MongoDB, Inc. Announces Third Quarter Fiscal 2018 Financial Results
NEW YORK, Dec. 12, 2017 /PRNewswire/ -- MongoDB, Inc. (NASDAQ: MDB), the leading modern, general purpose database platform, today announced its financial results for the three and nine months ended October 31, 2017.
"MongoDB delivered strong third quarter results, highlighted by 58% revenue growth," said Dev Ittycheria, President and Chief Executive Officer of MongoDB. "Some of the largest organizations in the world are increasingly embracing MongoDB's next-generation database due to the superior flexibility, scalability and developer productivity benefits offered, as well as the lower total cost of ownership realized. In addition, strong and growing demand for consuming MongoDB as a service is driving rapid growth of MongoDB Atlas, our database-as-a-service offering."
Ittycheria added, "Completing our initial public offering during the quarter was a milestone for MongoDB. The proceeds from the offering will enable us to execute against our long-term growth initiatives and position us to capture an increasing share of the $45 billion database market."
Third Quarter Fiscal 2018 Financial Highlights
-- Revenue: Total revenue was $41.5 million in the third quarter fiscal
2018, an increase of 58% year-over-year. Subscription revenue was $37.9
million, an increase of 59% year-over-year, and services revenue was
$3.6 million, an increase of 44% year-over-year.
-- Gross Profit: Gross profit was $30.4 million in the third quarter fiscal
2018, representing a 73% gross margin consistent with the year-ago
period. Non-GAAP gross profit was $30.7 million, representing a 74%
non-GAAP gross margin.
-- Loss from Operations: Loss from operations was $24.1 million in the
third quarter fiscal 2018, compared to $19.3 million in the year-ago
period. Non-GAAP loss from operations was $18.4 million, compared to
$15.0 million in the year-ago period.
-- Net Loss: Net loss was $24.2 million, or $1.39 per share based on 17.4
million weighted-average shares outstanding, in the third quarter fiscal
2018. This compares to $19.5 million, or $1.57 per share based on 12.4
million weighted-average shares outstanding, in the year-ago period.
Non-GAAP net loss was $18.5 million, or $0.44 per share based on 41.7
million non-GAAP weighted-average shares outstanding, which we refer to
as non-GAAP net loss per share. This compares to $15.2 million, or $0.40
per share based on 38.3 million non-GAAP weighted-average shares
outstanding, in the year-ago period.
-- Cash Flow: As of October 31, 2017, MongoDB had $289.1 million in cash,
cash equivalents, short-term investments and restricted cash, which
includes approximately $201.6 million of net proceeds, after deducting
underwriting discounts and commissions and estimated offering expenses,
from its initial public offering. During the three months ended October
31, 2017, MongoDB used $10.3 million of cash in operations and $0.1
million in capital expenditures, leading to negative free cash flow of
$10.4 million, compared to negative free cash flow of $6.5 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 2018 and Recent Business Highlights
-- Announced MongoDB 3.6, which includes a number of innovations and
enhancements designed to make developers more productive, to expedite
data-driven insights and to scale to run in any environment. Key
innovations include: Change Streams, which enable developers to easily
build event-driven, real-time applications; Retryable Writes, which
ensure that if a database server goes down for just a millisecond, the
user won't notice because the database will "retry" the operation in the
background; Cross Region Replication for MongoDB Atlas, which ensures
that an application stays up even if an entire cloud region goes down,
while also allowing MongoDB customers to put data closer to their users
for optimal user experience; new diagnostic and intelligence
capabilities in MongoDB's management platform, such as quickly
identifying slow running queries and auto-generating recommendations for
new indexes, which make it easier than ever for teams to inspect and
improve database and application performance.
-- Completed its initial public offering and listed its shares on the
Nasdaq Global Market in October 2017. MongoDB sold 9,200,000 shares of
its Class A common stock at a price of $24.00 per share, including the
full exercise of the underwriters' option to purchase an additional
1,200,000 shares of Class A common stock, for a total of approximately
$201.6 million in net proceeds after taking into account underwriting
costs and offering costs.
