MongoDB, Inc. Announces Fourth Quarter and Full Year Fiscal 2020 Financial Results

NEW YORK, March 17, 2020 /PRNewswire/ -- 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, 2020.

"MongoDB delivered excellent fourth quarter results that capped off an outstanding year for the company. Customers in all industries and geographies are embracing our modern data platform as the best way to work with data, driving the demand and adoption of our technology," said Dev Ittycheria, President and Chief Executive Officer of MongoDB. "We're also pleased with the continued success of our global cloud database, Atlas, which surpassed the $200 million annualized revenue run rate in the fourth quarter. Multi-cloud is becoming a strategic imperative for enterprises, and Atlas is uniquely positioned to give our customers the freedom to run anywhere and leverage the benefits of each cloud provider."

"As we look ahead to fiscal 2021, we strongly believe that the database market is at the very beginning of a profound platform shift towards the cloud over the next decade. We believe that MongoDB is exceptionally well positioned to be one of the key beneficiaries in this platform shift."

Senior Leadership Update

Eliot Horowitz, our co-founder and CTO, has decided, after almost 13 years with MongoDB, to step down as CTO and as a director of the company effective as of our Annual Meeting, July 10, 2020. He will become a technical advisor to MongoDB after leaving his full-time role.

"I want to thank Eliot for his technical vision, leadership and immense contributions since co-founding the company," said Dev Ittycheria. "Eliot, together with the other founders of MongoDB, realized 13 years ago that the incumbent database technology was ill suited for the needs of developers building modern applications. Their insight and hard work resulted in the document model, a fundamentally different way to persist data that addresses the rigidity and scalability limitations of relational databases. Today, MongoDB is the world's most popular modern database with more than 90 million downloads, 1.5M Atlas free tier users, 17,000 customers, nearly 2000 employees in 26 countries, and a strong and deep leadership team that will carry on with the vision set forth by Eliot."

Fourth Quarter Fiscal 2020 Financial Highlights

    --  Revenue: Total revenue was $123.5 million in the fourth quarter fiscal
        2020, an increase of 44% year-over-year. Subscription revenue was $117.8
        million, an increase of 46% year-over-year, and services revenue was
        $5.7 million, an increase of 17% year-over-year.
    --  Gross Profit: Gross profit was $88.7 million in the fourth quarter
        fiscal 2020, representing a 72% gross margin, compared to 70% in the
        year-ago period. Non-GAAP gross profit was $91.2 million, representing a
        74% non-GAAP gross margin.
    --  Loss from Operations: Loss from operations was $40.9 million in the
        fourth quarter fiscal 2020, compared to $23.8 million in the year-ago
        period. Non-GAAP loss from operations was $12.0 million, compared to
        $9.7 million in the year-ago period.
    --  Net Loss: Net loss was $62.6 million, or $1.10 per share, based on 56.9
        million weighted-average shares outstanding in the fourth quarter fiscal
        2020. This compares to $22.2 million, or $0.41 per share, based on 53.8
        million weighted-average shares outstanding, in the year-ago period.
        Non-GAAP net loss was $14.5 million or $0.25 per share. This compares to
        $9.1 million or $0.17 per share in the year-ago period.
    --  Cash Flow: As of January 31, 2020, MongoDB had $987.0 million in cash,
        cash equivalents, short-term investments and restricted cash. During the
        three months ended January 31, 2020, MongoDB used $8.6 million of cash
        from operations, $1.2 million in capital expenditures and $1.1 million
        in principal repayments of finance leases, leading to negative free cash
        flow of $10.9 million, compared to negative free cash flow of $12.6
        million in the year-ago period.

Full Year Fiscal 2020 Financial Highlights

    --  Revenue: Total revenue was $421.7 million for the full year fiscal 2020,
        an increase of 58% year-over-year. Subscription revenue was $399.8
        million, an increase of 61% year-over-year, and services revenue was
        $21.9 million, an increase of 18% year-over-year.
    --  Gross Profit: Gross profit was $296.4 million for the full year fiscal
        2020, representing a 70% gross margin compared to 72% the prior year.
        Non-GAAP gross profit was $304.4 million, representing a 72% non-GAAP
        gross margin.
    --  Loss from Operations: Loss from operations was $147.9 million for the
        full year fiscal 2020, compared to $97.8 million in the prior year.
        Non-GAAP loss from operations was $53.7 million, compared to $54.2
        million in the prior year.
    --  Net Loss: Net loss was $175.5 million, or $3.14 per share, based on 55.9
        million weighted-average shares outstanding, for the full year fiscal
        2020. This compares to $99.0 million, or $1.90 per share, based on 52.0
        million weighted-average shares outstanding, in the prior year. Non-GAAP
        net loss was $55.9 million or $1.00 per share. This compares to $52.2
        million or $1.00 per share in the prior year.
    --  Cash Flow: During the year ended January 31, 2020, MongoDB used $29.5
        million of cash in operations and $3.6 million in capital expenditures
        and $1.9 million in principal repayments of finance leases, leading to
        negative free cash flow of $35.0 million, compared to negative free cash
        flow of $48.8 million in the prior year.

