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Section 1: 8-K (8-K)

Document
false0001441816 0001441816 2020-03-14 2020-03-14


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________
FORM 8-K
___________________

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 14, 2020
___________________
MONGODB, INC.
(Exact Name of Registrant as Specified in its Charter)
___________________
Delaware
001-38240
26-1463205
(State or Other Jurisdiction
of Incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
 
 
 
 
1633 Broadway
38th Floor
 
 
New York
NY
 
10019
(Address of Principal Executive Offices)
 
(Zip Code)
646-727-4092
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
___________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Class A Common Stock, par value $0.001 per share
 
MDB
 
The Nasdaq Stock Market LLC
 
 
(Nasdaq Global Market)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 





Item 2.02    Results of Operations and Financial Condition.
On March 17, 2020, MongoDB, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter and full fiscal year ended January 31, 2020. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8‑K and is incorporated by reference.
The information furnished under this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that section. The information shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission made by the Company, regardless of any general incorporation language in such filing.

Item 5.02    Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On March 14, 2020, Eliot Horowitz, Chief Technology Officer and a director of MongoDB, Inc. (the “Company”), notified the Company’s Board of Directors that he is resigning from his positions as Chief Technology Officer and a member of the Company’s Board of Directors, effective on the date of the Company’s 2020 Annual Meeting of Stockholders to be held on July 10, 2020.

Item 9.01    Financial Statements and Exhibits.
(d)    Exhibits
 
 
 
Exhibit No.
 
Description
99.1
 






SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
MONGODB, INC.
 
 
 
 
 
 
 
 
 
 
 
 
Dated: March 17, 2020
By:
 
/s/ Dev Ittycheria
 
 
 
Name: Dev Ittycheria
Title: President and Chief Executive Officer






(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
Exhibit 99.1


MongoDB, Inc. Announces Fourth Quarter and Full Year Fiscal 2020 Financial Results
Fourth Quarter Fiscal 2020 Total Revenue of $123.5 million, up 44% Year-over-Year
Full Year Fiscal 2020 Total Revenue of $421.7 million, up 58% Year-over-Year
MongoDB Atlas Revenue 41% of Total Q4 Revenue, up over 80% Year-over-Year
New York City, New York - March 17, 2020 - 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.

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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.

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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 from Operations
$(14.0) million to $(12.0) million
$(78.0) million to $(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

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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

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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
[email protected]

Media Relations
Mark Wheeler
MongoDB
866-237-8815 x7186
[email protected]


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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 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 2019, respectively
48

 
36

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





6


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 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



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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



8


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
)
 
 
 
 
 
 
 
 

9


 
Three Months Ended January 31,
 
Year Ended January 31,
 
2020
 
2019
 
2020
 
2019
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
)




10


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 Founder Holdback 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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

11


 
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 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 Founder Holdback 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 associated with acquisitions and mLab Founder Holdback
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 associated with acquisitions and mLab Founder Holdback
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
)



12


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.

13
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