MongoDB, Inc. Announces Fourth Quarter and Full Year Fiscal 2019 Financial Results
NEW YORK, March 13, 2019 /PRNewswire/ --
ASC 606:
Fourth Quarter Fiscal 2019 Total Revenue of $85.5 million, up 71% Year-over-Year
Full Year Fiscal 2019 Total Revenue of $267.0 million, up 61% Year-over-Year
MongoDB Atlas Revenue 32% of Total Q4 Revenue, up over 400% Year-over-Year
ASC 605:
Fourth Quarter Fiscal 2019 Total Revenue of $83.1 million, up 85% Year-over-Year
Full Year Fiscal 2019 Total Revenue of $253.8 million, up 64% Year-over-Year
MongoDB Atlas Revenue 34% of Total Q4 Revenue, up over 400% Year-over-Year
Note: We recently 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. This press release includes additional information to reconcile the impacts of the adoption of ASC 606 on our financial results for the fourth fiscal quarter and full fiscal year ended January 31, 2019. This includes the presentation of our financial results for the fourth fiscal quarter and full fiscal year 2019 under the prior revenue recognition standard ASC 605.
MongoDB, Inc. (NASDAQ: MDB), the leading, modern general purpose database platform, today announced its financial results for the fourth quarter and fiscal year ended January 31, 2019.
"MongoDB's exceptional fourth quarter performance capped a record year for the company," said Dev Ittycheria, President and Chief Executive Officer of MongoDB. "MongoDB is being adopted by an ever increasing number of companies across diverse industries who recognize the power of our next-generation database platform to drive business performance, increase agility and shorten time to market."
Ittycheria added, "MongoDB Atlas, our fully managed global, multi-cloud database service, achieved a major milestone in the fourth quarter, surpassing $100 million in annualized revenue run rate less than three years from launch. At approximately one third of our revenue, MongoDB Atlas' tremendous growth highlights its compelling value to enable customers to focus on innovation and offload the operational burden of database management."
Fourth Quarter Fiscal 2019 Financial Highlights under ASC 606
-- Revenue: Total revenue was $85.5 million in the fourth quarter fiscal
2019, an increase of 71% year-over-year. Subscription revenue was $80.6
million, an increase of 73% year-over-year, and services revenue was
$4.9 million, an increase of 37% year-over-year.
-- Gross Profit: Gross profit was $59.9 million in the fourth quarter
fiscal 2019, representing a 70% gross margin, compared to 75% in the
year-ago period. Non-GAAP gross profit was $61.0 million, representing a
71% non-GAAP gross margin.
-- Loss from Operations: Loss from operations was $23.8 million in the
fourth quarter fiscal 2019, compared to $20.9 million in the year-ago
period. Non-GAAP loss from operations was $9.7 million, compared to
$14.5 million in the year-ago period.
-- Net Loss: Net loss was $22.2 million, or $0.41 per share, based on 53.8
million weighted-average shares outstanding in the fourth quarter fiscal
2019. This compares to $20.0 million, or $0.40 per share, based on 50.3
million weighted-average shares outstanding, in the year-ago period.
Non-GAAP net loss was $9.1 million or $0.17 per share. This compares to
$13.6 million or $0.27 per share in the year-ago period.
-- Cash Flow: As of January 31, 2019, MongoDB had $466.5 million in cash,
cash equivalents, short-term investments and restricted cash. During the
three months ended January 31, 2019, MongoDB used $9.5 million of cash
in operations and $3.2 million in capital expenditures, leading to
negative free cash flow of $12.6 million, compared to negative free cash
flow of $8.1 million in the year-ago period.
Fourth Quarter Fiscal 2019 Financial Highlights under ASC 605
-- Revenue: Total revenue was $83.1 million in the fourth quarter fiscal
2019, an increase of 85% year-over-year. Subscription revenue was $78.3
million, an increase of 87% year-over-year, and services revenue was
$4.9 million, an increase of 54% year-over-year.
-- Gross Profit: Gross profit was $57.5 million in the fourth quarter
fiscal 2019, representing a 69% gross margin, compared to 72% in the
year-ago period. Non-GAAP gross profit was $58.6 million, representing a
71% non-GAAP gross margin.
-- Loss from Operations: Loss from operations was $28.7 million in the
fourth quarter fiscal 2019, compared to $27.3 million in the year-ago
period. Non-GAAP loss from operations was $14.6 million, compared to
$20.9 million in the year-ago period.
-- Net Loss: Net loss was $27.1 million, or $0.50 per share, based on 53.8
million weighted-average shares outstanding, in the fourth quarter
fiscal 2019. This compares to $26.4 million, or $0.52 per share, based
on 50.3 million weighted-average shares outstanding, in the year-ago
period. Non-GAAP net loss was $14.0 million, or $0.26 per share. This
compares to $20.0 million, or $0.40 per share in the year-ago period.