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 2020 and Recent Business Highlights

    --  Fast Company ranked MongoDB #2 in the enterprise technology category on
        its 2020 Most Innovative Companies list. Developers choose MongoDB
        because it gives them a better way to work with data and allows them to
        innovate faster. As a result, MongoDB has now been downloaded more than
        90 million times from our website alone and there are now more than 1.5
        million free deployments on Atlas.
    --  Launched the MongoDB Modernization Toolkit in partnership with
        Informatica and Hitachi Vantara Pentaho to make it easier for
        enterprises to migrate off of legacy databases like Oracle. These
        partners have developed tools that simplify the process of identifying
        and moving data out of relational databases into MongoDB at scale. We
        intend to utilize these tools with our systems integrator partners, who
        help our customers with digital transformation initiatives and
        migrations to the cloud.
    --  Deepened our leadership bench with the addition of Mark Porter to the
        Board of Directors. Porter is the Chief Technology Officer for Grab, an
        on-demand transportation and financial services company in Southeast
        Asia, and has been a pioneer in the database industry for decades. He
        previously led many of Amazon Web Services' (AWS) database efforts
        including AWS Relational Database Service (RDS), Amazon Aurora and RDS
        for PostgreSQL. Prior to Amazon, Porter held various roles including
        Vice President of Engineering at Oracle Corporation and being an early
        member of the Oracle Database Kernel group.

Business Outlook

Based on information as of today, March 17, 2020, MongoDB is issuing the following financial guidance for the first quarter and full year fiscal 2021.Please note that this guidance includes our current expectation of an estimated $1 - $2 million negative revenue impact from COVID-19 outbreak for the first quarter, and $15 - $25 million for the full year fiscal 2021. The situation regarding COVID-19 is uncertain and is changing rapidly and MongoDB will continue to evaluate its potential impact on its business.


                                      First Quarter Fiscal
                                               2021                       Full Year Fiscal 2021



        Revenue          
     $119.0 million to $121.0 million 
     $510.0 million to $530.0 million

    ---

        Non-GAAP Loss             ($14.0) million to                 ($78.0) million to
         from Operations            ($12.0) million                    ($68.0) million

    ---

        Non-GAAP Net
         Loss per Share           ($0.25) to ($0.22)                 ($1.40) to ($1.23)

    ---

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 17, 2020, 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 888-317-6016 (domestic) or 412-317-6016 (international). A replay of this conference call will be available for a limited time at 877-344-7529 (domestic) or 412-317-0088 (international). The replay conference ID is 10139634. 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 17,000 customers in over 100 countries. The MongoDB database platform has been downloaded over 90 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 2021; the anticipated impact of the coronavirus disease (COVID-19) outbreak on our future results of operations, our future growth and the potential of MongoDB Atlas; and our ability to transform the global database industry and to capitalize on our 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 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 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; the price volatility of our common stock; the financial impacts of the coronavirus disease (COVID-19) outbreak on our customers, our potential customers, the global financial markets and our business and future results of operations; the impact that the precautions we have taken in our business relative to the coronavirus disease (COVID-19) outbreak may have on our business 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 Quarterly Report on Form 10-Q filed on December 10, 2019, 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 operating expenses, 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 operating expenses, non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss per share exclude:

    --  stock-based compensation expense;
    --  amortization of intangible assets for the acquired technology and
        acquired customer relationships associated with the purchase of Realm,
        as well as for the prior acquisitions of mLab and WiredTiger;
    --  amortization of time-based founder payments associated with the mLab
        purchase that was deemed to be compensation expense for GAAP purposes;
    --  acquisition costs associated with the purchase of Realm in fiscal 2020
        and mLab in fiscal 2019;
    --  accelerated charges associated with the New York City office move in the
        third quarter fiscal 2019;
    --  in the case of non-GAAP net loss, non-cash interest expense related to
        our convertible senior notes, a non-recurring loss from the early
        extinguishment of debt related to the partial repurchase of our 0.75%
        convertible senior notes due 2024 and non-recurring income tax benefits
        associated with the acquisitions of Realm and mLab intangible assets.

