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MONGODB, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL …

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Unless the context otherwise indicates, references in this report to the terms
"MongoDB," "the Company," "we," "our" and "us" refer to MongoDB, Inc., its
divisions and its subsidiaries. The following discussion and analysis of our
financial condition and results of operations should be read in conjunction with
(1) our interim unaudited condensed consolidated financial statements and
related notes appearing elsewhere in this Quarterly Report on Form 10-Q and (2)
the audited consolidated financial statements and the related notes and the
discussion under the heading "Management's Discussion and Analysis of Financial
Condition and Results of Operations" included in our Annual Report on Form 10-K
for the fiscal year ended January 31, 2021 (the "2021 Form 10-K"). All
information presented herein is based on our fiscal calendar year, which ends
January 31. Unless otherwise stated, references to particular years, quarters,
months or periods refer to our fiscal years ended January 31 and the associated
quarters, months and periods of those fiscal years.
This Quarterly Report on Form 10-Q contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended (the
"Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"). These statements are often identified by the use
of 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, including our
expectations regarding our future growth opportunity, revenue and revenue
growth, investments, strategy, operating expenses and the anticipated impact of
the global economic uncertainty and financial market conditions, caused by the
ongoing COVID-19 pandemic, on our business, results of operations and financial
condition. Such forward-looking statements are subject to a number of risks,
uncertainties, assumptions and other factors that could cause actual results and
the timing of certain events to differ materially from future results expressed
or implied by the forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to, those identified
herein, and those discussed in the section titled "Risk Factors," set forth in
Part 2, Item 1A of this Quarterly Report on Form 10-Q. You should not rely upon
forward-looking statements as predictions of future events. Furthermore, such
forward-looking statements speak only as of the date of this report. Except as
required by law, we undertake no obligation to update any forward-looking
statements to reflect events or circumstances after the date of such statements.
Our corporate website is located at www.mongodb.com. We make available free of
charge, on or through our corporate website, our annual, quarterly and current
reports, and any amendments to those reports, as soon as reasonably practicable
after electronically filing such reports with, or furnishing such reports to,
the Securities and Exchange Commission ("SEC"). Information contained on our
corporate website is not part of this Quarterly Report on Form 10-Q or any other
report filed with or furnished to the SEC.

