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MongoDB Annual Report, Year Ended Jan 31, 2019

Filing Date
Filed April 1, 2019
Period End
January 31, 2019
Security
MDB
In the record · 2017–202610-K910-Q278-K72

MDB filed 9 annual reports (10-K), 27 quarterly reports (10-Q) and 72 current reports (8-K) between 2017 and 2026.

  1. Material agreement8-K · Jun ’18Jun ’18
  2. Material agreement8-K · Jun ’21Jun ’21
  3. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 10-K filed April 1, 2019. Cited figures are marked; the original filing is the authoritative source.

MongoDB, Inc. reported fiscal 2019 (year ended January 31, 2019) total revenue of $267.0 milliona, up from $166.0 million in fiscal 2018 and $114.8 million in fiscal 2017, with subscription revenue of $248.4 million and services revenue of $18.6 million.

The company remained unprofitable, posting a net loss of $99.0 millionb (compared with $84.0 million in fiscal 2018 and $70.1 million in fiscal 2017) and an accumulated deficit of $488.6 million. Operating cash flow was $(42.0) million and free cash flow was $(48.8) million. MongoDB Atlas, its cloud database-as-a-service offering, grew to 23% of total revenue from 7% in the prior year, and the company stated its net ARR expansion rate has been over 120% for each of the last 16 fiscal quarters.

The company is investing heavily in growth rather than profitability, with sales and marketing expense at 56% of revenue and research and development headcount up 35%. Key balance sheet changes in the year included $300.0 millionc of 0.75% convertible senior notes due 2024 issued in June and July 2018, net proceeds of approximately $291.1 million, and the $55.5 million net cash acquisition of ObjectLabs Corporation (mLab) on November 1, 2018. Cash, cash equivalents and short-term investments totaled $466.0 million at year end.

The company also adopted ASC 606 on a full retrospective basis after losing emerging growth company status. Investors should weigh the dual-class structure, under which Class B holders controlled about 83% of voting power, and the Realtime Data patent infringement lawsuit filed March 12, 2019. The filing also notes a non-cancelable commitment of $219.0 milliond over five years with a cloud infrastructure provider, commencing April 1, 2019.

02—Key points

Key Highlights

  1. Total revenue of $267.0 million for fiscal 2019, up from $166.0 million in fiscal 2018; subscription revenue was $248.4 million.
  2. Net loss widened to $99.0 million from $84.0 million; accumulated deficit reached $488.6 million.
  3. MongoDB Atlas represented 23% of total revenue in fiscal 2019, versus 7% in fiscal 2018.
  4. Net ARR expansion rate has been over 120% for each of the last 16 fiscal quarters; over 13,400 customers as of January 31, 2019.
  5. Issued $300.0 million of 0.75% convertible senior notes due 2024 (net proceeds about $291.1 million); used $37.1 million for capped calls.
  6. Acquired ObjectLabs Corporation (mLab) on November 1, 2018 for $68.0 million in cash, with goodwill of $36.0 million in the purchase price allocation.
  7. Class B shares held about 83% of voting power as of January 31, 2019; Realtime Data filed a patent infringement lawsuit on March 12, 2019.

03—One dollar

Follow one dollar

For each $1.00 of revenue in FY2019, MongoDB lost $0.37.

  1. Revenue$267.0M100.0%
  2. Cost of revenue−$73.6M27.6%
  3. Gross profit$193.4M72.4%
  4. Operating costs−$291.2M109.1%
  5. Operating income−$97.8M36.6%
  6. Interest, other & tax−$1.2M0.5%
  7. Net income−$99.0M37.1%
Computed from 10-KFY2019filed April 1, 2019Computed from this filing’s revenue, gross profit, operating income and net income · right columngrey figure: share of revenue

04—Financials

Financial Highlights

Figures from 10-KFY2019filed April 1, 2019
Revenue$267.02M72.4% Gross MarginNet Income-$99.01M-37.1% Net MarginEPS (Diluted)$-1.90Total Assets$733.48MCash & Equivalents$148.35MFree Cash Flow-$48.84M

Financial Statements

FY2019 against FY2018

Line itemFY2019FY2018Change
Revenue$267.02M$166.03M+60.8%
Cost of Revenue$73.57M$42.86M+71.7%
Gross Profit$193.45M$123.17M+57.1%
R&D Expenses$89.85M$62.20M+44.5%
Operating Expenses$291.21M$208.05M+40.0%
Operating Income-$97.77M-$84.88M−15.2%
Interest Expense$10.29M$8K+128525.0%
Net Income-$99.01M-$83.97M−17.9%
EPS (Basic)$-1.90$-3.54+46.3%
Shares Outstanding (Basic)52.03M23.72M+119.4%

05—Questions

Frequently Asked Questions

  1. How fast did MongoDB's revenue grow in fiscal 2019?

    Total revenue rose to $267.0 million from $166.0 million, and the filing states this represented a 61% growth rate. Subscription revenue increased by $96.5 million, of which $68.6 million came from new customers.

  2. Is MongoDB profitable?

    No. The company reported a net loss of $99.0 million for fiscal 2019, and it expects operating expenses to keep increasing as it invests in sales, marketing, research and development. Operating cash flow was $(42.0) million and free cash flow was $(48.8) million.

  3. What is driving growth in the MongoDB Atlas cloud offering?

    MongoDB Atlas revenue represented 23% of total revenue in fiscal 2019, up from 7% in fiscal 2018. The company cites self-serve growth, sales-force-sold annual commitments, and the mLab acquisition, which added about 4,200 customers to the total count.

  4. What are the main risks to the stock related to ownership structure and legal matters?

    Class B common stock carries 10 votes per share and held about 83% of voting power as of January 31, 2019, limiting Class A holders' influence. Separately, Realtime Data sued on March 12, 2019 alleging infringement of three U.S. patents, seeking monetary damages and injunctive relief.

  5. How much debt does MongoDB have and what are the conversion terms?

    The company has $300.0 million principal of 0.75% convertible senior notes due June 15, 2024. The initial conversion price is about $68.15 per share, and the company intends to settle principal in cash. The net carrying amount of the liability component was $216.9 million at year end.

06—Continue

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