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, 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 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,



                                                                                       2020                2019

                                                                                                           ---


     
                Assets



     Current assets:


      Cash and cash
       equivalents                                                                 $706,192            $147,831


      Short-term
       investments                                                                  280,326             318,139


      Accounts receivable,
       net of allowance for
       doubtful accounts of
       $2,515 and $1,539 as
       of January 31, 2020
       and 2019,
       respectively                                                                  85,554              72,808


      Deferred commissions                                                           24,219              15,878


      Prepaid expenses and
       other current assets                                                          16,905              11,580

                                                                                                           ---

      Total current assets                                                        1,113,196             566,236


      Property and
       equipment, net                                                                58,316              73,664


      Operating lease right-
       of-use assets                                                                 11,147



     Goodwill                                                                       55,830              41,878


      Acquired intangible
       assets, net                                                                   34,779              15,894


      Deferred tax assets                                                               615               1,193


      Other assets                                                                   54,684              34,611


      Total assets                                                               $1,328,567            $733,476




     
                Liabilities and Stockholders' Equity



     Current liabilities:


      Accounts payable                                                               $2,849              $2,153


      Accrued compensation
       and benefits                                                                  41,427              25,982


      Operating lease
       liabilities                                                                    3,750


      Other accrued
       liabilities                                                                   26,860              14,169


      Deferred revenue                                                              167,498             122,333

                                                                                                           ---

      Total current
       liabilities                                                                  242,384             164,637


      Deferred rent, non-
       current                                                                                           2,567


      Deferred tax
       liability, non-
       current                                                                          821                 106


      Operating lease
       liabilities, non-
       current                                                                        8,113


      Deferred revenue, non-
       current                                                                       23,281              15,343



     Convertible senior notes, net

                                                                                    911,075             216,858


      Other liabilities,
       non-current                                                                   60,035              69,399

                                                                                                           ---

      Total liabilities                                                           1,245,709             468,910

                                                                                                           ---


     Stockholders' equity:


      Class A common stock,
       par value of $0.001                                             2019, respectively
       per share;
       1,000,000,000 shares
       authorized as of
       January 31, 2020 and
       2019; 48,512,090 and
       36,286,573 shares
       issued and
       outstanding as of
       January 31, 2020 and                                                              48                  36


      Class B common stock,
       par value of $0.001                                             8,870,453 and
       per share;                                                      18,035,237 shares
       100,000,000 shares                                              outstanding as of
       authorized as of                                                January 31, 2020 and
       January 31, 2020 and                                            2019, respectively
       2019; 8,969,824 and
       18,134,608 shares
       issued as of January
       31, 2020 and 2019,
       respectively;                                                                      9                  18


      Additional paid-in
       capital                                                                      752,127             754,612


      Treasury stock, 99,371
       shares (repurchased
       at an average of
       $13.27 per share) as
       of January 31, 2020
       and 2019                                                                     (1,319)            (1,319)


      Accumulated other
       comprehensive income
       (loss)                                                                           225               (174)


      Accumulated deficit                                                         (668,232)          (488,607)

                                                                                                           ---

      Total stockholders'
       equity                                                                        82,858             264,566


      Total liabilities and
       stockholders' equity                                                      $1,328,567            $733,476


                                                                                                  
          
                MONGODB, INC.

                                                                                             
       
            CONSOLIDATED STATEMENTS OF OPERATIONS

                                                                                           
       
         (in thousands, except share and per share data)

                                                                                                   
          
                (unaudited)




                                                                                                                                                                Three Months Ended January 31,         
          
               Year Ended January 31,

                                                                                                                                                                                                                      ---

                                                                                                                                                           2020                                   2019           2020                                    2019

                                                                                                                                                                                                                                                       ---


     Revenue:



     Subscription                                                                                                                                     $117,849                                $80,632       $399,826                                $248,391



     Services                                                                                                                                            5,674                                  4,852         21,894                                  18,625

                                                                                                                                                                                                                                                       ---


     Total revenue                                                                                                                                     123,523                                 85,484        421,720                                 267,016

                                                                                                                                                                                                                                                       ---


     Cost of revenue:



     Subscription(1)                                                                                                                                    28,226                                 20,821        101,691                                  56,255



     Services(1)                                                                                                                                         6,565                                  4,746         23,665                                  17,313

                                                                                                                                                                                                                                                       ---


     Total cost of revenue                                                                                                                              34,791                                 25,567        125,356                                  73,568

                                                                                                                                                                                                                                                       ---


     Gross profit                                                                                                                                       88,732                                 59,917        296,364                                 193,448



     Operating expenses:



     Sales and marketing(1)                                                                                                                             67,234                                 42,482        223,893                                 148,296



     Research and development(1)                                                                                                                        41,638                                 26,600        149,033                                  89,854



     General and administrative(1)                                                                                                                      20,763                                 14,596         71,304                                  53,063

                                                                                                                                                                                                                                                       ---


     Total operating expenses                                                                                                                          129,635                                 83,678        444,230                                 291,213

