01—Abstract
Summary
Summary of the 10-Q filed December 10, 2024. Cited figures are marked; the original filing is the authoritative source.
MongoDB, Inc. reported results for the quarter ended October 31, 2024.
Total revenue was $529.4 milliona for the three months, up from $432.9 million a year earlier, and $1,458.0 million for the nine months versus $1,225.0 million. Subscription revenue made up 97% of total revenue. Net loss narrowed to $9.8 million for the quarter from $29.3 million, but widened to $144.9 million for the nine months from $121.1 million.
Management attributes the nine-month loss increase primarily to higher sales and marketing and research and development spending. Operating cash flow was $99.7 millionb for the nine months, compared with $66.9 million a year earlier. The balance sheet shows cash and cash equivalents of $673.1 million and short-term investments of $1,629.0 million, with total liquidity of $2.3 billion.
The company issued a notice on October 16, 2024 to redeem all outstanding 2026 convertible senior notes on December 16, 2024. As of December 10, 2024, $1.0 billionc of principal remained outstanding, to be settled in common stock or cash. Management said the macroeconomic environment slowed growth of existing Atlas applications, and that it expects this to continue to weigh on revenue growth for the rest of the year.
The net ARR expansion rate was approximately 120%d, and the company had over 52,600 customers. The filing also discloses a putative securities class action (Baxter v.
MongoDB, Inc.) filed July 9, 2024, and a related shareholder derivative suit filed October 7, 2024. The company says it cannot estimate any reasonably possible loss from these matters and intends to vigorously defend itself.
02—Key points
Key Highlights
- Total revenue of $529.4 million for the quarter, up from $432.9 million; subscription revenue was 97% of total revenue.
- Net loss narrowed to $9.8 million for the quarter from $29.3 million, but the nine-month net loss widened to $144.9 million from $121.1 million.
- Loss from operations improved to $27.9 million for the quarter from $45.2 million; gross margin was 74%.
- Operating cash flow was $99.7 million for the nine months, up from $66.9 million.
- Liquidity of $2.3 billion in cash, cash equivalents, short-term investments and restricted cash, which management says is sufficient for at least the next 12 months.
- Redemption of the 2026 convertible notes: about $1.0 billion principal remained outstanding as of December 10, 2024, to be redeemed on December 16, 2024 in common stock or cash.
- Net ARR expansion rate of approximately 120%, with over 52,600 customers and 51,100 MongoDB Atlas customers as of October 31, 2024.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q3 FY2025, MongoDB lost $0.02.
- Revenue$529.4M100.0%
- Cost of revenue−$135.3M25.6%
- Gross profit$394.0M74.4%
- Operating costs−$421.9M79.7%
- Operating income−$27.9M5.3%
- Interest, other & tax$18.1M3.4%
- Net income−$9.8M1.8%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed December 10, 2024Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $529.38M$432.94M | +22.3% |
| Cost of Revenue | $135.33M$107.06M | +26.4% |
| Gross Profit | $394.04M$325.88M | +20.9% |
| R&D Expenses | $151.41M$128.15M | +18.2% |
| Operating Expenses | $421.92M$371.10M | +13.7% |
| Operating Income | -$27.88M-$45.22M | +38.3% |
| Interest Expense | $2.28M$1.96M | +16.0% |
| Net Income | -$9.78M-$29.30M | +66.6% |
| EPS (Basic) | $-0.13$-0.41 | +68.3% |
| Shares Outstanding (Basic) | 74.02M71.56M | +3.4% |
05—Questions
Frequently Asked Questions
Why did the nine-month net loss increase even though the quarterly loss narrowed?
The filing says the nine-month net loss rose to $144.9 million from $121.1 million, primarily driven by higher sales and marketing spend and research and development costs. For the quarter alone, the net loss decreased to $9.8 million from $29.3 million, with the same expense increases offset by higher revenue.
What is happening with the 2026 convertible senior notes?
On October 16, 2024, MongoDB issued a notice to redeem all outstanding 2026 notes on December 16, 2024, at 100% of principal plus accrued interest. Holders could convert until 5:00 p.m. New York time on December 13, 2024, at a rate that included 0.1911 additional shares per $1,000 principal. As of December 10, 2024, about $1.0 billion of principal remained outstanding, to be settled in common stock or cash.
What macroeconomic risks did management highlight?
Management said the macroeconomic environment negatively affected the business during the nine months, causing slower than historical growth for existing MongoDB Atlas applications. It expects this to create headwinds on growth for existing Atlas applications in the short term and to continue to negatively affect revenue growth for the rest of the year.
What legal proceedings are pending against MongoDB?
A putative securities class action, Baxter v. MongoDB, Inc., was filed July 9, 2024, in the Southern District of New York against the company, its CEO and its COO and CFO, covering purchasers of common stock between August 31, 2023 and May 30, 2024. A shareholder derivative suit, Roy v. Ittycheria et al., was filed October 7, 2024, with similar cases filed later. The company cannot estimate any reasonably possible loss and intends to defend itself vigorously.
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