or $1.74 per share, based on 68.3 million weighted-average shares outstanding, for the second quarter of fiscal 2023. This compares to a net loss of $77.1 million, or $1.22 per share, based on 63.4 million weighted-average shares outstanding, in the year-ago period. Non-GAAP net loss was $15.6 million or $0.23 per share. This compares to a non-GAAP net loss of $7.7 million or $0.12 per share in the year-ago period.
  
  
• Cash Flow: As of July 31, 2022, MongoDB had $1.8 billion in cash, cash equivalents, short-term investments and restricted cash. During the three months ended July 31, 2022, MongoDB used $44.7 million of cash from operations, used $2.6 million of cash in capital expenditures and used $1.3 million of cash in principal repayments of finance leases, leading to negative free cash flow of $48.6 million, compared to negative free cash flow of $22.7 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."

Second Quarter Fiscal 2023 and Recent Business Highlights

• Held our annual, flagship event MongoDB World in person in New York City for the first time since 2019. MongoDB World brought together our enthusiastic and vibrant developer community and broke all records, with approximately 3,000 attendees, 35 sponsors, 290 speakers across more than 200 sessions, 235 Ask the Expert sessions, and nearly 100 Builder's Fest sessions.
• Released MongoDB 6.0 for general availability to further our ambitious developer data platform vision. MongoDB 6.0's new and enhanced abilities allow our customers to run a broad range of workloads and consolidate a disparate set of point solutions onto MongoDB. Queryable Encryption, an industry first, which enables users to run rich queries over encrypted data, received noteworthy attention.
• Continued to deepen and improve our collaboration with hyperscale cloud vendors through further product integration and alignment. MongoDB for Startups, now an exclusive offer in AWS Activate, helps early-stage companies get started with MongoDB. Additionally, MongoDB won the Google Cloud Technology Partner of the Year for Data Management and the partnership continues to grow with MongoDB Atlas now available across 29 Google Cloud regions.

 Third Quarter and Full Year Fiscal 2023 Guidance

Based on information available to management as of today, August 31, 2022, MongoDB is issuing the following financial guidance for the third quarter and full year fiscal 2023.

The guidance provided above is forward-looking in nature. Actual results may differ materially. See the cautionary note regarding "Forward-Looking Statements" below. Fluctuations in MongoDB's operating results may be particularly pronounced in the current economic environment due to the current volatility in the global economy and the continuing uncertainty caused by the ongoing COVID-19 pandemic. The situation regarding both the volatility in the global economy and the COVID-19 pandemic remains uncertain and could change rapidly, and MongoDB will continue to evaluate the potential impact of both these factors on its business.

Reconciliation of non-GAAP income/loss from operations and non-GAAP net income/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 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, August 31, 2022, 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.

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 37,000 customers in over 100 countries. The MongoDB database platform has been downloaded over 300 million times and there have been more than 1.5 million registrations for MongoDB University courses.

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 third fiscal quarter and full year fiscal 2023 and MongoDB's ability to capitalize on its 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 that the precautions we have taken in our business relative to the ongoing COVID-19 pandemic may have on our business; the financial impacts of the COVID-19 pandemic 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 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 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 April 30, 2022, filed with the SEC on June 3, 2022. Additional information will be made available in our Quarterly Report on Form 10-Q for the quarter ended July 31, 2022, 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 loss, non-GAAP net 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 loss and non-GAAP net 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 loss and non-GAAP net 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 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 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 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.

Investor Relations
Brian Denyeau
ICR for MongoDB
646-277-1251
[email protected]

Media Relations
Matt Trocchio
MongoDB
[email protected]

SOURCE MongoDB, Inc.