Full Year Fiscal 2019 Financial Highlights Under ASC 606
-- Revenue: Total revenue was $267.0 million for the full year fiscal 2019,
an increase of 61% year-over-year. Subscription revenue was $248.4
million, an increase of 64% year-over-year, and services revenue was
$18.6 million, an increase of 31% year-over-year.
-- Gross Profit: Gross profit was $193.4 million for the full year fiscal
2019, representing a 72% gross margin compared to 74% the prior year.
Non-GAAP gross profit was $196.7 million, representing a 74% non-GAAP
gross margin.
-- Loss from Operations: Loss from operations was $97.8 million for the
full year fiscal 2019, compared to $84.9 million in the prior year.
Non-GAAP loss from operations was $54.2 million, compared to $62.8
million in the prior year.
-- Net Loss: Net loss was $99.0 million, or $1.90 per share, based on 52.0
million weighted-average shares outstanding, for the full year fiscal
2019. This compares to $84.0 million, or $3.54 per share, based on 23.7
million weighted-average shares outstanding, in the prior year. Non-GAAP
net loss was $52.2 million, or $1.00 per share, based on 52.0 million
weighted-average shares outstanding. This compares to $62.0 million, or
$1.43 per share, based on 43.2 million non-GAAP weighted-average shares
outstanding, in the prior year.
-- Cash Flow: During the year ended January 31, 2019, MongoDB used $42.0
million of cash in operations and $6.8 million in capital expenditures,
leading to negative free cash flow of $48.8 million, compared to
negative free cash flow of $47.0 million in the prior year.
Full Year Fiscal 2019 Financial Highlights Under ASC 605
-- Revenue: Total revenue was $253.8 million for the full year fiscal 2019,
an increase of 64% year-over-year. Subscription revenue was $235.8
million, an increase of 67% year-over-year, and services revenue was
$18.0 million, an increase of 38% year-over-year.
-- Gross Profit: Gross profit was $180.2 million for the full year fiscal
2019, representing a 71% gross margin, compared to 72% in the prior
year. Non-GAAP gross profit was $183.5 million, representing a 72%
non-GAAP gross margin.
-- Loss from Operations: Loss from operations was $117.6 million for the
full year fiscal 2019, compared to $97.3 million in the prior year.
Non-GAAP loss from operations was $74.1 million, compared to $75.1
million in the prior year.
-- Net Loss: Net loss was $118.9 million, or $2.28 per share, based on 52.0
million weighted-average shares outstanding, for the full year fiscal
2019. This compares to $96.4 million, or $4.06 per share, based on 23.7
million weighted-average shares outstanding, in the prior year. Non-GAAP
net loss was $72.0 million, or $1.38 per share, based on 52.0 million
weighted-average shares outstanding. This compares to $74.3 million, or
$1.72 per share, based on 43.2 million non-GAAP weighted-average shares
outstanding, 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."
Fourth Quarter Fiscal 2019 and Recent Business Highlights
-- Experienced a continuation of strong developer adoption in the fourth
quarter of fiscal year 2019. The total number of MongoDB downloads from
our website alone is now more than 60 million. We have seen adoption
accelerate with more than 20 million downloads in the last 12 months, an
increase from the more than 12 million downloads in fiscal year 2018.
Nearly 1.2 million developers have registered for MongoDB University,
the company's online training and certification program.
-- Selected by customers across a variety of industries for an increasingly
wide range of mission critical workloads. Over the past fiscal year, the
number of customers with an annualized spend of more than $1 million
grew by 77% to 39, and the number of six-figure customer relationships
expanded by 57% to 557. MongoDB now has over 13,400 customers, up
approximately 130% from last year, including over 11,400 Atlas
customers, of which approximately 4,200 were acquired from mLab.
-- Continued to add features to MongoDB Atlas that further differentiate it
from competing products. In addition, Atlas expanded support to 60 total
regions across multiple public cloud networks, making it the most widely
available global cloud database on the market.
-- Promoted Cedric Pech to Chief Revenue Officer. He joined MongoDB in 2017
to lead MongoDB's sales team in Europe, Middle East and Africa, where
MongoDB rapidly scaled the salesforce and drove exceptional growth
throughout the region. Cedric will be responsible for developing and
executing MongoDB's global sales strategy.
Business Outlook
Based on information as of today, March 13, 2019, MongoDB is issuing the following financial guidance for the first quarter and full year fiscal 2020. Please note this guidance is presented under ASC 606.