                                                                                                                                                                                                                                                       ---


     Loss from operations                                                                                                                             (40,903)                              (23,761)     (147,866)                               (97,765)



     Other expense, net                                                                                                                               (19,396)                               (2,424)      (28,312)                                (4,564)

                                                                                                                                                                                                                                                       ---


     
                Loss before provision for (benefit from) income taxes                                                                               (60,299)                              (26,185)     (176,178)                              (102,329)



     Provision for (benefit from) income taxes                                                                                                           2,264                                (3,998)         (656)                                (3,318)

                                                                                                                                                                                                                                                       ---


     Net loss                                                                                                                                        $(62,563)                             $(22,187)    $(175,522)                              $(99,011)




     Net loss per share, basic and diluted                                                                                                             $(1.10)                               $(0.41)       $(3.14)                                $(1.90)




     Weighted-average shares used to compute net loss per share, basic and diluted                                                                  56,943,622                             53,825,561     55,939,032                              52,034,596

                                                                                                                                                                                                                                                       ===




     
                
                  (1)Includes stock-based compensation expense as follows:


                                                                                                                                                                Three Months Ended January 31,         
          
               Year Ended January 31,

                                                                                                                                                                                                                      ---

                                                                                                                                                           2020                                   2019           2020                                    2019

                                                                                                                                                                                                                                                       ---


     Cost of revenue-subscription                                                                                                                       $1,520                                   $644         $4,996                                  $2,047



     Cost of revenue-services                                                                                                                              940                                    439          3,047                                   1,239



     Sales and marketing                                                                                                                                 8,912                                  3,620         26,640                                  11,059



     Research and development                                                                                                                            9,173                                  3,446         26,686                                  11,687



     General and administrative                                                                                                                          4,193                                  2,404         14,407                                  11,371

                                                                                                                                                                                                                                                       ---


     
                Total stock?based compensation expense                                                                                               $24,738                                $10,553        $75,776                                 $37,403


                                                                                             
              
                MONGODB, INC.
                                                                                        CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                           
                
                  (in thousands)
                                                                                                          (unaudited)




                                                                                                                                                  Three Months Ended January 31,         
          
           Year Ended January 31,


                                                                                                                                             2020                                   2019           2020                                2019



     
                Cash flows from operating activities



     Net loss                                                                                                                          $(62,563)                             $(22,187)    $(175,522)                          $(99,011)



     Adjustments to reconcile net loss to net cash used in operating activities:



     Depreciation and amortization                                                                                                         2,959                                  2,458         12,783                               5,792



     Stock-based compensation                                                                                                             24,738                                 10,553         75,776                              37,403



     Amortization of debt discount and issuance costs                                                                                      5,014                                  3,166         14,847                               7,399



     Amortization of finance right-of-use assets                                                                                             994                                                3,976                                   -



     Amortization of operating right-of-use assets                                                                                           960                                                3,015                                   -



     Non-cash interest on office financing lease                                                                                                                                   911          1,823                               1,570



     Deferred income taxes                                                                                                                 1,249                                (4,609)       (3,292)                            (4,960)



     Accretion of discount on short-term investments                                                                                       (441)                               (1,308)       (4,060)                            (3,875)



     Loss on early extinguishment of debt                                                                                                 14,522                                               14,522                                   -



     Change in operating assets and liabilities:



     Accounts receivable                                                                                                                (17,815)                              (23,228)      (12,692)                           (19,445)



     Prepaid expenses and other current assets                                                                                           (3,983)                                  (36)       (3,794)                            (1,487)



     Deferred commissions                                                                                                               (16,157)                               (6,549)      (28,362)                           (16,134)



     Other long-term assets                                                                                                                   95                                  (181)          (53)                              (214)



     Accounts payable                                                                                                                        665                                  (748)           513                               (913)



     Deferred rent                                                                                                                                                                 384                                             1,642



     Accrued liabilities                                                                                                                   4,263                                  6,380         20,439                              13,564



     Operating lease liabilities                                                                                                         (1,312)                                             (3,291)                                  -



     Deferred revenue                                                                                                                     38,156                                 25,514         53,054                              36,680



     Other liabilities, non-current                                                                                                           38                                                  778                                   -



     Net cash used in operating activities                                                                                               (8,618)                               (9,480)      (29,540)                           (41,989)



     
                Cash flows from investing activities



     Purchases of property and equipment                                                                                                 (1,214)                               (3,150)       (3,564)                            (6,848)



     Acquisitions, net of cash acquired                                                                                                                                       (55,517)      (38,629)                           (55,517)



     Proceeds from maturities of marketable securities                                                                                    60,000                                244,000        470,000                             450,000



     Purchases of marketable securities                                                                                                 (65,922)                             (178,178)     (429,452)                          (547,914)