Overview

MongoDB is the leading modern, general purpose database platform. Our robust
platform enables developers to build and modernize applications rapidly and
cost-effectively across a broad range of use cases. Organizations can deploy our
platform at scale in the cloud, on-premise, or in a hybrid environment. Through
our unique document-based architecture, we are able to address the needs of
organizations for performance, scalability, flexibility and reliability while
maintaining the strengths of legacy databases. Software applications are
redefining how organizations across industries engage with their customers,
operate their businesses and compete with each other. A database is at the heart
of every software application. As a result, selecting a database is a highly
strategic decision that directly affects developer productivity, application
performance and organizational competitiveness. Our platform addresses the
performance, scalability, flexibility and reliability demands of modern
applications, while maintaining the strengths of legacy databases. Our business
model combines the developer mindshare and adoption benefits of open source with
the economic benefits of a proprietary software subscription business model.
MongoDB is headquartered in New York City and our total headcount increased to
3,223 as of October 31, 2021, from 2,334 as of October 31, 2020.
We generate revenue primarily from sales of subscriptions, which accounted for
96% of our total revenue for each of the three and nine months ended October 31,
2021 and October 31, 2020.
MongoDB Atlas is our hosted multi-cloud database-as-a-service ("DBaaS") offering
that includes comprehensive infrastructure and management, which we run and
manage in the cloud. During the three and nine months ended October 31, 2021,
MongoDB Atlas revenue represented 58% and 55% of our total revenue,
respectively, and during the three and nine
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months ended October 31, 2020, MongoDB Atlas revenue represented 47% and 44% of
our total revenue, respectively, reflecting the continued growth of MongoDB
Atlas since its introduction in June 2016. We have experienced strong growth in
self-serve customers of MongoDB Atlas. These customers are charged monthly in
arrears based on their usage. In addition, we have also seen growth in MongoDB
Atlas customers sold by our sales force. These customers typically sign annual
contracts and pay in advance or are invoiced monthly in arrears based on usage.
MongoDB Enterprise Advanced is our proprietary commercial database server
offering for enterprise customers that can run in the cloud, on-premise or in a
hybrid environment, and includes our proprietary commercial database server,
enterprise management capabilities, our graphical user interface, analytics
integrations, technical support and a commercial license to our platform.
MongoDB Enterprise Advanced revenue represented 34% and 36% of our subscription
revenue for the three and nine months ended October 31, 2021, respectively, and
43% and 46% of our subscription revenue for the three and nine months ended
October 31, 2020, respectively. We sell subscriptions directly through our field
and inside sales teams, as well as indirectly through channel partners. The
majority of our subscription contracts are one year in duration and are invoiced
upfront. When we enter into multi-year subscriptions, we typically invoice the
customer on an annual basis.
Many of our enterprise customers initially get to know our software by using
Community Server, which is our free-to-download version of our database that
includes the core functionality developers need to get started with MongoDB
without all the features of our commercial platform. Our platform has been
downloaded from our website more than 210 million times since February 2009 and
over 80 million times in the last 12 months alone. We also offer a free tier of
MongoDB Atlas, which provides access to our hosted database solution with
limited processing power and storage, as well as certain operational
limitations. As a result, with the availability of both Community Server and
MongoDB Atlas free tier offerings, our direct sales prospects are often familiar
with our platform and may have already built applications using our technology.
A core component of our growth strategy for MongoDB Atlas and MongoDB Enterprise
Advanced is to convert developers and their organizations who are already using
Community Server or the free tier of MongoDB Atlas to become customers of our
commercial products and enjoy the benefits of either a self-managed or hosted
offering.
We also generate revenue from services, which consist primarily of fees
associated with consulting and training services. Revenue from services
accounted for 4% of our total revenue for each of the three and nine months
ended October 31, 2021 and October 31, 2020. We expect to continue to invest in
our services organization as we believe it plays an important role in
accelerating our customers' realization of the benefits of our platform, which
helps drive customer retention and expansion.
We believe the market for our offerings is large and growing. According to IDC,
the worldwide database software market, which it refers to as the data
management software market, is forecast to be $74 billion in 2021 growing to
approximately $121 billion in 2025, representing a 13% compound annual growth
rate. We have experienced rapid growth and have made substantial investments in
developing our platform and expanding our sales and marketing footprint. We
intend to continue to invest heavily to grow our business to take advantage of
our market opportunity rather than optimizing for profitability or cash flow in
the near term.
Impact of the Ongoing COVID-19 Pandemic
The ongoing COVID-19 pandemic has continued to impact the United States ("U.S.")
and the world. The full extent of the impact of the ongoing COVID-19 pandemic on
our future operational and financial performance will depend on certain
developments, including the duration and spread of the outbreak and the impact
of new variants of the virus that causes COVID-19; the public health measures
taken by authorities and other entities to contain and treat COVID-19; the
actions taken to effect a widespread, global roll-out of the available vaccines
and the efficacy and durability of such vaccines; and the impact of the COVID-19
pandemic on the global economy and on our current and prospective customers,
employees, vendors and other parties with whom we do business, all of which are
uncertain and cannot be predicted.
In 2020, we adopted several measures in response to the COVID-19 pandemic,
including temporarily requiring employees to work remotely, suspending
non-essential travel by our employees, and replacing in-person marketing events
(including our annual developer conference) with virtual events. During 2021, we
began to re-open our offices in the U.S. and certain other locations globally
for employees to voluntarily return, subject to certain restrictions and
government regulations, and we have taken recommended measures to protect the
health and safety of employees who return to the office, including with respect
to occupancy limitations, masking requirements and other safety measures. We
have informed our employees that they may continue to elect to work remotely
until conditions improve, even if their office reopens. Business travel on a
voluntary basis has started to resume, although our travel costs continue to be
lower than pre-pandemic levels. We have also started to hold some in-person
marketing events. While certain travel bans and other restrictions that were
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implemented at the beginning of the pandemic were relaxed earlier in the year,
recently, due to the identification of the Omicron variant, among other
developments, some of these restrictions have been re-imposed, and new
restrictions may be implemented. We are actively monitoring the situation
related to the COVID-19 pandemic, and we may adjust our policies as may be
required or recommended by federal, foreign, state or local authorities.
We will continue to evaluate the nature and extent of the impact of COVID-19 on
our business. For further discussion of the potential impacts of the ongoing
COVID-19 pandemic on our business, operating results, and financial condition,
see the section titled "Risk Factors" included in Part II, Item 1A of this
Quarterly Report on Form 10-Q. Other factors affecting our performance are
discussed below, although we caution you that the ongoing COVID-19 pandemic may
also further impact these factors.

