01—Abstract
Summary
Summary of the 10-K filed March 18, 2022. Cited figures are marked; the original filing is the authoritative source.
MongoDB, Inc. (Nasdaq: MDB) reported fiscal 2022 (year ended January 31, 2022) total revenue of $873.8 milliona, up from $590.4 million in fiscal 2021 and $421.7 million in fiscal 2020, with subscription revenue of $842.0 million.
MongoDB Atlas, the hosted multi-cloud database-as-a-service offering, represented 56% of total revenue in fiscal 2022, up from 46% in the prior year, while MongoDB Enterprise Advanced represented 34%, down from 43%. The company remains unprofitable, with a net loss of $306.9 millionb (compared with $266.9 million in fiscal 2021), an accumulated deficit of $1.2 billion, and operating cash flow of $7.0 million, which turned positive from negative results in the prior two years. The company strengthened its balance sheet during the year, completing a June 2021 equity offering of 2.5 million shares at $365.00 per share that netted $889.2 million, and redeeming its 0.75% convertible senior notes due 2024 on December 3, 2021.
Total cash, cash equivalents, restricted cash and short-term investments were $1.8 billionc at year end. Sales and marketing expense was 54% of revenue and total operating expenses exceeded revenue, reflecting the company's stated strategy of investing heavily for growth rather than optimizing for near-term profitability. The filing reports a net dollar expansion, described as a net ARR expansion rate consistently over 120%, and over 33,000 customers as of January 31, 2022.
Key risks highlighted include the ongoing COVID-19 pandemic, competition from legacy database vendors and large cloud providers, the unproven enforceability of the Server Side Public License (SSPL), and ongoing patent litigation brought by Realtime Data LLC, which the company has won at the district court level and which is on appeal. The company also disclosed a non-cancelable commitment of $1.1 billiond over six years with a cloud infrastructure provider, expanded in January 2022.
02—Key points
Key Highlights
- Total revenue grew to $873.8 million in fiscal 2022 from $590.4 million in fiscal 2021, with subscription revenue at $842.0 million.
- MongoDB Atlas reached 56% of total revenue in fiscal 2022, up from 46% in fiscal 2021, while MongoDB Enterprise Advanced fell to 34% from 43%.
- Net loss widened to $306.9 million from $266.9 million, and the accumulated deficit reached $1.2 billion as of January 31, 2022.
- Operating cash flow turned positive at $7.0 million, compared with negative $42.7 million in fiscal 2021.
- A June 2021 offering of 2.5 million Class A shares at $365.00 per share generated net proceeds of $889.2 million.
- Cash, cash equivalents, restricted cash and short-term investments totaled $1.8 billion at year end, which the company says will fund operations for at least the next 12 months.
- Customer count exceeded 33,000 as of January 31, 2022, and the net ARR expansion rate has consistently been over 120%.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2022, MongoDB lost $0.35.
- Revenue$873.8M100.0%
- Cost of revenue−$259.5M29.7%
- Gross profit$614.3M70.3%
- Operating costs−$903.7M103.4%
- Operating income−$289.4M33.1%
- Interest, other & tax−$17.5M2.0%
- Net income−$306.9M35.1%
04—Financials
Financial Highlights
Figures from 10-KFY2022filed March 18, 2022Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $873.78M$590.38M | +48.0% |
| Cost of Revenue | $259.49M$177.08M | +46.5% |
| Gross Profit | $614.29M$413.30M | +48.6% |
| R&D Expenses | $308.82M$205.16M | +50.5% |
| Operating Expenses | $903.65M$622.61M | +45.1% |
| Operating Income | -$289.36M-$209.30M | −38.3% |
| Interest Expense | $11.32M$56.11M | −79.8% |
| Net Income | -$306.87M-$266.94M | −15.0% |
| EPS (Basic) | $-4.75$-4.53 | −4.9% |
| EPS (Diluted) | $-4.75$-4.53 | −4.9% |
| Shares Outstanding (Basic) | 64.56M58.98M | +9.5% |
| Shares Outstanding (Diluted) | 64.56M58.98M | +9.5% |
05—Questions
Frequently Asked Questions
How fast did MongoDB's revenue grow in fiscal 2022?
Total revenue rose to $873.8 million from $590.4 million, an increase of $283.4 million, or 48%, as reported in the filing. Subscription revenue grew 49% to $842.0 million, and services revenue grew 27% to $31.7 million.
Is MongoDB profitable?
No. The company reported a net loss of $306.9 million for fiscal 2022 and an accumulated deficit of $1.2 billion. It states that it expects to continue incurring losses and is investing heavily in sales and marketing and research and development, which totaled 54% and 35% of revenue, respectively.
What is driving MongoDB's growth?
The filing attributes revenue growth primarily to increased subscription revenue from Direct Sales Customers, which rose by $253.6 million. MongoDB Atlas revenue grew to $492.3 million, or 56% of total revenue, and the number of MongoDB Atlas customers exceeded 31,500.
What are the main risks identified in the filing?
Key risks include the ongoing COVID-19 pandemic, intense competition from legacy database vendors and large cloud providers, uncertainty over whether the SSPL license will be enforceable, dependence on third-party cloud providers, and the Realtime Data patent lawsuit, which the company won at the district court and which is now on appeal.
How much debt does MongoDB carry?
The company's 0.25% convertible senior notes due 2026 had a principal of $1.15 billion outstanding as of January 31, 2022, with an estimated fair value of approximately $2.2 billion. The 2024 Notes were fully redeemed or converted by December 3, 2021.
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