                                                                                                                                                                                                                                     ---


     Net cash provided by (used in) investing activities                                                                                 (7,136)                                 7,155        (1,645)                          (160,279)



     
                Cash flows from financing activities



     Proceeds from exercise of stock options, including early exercised stock options                                                      3,492                                  4,613         16,775                              22,244



     Proceeds from the issuance of common stock under the Employee Stock Purchase Plan                                                     7,026                                  4,906         13,420                              10,532



     Repurchase of early exercised stock options                                                                                             (8)                                                (43)                              (327)



     Principal repayments of finance leases                                                                                              (1,117)                                             (1,915)                                  -



     Proceeds from borrowings on convertible senior notes, net of issuance costs                                                       1,132,991                                            1,132,991                             291,145



     Payments for partial repurchase of 2024 convertible senior notes                                                                  (479,070)                                           (479,070)                                  -



     Payment for purchase of capped calls                                                                                               (92,920)                                            (92,920)                           (37,086)



     Proceeds from tenant improvement allowance on build-to-suit lease                                                                                                           1,095                                             1,728



     Net cash provided by financing activities                                                                                           570,394                                 10,614        589,238                             288,236



     Effect of exchange rate changes on cash, cash equivalents, and restricted cash                                                          244                                     53            306                                (48)

                                                                                                                                                                                                                                     ---


     Net increase in cash, cash equivalents, and restricted cash                                                                         554,884                                  8,342        558,359                              85,920



     Cash, cash equivalents, and restricted cash, beginning of period                                                                    151,822                                140,005        148,347                              62,427



     Cash, cash equivalents, and restricted cash, end of period                                                                         $706,706                               $148,347       $706,706                            $148,347


                                                                                                                                                       
              
                MONGODB, INC.
                                                                                                                                               RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
                                                                                                                                    
                
                  (in thousands, except share and per share data)
                                                                                                                                                                    (unaudited)




                                                                                                                                                                                                                                          Three Months Ended January 31,                   
       
                Year Ended January 31,


                                                                                                                                                                                                                                      2020                                     2019                  2020                                  2019



              
                Reconciliation of GAAP gross profit to non-GAAP gross profit:



              Gross profit on a GAAP basis                                                                                                                                                                                        $88,732                                  $59,917              $296,364                              $193,448



              
                Gross margin (Gross profit/Total revenue) on a GAAP basis                                                                                                                                                 72 %

                                                                                                                                                                                                                                                    70 %                            70 %                         72 %



              Add back:



              Stock-based compensation expense: Cost of Revenue-Subscription                                                                                                                                                        1,520                                      644                 4,996                                 2,047



              Stock-based compensation expense: Cost of Revenue-Services                                                                                                                                                              940                                      439                 3,047                                 1,239



              Non-GAAP gross profit                                                                                                                                                                                               $91,192                                  $61,000              $304,407                              $196,734




              
                Non-GAAP gross margin (Non-GAAP gross profit/Total revenue)                                                                                                                                               74 %                                    71 %                 72 %                                 74 %





              
                Reconciliation of GAAP operating expenses to non-GAAP operating expenses:



              Sales and marketing operating expense on a GAAP basis                                                                                                                                                               $67,234                                  $42,482              $223,893                              $148,296



              Less:



              Stock-based compensation expense                                                                                                                                                                                      8,912                                    3,620                26,640                                11,059



              Amortization of intangible assets associated with acquisitions                                                                                                                                                          766                                      680                 2,978                                   698



              Non-GAAP sales and marketing operating expense                                                                                                                                                                      $57,556                                  $38,182              $194,275                              $136,539






              Research and development operating expense on a GAAP basis                                                                                                                                                          $41,638                                  $26,600              $149,033                               $89,854



              Less:



              Stock-based compensation expense                                                                                                                                                                                      9,173                                    3,446                26,686                                11,687



              Amortization of intangible assets and time-based founder payments associated with acquisitions                                                                                                                        3,350                                    2,897                14,763                                 3,542



              Non-GAAP research and development operating expense                                                                                                                                                                 $29,115                                  $20,257              $107,584                               $74,625






              General and administrative operating expense on a GAAP basis                                                                                                                                                        $20,763                                  $14,596               $71,304                               $53,063



              Less:



              Stock-based compensation expense                                                                                                                                                                                      4,193                                    2,404                14,407                                11,371



              Acquisition costs                                                                                                                                                                                                                                                                    641                                   450



              Accelerated charges associated with the New York City office move                                                                                                                                                                                                                                                       1,450




              Non-GAAP general and administrative operating expense                                                                                                                                                               $16,570                                  $12,192               $56,256                               $39,792






              
                Reconciliation of GAAP loss from operations to non-GAAP loss from operations:



              Loss from operations on a GAAP basis                                                                                                                                                                              $(40,903)                               $(23,761)           $(147,866)                            $(97,765)



