01—Abstract
Summary
Summary of the 10-K filed March 22, 2021. Cited figures are marked; the original filing is the authoritative source.
MongoDB, Inc. (Nasdaq: MDB) reported fiscal 2021 (year ended January 31, 2021) total revenue of $590.4 milliona, up from $421.7 million in fiscal 2020 and $267.0 million in fiscal 2019.
Subscription revenue was $565.3 millionb, and MongoDB Atlas represented 46% of total revenue versus 39% in the prior year. The company's net loss widened to $266.9 million from $175.5 million, and free cash flow was $(59.1) million compared with $(35.0) million a year earlier. Management states it intends to keep investing heavily for growth rather than optimizing for profitability or cash flow in the near term.
The company ended the year with cash, cash equivalents, short-term investments and restricted cash totaling $958.3 millionc, against $1.15 billion of 0.25% convertible senior notes due 2026 and $90.0 million of 0.75% notes due 2024 outstanding at principal. The filing states that the conditional conversion feature of both note series was triggered as of January 31, 2021, making them convertible from February 1, 2021 through April 30, 2021. Customers grew to over 24,800 from over 17,000 a year earlier, and the net ARR expansion rate has consistently been over 120%.
Management notes that COVID-19 is expected to continue weighing on revenue in the near term. The risk factors highlight several items for investors, including the Realtime Data patent lawsuit (currently stayed), the shift to the Server Side Public License for Community Server, dependence on third-party cloud providers, and a planned early adoption of ASU 2020-06 on February 1, 2021, which the company expects to move about $261.5 milliond into convertible senior notes and reduce accumulated deficit by approximately $52.6 million.
02—Key points
Key Highlights
- Total revenue of $590.4 million for fiscal 2021, up from $421.7 million in fiscal 2020; subscription revenue was $565.3 million, or 96% of total revenue.
- MongoDB Atlas revenue was 46% of total revenue in fiscal 2021, compared with 39% in fiscal 2020 and 23% in fiscal 2019.
- Net loss of $266.9 million (net loss per share of $(4.53)), compared with $175.5 million in fiscal 2020; accumulated deficit was $935.4 million at January 31, 2021.
- Operating cash flow was $(42.7) million and free cash flow was $(59.1) million for fiscal 2021.
- Cash, cash equivalents, short-term investments and restricted cash totaled $958.3 million as of January 31, 2021.
- Conditional conversion feature of the 2024 and 2026 convertible senior notes was triggered, making them convertible from February 1, 2021 through April 30, 2021; the company intends to settle principal in cash.
- Over 24,800 customers as of January 31, 2021, compared with over 17,000 a year earlier; net ARR expansion rate has consistently been over 120%.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2021, MongoDB lost $0.45.
- Revenue$590.4M100.0%
- Cost of revenue−$177.1M30.0%
- Gross profit$413.3M70.0%
- Operating costs−$622.6M105.5%
- Operating income−$209.3M35.5%
- Interest, other & tax−$57.6M9.8%
- Net income−$266.9M45.2%
04—Financials
Financial Highlights
Figures from 10-KFY2021filed March 22, 2021Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $590.38M$421.72M | +40.0% |
| Cost of Revenue | $177.08M$125.36M | +41.3% |
| Gross Profit | $413.30M$296.36M | +39.5% |
| R&D Expenses | $205.16M$149.03M | +37.7% |
| Operating Expenses | $622.61M$444.23M | +40.2% |
| Operating Income | -$209.30M-$147.87M | −41.5% |
| Interest Expense | $56.11M$20.98M | +167.4% |
| Net Income | -$266.94M-$175.52M | −52.1% |
| EPS (Basic) | $-4.53$-3.14 | −44.3% |
| EPS (Diluted) | $-4.53— | — |
| Shares Outstanding (Basic) | 58.98M55.94M | +5.4% |
| Shares Outstanding (Diluted) | 58.98M— | — |
05—Questions
Frequently Asked Questions
How fast did MongoDB's revenue grow in fiscal 2021?
Total revenue rose to $590.4 million from $421.7 million, an increase of $168.7 million or 40%. Subscription revenue increased by $165.5 million, or 41%, and services revenue rose 14%.
Is MongoDB profitable?
No. The company reported a net loss of $266.9 million for fiscal 2021, larger than the $175.5 million loss in fiscal 2020. The filing states that management expects operating expenses to increase significantly and that it intends to keep losses in the near term as it invests for growth.
What are the key risks related to the convertible notes?
The conditional conversion feature of the 2024 and 2026 notes was triggered, so holders may convert from February 1, 2021 through April 30, 2021. Upon conversion, the company intends to settle principal in cash, which could affect liquidity. The company also plans to early adopt ASU 2020-06 on February 1, 2021, which will change how the notes are presented on the balance sheet.
How much cash does MongoDB have and what are its debt obligations?
The company had $958.3 million of cash, cash equivalents, short-term investments and restricted cash as of January 31, 2021. Principal outstanding on the notes was $1.15 billion of 0.25% notes due 2026 and $90.0 million of 0.75% notes due 2024. The company stated it believes existing cash and short-term investments will be sufficient for at least the next 12 months.
What is the main legal proceeding disclosed?
Realtime Data filed a lawsuit in March 2019 in the U.S. District Court for the District of Delaware alleging infringement of three patents related to data compression, decompression, storage and retrieval. The case is stayed pending an appeal in a separate action. Management stated it is currently not aware of any matters that would have a material adverse effect.
06—Continue