-- Continued growth of the MongoDB ecosystem, including expanded
partnerships with Infosys and Tableau. Together with Infosys, MongoDB
launched a new mainframe offloading solution that builds upon the
partnership the two companies announced last December to help
enterprises accelerate their digital transformation and application
modernization strategies. Partnered with Tableau to announce MongoDB
Connector for BI is now certified by Tableau as a named connector. For
the first time, users can visually analyze rich, modern data structures
accessed directly from MongoDB Enterprise Advanced.
Business Outlook
Based on information as of today, December 12, 2017, MongoDB is issuing the following financial guidance for the fourth quarter and full year fiscal 2018 (both periods ending January 31, 2018):
Fourth Quarter Fiscal
2018 Full Year Fiscal 2018
Revenue $42.0 million to $42.5 million $151.5 million to $152.0 million
------- ------------------------ ---------------------
Non-
GAAP
Loss
from
Operations $(21.5) million to $(21.0) million $(76.5) million to $(76.0) million
---------- ------------------------ ---------------------
Non-
GAAP
Net
Loss
per
Share $(0.43) to $(0.42) $(1.77) to $(1.76)
----- ----------------- -----------------
Reconciliation of non-GAAP loss from operations and non-GAAP net loss per share guidance to the most directly comparable GAAP measures is 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 our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.
Conference Call Information
MongoDB will host a conference call today, December 12, 2017, 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 http://investors.mongodb.com. To access the call by phone, dial 800-239-9838 (domestic) or 323-794-2551 (international). A replay of this conference call will be available for a limited time at 844-512-2921 (domestic) or 412-317-6671 (international). The replay conference ID is 9688162. A replay of the webcast will also be available for a limited time at http://investors.mongodb.com.
About MongoDB
MongoDB is the leading modern, general purpose database platform, designed to unleash the power of software and data for developers and the applications they build. Headquartered in New York, MongoDB has more than 4,900 customers in over 90 countries. The MongoDB database platform has been downloaded over 30 million times and there have been more than 700,000 MongoDB University registrations.
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 our financial guidance for the fourth quarter and full year fiscal 2018, our position to execute on our go-to-market strategy, and our ability to expand our leadership position and market opportunity. 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 limited operating history; our history of losses; failure of our database platform to satisfy customer demands; the effects of increased competition; our ability to effectively expand our sales and marketing organization; our ability to add new customers or increase sales to our existing customers; our adoption strategies and licensing model; our investments in new products and our ability to introduce new features, services or enhancements; our ability to manage our growth effectively and successfully recruit additional highly-qualified personnel; the price volatility of our common stock; and those risks detailed from time-to-time under the caption "Risk Factors" and elsewhere in our Securities and Exchange Commission ("SEC") filings and reports, including in our recently filed Registration Statement on Form S-1, which was declared effective by the SEC on October 18, 2017, as well as future filings and reports by us. 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 loss from operations, non-GAAP net loss, non-GAAP net loss per share and free cash flow. Non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations and non-GAAP net loss exclude stock-based compensation expense and, in the case of non-GAAP net loss, change in fair value of warrant liability. Non-GAAP net loss per share is calculated by dividing non-GAAP net loss by the weighted average shares used to compute net loss per share attributable to common stockholders, basic and diluted, giving effect to the conversion of preferred stock at the beginning of the period. 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 present similar non-GAAP financial measures to investors.
Free cash flow represents net cash used in operating activities less capital expenditures 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 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 loss from operations, non-GAAP net loss, non-GAAP net loss 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 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 http://investors.mongodb.com.
