01—Abstract
Summary
Summary of the 10-Q filed June 2, 2023. Cited figures are marked; the original filing is the authoritative source.
MongoDB, Inc. reported results for the three months ended April 30, 2023 in its Form 10-Q.
Total revenue rose to $368.3 milliona from $285.4 million a year earlier, with subscription revenue of $354.7 million, driven mainly by increased subscription revenue from Direct Sales Customers. Net loss narrowed to $54.2 million from $77.3 million, helped by higher revenue and $18.0 million of interest income, partly offset by higher sales and marketing and research and development spending. Operating cash flow was $53.7 million, compared with $11.6 million a year earlier.
The company said the macroeconomic environment continued to weigh on growth of existing MongoDB Atlas applications, and it expects macroeconomic headwinds on that growth in the short term. Total customers were over 43,100 as of April 30, 2023, up from over 35,200, and MongoDB Atlas customers were over 41,600, up from over 33,700. Cash, cash equivalents, restricted cash and short-term investments totaled $1.9 billionb, and the company stated that existing cash and short-term investments are sufficient to fund operating and capital needs for at least the next 12 months.
The balance sheet shows an accumulated deficit of $1.6 billionc and $1.15 billion of 0.25% convertible senior notes due 2026 with a net carrying amount of $1.14 billion. The 2026 Notes are not convertible from May 1, 2023 through July 31, 2023 because the conversion trigger was not met. Remaining performance obligations were $470.7 million, with approximately 59% expected to be recognized over the next 12 months.
02—Key points
Key Highlights
- Total revenue of $368.3 million, up from $285.4 million for the three months ended April 30, 2022; subscription revenue was $354.7 million.
- Net loss of $54.2 million, or $(0.77) per share, compared with a net loss of $77.3 million, or $(1.14) per share, a year earlier.
- Interest income rose to $18.0 million from $0.6 million, and loss from operations narrowed to $68.5 million from $75.9 million.
- Operating cash flow of $53.7 million, compared with $11.6 million for the prior-year period.
- Customers over 43,100 as of April 30, 2023, versus over 35,200 a year earlier; MongoDB Atlas customers over 41,600, versus over 33,700.
- Macroeconomic conditions slowed growth of existing MongoDB Atlas applications, and the company expects headwinds on that growth in the short term.
- Cash, cash equivalents, restricted cash and short-term investments of $1.9 billion; 2026 Notes not convertible from May 1, 2023 through July 31, 2023.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2024, MongoDB lost $0.15.
- Revenue$368.3M100.0%
- Cost of revenue−$97.4M26.5%
- Gross profit$270.8M73.5%
- Operating costs−$339.4M92.2%
- Operating income−$68.5M18.6%
- Interest, other & tax$14.3M3.9%
- Net income−$54.2M14.7%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed June 2, 2023Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $368.28M$285.45M | +29.0% |
| Cost of Revenue | $97.45M$78.22M | +24.6% |
| Gross Profit | $270.83M$207.23M | +30.7% |
| R&D Expenses | $116.82M$96.37M | +21.2% |
| Operating Expenses | $339.38M$283.17M | +19.8% |
| Operating Income | -$68.55M-$75.94M | +9.7% |
| Interest Expense | $2.39M$2.45M | −2.4% |
| Net Income | -$54.25M-$77.29M | +29.8% |
| EPS (Basic) | $-0.77$-1.14 | +32.5% |
| Shares Outstanding (Basic) | 70.18M67.71M | +3.6% |
05—Questions
Frequently Asked Questions
How did MongoDB's revenue and losses change in the first quarter of fiscal 2024?
Total revenue increased to $368.3 million from $285.4 million, primarily from higher subscription revenue from Direct Sales Customers. Net loss decreased to $54.2 million from $77.3 million, driven by higher revenue, partly offset by increased sales and marketing and research and development expenses.
What did management say about demand trends in the quarter?
The company experienced slower than historical growth for existing MongoDB Atlas applications during the quarter because of the macroeconomic environment. It expects macroeconomic headwinds on growth for existing Atlas applications in the short term.
Does MongoDB have enough liquidity to fund its operations?
As of April 30, 2023, cash, cash equivalents, restricted cash and short-term investments totaled $1.9 billion. The company believes these balances will be sufficient to fund operating and capital needs for at least the next 12 months, though it has an accumulated deficit of $1.6 billion and expects to keep incurring operating losses.
What is the status of the 2026 convertible notes?
The 2026 Notes have a principal of $1.15 billion and a 0.25% interest rate, maturing January 15, 2026. The conditional conversion feature was not triggered, so the notes are not convertible from May 1, 2023 through July 31, 2023. Their estimated fair value was approximately $1.5 billion as of April 30, 2023.
How much revenue is contracted for future periods?
Remaining performance obligations were $470.7 million as of April 30, 2023, with approximately 59% expected to be recognized as revenue over the next 12 months and the remainder thereafter.
06—Continue