Key Factors Affecting Our Performance
Growing Our Customer Base and Expanding Our Global Reach
We are intensely focused on continuing to grow our customer base. We have
invested, and expect to continue to invest, heavily in our sales and marketing
efforts and developer community outreach, which are critical to driving customer
acquisition. As of October 31, 2021, we had over 31,000 customers across a wide
range of industries and in over 100 countries, compared to over 22,600 customers
as of October 31, 2020. All affiliated entities are counted as a single
customer.
Our customer count as of October 31, 2021 includes customers acquired from
ObjectLabs Corporation ("mLab") and Tightdb, Inc. ("Realm"), which acquisitions
closed on November 1, 2018 and May 7, 2019, respectively. Our definition of
"customer" excludes (1) users of our free offerings, (2) mLab users who spend
$20 or less per month with us and (3) self-serve users acquired from Realm. The
excluded mLab and Realm users collectively represent an immaterial portion of
the revenue associated with users acquired from those acquisitions.
As of October 31, 2021, we had over 3,900 customers that were sold through our
direct sales force and channel partners, as compared to over 2,800 such
customers as of October 31, 2020. These customers, which we refer to as our
Direct Sales Customers, accounted for 85% and 84% of our subscription revenue
for the three and nine months ended October 31, 2021, respectively, and 82% and
81% of our subscription revenue for the three and nine months ended October 31,
2020, respectively. The percentage of our subscription revenue from Direct Sales
Customers increased during both the three and nine months ended October 31,
2021, in part due to existing self-serve customers of MongoDB Atlas becoming
Direct Sales Customers. We are also focused on increasing the number of overall
MongoDB Atlas customers as we emphasize the on-demand scalability of MongoDB
Atlas by allowing our customers to consume the product with minimal commitment.
After launching in June 2016, we had over 29,500 MongoDB Atlas customers as of
October 31, 2021. The growth in MongoDB Atlas customers included customers from
mLab and Realm, as described above, as well as new customers to MongoDB and
existing MongoDB Enterprise Advanced customers adding incremental MongoDB Atlas
workloads.
In an effort to expand our global reach, in October 2019, we announced a
partnership with Alibaba Cloud to offer an authorized MongoDB-as-a-service
solution allowing customers of Alibaba Cloud to use this managed offering from
their data centers globally. We expanded our reach in China in February 2021
when we announced the launch of a global partnership with Tencent Cloud that
allows customers to easily adopt and use MongoDB-as-a-Service across Tencent's
global cloud infrastructure.
Increasing Adoption of MongoDB Atlas
MongoDB Atlas, our hosted multi-cloud offering, is an important part of our
run-anywhere strategy. To accelerate adoption of this DBaaS offering, in 2017,
we introduced tools to easily migrate existing users of our Community Server
offering to MongoDB Atlas. We have also expanded our introductory offerings for
MongoDB Atlas, including a free tier, which provides limited processing power
and storage in order to drive usage and adoption of MongoDB Atlas among
developers. Our MongoDB Atlas free tier offering is now available on all three
major cloud providers (Amazon Web Services ("AWS"), Google Cloud Platform
("GCP") and Microsoft Azure) in North America, Europe and Asia Pacific. In
addition, MongoDB Atlas is available on AWS Marketplace, making it easier for
AWS customers to buy and consume MongoDB Atlas. Our business partnership with
GCP provides deeper product integration and unified billing for GCP customers
who are also MongoDB Atlas customers and offers GCP customers a seamless
integration between MongoDB Atlas and GCP. The availability of MongoDB Atlas on
the Microsoft Azure Marketplace offers unified billing for joint
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customers of MongoDB Atlas and Microsoft and makes it easier for established
Azure customers to purchase and use MongoDB Atlas. In addition, MongoDB is part
of Microsoft's strategic partner program.
We have also expanded the functionality available in MongoDB Atlas beyond that
of our Community Server offering. We expect this will drive further adoption of
MongoDB Atlas as companies migrate mission-critical applications to the public
cloud. The enterprise capabilities that we have introduced to MongoDB Atlas
include advanced security features, enterprise-standard authentication and
database auditing. We have invested significantly in MongoDB Atlas and our
ability to drive adoption of MongoDB Atlas is a key component of our growth
strategy.
Retaining and Expanding Revenue from Existing Customers
The economic attractiveness of our subscription-based model is driven by
customer renewals and increasing existing customer subscriptions over time,
referred to as land-and-expand. We believe that there is a significant
opportunity to drive additional sales to existing customers, and expect to
invest in sales and marketing and customer success personnel and activities to
achieve additional revenue growth from existing customers. If an application
grows and requires additional capacity, our customers increase their
subscriptions to our platform. In addition, our customers expand their
subscriptions to our platform as they migrate additional existing applications
or build new applications, either within the same department or in other lines
of business or geographies. Also, as customers modernize their information
technology infrastructure and move to the cloud, they may migrate applications
from legacy databases. Our goal is to increase the number of customers that
standardize on our database within their organization. Over time, the
subscription amount for our typical Direct Sales Customer has increased.
We calculate annualized recurring revenue ("ARR") and annualized monthly
recurring revenue ("MRR") to help us measure our subscription revenue
performance. 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. The number of
customers with $100,000 or greater in ARR and annualized MRR was 1,201 and 898
as of October 31, 2021 and 2020, respectively. Our ability to increase sales to
existing customers will depend on a number of factors, including customers'
satisfaction or dissatisfaction with our products and services, competition,
pricing, economic conditions or overall changes in our customers' spending
levels.
We also examine the rate at which our customers increase their spend with us,
which we call net ARR expansion rate. We calculate net ARR expansion rate by
dividing the ARR at the close of a given period (the "measurement period"), from
customers who were also customers at the close of the same period in the prior
year (the "base period"), by the ARR from all customers at the close of the base
period, including those who churned or reduced their subscriptions. For Direct
Sales Customers included in the base period, measurement period or both such
periods that were self-serve customers in any such period, we also include
annualized MRR from those customers in the calculation of the net ARR expansion
rate. Our net ARR expansion rate remained over 120% during the three months
ended October 31, 2021, demonstrating our ability to expand within existing
customers.

