01—Abstract
Summary
Summary of the 10-Q filed December 7, 2023. Cited figures are marked; the original filing is the authoritative source.
MongoDB, Inc. reported its 10-Q for the quarter ended October 31, 2023.
Total revenue for the three months ended October 31, 2023 was $432.9 milliona, up from $333.6 million, and for the nine months was $1,225.0 million, up from $922.7 million. Net loss narrowed to $29.3 million for the quarter from $84.8 million a year earlier, and to $121.1 million for the nine months from $281.0 million. Subscription revenue made up 97% of total revenue, and MongoDB Atlas represented 66% of revenue for the quarter.
Management said the macroeconomic environment continued to negatively affect growth of existing Atlas applications and expects that headwind to continue for the remainder of the year. Balance sheet and cash flow were stable. Cash, cash equivalents, short-term investments and restricted cash totaled $1.9 billionb at October 31, 2023.
Net cash provided by operating activities was $66.9 millionc for the nine months, compared with $(38.8) million a year earlier. Deferred revenue declined to $320.8 million from $460.3 million at January 31, 2023. The company has $1.15 billion of 0.25% convertible senior notes due 2026 outstanding.
Their conditional conversion feature was triggered in the quarter, so the notes are convertible from November 1, 2023 through January 31, 2024. The company also acquired the assets of Grainite, Inc. on September 27, 2023 for $15.0 milliond in cash. Operating efficiency improved.
Gross margin rose to 75% from 72%, and loss from operations narrowed to $45.2 million for the quarter from $82.9 million. The company reported over 46,400 customers, up from over 39,100, and a net ARR expansion rate that has consistently been over 120%. The 10-Q also discloses an ongoing patent lawsuit by Realtime Data LLC, in which the Federal Circuit affirmed the district court's ruling for the company and Realtime filed a petition for certiorari on October 31, 2023.
02—Key points
Key Highlights
- Total revenue rose 30% to $432.9 million for the three months ended October 31, 2023, driven by Direct Sales Customers, with subscription revenue up $97.6 million.
- Net loss narrowed to $29.3 million for the quarter from $84.8 million, and to $121.1 million for the nine months from $281.0 million.
- Gross margin improved to 75% from 72%, and subscription gross margin increased to 79% from 76%.
- Operating cash flow was $66.9 million for the nine months, versus $(38.8) million in the prior-year period.
- Cash, cash equivalents, short-term investments and restricted cash totaled $1.9 billion as of October 31, 2023.
- The 2026 convertible notes became convertible from November 1, 2023 through January 31, 2024 after the conditional conversion trigger was met.
- Management expects macroeconomic headwinds to continue to weigh on growth of existing MongoDB Atlas applications for the remainder of the year.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q3 FY2024, MongoDB lost $0.07.
- Revenue$432.9M100.0%
- Cost of revenue−$107.1M24.7%
- Gross profit$325.9M75.3%
- Operating costs−$371.1M85.7%
- Operating income−$45.2M10.4%
- Interest, other & tax$15.9M3.7%
- Net income−$29.3M6.8%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed December 7, 2023Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $432.94M$333.62M | +29.8% |
| Cost of Revenue | $107.06M$93.65M | +14.3% |
| Gross Profit | $325.88M$239.97M | +35.8% |
| R&D Expenses | $128.15M$106.39M | +20.5% |
| Operating Expenses | $371.10M$322.89M | +14.9% |
| Operating Income | -$45.22M-$82.92M | +45.5% |
| Interest Expense | $1.96M$2.50M | −21.3% |
| Net Income | -$29.30M-$84.84M | +65.5% |
| EPS (Basic) | $-0.41$-1.23 | +66.7% |
| Shares Outstanding (Basic) | 71.56M68.92M | +3.8% |
05—Questions
Frequently Asked Questions
How did MongoDB's revenue and losses trend in the quarter?
Total revenue for the three months ended October 31, 2023 was $432.9 million, up from $333.6 million. Net loss was $29.3 million, compared with $84.8 million in the prior-year quarter, mainly due to higher revenue partly offset by increased sales, marketing and R&D spending.
Is the company still facing macroeconomic pressure on its Atlas business?
Yes. The filing says slower-than-historical growth rates for existing MongoDB Atlas applications continued during the nine months ended October 31, 2023, and management expects macroeconomic headwinds on growth of existing Atlas applications to continue in the short term.
What does the convertible note trigger mean for investors?
The conditional conversion feature of the 0.25% 2026 Notes was triggered in the quarter, so the notes are convertible from November 1, 2023 through January 31, 2024. Whether they remain convertible after that depends on continued satisfaction of the condition or another conversion condition. If holders convert, the company may need to settle part or all of the obligation in cash.
How is the company's liquidity position?
Cash, cash equivalents, short-term investments and restricted cash totaled $1.9 billion as of October 31, 2023. Management believes this is sufficient to fund operating and capital needs for at least the next 12 months, though it notes the company may require additional capital in the future.
06—Continue