First Quarter Fiscal
2020 Full Year Fiscal 2020
Revenue
$82.0 million to $84.0 million
$363.0 million to $371.0 million
---
Non-GAAP Loss
from Operations
$(14.0) million to $(13.0) million
$(59.0) million to $(55.0) million
---
Non-GAAP Net
Loss per Share
$(0.25) to $(0.23)
$(1.06) to $(0.98)
---
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, March 13, 2019, 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, dial 866-548-4713 (domestic) or 323-794-2093 (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 1923915. A replay of the webcast will also be available for a limited time at https://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 13,000 customers in over 100 countries. The MongoDB database platform has been downloaded over 60 million times and there have been more than one million 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 first fiscal quarter and full year fiscal 2020, [our market opportunity and demand for a cloud-based data platform, our go-to-market and growth strategies, our value proposition for customers and the potential advantages of our new products and enhancements, and our ability to expand our leadership position and drive revenue growth]. 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 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 growth and expansion of the market for database products and our ability to penetrate that market; our ability to maintain the security of our software and adequately address privacy concerns; 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 our Annual Report on Form 10-K filed on March 30, 2018 and our Quarterly Report on Form 10-Q filed on September 7, 2018 and December 6, 2018, 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 and non-GAAP gross margin exclude stock-based compensation expense. Non-GAAP loss from operations and non-GAAP net loss exclude:
-- stock-based compensation expense;
-- amortization of intangible assets for the recently acquired customer
relationships and acquired technology associated with the purchase of
mLab, as well as for the prior acquisition of WiredTiger;
-- amortization of the Founder Holdback associated with the mLab purchase,
that was deemed to be compensation expense for GAAP purposes;
-- acquisition costs associated with the purchase of mLab;
-- accelerated charges associated with the New York City office move; and
-- in the case of non-GAAP net loss, non-cash interest expense related to
our convertible senior notes, a non-recurring income tax benefit
associated with the acquisition of mLab intangible assets, and the
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, and for periods prior to and including the period in which we completed our initial public offering, 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 https://investors.mongodb.com.
Investor Relations
Brian Denyeau
ICR for MongoDB
646-277-1251
ir@mongodb.com
Media Relations
Mark Wheeler
MongoDB
866-237-8815 x7186
communications@mongodb.com
MONGODB, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
(unaudited)
As of January 31,
2019 2018
*As Adjusted
---
Assets
Current assets:
Cash and cash equivalents $147,831 $61,902
Short-term investments 318,139 217,072
Accounts receivable, net of allowance for doubtful accounts of $1,539 and $1,238 as of January 31, 2019 64,833 46,872
and 2018, respectively
Deferred commissions 15,878 11,798
Prepaid expenses and other current assets 19,555 9,638
---
Total current assets 566,236 347,282
Property and equipment, net 73,664 59,557
Goodwill 41,878 1,700
Acquired intangible assets, net 15,894 1,627
Deferred tax assets 1,193 326
Other assets 34,611 22,352
Total assets $733,476 $432,844
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $2,153 $2,261
Accrued compensation and benefits 25,982 17,433
Other accrued liabilities 14,169 8,423
Deferred revenue 122,333 84,415
---
Total current liabilities 164,637 112,532
Deferred rent, non-current 2,567 925
Deferred tax liability, non-current 106 18
Deferred revenue, non-current 15,343 16,499
Convertible senior notes, net 216,858
---
Other liabilities, non-current 69,399 55,213
---
Total liabilities 468,910 185,187
---
Stockholders' equity:
Class A common stock, par value of $0.001 per share; 1,000,000,000 shares authorized as of January 31, 36 13
2019 and 2018; 36,286,573 and 13,303,028 shares issued and outstanding as of January 31, 2019 and
2018, respectively
Class B common stock, par value of $0.001 per share; 100,000,000 shares authorized as of January 31, 2019 18 38
and 2018; 18,134,608 and 37,371,914 shares issued as of January 31, 2019 and 2018, respectively;
18,035,237 and 37,272,543 shares outstanding as of January 31, 2019 and 2018, respectively
Additional paid-in capital 754,612 638,680
Treasury stock, 99,371 shares (repurchased at an average of $13.27 per share) as of January 31, 2019 and 2018 (1,319) (1,319)
Accumulated other comprehensive loss (174) (159)
Accumulated deficit (488,607) (389,596)
---
Total stockholders' equity 264,566 247,657
Total liabilities and stockholders' equity $733,476 $432,844
* Prior period information has been adjusted to reflect the adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("New Revenue
Standard"), which MongoDB adopted on January 31, 2019 and applied retrospectively as of February 1, 2018.
MONGODB, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
Three Months Ended January 31,
Year Ended January 31,
---
2019 2018 2019 2018
*As Adjusted *As Adjusted
---
Revenue:
Subscription $80,632 $46,498 $248,391 $151,853
Services 4,852 3,553 18,625 14,175
---
Total revenue 85,484 50,051 267,016 166,028
---
Cost of revenue:
Subscription(1) 20,821 9,097 56,255 30,766
Services(1) 4,746 3,304 17,313 12,093
---
Total cost of revenue 25,567 12,401 73,568 42,859
---
Gross profit 59,917 37,650 193,448 123,169
Operating expenses:
Sales and marketing(1) 42,482 31,534 148,296 109,073
Research and development(1) 26,600 16,788 89,854 62,202
General and administrative(1) 14,596 10,242 53,063 36,775
---
Total operating expenses 83,678 58,564 291,213 208,050
---
Loss from operations (23,761) (20,914) (97,765) (84,881)
Other income (expense), net (2,424) 1,349 (4,564) 2,195
---
Loss before provision for income taxes (26,185) (19,565) (102,329) (82,686)
Provision for income taxes (3,998) 470 (3,318) 1,287
---
Net loss $(22,187) $(20,035) $(99,011) $(83,973)
Net loss per share, basic and diluted $(0.41) $(0.40) $(1.90) $(3.54)
Weighted-average shares used to compute net loss per share, 53,825,561 50,287,162 52,034,596 23,718,391
basic and diluted
===
* Prior period information has been adjusted to reflect the adoption of the New Revenue Standard, which MongoDB adopted on January
31, 2019 and applied retrospectively as of February 1, 2018.