Components of Results of Operations
Revenue
Subscription Revenue. Our subscription revenue is comprised of term licenses and
hosted as-a-service solutions. Subscriptions to term licenses include technical
support and access to new software versions on a when-and-if available basis.
Revenue from our term licenses is recognized upfront for the license component
and ratably for the technical support and when-and-if available update
components. Associated contracts are typically billed annually in advance.
Revenue from our hosted as­a­service solutions is primarily generated on a usage
basis and is billed either in arrears or paid up front. The majority of our
subscription contracts are one year in duration. When we enter into multi-year
subscriptions, we typically invoice the customer on an annual basis. Our
subscription contracts are generally non-cancelable and non-refundable.
Services Revenue. Services revenue is comprised of consulting and training
services and is recognized over the period of delivery of the applicable
services. We recognize revenue from services agreements as services are
delivered.
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We expect our revenue may vary from period to period based on, among other
things, the timing and size of new subscriptions, the proportion of term license
contracts that commence within the period, the rate of customer renewals and
expansions, delivery of professional services, the impact of significant
transactions and seasonality of or fluctuations in usage for our
consumption­based customers.
Cost of Revenue
Cost of Subscription Revenue. Cost of subscription revenue primarily includes
personnel costs, including salaries, bonuses and benefits, and stock­based
compensation, for employees associated with our subscription arrangements
principally related to technical support and allocated shared costs, as well as
depreciation and amortization. Our cost of subscription revenue for our hosted
as­a­service solutions also includes third-party cloud infrastructure expenses.
We expect our cost of subscription revenue to increase in absolute dollars as
our subscription revenue increases and, depending on the results of MongoDB
Atlas, our cost of subscription revenue may increase as a percentage of
subscription revenue as well.
Cost of Services Revenue. Cost of services revenue primarily includes personnel
costs, including salaries, bonuses and benefits, and stock­based compensation,
for employees associated with our professional service contracts, as well as,
travel costs, allocated shared costs and depreciation and amortization. We
expect our cost of services revenue to increase in absolute dollars as our
services revenue increases.
Gross Profit and Gross Margin
Gross Profit. Gross profit represents revenue less cost of revenue.
Gross Margin. Gross margin, or gross profit as a percentage of revenue, has been
and will continue to be affected by a variety of factors, including the average
sales price of our products and services, the mix of products sold, transaction
volume growth and the mix of revenue between subscriptions and services. We
expect our gross margin to fluctuate over time depending on the factors
described above and, to the extent MongoDB Atlas revenue increases as a
percentage of total revenue, our gross margin may decline as a result of the
associated hosting costs of MongoDB Atlas.
Operating Expenses
Our operating expenses consist of sales and marketing, research and development
and general and administrative expenses. Personnel costs are the most
significant component of each category of operating expenses. Operating expenses
also include travel and related costs and allocated overhead costs for
facilities, information technology and employee benefit costs.
Sales and Marketing. Sales and marketing expense consists primarily of personnel
costs, including salaries, sales commission and benefits, bonuses and
stock­based compensation. These expenses also include costs related to marketing
programs, travel­related expenses and allocated overhead. Marketing programs
consist of advertising, events, corporate communications, and brand­building and
developer­community activities. We expect our sales and marketing expense to
increase in absolute dollars over time as we expand our sales force and increase
our marketing resources, expand into new markets and further develop our
self-serve and partner channels.
Research and Development. Research and development expense consists primarily of
personnel costs, including salaries, bonuses and benefits, and stock­based
compensation. It also includes amortization associated with intangible acquired
assets and allocated overhead. We expect our research and development expenses
to continue to increase in absolute dollars, as we continue to invest in our
platform and develop new products.
General and Administrative. General and administrative expense consists
primarily of personnel costs, including salaries, bonuses and benefits, and
stock­based compensation for administrative functions including finance, legal,
human resources and external legal and accounting fees, as well as allocated
overhead. We expect general and administrative expense to increase in absolute
dollars over time as we continue to invest in the growth of our business and
incur the costs of compliance associated with being a publicly traded company.
Other Expense, Net
Other income (expense), net consists primarily of interest income, interest
expense and gains and losses from foreign currency transactions.
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Provision for Income Taxes
Provision for income taxes consists primarily of state income taxes in the
United States and income taxes in certain foreign jurisdictions in which we
conduct business.
We account for income taxes and the related accounts under the liability method.
Deferred tax liabilities and assets are determined based on the difference
between the financial statement and tax bases of assets and liabilities, using
enacted rates expected to be in effect during the year in which the basis
differences reverse.
We regularly assess the need for a valuation allowance against our deferred tax
assets. In making that assessment, we consider both positive and negative
evidence related to the likelihood of realization of the deferred tax assets to
determine, based on the weight of available evidence, whether it is more likely
than not that some or all of the deferred tax assets will not be realized.
We continue to monitor and interpret the impact of proposed and enacted global
tax legislation, such as the Coronavirus Aid, Relief, and Economic Security Act,
and the impact of such legislation on effective tax rate and tax provision
thereunder. To date, based on the full valuation allowance against our two most
significant tax jurisdictions, the United States and Ireland, the impact of
global enacted and proposed legislation has not had an impact on the tax
provisions of the financial statements. We continue to monitor to ensure both
our financial results and our related tax disclosures are in compliance with any
tax legislation.

Three and Nine Months Ended October 31, 2021 Summary
For the three months ended October 31, 2021, our total revenue increased to
$226.9 million as compared to $150.8 million for the three months ended October
31, 2020, primarily driven by an increase in subscription revenue from our
Direct Sales Customers. Our net loss increased to $81.3 million for the three
months ended October 31, 2021 as compared to $72.7 million for the three months
ended October 31, 2020, driven primarily by higher sales and marketing spend and
research and development costs during the three months ended October 31, 2021.
For the nine months ended October 31, 2021, our total revenue increased to
$607.3 million as compared to $419.4 million for the nine months ended October
31, 2020, primarily driven by an increase in subscription revenue from our
Direct Sales Customers. Our net loss increased to $222.4 million for the nine
months ended October 31, 2021 as compared to $191.1 million for the nine months
ended October 31, 2020, primarily driven by increased sales and marketing and
research and development costs during the nine months ended October 31, 2021.
Our operating cash flow was $(15.3) million and $(24.0) million for the nine
months ended October 31, 2021 and 2020, respectively. Our free cash flow was
$(23.5) million and $(38.4) million for the nine months ended October 31, 2021
and 2020, respectively. See the section titled "Liquidity and Capital
Resources-Non-GAAP Free Cash Flow" below.
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Results of Operations
The following tables set forth our results of operations for the periods
presented in dollars (unaudited, in thousands) and as a percentage of our total
revenue. Percentage of revenue figures are rounded and therefore may not
subtotal exactly.
                                                  Three Months Ended October 31,             Nine Months Ended October 31,
                                                     2021                2020                  2021                   2020
Consolidated Statements of Operations Data:
Revenue:
Subscription                                     $  217,871          $ 144,069          $        583,822          $  401,403
Services                                              9,022              6,702                    23,466              17,978
Total revenue                                       226,893            150,771                   607,288             419,381
Cost of revenue:
Subscription(1)                                      57,378             38,642                   153,735             103,240
Services(1)                                          11,086              7,468                    29,959              22,851
Total cost of revenue                                68,464             46,110                   183,694             126,091
Gross profit                                        158,429            104,661                   423,594             293,290
Operating expenses:
Sales and marketing(1)                              120,360             83,214                   327,627             227,417
Research and development(1)                          82,256             54,363                   219,403             149,250
General and administrative(1)                        32,581             25,175                    87,309              66,534
Total operating expenses                            235,197            162,752                   634,339             443,201
Loss from operations                                (76,768)           (58,091)                 (210,745)           (149,911)
Other expense, net                                   (2,276)           (13,634)                   (9,262)            (39,090)
Loss before provision for income taxes              (79,044)           (71,725)                 (220,007)           (189,001)
Provision for income taxes                            2,249                926                     2,411               2,142
Net loss                                         $  (81,293)         $ (72,651)         $       (222,418)         $ (191,143)