Investor Relations
Brian Denyeau
ICR for MongoDB
646-277-1251
ir@mongodb.com
Media Relations
MongoDB
866-237-8815 x7186
communications@mongodb.com
MONGODB, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
(unaudited)
October 31, 2017 January 31, 2017
---------------- ----------------
Assets
Current assets:
Cash and cash equivalents $242,745 $69,305
Short-term investments 45,810 47,195
Accounts receivable, net of
allowance for doubtful accounts of
$1,456 and $958 as of October 31,
2017 and January 31, 2017,
respectively 35,233 31,340
Deferred commissions 9,850 7,481
Prepaid expenses and other current
assets 5,221 3,131
----- -----
Total current assets 338,859 158,452
Property and equipment, net 4,430 4,877
Goodwill 1,700 1,700
Acquired intangible assets, net 1,848 2,511
Deferred tax assets 102 114
Other assets 7,056 6,778
Total assets $353,995 $174,432
======== ========
Liabilities, Redeemable Convertible Preferred Stock
and Stockholders' Equity (Deficit)
Current liabilities:
Accounts payable $3,147 $2,841
Accrued compensation and benefits 10,870 11,402
Other accrued liabilities 10,788 5,269
Deferred revenue 92,447 78,278
------ ------
Total current liabilities 117,252 97,790
Redeemable convertible preferred
stock warrant liability - 1,272
Deferred rent, non-current 973 1,058
Deferred tax liability, non-current 259 108
Deferred revenue, non-current 22,326 15,461
------ ------
Total liabilities 140,810 115,689
------- -------
Redeemable convertible preferred
stock, par value $0.001 per share;
no shares authorized, issued or
outstanding as of October 31,
2017; 41,234,841 shares authorized
as of January 31, 2017; 41,148,282
shares issued and outstanding with
aggregate liquidation preference
of $345,997 as of January 31, 2017 - 345,257
Stockholders' (deficit) equity:
Class A common stock, par value of
$0.001 per share; 1,000,000,000
and 162,500,000 shares authorized
as of October 31, 2017 and January
31, 2017, respectively; 9,325,098
and no shares issued and
outstanding as of October 31, 2017
and January 31, 2017, respectively 9 -
Class B common stock, par value of
$0.001 per share; 100,000,000 and
113,000,000 shares authorized as
of October 31, 2017 and January
31, 2017, respectively; 41,341,283
and 13,192,992 shares issued as of
October 31, 2017 and January 31,
2017, respectively; 41,241,912 and
13,093,621 shares outstanding as
of October 31, 2017 and January
31, 2017, respectively 42 13
Additional paid-in capital 632,055 62,557
Treasury stock, 99,371 shares as of
October 31, 2017 and January 31,
2017 (1,319) (1,319)
Accumulated other comprehensive
loss (216) (364)
Accumulated deficit (417,386) (347,401)
-------- --------
Total stockholders' (deficit)
equity 213,185 (286,514)
Total liabilities, redeemable
convertible preferred stock and
stockholders' equity (deficit) $353,995 $174,432
======== ========
MONGODB, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
Three Months Ended October 31, Nine Months Ended October 31,
2017 2016 2017 2016
---- ---- ---- ----
Revenue:
Subscription $37,885 $23,805 $99,603 $64,018
Services 3,603 2,500 9,875 7,406
----- ----- ----- -----
Total revenue 41,488 26,305 109,478 71,424
------ ------ ------- ------
Cost of revenue(1):
Subscription 7,904 4,981 21,669 13,656
Services 3,167 2,238 8,789 7,866
----- ----- ----- -----
Total cost of revenue 11,071 7,219 30,458 21,522
------ ----- ------ ------
Gross profit 30,417 19,086 79,020 49,902
Operating expenses:
Sales and marketing(1) 28,050 18,656 77,087 56,110
Research and
development(1) 16,588 13,300 45,414 38,540
General and