(1) Includes stock-based compensation expense as follows:
Three Months Ended January 31,
Year Ended January 31,
---
2019 2018 2019 2018
---
Cost of revenue-subscription $644 $227 $2,047 $730
Cost of revenue-services 439 170 1,239 462
Sales and marketing 3,620 1,964 11,059 6,364
Research and development 3,446 1,680 11,687 5,752
General and administrative 2,404 2,128 11,371 7,927
---
Total stock?based compensation expense $10,553 $6,169 $37,403 $21,235
MONGODB, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended January 31,
Year Ended January 31,
---
2019 2018 2019 2018
*As Adjusted *As Adjusted
---
Cash flows from operating activities
Net loss $(22,187) $(20,035) $(99,011) $(83,973)
Adjustments to reconcile net loss to net cash used in operating
activities:
Depreciation and amortization 2,458 914 5,792 3,703
Stock-based compensation 10,553 6,169 37,403 21,235
Amortization of debt discount and issuance costs 3,166 7,399
Non-cash interest on office financing lease 911 1,570
Deferred income taxes (4,609) (465) (4,960) (302)
Change in fair value of warrant liability (101)
Change in operating assets and liabilities:
Accounts receivable (24,491) (11,248) (15,224) (15,901)
Prepaid expenses and other current assets (82) 779 (9,583) (2,782)
Deferred commissions (6,549) (4,657) (16,134) (6,422)
Other long-term assets (181) (17) (214) (687)
Accounts payable (748) (1,058) (913) (371)
Deferred rent 384 (48) 1,642 (133)
Accrued liabilities 6,380 5,952 13,564 8,115
Deferred revenue 25,515 16,002 36,680 32,738
---
Net cash used in operating activities (9,480) (7,712) (41,989) (44,881)
Cash flows from investing activities
Purchases of property and equipment (3,150) (421) (6,848) (2,135)
Acquisitions, net of cash acquired (55,517) (55,517)
Proceeds from maturities of marketable securities 244,000 8,000 450,000 82,230
Purchases of marketable securities (178,178) (179,503) (547,914) (252,382)
---
Net cash provided by (used in) investing activities 7,155 (171,924) (160,279) (172,287)
Cash flows from financing activities
Proceeds from exercise of stock options, including early 4,613 166 22,244 8,367
exercised stock options
Proceeds from the issuance of common stock under the 4,906 10,532
Employee Stock Purchase Plan
Repurchase of early exercised stock options (93) (327) (242)
Proceeds from borrowings on convertible senior notes, net of 291,145 -
issuance costs
Payment for purchase of capped calls (37,086) -
Proceeds from tenant improvement allowance on build-to-suit 1,095 1,728
lease
Proceeds from the IPO, net of underwriting discounts and 205,494
commissions
Proceeds from exercise of redeemable convertible preferred stock 1
warrants
Payment of offering costs (1,384) (3,728)
Net cash provided by (used in) financing activities 10,614 (1,311) 288,236 209,892
Effect of exchange rate changes on cash, cash equivalents, and 53 109 (48) 291
restricted cash
---
Net (decrease) increase in cash, cash equivalents, and restricted cash 8,342 (180,838) 85,920 (6,985)
Cash, cash equivalents, and restricted cash, beginning of period 140,005 243,265 62,427 69,412
Cash, cash equivalents, and restricted cash, end of period $148,347 $62,427 $148,347 $62,427
* Prior period information has been adjusted to reflect the adoption of the New Revenue Standard, which MongoDB adopted on January 31, 2019 and applied retrospectively as of February 1, 2018.
MONGODB, INC.