(1)  Includes stock­based compensation expense as follows (unaudited, in
thousands):
                                                 Three Months Ended October 31,            Nine Months Ended October 31,
                                                    2021                2020                  2021                  2020
Cost of revenue-subscription                    $    3,934          $   2,446          $        10,322          $   6,508
Cost of revenue-services                             1,521              1,513                    4,473              4,142
Sales and marketing                                 24,790             14,696                   64,749             38,754
Research and development                            29,205             15,442                   73,227             41,415
General and administrative                           9,258              5,855                   24,556             17,225

Total stock­based compensation expense $ 68,708 $ 39,952 $ 177,327 $ 108,044




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                                               Three Months Ended October 31,               Nine Months Ended October 31,
                                                 2021                  2020                   2021                  2020
Percentage of Revenue Data:
Revenue:
Subscription                                          96  %                 96  %                  96  %                 96  %
Services                                               4  %                  4  %                   4  %                  4  %
Total revenue                                        100  %                100  %                 100  %                100  %
Cost of revenue:
Subscription                                          25  %                 26  %                  25  %                 25  %
Services                                               5  %                  5  %                   5  %                  5  %
Total cost of revenue                                 30  %                 31  %                  30  %                 30  %
Gross profit                                          70  %                 69  %                  70  %                 70  %
Operating expenses:
Sales and marketing                                   53  %                 55  %                  54  %                 54  %
Research and development                              37  %                 36  %                  36  %                 36  %
General and administrative                            14  %                 17  %                  15  %                 16  %
Total operating expenses                             104  %                108  %                 105  %                106  %
Loss from operations                                 (34) %                (39) %                 (35) %                (36) %
Other expense, net                                    (1) %                 (9) %                  (2) %                 (9) %
Loss before provision for income taxes               (35) %                (48) %                 (37) %                (45) %
Provision for income taxes                             1  %                  -  %                   -  %                  1  %
Net loss                                             (36) %                (48) %                 (37) %                (46) %



Comparison of the Three Months Ended October 31, 2021 and 2020
Revenue
                                     Three Months Ended October 31,                   Change
(unaudited, in thousands)                  2021                    2020            $            %
Subscription                  $        217,871                  $ 144,069      $ 73,802        51  %
Services                                 9,022                      6,702         2,320        35  %
Total revenue                 $        226,893                  $ 150,771      $ 76,122        50  %


Total revenue growth reflects increased demand for our platform and related
services. Subscription revenue increased by $73.8 million primarily due to an
increase of $66.1 million from our Direct Sales Customers, inclusive of Direct
Sales Customers who were self-serve customers of MongoDB Atlas in the prior-year
period. The increase in services revenue was driven primarily by the increased
delivery of consulting services.
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Cost of Revenue, Gross Profit and Gross Margin Percentage

                                      Three Months Ended October 31,        

Change

(unaudited, in thousands)             2021                         2020            $            %
Subscription cost of revenue   $       57,378                  $  38,642       $ 18,736        48  %
Services cost of revenue               11,086                      7,468          3,618        48  %
Total cost of revenue                  68,464                     46,110         22,354        48  %
Gross profit                   $      158,429                  $ 104,661       $ 53,768        51  %
Gross margin                               70   %                     69  %
Subscription                               74   %                     73  %
Services                                  (23)  %                    (11) %


The increase in subscription cost of revenue was primarily due to a
$15.1 million increase in third­party cloud infrastructure costs, including
costs associated with the growth of MongoDB Atlas, although we continue to
realize efficiencies in our third-party cloud infrastructure costs as we scale
MongoDB Atlas. In addition, subscription cost of revenue was higher due to a
$2.7 million increase in personnel costs and stock-based compensation associated
with increased headcount in our support organization. The increase in services
cost of revenue was primarily due to higher personnel costs from increased
headcount in our services organization and higher expense associated with our
China Stock Appreciation Rights Plan. Total headcount in our support and
services organizations increased 31% from October 31, 2020 to October 31, 2021.
Our overall gross margin increased slightly to 70%. Our subscription gross
margin benefited from efficiencies realized in managing our third-party cloud
infrastructure costs, offset by the negative impact from the increasing
percentage of revenue from MongoDB Atlas. The impact of higher services
personnel costs and higher expense associated with our China Stock Appreciation
Rights Plan resulted in negative services gross margin.
Operating Expenses
Sales and Marketing
                                      Three Months Ended October 31,                   Change
(unaudited, in thousands)                   2021                     2020           $            %
Sales and marketing           $         120,360                   $ 83,214      $ 37,146        45  %


