01—Abstract
Summary
Summary of the 10-Q filed August 30, 2024. Cited figures are marked; the original filing is the authoritative source.
MongoDB, Inc. reported results for the three and six months ended July 31, 2024.
Total revenue for the quarter was $478.1 milliona, up from $423.8 million a year earlier, driven by higher subscription revenue from Direct Sales Customers. Subscription revenue was $463.8 million and Atlas-related revenue was $339.7 million in the quarter. Net loss widened to $54.5 million from $37.6 million, primarily due to higher sales and marketing and research and development spending.
Loss from operations was $71.4 millionb for the quarter, compared with $49.0 million a year earlier. For the six months, total revenue was $928.7 million versus $792.1 million, while net loss increased to $135.1 million from $91.8 million. Operating cash flow was $62.2 million, compared with $28.4 million in the prior-year period.
Cash, cash equivalents, short-term investments and restricted cash totaled $2.3 billionc at July 31, 2024. The company said its net ARR expansion rate was approximately 119%, compared with historically being over 120%, and that the macroeconomic environment slowed growth of existing Atlas applications. Management stated that it expects this macroeconomic pressure on revenue growth to continue for the remainder of the year.
The filing also discloses a putative securities class action, Baxter v. MongoDB, Inc., filed July 9, 2024, alleging material misstatements regarding sales strategy and financial results for purchasers between August 31, 2023 and May 30, 2024.
The company intends to vigorously defend the case. The 2024 convertible notes were settled, with the company receiving $170.6 milliond from the related capped calls in June 2024.
02—Key points
Key Highlights
- Total revenue of $478.1 million for the quarter, up from $423.8 million, and $928.7 million for the six months, up from $792.1 million.
- Net loss of $54.5 million for the quarter versus $37.6 million a year earlier; six-month net loss of $135.1 million versus $91.8 million.
- MongoDB Atlas-related subscription revenue of $339.7 million in the quarter versus $267.3 million, and 71% of total revenue for the quarter versus 63% a year earlier.
- Net ARR expansion rate of approximately 119%, compared with historically being over 120%, attributed to a smaller contribution from expanding customers.
- Cash, cash equivalents, short-term investments and restricted cash totaled $2.3 billion as of July 31, 2024; operating cash flow was $62.2 million for the six months.
- Received $170.6 million in cash in June 2024 from settlement of the capped calls associated with the 2024 Notes.
- Putative securities class action (Baxter v. MongoDB, Inc.) filed July 9, 2024, against the company, its CEO and CFO; the company intends to vigorously defend it.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2025, MongoDB lost $0.11.
- Revenue$478.1M100.0%
- Cost of revenue−$128.3M26.8%
- Gross profit$349.9M73.2%
- Operating costs−$421.3M88.1%
- Operating income−$71.4M14.9%
- Interest, other & tax$16.9M3.5%
- Net income−$54.5M11.4%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 30, 2024Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $478.11M$423.79M | +12.8% |
| Cost of Revenue | $128.25M$105.34M | +21.8% |
| Gross Profit | $349.86M$318.45M | +9.9% |
| R&D Expenses | $148.97M$125.42M | +18.8% |
| Operating Expenses | $421.30M$367.46M | +14.7% |
| Operating Income | -$71.44M-$49.00M | −45.8% |
| Interest Expense | $2.28M$2.61M | −12.6% |
| Net Income | -$54.53M-$37.60M | −45.0% |
| EPS (Basic) | $-0.74$-0.53 | −39.6% |
| Shares Outstanding (Basic) | 73.54M70.87M | +3.8% |
05—Questions
Frequently Asked Questions
How did MongoDB's revenue and losses change in the quarter ended July 31, 2024?
Total revenue rose to $478.1 million from $423.8 million, driven mainly by higher subscription revenue from Direct Sales Customers. Net loss increased to $54.5 million from $37.6 million, mainly due to higher sales and marketing and research and development spending.
What did management say about the macroeconomic environment?
The filing states that the macroeconomic environment negatively impacted the business during the six months, causing slower than historical growth for existing MongoDB Atlas applications. Management expects this to continue to negatively affect revenue growth for the remainder of the year.
What is the status of the securities class action?
A putative class action, Baxter v. MongoDB, Inc., was filed on July 9, 2024, in the U.S. District Court for the Southern District of New York. It alleges material misstatements or omissions regarding the sales strategy and financial results, seeks unspecified damages, and the company intends to vigorously defend the case.
How much liquidity does the company have?
As of July 31, 2024, cash, cash equivalents, short-term investments and restricted cash totaled $2.3 billion. Management believes this is sufficient to fund operating and capital needs for at least the next 12 months.
What is the status of the convertible notes?
The 2024 Notes' capped calls were cash settled in June 2024 for $170.6 million. The 2026 Notes, with $1.15 billion principal, were not convertible from August 1, 2024 through October 31, 2024, because the conditional conversion trigger was not met.
06—Continue