IMPACT OF ADOPTION OF THE NEW REVENUE STANDARD
ON THE QUARTERLY STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
Year Ended
---
April 30,
Impact of
April 30,
July 31,
Impact of
July 31,
October 31,
Impact of
October 31,
January 31,
Impact of
January 31,
January 31,
Impact of
January 31,
2018 Adoption 2018 2018 Adoption 2018 2018 Adoption 2018 2019 Adoption 2019 2019 Adoption 2019
As Previously As Adjusted As Previously As Adjusted As Previously As Adjusted Old Revenue As Adjusted Old Revenue As Adjusted
Reported
Reported Standard Standard
Reported
---
Revenue:
Subscription $44,565 $1,504 $46,069 $52,933 $2,153 $55,086 $60,090 $6,514 $66,604 $78,250 $2,382 $80,632 $235,838 $12,553 $248,391
Services 3,657 413 4,070 4,557 (32) 4,525 4,895 283 5,178 4,858 (6) 4,852 17,967 658 18,625
Total revenue 48,222 1,917 50,139 57,490 2,121 59,611 64,985 6,797 71,782 83,108 2,376 85,484 253,805 13,211 267,016
Cost of revenue:
Subscription 10,070 10,070 12,116 12,116 13,248 13,248 20,821 20,821 56,255 56,255
Services 3,679 3,679 4,378 4,378 4,510 4,510 4,746 4,746 17,313 17,313
Total cost of revenue 13,749 13,749 16,494 16,494 17,758 17,758 25,567 25,567 73,568 73,568
Gross profit 34,473 1,917 36,390 40,996 2,121 43,117 47,227 6,797 54,024 57,541 2,376 59,917 180,237 13,211 193,448
Operating expenses:
Sales and marketing 33,889 (692) 33,197 37,880 (1,343) 36,537 38,116 (2,036) 36,080 45,058 (2,576) 42,482 154,943 (6,647) 148,296
Research and development 18,645 18,645 21,430 21,430 23,179 23,179 26,600 26,600 89,854 89,854
General and administrative 11,227 11,227 12,254 12,254 14,986 14,986 14,596 14,596 53,063 53,063
Total operating expenses 63,761 (692) 63,069 71,564 (1,343) 70,221 76,281 (2,036) 74,245 86,254 (2,576) 83,678 297,860 (6,647) 291,213
Loss from operations (29,288) 2,609 (26,679) (30,568) 3,464 (27,104) (29,054) 8,833 (20,221) (28,713) 4,952 (23,761) (117,623) 19,858 (97,765)
Other income (expense), net 591 591 (432) (432) (2,299) (2,299) (2,424) (2,424) (4,564) (4,564)
Loss before provision for (28,697) 2,609 (26,088) (31,000) 3,464 (27,536) (31,353) 8,833 (22,520) (31,137) 4,952 (26,185) (122,187) 19,858 (102,329)
income taxes
Provision for income taxes 467 467 246 246 (33) (33) (3,998) (3,998) (3,318) (3,318)
Net loss $(29,164) $2,609 $(26,555) $(31,246) $3,464 $(27,782) $(31,320) $8,833 $(22,487) $(27,139) $4,952 $(22,187) $(118,869) $19,858 $(99,011)
===
Net loss per share, basic $(0.58) $0.05 $(0.53) $(0.61) $0.07 $(0.54) $(0.59) $0.16 $(0.43) $(0.50) $0.09 $(0.41) $(2.28) $0.38 $(1.90)
and diluted
===
Weighted-average shares 50,350 50,350 51,185 51,185 52,703 52,703 53,826 53,826 52,035 52,035
used to compute net loss
per share, basic and
diluted
MONGODB, INC.
IMPACT OF ADOPTION OF THE NEW REVENUE STANDARD
ON THE QUARTERLY BALANCE SHEETS
(in thousands)
(unaudited)
April 30,
Impact of
April 30,
July 31,
Impact of
July 31,
October 31,
Impact of
October 31,
January 31,
Impact of
January 31,
2018 Adoption 2018 2018 Adoption 2018 2018 Adoption 2018 2019 Adoption 2019
As Previously As Adjusted As Previously As Adjusted As Previously As Adjusted Old Revenue As Adjusted
Reported
Reported
Reported Standard
---
Assets
Current assets:
Cash and cash equivalents $111,617
$ - $111,617 $122,771
$ - $122,771 $139,490
$ - $139,490 $147,831
$ - $147,831
Short-term investments 159,371 159,371 399,906 399,906 382,681 382,681 318,139 318,139
Accounts receivable, net 32,475 32,475 38,340 38,340 37,497 37,497 64,833 64,833
Deferred commissions 13,155 (853) 12,302 14,857 (2,023) 12,834 19,143 (4,866) 14,277 22,531 (6,653) 15,878
Prepaid expenses and other current assets 9,101 4,048 13,149 7,832 5,314 13,146 8,653 9,238 17,891 11,580 7,975 19,555
Total current assets 325,719 3,195 328,914 583,706 3,291 586,997 587,464 4,372 591,836 564,914 1,322 566,236
Property and equipment, net 63,335 63,335 70,374 70,374 73,191 73,191 73,664 73,664
Goodwill 1,700 1,700 1,700 1,700 1,700 1,700 41,878 41,878
Acquired intangible assets, net 1,406 1,406 1,185 1,185 965 965 15,894 15,894
Deferred tax assets 323 323 300 300 701 701 1,193 1,193
Other assets 7,744 15,439 23,183 6,665 17,952 24,617 6,649 22,833 29,482 7,417 27,194 34,611