The increase in sales and marketing expense included $25.7 million from higher
personnel costs and stock-based compensation, driven by an increase in our sales
and marketing headcount to 1,528 as of October 31, 2021 from 1,062 as of October
31, 2020, which includes non-quota-carrying hires in sales operations, customer
success and marketing. Sales and marketing expense also increased $9.4 million
from costs associated with our higher headcount, including higher commissions
expense.
Research and Development
                                      Three Months Ended October 31,                   Change
(unaudited, in thousands)                   2021                     2020           $            %
Research and development      $         82,256                    $ 54,363  

$ 27,893 51 %



The increase in research and development expense was primarily driven by a
$24.2 million increase in personnel costs and stock-based compensation as we
grew our research and development headcount by 36%.
General and Administrative
                                      Three Months Ended October 31,                   Change
(unaudited, in thousands)                   2021                     2020           $           %
General and administrative    $         32,581                    $ 25,175      $ 7,406        29  %


The increase in general and administrative expense was due to higher costs to
support the growth of our business and to maintain compliance as a public
company. In particular, these higher costs were driven by an increase in general
and
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                                 MONGODB, INC.
administrative personnel headcount resulting in an increase of $5.5 million in
personnel costs and stock-based compensation and equipment.
Other Expense, Net
                                     Three Months Ended October 31,                   Change
(unaudited, in thousands)                  2021                    2020            $            %
Other expense, net            $        (2,276)                  $ (13,634)     $ 11,358       (83) %


Other expense, net for the three months ended October 31, 2021 decreased
primarily due to the adoption of the new accounting standard for convertible
senior notes, which eliminated the amortization of the debt discount previously
associated with our 0.75% convertible senior notes due 2024 and 0.25%
convertible senior notes due 2026.
Provision for Income Taxes
                                                     Three Months Ended October 31,                      Change
(unaudited, in thousands)                                2021                2020                $                   %
Provision for income taxes                          $     2,249          $     926          $   1,323                 143  %


The provision for income taxes during the three months ended October 31, 2021
and 2020 was primarily due to an increase in foreign taxes as we continued our
global expansion. The provision for income taxes during the three months ended
October 31, 2020 was partially offset by a tax benefit related to prior year
period gains recorded in other comprehensive income that resulted from
unrealized gains on investments.

Comparison of the Nine Months Ended October 31, 2021 and 2020
Revenue
                                     Nine Months Ended October 31,                   Change
(unaudited, in thousands)                 2021                   2020             $            %
Subscription                  $       583,822                 $ 401,403      $ 182,419        45  %
Services                               23,466                    17,978          5,488        31  %
Total revenue                 $       607,288                 $ 419,381      $ 187,907        45  %


Total revenue growth reflects increased demand for our platform and related
services. Subscription revenue increased by $182.4 million primarily due to an
increase of $167.6 million from our Direct Sales Customers, inclusive of Direct
Sales Customers who were self-serve customers of MongoDB Atlas in the prior-year
period. The growth in services revenue was driven primarily by the increased
delivery of consulting services.
Cost of Revenue, Gross Profit and Gross Margin Percentage
                                      Nine Months Ended October 31,         

Change

(unaudited, in thousands)             2021                        2020             $            %
Subscription cost of revenue   $      153,735                 $ 103,240       $  50,495        49  %
Services cost of revenue               29,959                    22,851           7,108        31  %
Total cost of revenue                 183,694                   126,091          57,603        46  %
Gross profit                   $      423,594                 $ 293,290       $ 130,304        44  %
Gross margin                               70   %                    70  %
Subscription                               74   %                    74  %
Services                                  (28)  %                   (27) %


The increase in subscription cost of revenue was primarily due to a
$40.0 million increase in third­party cloud infrastructure costs, including
costs associated with the growth of MongoDB Atlas, although we continue to
realize efficiencies in our third-party cloud infrastructure costs as we scale
MongoDB Atlas. In addition, subscription cost of revenue
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                                 MONGODB, INC.
was higher due to an $8.1 million increase in personnel costs and stock-based
compensation associated with increased headcount in our support organization.
The increase in services cost of revenue was primarily due to a $5.4 million
increase in personnel costs and stock-based compensation associated with
increased headcount in our services organization. Total headcount in our support
and services organizations increased 31% from October 31, 2020 to October 31,
2021.
Our overall gross margin remained flat. Our subscription gross margin is
negatively impacted by the increasing percentage of revenue from MongoDB Atlas,
offset by efficiencies realized in managing our third-party cloud infrastructure
costs. The impact of higher services personnel costs and stock-based
compensation resulted in negative services gross margin.
Operating Expenses
Sales and Marketing
                                     Nine Months Ended October 31,                   Change
(unaudited, in thousands)                 2021                   2020             $            %
Sales and marketing           $       327,627                 $ 227,417      $ 100,210        44  %


The increase in sales and marketing expense included $73.7 million from higher
personnel costs and stock-based compensation, driven by an increase in our sales
and marketing headcount to 1,528 as of October 31, 2021 from 1,062 as of October
31, 2020, which includes non-quota-carrying hires in sales operations, customer
success and marketing. Sales and marketing expense also increased $18.4 million
from costs associated with our higher headcount, including higher commissions
expense and higher software costs. In addition, sales and marketing expenses
increased by $3.6 million due to higher spend on marketing programs.
Research and Development
                                     Nine Months Ended October 31,                  Change
(unaudited, in thousands)                 2021                   2020            $            %
Research and development      $       219,403                 $ 149,250      $ 70,153        47  %


