MongoDB, Inc. Announces Fourth Quarter and Full Year Fiscal 2022 Financial Results

NEW YORK, March 8, 2022 /PRNewswire/ -- MongoDB, Inc. MDB, the leading modern, general purpose database platform, today announced its financial results for the fourth quarter and fiscal year ended January 31, 2022.

"MongoDB delivered exceptional fourth quarter results, highlighted by delivering 85% Atlas revenue growth and surpassing $1 billion in annualized revenue.  Our success is being driven by the fact that our modern application data platform dramatically reduces friction in the development process to make it incredibly easy for developers to build compelling applications that create a competitive advantage," said Dev Ittycheria, President and Chief Executive Officer of MongoDB.

"We enter fiscal 2023 having established MongoDB as the leading application data platform used to build new and modernize existing applications.  Our strong growth in six and seven figure customers is evidence that customers increasingly view MongoDB as a strategic platform. We are confident in our ability to capitalize on our $70B+ market opportunity and deliver strong growth for the foreseeable future."

Fourth Quarter Fiscal 2022 Financial Highlights

• Revenue: Total revenue was $266.5 million in the fourth quarter fiscal 2022, an increase of 56% year-over-year. Subscription revenue was $258.2 million, an increase of 58% year-over-year, and services revenue was $8.3 million, an increase of 17% year-over-year.

• Gross Profit: Gross profit was $190.7 million in the fourth quarter fiscal 2022, representing a 72% gross margin, up from a 70% gross margin in the year-ago period. Non-GAAP gross profit was $196.6 million, representing a 74% non-GAAP gross margin.

• Loss from Operations: Loss from operations was $78.6 million in the fourth quarter fiscal 2022, compared to a loss of $59.4 million in the year-ago period. Non-GAAP loss from operations was $1.3 million, compared to a non-GAAP loss of $16.0 million in the year-ago period.

• Net Loss: Net loss was $84.4 million, or $1.26 per share, based on 67.0 million weighted-average shares outstanding in the fourth quarter fiscal 2022. This compares to a net loss of $75.8 million, or $1.25 per share, based on 60.5 million weighted-average shares outstanding, in the year-ago period. Non-GAAP net loss was $6.3 million or $0.09 per share. This compares to a non-GAAP net loss of $19.9 million or $0.33 per share in the year-ago period.

• Cash Flow: As of January 31, 2022, MongoDB had $1.8 billion in cash, cash equivalents, short-term investments and restricted cash. During the three months ended January 31, 2022, MongoDB generated $22.3 million of cash from operations, used $3.6 million of cash in capital expenditures and used $1.9 million of cash in principal repayments of finance leases, leading to positive free cash flow of $16.8 million, compared to negative free cash flow of $20.7 million in the year-ago period.

Full Year Fiscal 2022 Financial Highlights

• Revenue: Total revenue was $873.8 million for the full year fiscal 2022, an increase of 48% year-over-year. Subscription revenue was $842.0 million, an increase of 49% year-over-year, and services revenue was $31.7 million, an increase of 27% year-over-year.

• Gross Profit: Gross profit was $614.3 million for the full year fiscal 2022, representing a 70% gross margin compared to 70% the prior year. Non-GAAP gross profit was $635.0 million, representing a 73% non-GAAP gross margin.

• Loss from Operations: Loss from operations was $289.4 million for the full year fiscal 2022, compared to a loss of $209.3 million in the prior year. Non-GAAP loss from operations was $24.7 million, compared to a non-GAAP loss of $49.6 million in the prior year.

• Net Loss: Net loss was $306.9 million, or $4.75 per share, based on 64.6 million weighted-average shares outstanding, for the full year fiscal 2022. This compares to a net loss of $266.9 million, or $4.53 per share, based on 59.0 million weighted-average shares outstanding, in the prior year. Non-GAAP net loss was $38.2 million or $0.59 per share. This compares to a non-GAAP net loss of $58.1 million or $0.99 per share in the prior year.

• Cash Flow: During the year ended January 31, 2022, MongoDB generated $7.0 million of cash from operations, used $8.1 million of cash in capital expenditures and used $5.6 million of cash in principal repayments of finance leases, leading to negative free cash flow of $6.7 million, compared to negative free cash flow of $59.1 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 2022 and Recent Business Highlights

• Released MongoDB 5.2, our latest quarterly product release, which includes improvements to query functionality, enhancements to time series collections, and new capabilities that allow teams to execute more sophisticated analytic queries directly against their live operational and transactional data.
• Continued momentum in partnerships with hyperscale cloud vendors (AWS, Google Cloud, Azure), resulting in 80%+ growth in deals sourced by the cloud vendors in Q4. We are seeing strong alignment and great field execution in our AWS partnership, especially around larger deals and migrations from on-premise to cloud. Google Cloud is also now featuring MongoDB Atlas in the database portion of their console, further increasing visibility and velocity with developers.
• Successfully onboarded over 2,000 employees remotely since the pandemic began while maintaining high employee engagement as seen by the selection to Crain's Best Places to Work, Battery Ventures' Top 25 Highest-Rated Public Cloud Computing Companies to Work For, and Inc Magazine's Best Led Companies list.

