MongoDB, Inc. Announces Third Quarter Fiscal 2025 Financial Results

Third Quarter Fiscal 2025 Total Revenue of $529.4 million, up 22% Year-over-Year

Continued Strong Customer Growth with Over 52,600 Customers as of October 31, 2024

MongoDB Atlas Revenue up 26% Year-over-Year; 68% of Total Q3 Revenue

NEW YORK, Dec. 9, 2024 /PRNewswire/ -- MongoDB, Inc. (NASDAQ: MDB) today announced its financial results for the third quarter ended October 31, 2024.

"MongoDB's third quarter results were significantly ahead of expectations on the top and bottom line, driven by better-than-expected EA performance and 26% Atlas revenue growth.  We continue to see success winning new business due to the superiority of MongoDB's developer data platform in addressing a wide variety of mission-critical use cases," said Dev Ittycheria, President and Chief Executive Officer of MongoDB.

"We continue to invest in our legacy app modernization and AI offerings as our document model and distributed architecture are exceptionally well suited for customers looking to build highly-performant, modern applications.  MongoDB is in a great position to be a central pillar of the emerging AI tech stack and benefit from the next wave of application development in the years ahead."

Third Quarter Fiscal 2025 Financial Highlights

• Revenue: Total revenue was $529.4 million for the third quarter of fiscal 2025, an increase of 22% year-over-year. Subscription revenue was $512.2 million, an increase of 22% year-over-year, and services revenue was $17.2 million, an increase of 18% year-over-year.
• Gross Profit: Gross profit was $394.0 million for the third quarter of fiscal 2025, representing a 74% gross margin compared to 75% in the year-ago period. Non-GAAP gross profit was $405.7 million, representing a 77% non-GAAP gross margin, consistent with a non-GAAP gross margin of 77% in the year-ago period.
• Loss from Operations: Loss from operations was $27.9 million for the third quarter of fiscal 2025, compared to a loss from operations of $45.2 million in the year-ago period. Non-GAAP income from operations was $101.5 million, compared to non-GAAP income from operations of $78.5 million in the year-ago period.
• Net Loss: Net loss was $9.8 million, or $0.13 per share, based on 74.0 million weighted-average shares outstanding, for the third quarter of fiscal 2025. This compares to a net loss of $29.3 million, or $0.41 per share, in the year-ago period. Non-GAAP net income was $98.1 million, or $1.16 per share, based on 84.2 million diluted weighted-average shares outstanding. This compares to a non-GAAP net income of $79.1 million, or $0.96 per share, in the year-ago period.
• Cash Flow: As of October 31, 2024, MongoDB had $2.3 billion in cash, cash equivalents, short-term investments and restricted cash. During the three months ended October 31, 2024, MongoDB generated $37.4 million of cash in operations, used $2.0 million of cash in capital expenditures and used $0.9 million of cash in principal repayments of finance leases, leading to free cash flow of $34.6 million, compared to free cash flow of $35.0 million in the year-ago period.

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 2025 and Recent Business Highlights

• MongoDB announced the general availability of MongoDB 8.0, the best-performing version of MongoDB. With more than 45 architectural enhancements and new features like vector quantization in MongoDB Atlas Vector Search, MongoDB 8.0 provides significant performance improvements, reduced costs, and additional scalability, resilience, and data security capabilities.
• MongoDB continues to expand its partnerships with the major cloud providers. At Amazon Web Services' (AWS) re:Invent conference, MongoDB was named AWS's Technology Partner of the Year for North America. MongoDB also announced that it obtained the AWS Modernization Competency designation and launched a MongoDB University course focused on building AI applications with MongoDB and AWS. At Microsoft Ignite, MongoDB announced new technology integrations for AI, data analytics, and automating database deployments across on-premises, cloud, and edge environments.
• Launched in July 2024, the MongoDB AI Applications Program (MAAP) is designed to help companies unleash the power of their data and to take advantage of rapidly advancing AI technologies. We recently announced that Capgemini, Confluent, IBM, Unstructured, and QuantumBlack, AI by McKinsey have joined the MAAP ecosystem, offering customers additional integration and solution options.

Executive Leadership Update

Michael Gordon, MongoDB's Chief Operating Officer and Chief Financial Officer, will be stepping down at the end of the Company's fiscal year on January 31, 2025, and afterwards will serve as an advisor to ensure a smooth transition. The Company has commenced an executive search process for a new CFO and will evaluate internal and external candidates.  Serge Tanjga, MongoDB's Senior Vice President of Finance, will serve as interim CFO starting February 1st if a permanent successor has not been named by that date.

Dev Ittycheria commented, "On behalf of everyone at MongoDB, I want to thank Michael for everything he has done to contribute to our success in his nearly 10 years with the company.  In Michael's time here, MongoDB had a successful IPO, has grown revenue nearly 50x and has successfully scaled the business model to generate meaningful operating leverage. Michael has also built out a world-class finance team that I am confident will deliver a smooth transition to a new CFO in the coming months."

Michael Gordon said, "I am incredibly proud of what we have accomplished as a team in my almost ten years with the company.  While we have achieved much success to date, I strongly believe MongoDB is still in the early stages of realizing its full potential as it continues to expand its share in one of the largest markets in software. I'd like to thank Dev for our tremendous partnership this past decade."

Fourth Quarter and Full Year Fiscal 2025 Guidance

Based on information available to management as of today, December 9, 2024, MongoDB is issuing the following financial guidance for the fourth quarter and full year fiscal 2025.