The increase in research and development expense was primarily driven by a
$64.6 million increase in personnel costs and stock-based compensation as we
increased our research and development headcount by 36%.
General and Administrative
                                     Nine Months Ended October 31,                   Change
(unaudited, in thousands)                  2021                    2020           $            %
General and administrative    $        87,309                   $ 66,534      $ 20,775        31  %


The increase in general and administrative expense was due to higher costs to
support the growth of our business and to maintain compliance as a public
company. In particular, these higher costs were driven by an increase in general
and administrative personnel headcount resulting in $19.7 million higher
personnel costs and stock-based compensation.
Other Expense, Net
                                     Nine Months Ended October 31,                  Change
(unaudited, in thousands)                 2021                   2020            $            %
Other expense, net            $       (9,262)                 $ (39,090)     $ 29,828       (76) %


Other expense, net for the nine months ended October 31, 2021 decreased
primarily due to the adoption of the new accounting standard for convertible
senior notes, which eliminated the amortization of the debt discount previously
associated with our 0.75% convertible senior notes due 2024 and 0.25%
convertible senior notes due 2026.
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                                 MONGODB, INC.
Provision for Income Taxes
                                      Nine Months Ended October 31,                   Change
(unaudited, in thousands)                   2021                     2020          $          %
Provision for income taxes    $          2,411                     $ 2,142      $ 269        13  %


The provision for income taxes during the nine months ended October 31, 2021 was
primarily the result of an increase in foreign taxes partially offset by the
release of the valuation allowance as a result of goodwill recorded associated
with an immaterial business combination, as well as the reversal of the deferred
tax liability associated with convertible debt upon the adoption of ASU 2020-06.
The provision for income taxes during the nine months ended October 31, 2020 was
primarily due to an increase in foreign taxes as we continued our global
expansion, partially offset by a tax benefit related to the prior year period
gains recorded in other comprehensive income that resulted from unrealized gains
on investments.
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                                 MONGODB, INC.
Liquidity and Capital Resources
As of October 31, 2021, we had cash, cash equivalents, short­term investments
and restricted cash totaling $1.8 billion. Our cash and cash equivalents
primarily consist of bank deposits and money market funds. Our short­term
investments consist of U.S. government treasury securities, and our restricted
cash represents collateral for our available credit on corporate credit cards.
We believe our existing cash and cash equivalents and short­term investments
will be sufficient to fund our operating and capital needs for at least the next
12 months.
On October 1, 2021, we issued a notice of redemption (the "Redemption Notice")
for all of the aggregate principal amount outstanding of our 2024 Notes.
Pursuant to the Redemption Notice, on December 3, 2021, we redeemed the
outstanding principal of the 2024 Notes that were not converted prior to such
date at a redemption price in cash equal to 100% of the principal amount of the
2024 Notes, plus accrued and unpaid interest. Approximately $1.9 million
aggregate principal amount outstanding as of October 31, 2021, were converted to
27,377 shares of our Class A common stock with the remaining balance settled in
cash. The extinguishment of the 2024 Notes on December 3, 2021 is immaterial to
our financial statements.
On June 29, 2021, we entered into an underwriting agreement with Morgan Stanley
& Co. LLC and Goldman Sachs & Co. LLC, as representatives of the several
underwriters named therein, pursuant to which we agreed to issue and sell
2,500,000 shares of our Class A common stock, par value $0.001 per share, at an
offering price of $365.00 per share.
We received net proceeds of $889.2 million, after deducting underwriting
discounts and commissions of $22.7 million and offering expenses of
$0.6 million. Offering expenses included legal, accounting and other fees.
We have generated significant operating losses and negative cash flows from
operations as reflected in our accumulated deficit and historical consolidated
statements of cash flows. As of October 31, 2021, we had an accumulated deficit
of $1.1 billion. We expect to continue to incur operating losses and negative
cash flows from operations in the future and may require additional capital
resources to execute strategic initiatives to grow our business. Our future
capital requirements and adequacy of available funds will depend on many
factors, including our growth rate, the timing and extent of spending to support
development efforts, the expansion of sales and marketing and international
operation activities, the timing of new subscription introductions, the
continuing market acceptance of our subscriptions and services and the impact of
the ongoing COVID-19 pandemic on the global economy and our business, financial
condition and results of operations. As the impact of the ongoing COVID-19
pandemic on the global economy and our operations continues to evolve, we will
continue to assess our liquidity needs. We may in the future enter into
arrangements to acquire or invest in complementary businesses, services and
technologies, including intellectual property rights. We may be required to seek
additional equity or debt financing. In the event that additional financing is
required from outside sources, we may not be able to raise it on terms
acceptable to us or at all. If we are unable to raise additional capital when
desired, our business, operating results and financial condition would be
adversely affected.
The following table summarizes our cash flows for the periods presented
(unaudited, in thousands):
                                                   Nine Months Ended October 31,
                                                        2021                   2020
Net cash used in operating activities       $       (15,331)                $ (24,028)
Net cash used in investing activities              (543,578)                

(284,016)

Net cash provided by financing activities           878,495                 

16,002



Operating Activities
Cash used in operating activities during the nine months ended October 31, 2021
was $15.3 million. This was primarily driven by our net loss of $222.4 million,
which was partially offset by non­cash charges of $177.3 million for stock­based
compensation, $10.0 million for depreciation and amortization, $8.0 million for
lease-related charges, $5.0 million for accretion of discount on our short-term
investments and $3.2 million for debt issuance costs. In addition, our cash
collections increased our deferred revenue by $58.5 million, reflecting the
overall growth of our sales and our expanding customer base. Partially
offsetting these benefits to our operating cash flow was an increase in our
accounts receivable of $46.9 million, driven by our sales growth.