Total assets $400,227 $18,634 $418,861 $663,930 $21,243 $685,173 $670,670 $27,205 $697,875 $704,960 $28,516 $733,476
===
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 1,429 1,429 2,256 2,256 1,942 1,942 2,153 2,153
Accrued compensation and benefits 14,773 14,773 14,981 14,981 21,615 21,615 25,982 25,982
Other accrued liabilities 8,518 8,518 13,473 13,473 12,169 12,169 14,169 14,169
Deferred revenue 119,936 (32,394) 87,542 125,526 (33,435) 92,091 136,609 (38,480) 98,129 164,681 (42,348) 122,333
Total current liabilities 144,656 (32,394) 112,262 156,236 (33,435) 122,801 172,335 (38,480) 133,855 206,985 (42,348) 164,637
Deferred rent, non-current 1,397 1,397 1,842 1,842 2,183 2,183 2,567 2,567
Deferred tax liability, non-current 19 19 39 39 42 42 106 106
Deferred revenue, non-current 21,909 (5,745) 16,164 20,235 (5,559) 14,676 17,229 (3,386) 13,843 18,501 (3,158) 15,343
Convertible senior notes, net - 210,553 210,553 213,692 213,692 216,858 216,858
Other long term liabilities 59,739 59,739 66,401 66,401 67,944 67,944 69,399 69,399
Total liabilities 227,720 (38,139) 189,581 455,306 (38,994) 416,312 473,425 (41,866) 431,559 514,416 (45,506) 468,910
Stockholders' equity:
Class A common stock 24 24 30 30 35 35 36 36
Class B common stock 27 27 22 22 18 18 18 18
Additional paid-in capital 646,973 646,973 714,401 714,401 734,381 734,381 754,612 754,612
Treasury stock, 99,371 shares (1,319) (1,319) (1,319) (1,319) (1,319) (1,319) (1,319) (1,319)
Accumulated other comprehensive loss (274) (274) (340) (340) (380) (380) (174) (174)
Accumulated deficit (472,924) 56,773 (416,151) (504,170) 60,237 (443,933) (535,490) 69,071 (466,419) (562,629) 74,022 (488,607)
Total stockholders' equity 172,507 56,773 229,280 208,624 60,237 268,861 197,245 69,071 266,316 190,544 74,022 264,566
Total liabilities and stockholders' equity $400,227 $18,634 $418,861 $663,930 $21,243 $685,173 $670,670 $27,205 $697,875 $704,960 $28,516 $733,476
===
MONGODB, INC.
QUARTERLY STATEMENTS OF OPERATIONS AND DEFERRED REVENUE
(in thousands, except share and per share data)
(unaudited)
Three Months Ended
January 31,
October 31,
July 31,
April 30,
January 31,
October 31,
July 31,
April 30,
2019 2018 2018 2018 2018 2017 2017 2017
*As Adjusted *As Adjusted *As Adjusted *As Adjusted *As Adjusted *As Adjusted *As Adjusted
---
Revenue:
Subscription $80,632 $66,604 $55,086 $46,069 $46,498 $39,062 $34,831 $31,462
Services 4,852 5,178 4,525 4,070 3,553 3,807 3,534 3,281
Total revenue 85,484 71,782 59,611 50,139 50,051 42,869 38,365 34,743
Cost of revenue:
Subscription(1) 20,821 13,248 12,116 10,070 9,097 7,904 7,215 6,550
Services(1) 4,746 4,510 4,378 3,679 3,304 3,167 2,973 2,649
Total cost of revenue 25,567 17,758 16,494 13,749 12,401 11,071 10,188 9,199
Gross profit 59,917 54,024 43,117 36,390 37,650 31,798 28,177 25,544
Operating expenses:
Sales and marketing(1) 42,482 36,080 36,537 33,197 31,534 28,460 27,066 22,013
Research and development(1) 26,600 23,179 21,430 18,645 16,788 16,588 15,749 13,077
General and administrative(1) 14,596 14,986 12,254 11,227 10,242 9,829 8,933 7,771
Total operating expenses 83,678 74,245 70,221 63,069 58,564 54,877 51,748 42,861
Loss from operations (23,761) (20,221) (27,104) (26,679) (20,914) (23,079) (23,571) (17,317)
Other income (expense), net (2,424) (2,299) (432) 591 1,349 170 335 341
Loss before provision for income taxes (26,185) (22,520) (27,536) (26,088) (19,565) (22,909) (23,236) (16,976)
Provision for income taxes (3,998) (33) 246 467 470 336 252 229
Net loss $(22,187) $(22,487) $(27,782) $(26,555) $(20,035) $(23,245) $(23,488) $(17,205)
===
Net loss per share, basic and diluted $(0.41) $(0.43) $(0.54) $(0.53) $(0.40) $(1.33) $(1.73) $(1.31)
===
Weighted-average shares used to 53,825,561 52,702,526 51,185,258 50,350,052 50,287,162 17,421,642 13,600,435 13,164,559
compute net loss per share, basic
and diluted
__________________________
* Prior period information has been adjusted to reflect the adoption of the New Revenue Standard, which MongoDB adopted on January 31, 2019 and applied retrospectively as of February 1, 2018.
