01—Abstract
Summary
Summary of the 10-Q filed May 31, 2024. Cited figures are marked; the original filing is the authoritative source.
MongoDB, Inc. reported its 10-Q for the quarter ended April 30, 2024.
Total revenue rose to $450.6 milliona from $368.3 million a year earlier, with subscription revenue of $436.9 million versus $354.7 million. Subscriptions were 97% of total revenue, and MongoDB Atlas revenue represented 70% of total revenue compared with 65% in the prior-year quarter. The company's net loss widened to $80.6 million, or $1.10 per share, from $54.2 million, or $0.77 per share, driven by higher sales and marketing and research and development spending.
Loss from operations was $98.2 millionb versus $68.5 million a year earlier. Cash flow and liquidity remained solid. Operating cash flow was $63.6 million compared with $53.7 million, and cash, cash equivalents, short-term investments and restricted cash totaled $2.1 billion as of April 30, 2024.
The company said it believes existing cash and short-term investments will be sufficient for at least the next 12 months. The company also elected to cash settle the Capped Calls associated with its 2024 Notes, which carried a derivative asset fair value of $170.2 millionc, with settlement expected in June 2024. The 2026 Notes became convertible from May 1, 2024 through July 31, 2024 after the conditional conversion feature was triggered.
Management cited slower-than-historical growth in existing MongoDB Atlas applications due to macroeconomic conditions and expects that headwind to continue in the near term. Customers rose to over 49,200 from over 43,100, and the net ARR expansion rate has consistently been over 120%, per the filing. Stock-based compensation was $120.8 milliond in the quarter, a significant component of the operating loss.
02—Key points
Key Highlights
- Total revenue of $450.6 million, up from $368.3 million; subscription revenue of $436.9 million accounted for 97% of total revenue.
- MongoDB Atlas represented 70% of total revenue, up from 65% in the prior-year period.
- Net loss widened to $80.6 million ($1.10 per share) from $54.2 million ($0.77 per share), with loss from operations of $98.2 million.
- Operating cash flow was $63.6 million versus $53.7 million; stock-based compensation was $120.8 million in the quarter.
- Cash, cash equivalents, short-term investments and restricted cash totaled $2.1 billion as of April 30, 2024.
- Company elected to cash settle the Capped Calls tied to its 2024 Notes; the derivative asset had a fair value of $170.2 million, with settlement expected in June 2024.
- The 2026 Notes ($1.15 billion principal) became convertible from May 1, 2024 through July 31, 2024 after the conditional conversion feature was triggered.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2025, MongoDB lost $0.18.
- Revenue$450.6M100.0%
- Cost of revenue−$122.7M27.2%
- Gross profit$327.9M72.8%
- Operating costs−$426.1M94.6%
- Operating income−$98.2M21.8%
- Interest, other & tax$17.6M3.9%
- Net income−$80.6M17.9%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 31, 2024Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $450.56M$368.28M | +22.3% |
| Cost of Revenue | $122.70M$97.45M | +25.9% |
| Gross Profit | $327.86M$270.83M | +21.1% |
| R&D Expenses | $146.06M$116.82M | +25.0% |
| Operating Expenses | $426.05M$339.38M | +25.5% |
| Operating Income | -$98.19M-$68.55M | −43.2% |
| Interest Expense | $1.90M$2.39M | −20.7% |
| Net Income | -$80.59M-$54.25M | −48.6% |
| EPS (Basic) | $-1.10$-0.77 | −42.9% |
| Shares Outstanding (Basic) | 72.99M70.18M | +4.0% |
05—Questions
Frequently Asked Questions
How did MongoDB's revenue and net loss change in the quarter ended April 30, 2024?
Total revenue increased to $450.6 million from $368.3 million, driven primarily by subscription revenue from Direct Sales Customers. Net loss increased to $80.6 million from $54.2 million, primarily due to higher sales and marketing and research and development spending, partly offset by revenue growth.
Is MongoDB facing any slowdown in its MongoDB Atlas business?
Yes. The filing states that the company experienced slower than historical growth rates for existing MongoDB Atlas applications during the quarter due to macroeconomic conditions, and it expects macroeconomic headwinds on growth for existing Atlas applications in the short term.
What is the status of the convertible notes and related Capped Calls?
The 2026 Notes, with $1,149,972 thousand in principal, became convertible in whole or in part from May 1, 2024 through July 31, 2024, depending on continued satisfaction of the conversion condition. The company elected cash settlement for the Capped Calls associated with the 2024 Notes, with cash receipt expected in June 2024.
Does MongoDB have enough liquidity to fund its operations?
The company stated it believes its existing cash, cash equivalents and short-term investments will be sufficient to fund operating and capital needs for at least the next 12 months. It also noted it has generated significant operating losses and may require additional capital in the future.
How is the customer base and retention performing?
The company had over 49,200 customers as of April 30, 2024, compared with over 43,100 a year earlier, and over 47,700 MongoDB Atlas customers versus over 41,600. It said its net ARR expansion rate has consistently been over 120%, and customers with $100,000 or greater in ARR numbered 2,137 versus 1,761.
06—Continue