              Add back:



              Stock-based compensation expense                                                                                                                                                                                     24,738                                   10,553                75,776                                37,403



              Amortization of intangible assets and time-based founder payments associated with acquisitions                                                                                                                        4,116                                    3,577                17,741                                 4,240



              Acquisition costs                                                                                                                                                                                                                                              (60)                  641                                   450



              Accelerated charges associated with the New York City office move                                                                                                                                                                                                                                                       1,450



              Non-GAAP loss from operations                                                                                                                                                                                     $(12,049)                                $(9,691)            $(53,708)                            $(54,222)






              
                Reconciliation of GAAP net loss to non-GAAP net loss:



              Net loss on a GAAP basis                                                                                                                                                                                          $(62,563)                               $(22,187)           $(175,522)                            $(99,011)



              Add back:



              Stock-based compensation expense                                                                                                                                                                                     24,738                                   10,553                75,776                                37,403



              Amortization of intangible assets and time-based founder payments associated with acquisitions                                                                                                                        4,116                                    3,577                17,741                                 4,240



              Acquisition costs                                                                                                                                                                                                                                              (60)                  641                                   450



              Accelerated charges associated with the New York City office move                                                                                                                                                                                                                                                       1,450



              Non-cash interest expense related to convertible senior notes                                                                                                                                                         5,014                                    3,166                14,847                                 7,399



              Non-recurring loss from the early extinguishment of debt

                                                                                                                                                                                                                                    14,522                                                        14,522



              Non-recurring income tax benefit associated with the acquisition of intangible assets                                                                                                                                 (346)                                 (4,119)              (3,882)                              (4,119)

                                                                                                                                                                                                                                                                                                                                         ---


              Non-GAAP net loss                                                                                                                                                                                                 $(14,519)                                $(9,070)            $(55,877)                            $(52,188)






              
                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                                                                                                                                                              $(1.10)                                 $(0.41)              $(3.14)                              $(1.90)



              Add back:



              Stock-based compensation expense                                                                                                                                                                                       0.43                                     0.20                  1.35                                  0.72



              Amortization of intangible assets and time-based founder payments associated with acquisitions                                                                                                                         0.07                                     0.06                  0.32                                  0.08



              Acquisition costs                                                                                                                                                                                                                                                                   0.01                                  0.01



              Accelerated charges associated with the New York City office move                                                                                                                                                                                                                                                        0.03



              Non-cash interest expense related to convertible senior notes                                                                                                                                                          0.09                                     0.06                  0.27                                  0.14



              Non-recurring loss from the early extinguishment of debt                                                                                                                                                               0.26                                                          0.26                                     -



              Non-recurring income tax benefit associated with the acquisition of intangible assets                                                                                                                                                                        (0.08)               (0.07)                               (0.08)



              Non-GAAP net loss per share, basic and diluted                                                                                                                                                                      $(0.25)                                 $(0.17)              $(1.00)                              $(1.00)






              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,

                                                                                                                                                                                                                                                                                                            ---

                                                                                                                                                                                                                                      2020                                     2019                  2020                                  2019

                                                                                                                                                                                                                                                                                                                                         ---


              Net cash used in operating activities                                                                                                                                                                              $(8,618)                                $(9,480)            $(29,540)                            $(41,989)



              Capital expenditures                                                                                                                                                                                                (1,214)                                 (3,150)              (3,564)                              (6,848)



              Principal repayments of finance leases                                                                                                                                                                              (1,117)                                                      (1,915)                                    -



              Capitalized software                                                                                                                                                                                                                                                                                                        -



              Free cash flow                                                                                                                                                                                                    $(10,949)                               $(12,630)            $(35,019)                            $(48,837)


                                                                                                                                                                      
              
                MONGODB, INC.
                                                                                                                                                              RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
                                                                                                                                                         Quarterly Presentation of Expanded NON-GAAP Operating Expenses
                                                                                                                                                          
                (in thousands, except share and per share data)
                                                                                                                                                                                   (unaudited)




                                                                                                                                                                      
              
                Three Months Ended



                                                                                                                          
     
     January 31, 2020                   
              
                October 31, 2019               
     
     July 31, 2019             
     
     April 30, 2019              
     
     January 31, 2019               
     
     October 31, 2018                
     
     July 31, 2018                 
     
     April 30, 2018

                                                                                                                                                                                                                                                                                                                                                                                                                        ---


              
                Reconciliation of GAAP gross profit to non-GAAP gross profit:



              Gross profit on a GAAP basis                                                                                                      $88,732                                                     $77,250                          $69,166                         $61,216                            $59,917                             $54,024                           $43,117                             $36,390