(1) Includes stock?based compensation expense as follows (unaudited, in thousands):
Three Months Ended
January 31,
October 31,
July 31,
April 30,
January 31,
October 31,
July 31,
April 30,
2019 2018 2018 2018 2018 2017 2017 2017
---
Cost of revenue-subscription $644 $555 $489 $359 $227 $183 $170 $151
Cost of revenue-services 439 335 281 184 170 123 98 72
Sales and marketing 3,620 3,090 2,129 2,218 1,964 1,704 1,482 1,215
Research and development 3,446 3,131 2,904 2,206 1,680 1,505 1,322 1,245
General and administrative 2,404 3,153 3,206 2,610 2,128 2,184 1,845 1,771
Total stock?based compensation $10,553 $10,264 $9,009 $7,577 $6,169 $5,699 $4,917 $4,454
expense
===
The following table presents a deferred revenue (current and non-current), as adjusted to reflect the adoption of the New Revenue Standard as of each of the periods indicated (unaudited, in thousands):
January 31,
October 31,
July 31,
April 30,
January 31,
October 31,
July 31,
April 30,
2019 2018 2018 2018 2018 2017 2017 2017
*As Adjusted *As Adjusted *As Adjusted *As Adjusted *As Adjusted *As Adjusted *As Adjusted
---
Deferred revenue $122,333 $98,129 $92,091 $87,542 $84,415 $69,393 $63,882 $59,456
Deferred revenue, non-current 15,343 13,843 14,676 16,164 16,499 15,122 11,805 9,422
MONGODB, INC.
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
Reflecting the adoption of the New Revenue Standard
(in thousands, except share and per share data)
(unaudited)
Three Months Ended January 31,
Year Ended January 31,
---
2019 2018 2019 2018
*As Adjusted *As Adjusted
---
Reconciliation of GAAP gross profit to non-GAAP gross profit:
Gross profit on a GAAP basis $59,917 $37,650 $193,448 $123,169
Gross margin (Gross profit/Total revenue) on a GAAP basis 70.1 % 75.2 % 72.4 % 74.2 %
Add back:
Stock-based compensation expense: Cost of Revenue-Subscription 644 227 2,047 730
Stock-based compensation expense: Cost of Revenue-Services 439 170 1,239 462
Non-GAAP gross profit $61,000 $38,047 $196,734 $124,361
Non-GAAP gross margin (Non-GAAP gross profit/Total revenue) 71 % 76 % 74 % 75 %
Reconciliation of GAAP loss from operations to non-GAAP loss
from operations:
Loss from operations on a GAAP basis $(23,761) $(20,914) $(97,765) $(84,881)
Add back:
Stock-based compensation expense 10,553 6,169 37,403 21,235
Amortization of intangible assets and Founder Holdback 3,577 221 4,240 884
associated with acquisitions
Acquisition costs (60) 450
Accelerated charges associated with the New York City office 1,450 -
move
Non-GAAP loss from operations $(9,691) $(14,524) $(54,222) $(62,762)
Reconciliation of GAAP net loss to non-GAAP net loss:
Net loss on a GAAP basis $(22,187) $(20,035) $(99,011) $(83,973)
Add back:
Stock-based compensation expense 10,553 6,169 37,403 21,235
Amortization of intangible assets associated with acquisitions and 3,577 221 4,240 884
mLab Founder Holdback
Acquisition costs (60) 450
Accelerated charges associated with the New York City office 1,450 -
move
Non-cash interest expense related to convertible senior notes 3,166 7,399
Change in fair value of warrant liability (101)
Non-recurring income tax benefit associated with the acquisition (4,119) (4,119)
of mLab intangible assets
---
Non-GAAP net loss $(9,070) $(13,645) $(52,188) $(61,955)
Reconciliation of GAAP net loss per share, basic and diluted, to
non-GAAP net loss per share, basic and diluted:
Net loss per share, basic and diluted, on a GAAP basis $(0.41) $(0.40) $(1.90) $(3.54)
Add back:
Stock-based compensation expense 0.20 0.13 0.72 0.90
Amortization of intangible assets associated with acquisitions and 0.06 0.08 0.04
mLab Founder Holdback
Acquisition costs 0.01 -
Accelerated charges associated with the New York City office move 0.03 -
Non-cash interest expense related to convertible senior notes 0.06 0.14
Change in fair value of warrant liability -
Non-recurring income tax benefit associated with the acquisition (0.08) (0.08)
of mLab intangible assets
Impact of additional weighted-average shares giving effect to 1.17
conversion of preferred stock at the beginning of the period
Non-GAAP net loss per share, basic and diluted $(0.17) $(0.27) $(1.00) $(1.43)
Reconciliation of GAAP weighted-average shares outstanding,
basic and diluted, to non-GAAP weighted-average shares
outstanding, basic and diluted, used to compute net loss per
share:
Weighted-average shares used to compute net loss per share, basic 53,825,561 50,287,162 52,034,596 23,718,391
and diluted, on a GAAP basis
Add back:
Additional weighted-average shares giving effect to conversion of 19,494,691
preferred stock at the beginning of the period
Non-GAAP weighted-average shares used to compute net loss per 53,825,561 50,287,162 52,034,596 43,213,082
share, basic and diluted
===
* Prior-period information has been adjusted to reflect the adoption of the New Revenue Standard, which MongoDB adopted as of January 31, 2019 and applied retrospectively as of February 1, 2018.
