01—Abstract
Summary
Summary of the 10-K filed March 17, 2023. Cited figures are marked; the original filing is the authoritative source.
MongoDB, Inc. (Nasdaq: MDB) reported total revenue of $1,284.0 milliona for the fiscal year ended January 31, 2023, up from $873.8 million in fiscal 2022 and $590.4 million in fiscal 2021, with subscription revenue of $1,235.1 million and services revenue of $48.9 million.
Growth was driven primarily by increased subscription revenue from Direct Sales Customers, and MongoDB Atlas represented 63% of total revenue versus 56% in the prior year. The company remains unprofitable: net loss was $345.4 millionb (compared with $306.9 million in fiscal 2022), and operating cash flow was negative $13.0 million. Gross margin improved to 73% from 70%, while sales and marketing expense was 54% of revenue and stock-based compensation totaled $381.5 million.
The filing highlights macroeconomic headwinds. Management stated that the macroeconomic environment negatively affected the business during the year, with slower-than-historical growth for existing MongoDB Atlas applications, and expects this to continue to weigh on growth in the short term. The company reported over 40,800 customers, a net ARR expansion rate consistently over 120%c, and 4,619 employees.
It ended the year with $1.8 billiond in cash, cash equivalents, restricted cash and short-term investments, against $1.15 billion in principal of 0.25% convertible senior notes due 2026. The filing also flags risks including ongoing litigation with Realtime Data LLC over three patents, which the company states it is not aware of any matter that would have a material adverse effect, and the company's Community Server licensing under the SSPL, which the filing says may affect adoption. A subsequent-event commitment of $300 million over five years with a cloud infrastructure provider, commencing in March 2023, was disclosed.
02—Key points
Key Highlights
- Total revenue of $1,284.0 million for fiscal 2023, up from $873.8 million in fiscal 2022; subscription revenue was $1,235.1 million.
- MongoDB Atlas represented 63% of total revenue in fiscal 2023, compared with 56% in fiscal 2022 and 46% in fiscal 2021.
- Net loss widened to $345.4 million from $306.9 million; net loss per share was $(5.03).
- Gross margin improved to 73% from 70%, and subscription gross margin rose to 77% from 74%.
- Operating cash flow was $(13.0) million, compared with $7.0 million in fiscal 2022; the company had $1.8 billion in cash, cash equivalents, restricted cash and short-term investments.
- Management reported slower-than-historical growth for existing MongoDB Atlas applications due to adverse macroeconomic conditions and expects headwinds to continue in the short term.
- Over 40,800 customers as of January 31, 2023, and a net ARR expansion rate that has consistently been over 120%.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2023, MongoDB lost $0.27.
- Revenue$1.28B100.0%
- Cost of revenue−$349.3M27.2%
- Gross profit$934.7M72.8%
- Operating costs−$1.28B99.8%
- Operating income−$346.7M27.0%
- Interest, other & tax$1.3M0.1%
- Net income−$345.4M26.9%
04—Financials
Financial Highlights
Figures from 10-KFY2023filed March 17, 2023Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $1.28B$873.78M | +47.0% |
| Cost of Revenue | $349.30M$259.49M | +34.6% |
| Gross Profit | $934.74M$614.29M | +52.2% |
| R&D Expenses | $421.69M$308.82M | +36.5% |
| Operating Expenses | $1.28B$903.65M | +41.8% |
| Operating Income | -$346.65M-$289.36M | −19.8% |
| Interest Expense | $9.80M$11.32M | −13.4% |
| Net Income | -$345.40M-$306.87M | −12.6% |
| EPS (Basic) | $-5.03$-4.75 | −5.9% |
| EPS (Diluted) | $-5.03$-4.75 | −5.9% |
| Shares Outstanding (Basic) | 68.63M64.56M | +6.3% |
| Shares Outstanding (Diluted) | 68.63M64.56M | +6.3% |
05—Questions
Frequently Asked Questions
How fast did MongoDB's revenue grow in fiscal 2023?
Total revenue rose to $1,284.0 million from $873.8 million, an increase of $410.3 million, or 47%, as stated in the filing. Subscription revenue grew 47% to $1,235.1 million, and services revenue grew 54% to $48.9 million.
Is MongoDB profitable?
No. The company reported a net loss of $345.4 million for fiscal 2023, and it states that it has incurred net losses in each period since inception and expects to continue generating losses. Its accumulated deficit was $1.5 billion as of January 31, 2023.
What is the main driver of MongoDB's business?
MongoDB Atlas, its hosted multi-cloud database-as-a-service offering, is the largest contributor, accounting for 63% of total revenue in fiscal 2023. The filing notes that Atlas revenue is primarily usage-based, which makes revenue timing less predictable.
What risks did management highlight regarding the macroeconomic environment?
Management said the macroeconomic environment negatively affected results during the year, causing slower-than-historical growth for existing Atlas applications. It expects macroeconomic headwinds to continue affecting growth for existing Atlas applications in the short term, and notes inflation, rising interest rates and the Russia-Ukraine conflict as factors.
What significant obligations or financing does MongoDB have?
The company had $1,149.97 million in principal of 0.25% convertible senior notes due 2026 outstanding as of January 31, 2023. Its purchase obligations totaled $1,146.1 million. After year-end, it expanded a cloud infrastructure partnership with a non-cancelable commitment of $300 million over five years, starting in March 2023.
06—Continue