Reconciliations of non-GAAP income from operations and non-GAAP net income per share guidance to the most directly comparable GAAP measures are not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in MongoDB's stock price. MongoDB expects the variability of the above charges to have a significant, and potentially unpredictable, impact on its future GAAP financial results.

Conference Call Information

MongoDB will host a conference call today, December 9, 2024, at 5:00 p.m. (Eastern Time) to discuss its financial results and business outlook. A live webcast of the call will be available on the "Investor Relations" page of MongoDB's website at https://investors.mongodb.com. To access the call by phone, please go to this link (registration link), and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at http://investors.mongodb.com.

Forward-Looking Statements

This press release includes certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning MongoDB's financial guidance for the fourth fiscal quarter and full year fiscal 2025. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "project," "will," "would" or the negative or plural of these words or similar expressions or variations. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and factors that are beyond our control including, without limitation: our customers renewing their subscriptions with us and expanding their usage of software and related services; the effects of the ongoing military conflicts between Russia and Ukraine and Israel and Hamas on our business and future operating results; economic downturns and/or the effects of rising interest rates, inflation and volatility in the global economy and financial markets on our business and future operating results; our potential failure to meet publicly announced guidance or other expectations about our business and future operating results; our limited operating history; our history of losses; failure of our platform to satisfy customer demands; the effects of increased competition; our investments in new products and our ability to introduce new features, services or enhancements; our ability to effectively expand our sales and marketing organization; our ability to continue to build and maintain credibility with the developer community; our ability to add new customers or increase sales to our existing customers; our ability to maintain, protect, enforce and enhance our intellectual property; the effects of social, ethical and regulatory issues relating to the use of new and evolving technologies, such as artificial intelligence, in our offerings or partnerships; the growth and expansion of the market for database products and our ability to penetrate that market; our ability to integrate acquired businesses and technologies successfully or achieve the expected benefits of such acquisitions; our ability to maintain the security of our software and adequately address privacy concerns; our ability to manage our growth effectively and successfully recruit and retain additional highly-qualified personnel; and the price volatility of our common stock. These and other risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission ("SEC"), including under the caption "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended July 31, 2024, filed with the SEC on August 30, 2024. Additional information will be made available in our Quarterly Report on Form 10-Q for the quarter ended October 31, 2024, and other filings and reports that we may file from time to time with the SEC. Except as required by law, we undertake no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise.

Non-GAAP Financial Measures

This press release includes the following financial measures defined as non-GAAP financial measures by the SEC: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share and free cash flow. Non-GAAP gross profit and non-GAAP gross margin exclude expenses associated with stock-based compensation. Non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income and non-GAAP net income per share exclude:

• expenses associated with stock-based compensation including employer payroll taxes upon the vesting and exercising of stock-based awards and expenses related to stock appreciation rights previously issued to our employees in China;
• amortization of intangible assets for the acquired technology and acquired customer relationships associated with prior acquisitions; and
• in the case of non-GAAP net income and non-GAAP net income per share, amortization of the debt issuance costs associated with our convertible senior notes and gains or losses on our financial instruments;
• additionally, non-GAAP net income and non-GAAP net income per share are adjusted for an assumed provision for income taxes based on an estimated long-term non-GAAP tax rate. The non-GAAP tax rate was calculated utilizing a three-year financial projection that excludes the direct impact of the GAAP to non-GAAP adjustments and considers other factors such as operating structure and existing tax positions in various jurisdictions. We intend to periodically reevaluate the projected long-term tax rate, as necessary, for significant events and our ongoing analysis of relevant tax law changes.

MongoDB uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating MongoDB's ongoing operational performance. MongoDB believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in MongoDB's industry, many of which may present similar non-GAAP financial measures to investors.

Free cash flow represents net cash from/used in operating activities, less capital expenditures, principal repayments of finance lease liabilities and capitalized software development costs, if any. MongoDB uses free cash flow to understand and evaluate its liquidity and to generate future operating plans. The exclusion of capital expenditures, principal repayments of finance lease liabilities and amounts capitalized for software development facilitates comparisons of MongoDB's liquidity on a period-to-period basis and excludes items that it does not consider to be indicative of its liquidity. MongoDB believes that free cash flow is a measure of liquidity that provides useful information to investors in understanding and evaluating the strength of its liquidity and future ability to generate cash that can be used for strategic opportunities or investing in its business in the same manner as MongoDB's management and board of directors.

Non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. In particular, other companies may report non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP net income, non-GAAP net income per share, free cash flow or similarly titled measures but calculate them differently, which reduces their usefulness as comparative measures. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, as presented below. This earnings press release and any future releases containing such non-GAAP reconciliations can also be found on the Investor Relations page of MongoDB's website at https://investors.mongodb.com.

About MongoDB

Headquartered in New York, MongoDB's mission is to empower innovators to create, transform, and disrupt industries by unleashing the power of software and data. Built by developers, for developers, MongoDB's developer data platform is a database with an integrated set of related services that allow development teams to address the growing requirements for today's wide variety of modern applications, all in a unified and consistent user experience. MongoDB has tens of thousands of customers in over 100 countries. The MongoDB database platform has been downloaded hundreds of millions of times since 2007, and there have been millions of builders trained through MongoDB University courses. To learn more, visit mongodb.com.

Investor Relations
Brian Denyeau
ICR for MongoDB
646-277-1251
ir@mongodb.com

Media Relations
MongoDB
press@mongodb.com

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