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 (unaudited, in thousands):
Three Months Ended January 31,
Year Ended January 31,
---
2019 2018 2019 2018
---
Net cash used in operating activities $(9,480) $(7,712) $(41,989) $(44,881)
Capital expenditures (3,150) (421) (6,848) (2,135)
Capitalized software -
Free cash flow $(12,630) $(8,133) $(48,837) $(47,016)
MONGODB, INC.
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
Results under the Old Revenue Standard (ASC 605)
(in thousands, except share and per share data)
(unaudited)
Three Months Ended January 31,
Years Ended January 31,
2019 2018 2019 2018
Old Revenue As Previously Old Revenue As Previously
Standard Reported Standard Reported
---
Reconciliation of GAAP gross profit to non-GAAP gross profit:
Gross profit on a GAAP basis $57,541 $32,640 $180,237 $111,660
Gross margin (Gross profit/Total revenue) on a GAAP basis 69 % 72 % 71 % 72 %
Add back:
Stock-based compensation expense: Cost of Revenue-Subscription 644 227 2,047 730
Stock-based compensation expense: Cost of Revenue-Services 439 170 1,239 462
Non-GAAP gross profit $58,624 $33,037 $183,523 $112,852
===
Non-GAAP gross profit margin (disclosure only) 71 % 73 % 72 % 73 %
Reconciliation of GAAP loss from operations to non-GAAP loss
from operations:
Loss from operations on a GAAP basis $(28,713) $(27,253) $(117,623) $(97,267)
Add back:
Stock-based compensation expense 10,553 6,169 37,403 21,235
Amortization of intangible assets and Founder Holdback associated 3,577 221 4,240 884
with acquisitions
Acquisition costs (60) 450 -
Accelerated charges associated with the New York City office move - 1,450
Non-GAAP loss from operations $(14,643) $(20,863) $(74,080) $(75,148)
===
Reconciliation of GAAP net loss to non-GAAP net loss:
Net loss on a GAAP basis $(27,139) $(26,374) $(118,869) $(96,359)
Add back:
Stock-based compensation expense 10,553 6,169 37,403 21,235
Amortization of intangible assets associated with acquisitions and 3,577 221 4,240 884
mLab Founder Holdback
Acquisition costs (60) 450 -
Accelerated charges associated with the New York City office move - 1,450
Non-cash interest expense related to convertible senior notes 3,166 7,399 -
Change in fair value of warrant liability - (101)
Non-recurring income tax benefit associated with the acquisition (4,119) (4,119) -
of mLab intangible assets
Non-GAAP net loss $(14,022) $(19,984) $(72,046) $(74,341)
===
Reconciliation of GAAP net loss per share, basic and diluted, to
non-GAAP net loss per share, basic and diluted:
Net loss per share, basic and diluted, on a GAAP basis $(0.50) $(0.52) $(2.28) $(4.06)
Add back:
Stock-based compensation expense 0.20 0.12 0.72 0.90
Amortization of intangible assets associated with acquisitions and 0.06 0.08 0.04
mLab Founder Holdback
Acquisition costs - 0.01
Accelerated charges associated with the New York City office - 0.03
move
Non-cash interest expense related to convertible senior notes 0.06 0.14 -
Change in fair value of warrant liability -
Non-recurring income tax benefit associated with the acquisition (0.08) (0.08) -
of mLab intangible assets
Impact of additional weighted-average shares giving effect to - 1.40
conversion of preferred stock at the beginning of the period
Non-GAAP net loss per share, basic and diluted $(0.26) $(0.40) $(1.38) $(1.72)
===
Reconciliation of GAAP weighted-average shares outstanding,
basic and diluted, to non-GAAP weighted-average shares
outstanding, basic and diluted, used to compute net loss per
share:
Weighted-average shares used to compute net loss per share, basic 53,825,561 50,287,162 52,034,596 23,718,391
and diluted, on a GAAP basis
Add back:
Additional weighted-average shares giving effect to conversion of - 19,494,691
preferred stock at the beginning of the period
Non-GAAP weighted-average shares used to compute net loss per 53,825,561 50,287,162 52,034,596 43,213,082
share, basic and diluted
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SOURCE MongoDB, Inc.