First Quarter and Full Year Fiscal 2023 Guidance

Based on information as of today, March 8, 2022, MongoDB is issuing the following financial guidance for the first quarter and full year fiscal 2023. Please note that the guidance provided for the fiscal year 2023 includes additional adjustments to our non-GAAP financial measures with respect to expenses related to stock-based compensation, as discussed further below in "Non-GAAP Financial Measures."

The guidance provided above is forward-looking in nature. Actual results may differ materially. See the cautionary note regarding "Forward-Looking Statements" below. Fluctuations in MongoDB's operating results may be particularly pronounced in the current economic environment due to continuing uncertainty caused by the ongoing COVID-19 pandemic, the duration and ultimate impact of which is difficult to predict at this time. The situation regarding COVID-19 remains uncertain and could change rapidly, and MongoDB will continue to evaluate its potential impact on its business.

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 MongoDB's stock price. MongoDB expects the variability of the above charges to have a significant, and potentially unpredictable, impact on its future GAAP financial results.

Conference Call Information

MongoDB will host a conference call today, March 8, 2022, 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 1-844-200-6205 (domestic) or +1-929-526-1599 (international). The access code is 894721. A replay of this conference call will be available for a limited time at 1-866-813-9403 (domestic) or +44-204-525-0658 (international). The replay conference ID is 446892. 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 33,000 customers in over 100 countries. The MongoDB database platform has been downloaded over 240 million times and there have been more than 1.5 million registrations for MongoDB University courses.

Forward-Looking Statements

This press release includes certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning MongoDB's financial guidance for the first fiscal quarter and full year fiscal 2023 and MongoDB's ability to capitalize on its market opportunity and deliver strong growth for the foreseeable future and the anticipated impact of the COVID-19 pandemic on MongoDB's business and future operating results. 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: the impact that the precautions we have taken in our business relative to the ongoing COVID-19 pandemic may have on our business; the financial impacts of the COVID-19 pandemic on our customers, our potential customers, the global financial markets and our business and future operating results; our potential failure to meet publicly announced guidance or other expectations about our business and future operating results; our limited operating history; our history of losses; failure of our 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; and the price volatility of our common stock. These and other risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission ("SEC"), including under the caption "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended October 31, 2021 filed with the SEC on December 8, 2021. Additional information will be made available in our Annual Report on Form 10-K for the year ended January 31, 2022 and other filings and reports that we may file from time to time with the SEC. Except as required by law, we undertake no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise.

Non-GAAP Financial Measures

This press release includes the following financial measures defined as non-GAAP financial measures by the SEC: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss per share and free cash flow. For the three- and twelve-month periods ended January 31, 2022, 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 for the three- and twelve-month periods ended January 31, 2022 exclude:

• stock-based compensation expense;

• amortization of intangible assets for the acquired technology and acquired customer relationships associated with prior acquisitions;

• amortization of time-based payments associated with prior acquisitions that were deemed to be post-combination compensation expense for U.S. GAAP purposes; and

• in the case of non-GAAP net loss and non-GAAP net loss per share, amortization of the debt discount and issuance costs associated with our convertible senior notes.

Beginning on February 1, 2022, additional expenses associated with stock-based compensation will be excluded from our non-GAAP measures.  These will include: (i) expenses associated with valuing and exercising stock appreciation rights previously issued to our employees in China and (ii) employer payroll taxes subject to vesting of restricted stock units and performance stock units, as well as exercising of non-qualified stock options. MongoDB believes that such expenses result in variability that is outside the control of the Company and do not reflect ongoing operational performance. For comparative purposes, MongoDB has provided a reconciliation of its non-GAAP financial measures reflecting the inclusion of these expenses in "expenses associated with stock-based compensation" for the prior eight fiscal quarters beginning February 1, 2020 through January 31, 2022.

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

Matt Trocchio

MongoDB

communications@mongodb.com

 

 

 

 

 

 

 

 

The following table presents a reconciliation of free cash flow to net cash provided by (used in) operating activities, the most directly comparable GAAP measure, for each of the periods indicated (unaudited, in thousands):

 

 

 

 

 

 

 

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SOURCE MongoDB, Inc.