administrative(1) 9,829 6,385 26,533 19,916
----- ----- ------ ------
Total operating expenses 54,467 38,341 149,034 114,566
------ ------ ------- -------
Loss from operations (24,050) (19,255) (70,014) (64,664)
Other income (expense),
net 170 (177) 846 56
--- ---- --- ---
Loss before provision for
income taxes (23,880) (19,432) (69,168) (64,608)
Provision for income
taxes 336 103 817 253
--- --- --- ---
Net loss $(24,216) $(19,535) $(69,985) $(64,861)
======== ======== ======== ========
Net loss per share
attributable to common
stockholders, basic and
diluted $(1.39) $(1.57) $(4.74) $(5.41)
====== ====== ====== ======
Weighted-average shares
used to compute net loss
per share attributable 17,421,642 12,418,879 14,749,500 11,983,324
to common stockholders, basic and
diluted
(1) Includes stock-based compensation
expense as follows:
Three Months Ended October 31, Nine Months Ended October 31,
2017 2016 2017 2016
---- ---- ---- ----
Cost of revenue-
subscription $183 $131 $503 $425
Cost of revenue-services 123 70 292 397
Sales and marketing 1,704 1,095 4,400 4,346
Research and development 1,505 1,206 4,072 4,518
General and
administrative 2,184 1,732 5,799 6,831
----- ----- ----- -----
Total stock?based
compensation expense $5,699 $4,234 $15,066 $16,517
====== ====== ======= =======
MONGODB, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended October 31, Nine Months Ended October 31,
2017 2016 2017 2016
---- ---- ---- ----
Cash flows from operating activities
Net loss $(24,216) $(19,535) $(69,985) $(64,861)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and
amortization 929 901 2,789 2,781
Stock-based compensation 5,695 4,234 15,066 16,517
Deferred income taxes 101 17 163 37
Change in fair value of warrant
liability 59 (101) (144)
-
Change in operating assets and
liabilities:
Accounts receivable (3,007) (3,841) (4,653) 4,600
Prepaid expenses and
other current assets 822 (384) (2,120) (1,435)
Deferred commissions (1,848) (1,714) (2,217) (2,344)
Other long-term assets (36) 11 (670) (203)
Accounts payable 675 (741) 687 (272)
Deferred rent (275) (207) (85) (493)
Accrued liabilities 918 1,692 2,163 2,057
Deferred revenue 9,942 13,834 21,794 15,768
----- ------ ------ ------
Net cash used in
operating activities (10,300) (5,674) (37,169) (27,992)
Cash flows from investing activities
Purchases of property and
equipment (88) (785) (1,714) (1,422)
Proceeds from maturities
of marketable securities 10,000 19,917 74,230 114,792
Purchases of marketable
securities (4,125) - (72,879) (82,036)
------ --- ------- -------
Net cash provided by
(used in) investing
activities 5,787 19,132 (363) 31,334
Cash flows from financing activities
Proceeds from exercise of
stock options, including
early exercised stock
options 2,217 2,919 8,201 7,187
Repurchase of early
exercised stock options (75) (22) (149) (22)
Proceeds from the IPO,
net of underwriting
discounts and
commissions 205,494 - 205,494 -
Proceeds from exercise of redeemable
convertible preferred stock warrants - 1 -
-
Payment of offering costs (1,167) - (2,344) -
------ --- ------ ---
Net cash provided by
financing activities 206,469 2,897 211,203 7,165
Effect of exchange rate
changes on cash, cash
equivalents, and
restricted cash 22 (74) 182 42
--- --- --- ---
Net increase in cash,
cash equivalents, and
restricted cash 201,978 16,281 173,853 10,549
Cash, cash equivalents,
and restricted cash,
beginning of period 41,287 27,581 69,412 33,313
Cash, cash equivalents,
and restricted cash, end
of period $243,265 $43,862 $243,265 $43,862
======== ======= ======== =======
MONGODB, INC.