Cash used in operating activities during the nine months ended October 31, 2020
was $24.0 million primarily driven by our net loss of $191.1 million, which was
partially offset by non­cash charges of $108.0 million for stock­based
compensation, $36.6 million for the amortization of our debt discount and
issuance costs, $9.5 million for depreciation and
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                                 MONGODB, INC.
amortization and $7.7 million for lease-related non-cash charges. Accrued and
other liabilities increased by $24.3 million primarily from commissions, bonuses
and related payroll taxes accrued as of October 31, 2020. Our overall sales
growth increased our deferred commissions by $17.2 million, our accounts
receivable by $4.2 million and our deferred revenue by $5.8 million.

Investing Activities
Cash used in investing activities during the nine months ended October 31, 2021
was $543.6 million, primarily due to cash used to purchase marketable
securities, net of maturities, of $532.3 million, and $4.5 million of net cash
used for an immaterial acquisition. In addition, we used $2.3 million of net
cash to purchase non-marketable securities.
Cash used in investing activities during the nine months ended October 31, 2020
of $284.0 million resulted from the purchases of marketable securities and
property and equipment, partially offset by maturities of marketable securities.
In addition, we used $0.5 million of net cash to purchase non-marketable
securities.
Financing Activities
Cash provided by financing activities during the nine months ended October 31,
2021 was $878.5 million, primarily due to net proceeds from the equity offering,
the issuance of Class A common stock under the Employee Stock Purchase Plan, and
exercises of stock options, partly offset by cash used to repay a portion of our
2024 convertible notes upon redemption.
Cash provided by financing activities during the nine months ended October 31,
2020 was $16.0 million, primarily due to proceeds from the exercises of stock
options and from the issuance of Class A common stock under the Employee Stock
Purchase Plan, partially offset by issuance costs related to our January 2020
offering of 0.25% convertible senior notes due 2026 that had been accrued as of
January 31, 2020, as well as principal repayments of finance leases.
Non­GAAP Free Cash Flow
To supplement our interim unaudited condensed consolidated financial statements,
which are prepared and presented in accordance with generally accepted
accounting principles in the United States ("GAAP"), we provide investors with
the amount of free cash flow, which is a non­GAAP financial measure. 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. During each of the nine months ended October 31, 2021
and 2020, we did not capitalize any software development costs. Free cash flow
is a measure used by management to understand and evaluate our 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 our liquidity on a
period­to­period basis and excludes items that we do not consider to be
indicative of our liquidity. We believe that free cash flow is a measure of
liquidity that provides useful information to our management, investors and
others in understanding and evaluating the strength of our liquidity and future
ability to generate cash that can be used for strategic opportunities or
investing in our business in the same manner as our management and Board of
Directors. Nevertheless, our use of free cash flow has limitations as an
analytical tool, and you should not consider it in isolation or as a substitute
for analysis of our financial results as reported under GAAP. Further, our
definition of free cash flow may differ from the definitions used by other
companies and therefore comparability may be limited. You should consider free
cash flow alongside our other GAAP­based financial performance measures, such as
net cash used in operating activities, and our other GAAP financial results.
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):
                                                 Nine Months Ended October 

31,

                                                      2021                  

2020

Net cash used in operating activities     $       (15,331)                $ 

(24,028)

Capital expenditures                               (4,516)                  

(10,942)

Principal repayments of finance leases             (3,649)                   (3,450)
Capitalized software                                    -                         -
Free cash flow                            $       (23,496)                $ (38,420)



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                                 MONGODB, INC.

Seasonality

We have in the past and expect in the future to experience seasonal fluctuations
in our revenue and results from time to time. In addition, as a result of the
adoption of Accounting Standards Update No. 2014­09, Revenue from Contracts with
Customers (Topic 606), we may experience greater variability and reduced
comparability of our quarterly revenue and results with respect to the timing
and nature of certain of our contracts, particularly multi-year contracts that
contain a term license.

Contractual Obligations and Commitments
During the nine months ended October 31, 2021, there were no material changes
outside the ordinary course of business to our contractual obligations and
commitments from those disclosed in our 2021 Form 10-K. Refer to Note 6, Leases
and Note 7, Commitments and Contingencies, in our Notes to Unaudited Condensed
Consolidated Financial Statements included in Part I, Item 1 of this Quarterly
Report on Form 10-Q for further details.

Critical Accounting Policies and Estimates
Our financial statements are prepared in accordance with GAAP. The preparation
of these financial statements requires us to make estimates and assumptions that
affect the reported amounts of assets, liabilities, revenue, expenses and
related disclosures. We evaluate our estimates and assumptions on an ongoing
basis. Our estimates are based on historical experience and various other
assumptions that we believe to be reasonable under the circumstances. Our actual
results could differ from these estimates.
There have been no material changes in our critical accounting policies from
those disclosed in Part II, Item 7, "Management's Discussion and Analysis of
Financial Condition and Results of Operations" of the 2021 Form 10-K.

Recent Accounting Pronouncements
See Note 2, Summary of Significant Accounting Policies, in our Notes to
Unaudited Condensed Consolidated Financial Statements included in Part I, Item 1
of this Quarterly Report on Form 10-Q for a discussion of recent accounting
pronouncements, including our adoption of the new standard for our convertible
senior notes under Accounting Standards Update 2020-06.
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