MDB stock surged 8% in after-hours trading on December 9, 2019, after the company reported earnings and revenue beats.
MongoDB, Inc. (NASDAQ: MDB), the leading, modern general purpose database platform, today announced its financial results for the third quarter ended October 31, 2019. MongoDB reports Q3 adjusted EPS of (26c) versus the consensus estimate of (28c). The company reports Q3 revenue of $109.4M versus the consensus estimate of $99.79M.
“MongoDB’s terrific third quarter results are the latest example of how the powerful combination of our modern data platform and sophisticated go-to-market efforts are driving increased adoption by both new and existing customers,” said Dev Ittycheria, President and Chief Executive Officer of MongoDB. “The rapid growth of Atlas, which now comprises 40% of our business, is a clear demonstration that customers of all sizes recognize the value and flexibility of a managed cloud database-as-a-service.”
“As we look ahead, Atlas’s growing scale provides a tremendous opportunity to develop even closer relationships with our customers and enhance our value proposition. Our focus is to continue delivering new innovations on our data platform while ensuring our go-to-market efforts make it increasingly easy for customers to consume Atlas.”
Third Quarter Fiscal 2020 Financial Highlights
- Revenue: Total revenue was $109.4 million in the third quarter fiscal 2020, an increase of 52% year-over-year. Subscription revenue was $103.8 million, an increase of 56% year-over-year, and services revenue was $5.6 million, an increase of 8% year-over-year.
- Gross Profit: Gross profit was $77.3 million in the third quarter fiscal 2020, representing a 71% gross margin, compared to 75% in the year-ago period. Non-GAAP gross profit was $79.3 million, representing a 72% non-GAAP gross margin.
- Loss from Operations: Loss from operations was $38.7 million in the third quarter fiscal 2020, compared to $20.2 million in the year-ago period. Non-GAAP loss from operations was $14.3 million, compared to $7.8 million in the year-ago period.
- Net Loss: Net loss was $42.4 million, or $0.75 per share, based on 56.4 million weighted-average shares outstanding in the third quarter fiscal 2020. This compares to $22.5 million, or $0.43 per share, based on 52.7 million weighted-average shares outstanding, in the year-ago period. Non-GAAP net loss was $14.6 million or $0.26 per share. This compares to $6.9 million or $0.13 per share in the year-ago period.
- Cash Flow: As of October 31, 2019, MongoDB had $426.4 million in cash, cash equivalents, short-term investments and restricted cash. During the three months ended October 31, 2019, MongoDB used $11.5 million of cash from operations, $0.8 million in capital expenditures and $0.8 million in principal repayments of finance leases, leading to negative free cash flow of $13.1 million, compared to negative free cash flow of $9.7 million in the year-ago period.
- We adopted the new revenue recognition accounting standard Accounting Standards Codification (“ASC”) 606 effective as of January 31, 2019 and applied as of February 1, 2018, on a full retrospective basis. All amounts and disclosures in this press release have been updated to comply with the new revenue recognition standard.
A reconciliation of each Non-GAAP measure to the most directly comparable GAAP measure has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Third Quarter Fiscal 2020 and Recent Business Highlights
- Continued product innovation and expanded capabilities of the MongoDB data platform. Added auto-scaling, a major new feature for MongoDB Atlas, which brings fully automated capacity management to customers’ managed MongoDB databases. When enabled, Atlas will autonomously adjust instance sizes up or down as needed by using predictive modeling and proven practices developed from managing tens of thousands of MongoDB deployments.
- Continued to expand our global partner ecosystem with the announcement of a new partnership with Alibaba Cloud, the data intelligence backbone of Alibaba Group. MongoDB enjoys enormous global popularity with developers and China has been one of the countries with the most MongoDB downloads for the past several years. Now, users in China have access to an authorized MongoDB-as-a-Service for the first time. Customers of Alibaba Cloud are able to use the managed offering from Alibaba Cloud’s data centers globally.
- Deepened our leadership bench with the addition of Francisco (Frank) D’Souza to the Board of Directors and the promotion of Sahir Azam to Chief Product Officer. D’Souza co-founded Cognizant, one of the world’s leading professional services companies, and served as its CEO during a period of tremendous growth to $16 billion in revenue. D’Souza adds strong experience scaling a global technology company with a large market opportunity. Azam previously served as Senior Vice President of MongoDB’s cloud offerings, including MongoDB Atlas, which has grown to a $175M+ run-rate business with more than 14,200 customers in just three years. In his new role, Azam will oversee management of MongoDB’s entire product portfolio.