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(in thousands, except share and per share data)
(unaudited)
Three Months Ended October 31, Nine Months Ended October 31,
2017 2016 2017 2016
---- ---- ---- ----
Reconciliation of GAAP gross profit to
non-GAAP gross
profit:
Gross profit on a GAAP
basis $30,417 $19,086 $79,020 $49,902
Add back:
Stock-based
compensation expense:
Cost of Revenue-
Subscription 183 131 503 425
Stock-based
compensation expense:
Cost of Revenue-
Services 123 70 292 397
Non-GAAP gross profit $30,723 $19,287 $79,815 $50,724
======= ======= ======= =======
Reconciliation of GAAP loss from
operations to non-GAAP
loss from operations:
Loss from operations on
a GAAP basis $(24,050) $(19,255) $(70,014) $(64,664)
Add back:
Stock-based
compensation expense 5,699 4,234 15,066 16,517
----- ----- ------ ------
Non-GAAP loss from
operations $(18,351) $(15,021) $(54,948) $(48,147)
======== ======== ======== ========
Reconciliation of GAAP net loss to non-
GAAP net loss:
Net loss on a GAAP basis $(24,216) $(19,535) $(69,985) $(64,861)
Add back:
Stock-based
compensation expense 5,699 4,234 15,066 16,517
Change in fair value of
warrant liability - 59 (101) (144)
Non-GAAP net loss $(18,517) $(15,242) $(55,020) $(48,488)
======== ======== ======== ========
Reconciliation of GAAP weighted average
shares
outstanding, basic and diluted, to non-
GAAP weighted
average shares outstanding, basic and
diluted:
Weighted average shares
used to compute net
loss per share 17,421,642 12,418,879 14,749,500 11,983,324
attributable to common stockholders,
basic and diluted, on a
GAAP basis
Add back:
Additional weighted
average shares giving
effect to 24,316,192 25,853,450 26,064,330 25,853,450
conversion of preferred stock at the
beginning of the period
Non-GAAP weighted
average shares used to
compute net 41,737,834 38,272,329 40,813,830 37,836,774
loss per share, basic and diluted
The following table presents a reconciliation of free cash flow to net cash used in operating activities, the most directly comparable GAAP measure, for each of the periods indicated:
Three Months Ended October 31, Nine Months Ended October 31,
------------------------------ -----------------------------
2017 2016 2017 2016
---- ---- ---- ----
Net cash used in operating activities $(10,300) $(5,674) $(37,169) $(27,992)
Capital expenditures (88) (785) (1,714) (1,422)
Capitalized software - - - -
--- --- --- ---
Free cash flow $(10,388) $(6,459) $(38,883) $(29,414)
======== ======= ======== ========
MONGODB, INC.
CALCULATION OF CERTAIN NON-GAAP MEASURES
(in thousands, except share and per share data)
(unaudited)
Three Months Ended October 31, Nine Months Ended October 31,
2017 2016 2017 2016
---- ---- ---- ----
Calculation of net loss per share, basic
and diluted, on a
GAAP basis
Net loss $(24,216) $(19,535) $(69,985) $(64,861)
Divided by:
Weighted average shares
used to compute net
loss per share 17,421,642 12,418,879 14,749,500 11,983,324
attributable to common stockholders,
basic and diluted
Net loss per share
attributable to common
stockholders, basic $(1.39) $(1.57) $(4.74) $(5.41)
and diluted, on a GAAP basis
Calculation of non-GAAP net loss per
share, basic and
diluted
Non-GAAP net loss $(18,517) $(15,242) $(55,020) $(48,488)
Divided by:
Non-GAAP weighted
average shares used to
compute net 41,737,834 38,272,329 40,813,830 37,836,774
loss per share attributable to common
stockholders, basic
and diluted
Non-GAAP net loss per
share attributable to
common $(0.44) $(0.40) $(1.35) $(1.28)
stockholders, basic and diluted
View original content with multimedia:http://www.prnewswire.com/news-releases/mongodb-inc-announces-third-quarter-fiscal-2018-financial-results-300570308.html
SOURCE MongoDB, Inc.