              
                Gross margin (Gross profit/Total revenue) on a GAAP basis                                                               72 %                                                       71 %                            70 %                           68 %                              70 %                               75 %                             72 %                               73 %



              Add back:



              Stock-based compensation expense: Cost of Revenue-Subscription                                                                      1,520                                                       1,274                            1,214                             988                                644                                 555                               489                                 359



              Stock-based compensation expense: Cost of Revenue-Services                                                                            940                                                         793                              721                             593                                439                                 335                               281                                 184



              Non-GAAP gross profit                                                                                                             $91,192                                                     $79,317                          $71,101                         $62,797                            $61,000                             $54,914                           $43,887                             $36,933

                                                                                                                                                                                                                                                                                                                                                                                                                        ===


              
                Non-GAAP gross margin (Non-GAAP gross profit/Total revenue)                                                             74 %                                                       72 %                            72 %                           70 %                              71 %                               77 %                             74 %                               74 %





              
                Reconciliation of GAAP operating expenses to non-GAAP operating expenses:



              Sales and marketing operating expense on a GAAP basis                                                                             $67,234                                                     $57,015                          $53,524                         $46,120                            $42,482                             $36,080                           $36,537                             $33,197



              Less:



              Stock-based compensation expense                                                                                                    8,912                                                       6,844                            5,944                           4,940                              3,620                               3,090                             2,129                               2,218



              Amortization of intangible assets associated with acquisitions                                                                        766                                                         766                              766                             680                                680                                   6                                 6                                   6



              Non-GAAP sales and marketing operating expense                                                                                    $57,556                                                     $49,405                          $46,814                         $40,500                            $38,182                             $32,984                           $34,402                             $30,973

                                                                                                                                                                                                                                                                                                                                                                                                                        ===




              Research and development operating expense on a GAAP basis                                                                        $41,638                                                     $39,387                          $37,140                         $30,868                            $26,600                             $23,179                           $21,430                             $18,645



              Less:



              Stock-based compensation expense                                                                                                    9,173                                                       6,879                            6,114                           4,520                              3,446                               3,131                             2,904                               2,206



              Amortization of intangible assets and time-based founder payments associated with acquisitions                                      3,350                                                       4,261                            4,252                           2,900                              2,897                                 215                               215                                 215



              Non-GAAP research and development operating expense                                                                               $29,115                                                     $28,247                          $26,774                         $23,448                            $20,257                             $19,833                           $18,311                             $16,224

                                                                                                                                                                                                                                                                                                                                                                                                                        ===




              General and administrative operating expense on a GAAP basis                                                                      $20,763                                                     $19,562                          $16,174                         $14,805                            $14,596                             $14,986                           $12,254                             $11,227



              Less:



              Stock-based compensation expense                                                                                                    4,193                                                       3,577                            3,669                           2,968                              2,404                               3,153                             3,206                               2,610



              Acquisition costs                                                                                                                       -                                                         64                              231                             346                               (60)                                510



              Accelerated charges associated with the New York City office move                                                                       -                                                                                                                                                                                          1,450

                                                                                                                                                                                                                                                                                                                                                                                                                        ---


              Non-GAAP general and administrative operating expense                                                                             $16,570                                                     $15,921                          $12,274                         $11,491                            $12,252                              $9,873                            $9,048                              $8,617

                                                                                                                                                                                                                                                                                                                                                                                                                        ===




              
                Reconciliation of GAAP loss from operations to non-GAAP loss from operations:



              Loss from operations on a GAAP basis                                                                                            $(40,903)                                                  $(38,714)                       $(37,672)                      $(30,577)                         $(23,761)                          $(20,221)                        $(27,104)                          $(26,679)



              Add back:



              Stock-based compensation expense                                                                                                   24,738                                                      19,367                           17,662                          14,009                             10,553                              10,264                             9,009                               7,577



              Amortization of intangible assets and time-based founder payments associated with acquisitions                                      4,116                                                       5,027                            5,018                           3,580                              3,577                                 221                               221                                 221



              Acquisition costs                                                                                                                       -                                                         64                              231                             346                               (60)                                510



              Accelerated charges associated with the New York City office move                                                                       -                                                                                                                                                                                          1,450



              Non-GAAP loss from operations                                                                                                   $(12,049)                                                  $(14,256)                       $(14,761)                      $(12,642)                          $(9,691)                           $(7,776)                        $(17,874)                          $(18,881)

                                                                                                                                                                                                                                                                                                                                                                                                                        ===




              
                Reconciliation of GAAP net loss to non-GAAP net loss:



              Net loss on a GAAP basis                                                                                                        $(62,563)                                                  $(42,383)                       $(37,336)                      $(33,240)                         $(22,187)                          $(22,487)                        $(27,782)                          $(26,555)



              Add back:



              Stock-based compensation expense                                                                                                   24,738                                                      19,367                           17,662                          14,009                             10,553                              10,264                             9,009                               7,577



              Amortization of intangible assets and time-based founder payments associated with acquisitions                                      4,116                                                       5,027                            5,018                           3,580                              3,577                                 221                               221                                 221



              Acquisition costs                                                                                                                       -                                                         64                              231                             346                               (60)                                510



              Accelerated charges associated with the New York City office move                                                                       -                                                                                                                                                                                          1,450



              Non-cash interest expense related to convertible senior notes                                                                       5,014                                                       3,335                            3,277                           3,221                              3,166                               3,139                             1,094                                   -



              Non-recurring loss from the early extinguishment of debt                                                                           14,522                                                                                                                                                                                                                                                                   -



              Non-recurring income tax benefit associated with the acquisition of intangible assets                                               (346)                                                                                    (3,536)                                                          (4,119)                                                                                                      -



              Non-GAAP net loss                                                                                                               $(14,519)                                                  $(14,590)                       $(14,684)                      $(12,084)                          $(9,070)                           $(6,903)                        $(17,458)                          $(18,757)

                                                                                                                                                                                                                                                                                                                                                                                                                        ===




              
                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                                                                            $(1.10)                                                    $(0.75)                         $(0.67)                        $(0.61)                           $(0.41)                            $(0.43)                          $(0.54)                            $(0.53)



              Add back:



              Stock-based compensation expense                                                                                                     0.43                                                        0.34                             0.32                            0.26                               0.20                                0.19                              0.18                                0.15



              Amortization of intangible assets and time-based founder payments associated with acquisitions                                       0.07                                                        0.09                             0.09                            0.06                               0.06                                0.01                                                                 0.01



              Acquisition costs                                                                                                                       -                                                                                                                      0.01                                                                  0.01



              Accelerated charges associated with the New York City office move                                                                       -                                                                                                                                                                                           0.03



              Non-cash interest expense related to convertible senior notes                                                                        0.09                                                        0.06                             0.06                            0.06                               0.06                                0.06                              0.02                                   -



              Non-recurring loss from the early extinguishment of debt                                                                             0.26                                                                                                                                                                                                                                                                   -



              Non-recurring income tax benefit associated with the acquisition of intangible assets                                                   -                                                                                     (0.06)                                                           (0.08)



              Non-GAAP net loss per share, basic and diluted                                                                                    $(0.25)                                                    $(0.26)                         $(0.26)                        $(0.22)                           $(0.17)                            $(0.13)                          $(0.34)                            $(0.37)

                                                                                                                                                                                                                                                                                                                                                                                                                        ===


                                                                                                                    
             
                MONGODB, INC.
                                                                                                                           CUSTOMER COUNT METRICS





     
                The following table presents certain customer count information as of the periods indicated:




                                                                                    1/31/2018                   4/30/2018                                7/31/2018   10/31/2018    1/31/2019     4/30/2019     7/31/2019      10/31/2019      1/31/2020

                                                                                                                                                                                                                                                    ---


     Total Customers                                                                  5,700+                      6,600+                                   7,400+       8,300+      13,400+        14,200        15,000+         15,900+        17,000+



     Direct Sales Customers(a)                                                        1,450+                      1,550+                                   1,600+       1,700+       1,750+         1,800         1,850+          1,900+         2,000+



     MongoDB Atlas Customers                                                          3,400+                      4,400+                                   5,300+       6,200+      11,400+        12,300        13,200+         14,200+        15,400+



     Customers over $100K(b)                                                             354                          394                                       438           490           557           598            622             688            751


               (a) Direct Sales Customers are
                customers that were sold through
                our direct sales force and
                channel partners.


               (b) Represents the number of
                customers with $100,000 or
                greater in annualized recurring
                revenue ("ARR") and annualized
                monthly recurring revenue
                ("MRR"). ARR includes the revenue
                we expect to receive from our
                customers over the following 12
                months based on contractual
                commitments and, in the case of
                Direct Sales Customers of MongoDB
                Atlas, by annualizing the prior
                90 days of their actual
                consumption of MongoDB Atlas,
                assuming no increases or
                reductions in their subscriptions
                or usage. For all other customers
                of our self-serve products, we
                calculate annualized MRR by
                annualizing the prior 30 days of
                their actual consumption of such
                products, assuming no increases
                or reductions in usage. ARR and
                annualized MRR exclude
                professional services. Prior to
                January 31, 2020, ARR from Direct
                Sales Customers of MongoDB Atlas
                was based on their contractual
                commitments instead of their
                actual consumption. We believe
                that our new consumption-based
                ARR calculation better reflects
                current customer behavior. The
                impact of this change on prior
                reported periods is immaterial.

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SOURCE MongoDB, Inc.