MDB
Mongodb, INC
NASDAQ
10-K: MongoDB Reports Fiscal Year 2025 Results, Revenue Climbs to $2.01 Billion
Sentiment:
Annual Results
20 March 2025 10:06 PM
MongoDB's fiscal year 2025 shows revenue growth to $2.01 billion, driven by subscription services, particularly MongoDB Atlas.
Worse than expected
The adverse macroeconomic conditions resulted in slower than historical growth of existing Atlas applications for the year ended January 31, 2025.
The net ARR expansion rate declined versus most historical periods to 118%.
Summary
- MongoDB's fiscal year 2025 revenue reached $2.01 billion, a 19% increase from the previous year.
- Subscription revenue accounted for 97% of the total revenue, with MongoDB Atlas representing 70% of the total.
- The company reported a net loss of $129.1 million, an improvement from the $176.6 million loss in fiscal year 2024.
- Operating cash flow was $150.2 million, a significant increase from $121.5 million in the prior year.
- As of January 31, 2025, MongoDB had over 54,500 customers across various industries and over 7,500 direct sales customers.
- The net ARR expansion rate was approximately 118%.
Sentiment
Score: 7
Explanation: The document presents a mixed sentiment. While revenue growth and improved profitability are positive, the ongoing net losses and macroeconomic headwinds temper the outlook. The company is executing its growth strategy, but faces significant challenges.
Positives
- Significant revenue growth driven by subscription services.
- Increased adoption of MongoDB Atlas.
- Improvement in net loss compared to the previous year.
- Strong operating cash flow.
- Growth in customer base.
- Introduction of MongoDB version 8.0 with improved features.
Negatives
- The company still reported a net loss of $129.1 million.
- The net ARR expansion rate declined versus most historical periods to 118%.
- The adverse macroeconomic conditions resulted in slower than historical growth of existing Atlas applications for the year ended January 31, 2025.
Risks
- Unfavorable conditions in the global economy could limit the company's ability to grow.
- The company's business depends on customers renewing subscriptions and expanding usage.
- Intense competition in the database software market.
- Security breaches or other security incidents could damage the company's reputation and affect customer usage.
- The company's sales cycle can be long and unpredictable.
- The company relies on third-party cloud providers, which exposes it to potential disruptions.
Future Outlook
The company expects to continue investing in growth and scaling its business, but anticipates macroeconomic headwinds to impact revenue growth in the short term.
Industry Context
MongoDB competes in the database management software market, which is expected to grow to approximately $170 billion in 2028, representing a 13% compound annual growth rate.
Comparison to Industry Standards
- The document mentions competition with established legacy database software providers such as IBM, Microsoft, and Oracle.
- It also notes competition with public cloud providers like AWS, GCP, and Microsoft Azure.
- The document highlights that some competitors have advantages such as longer operating histories, more established relationships, and greater financial resources.
Stakeholder Impact
- Shareholders: Potential for long-term growth, but also risk of continued losses and stock price volatility.
- Employees: Continued investment in research and development and sales and marketing could lead to career opportunities.
- Customers: Ongoing product development and support aim to improve customer experience.
- Suppliers: Continued growth could lead to increased business opportunities.
Next Steps
- Continue to invest in product offerings to expand functionality and adoption.
- Foster the MongoDB developer community.
- Grow and cultivate the partner ecosystem.
- Expand internationally.
Legal Proceedings
- A putative class action lawsuit, Baxter v. MongoDB, Inc., et al., was filed alleging material misstatements and/or omissions regarding MongoDB’s sales strategy and its financial results.
- A purported shareholder derivative lawsuit, Roy v. Ittycheria et al., was filed alleging that the individual defendants breached their fiduciary duties and committed other alleged misconduct in connection with the statements at issue in the Securities Action and by causing the Company to issue allegedly false and misleading statements to investors.
Key Dates
- November 2007: MongoDB, Inc. was incorporated in Delaware.
- February 2009: MongoDB Community Server was introduced.
- June 2016: MongoDB Atlas was introduced.
- October 16, 2018: License for Community Server changed from AGPL to SSPL.
- February 2021: Global partnership with Tencent Cloud announced.
- January 31, 2025: End of fiscal year 2025.
- April 1, 2025: Termination date of Michael Gordon's advisory services agreement, unless extended.
Keywords
MongoDB, revenue, Atlas, subscription, database, ARR, net loss, cloud, customers, financial results
MDB
Mongodb, INC
NASDAQ
Sector: TBD
Filings with Classifications
Worse than expected
20 March 2025 10:06 PM
Annual Results
- The adverse macroeconomic conditions resulted in slower than historical growth of existing Atlas applications for the year ended January 31, 2025.
- The net ARR expansion rate declined versus most historical periods to 118%.
Better than expected
5 March 2025 9:07 PM
Earnings Release
- MongoDB's net income improved significantly compared to the previous year.
- Atlas consumption in the quarter was better than expected.
- MongoDB delivered a strong end to fiscal 2025 with 24% Atlas revenue growth and significant margin expansion.
Worse than expected
10 December 2024 4:07 PM
Quarterly Report
- The company experienced slower than historical growth rates for existing MongoDB Atlas applications due to macroeconomic conditions.
- The net ARR expansion rate declined compared to historical periods, indicating a smaller contribution from expanding customers.
Better than expected
9 December 2024 4:10 PM
Quarterly Report
- The company's third-quarter results significantly exceeded expectations on both the top and bottom line.
- MongoDB's revenue and non-GAAP income were better than anticipated by analysts.
Worse than expected
30 August 2024 4:24 PM
Quarterly Report
- The company's net loss increased compared to the same period last year.
- The net ARR expansion rate declined from historical rates.
- The company experienced slower than historical growth rates for existing MongoDB Atlas applications due to macroeconomic conditions.
Worse than expected
29 August 2024 4:10 PM
Quarterly Report
- The company's net loss increased year-over-year, from $37.6 million to $54.5 million.
- Non-GAAP income from operations decreased from $79.1 million to $52.5 million year-over-year.
- Non-GAAP net income decreased from $76.7 million to $59.0 million year-over-year.
Worse than expected
31 May 2024 4:41 PM
Quarterly Report
- The company's net loss increased year-over-year, indicating that profitability is not improving as quickly as revenue growth.
- The company experienced a negative impact from the macroeconomic environment on the growth of existing Atlas applications, which is a key driver of revenue.
Worse than expected
30 May 2024 4:14 PM
Quarterly Report
- The company experienced a slower than expected start to the year for Atlas consumption growth and new workload wins, which will have a downstream impact for the remainder of fiscal 2025.
- The company's loss from operations increased to $98.2 million, compared to $68.5 million in the same quarter last year.
- Net loss increased to $80.6 million, or $1.10 per share, compared to $54.2 million, or $0.77 per share, in the prior year.
Better than expected
16 May 2024 4:07 PM
Proxy Statement
- The company's revenue increased by 31% year-over-year, reaching $1.68 billion in fiscal year 2024.
- The company generated $121.5 million of cash from operations during the year ended January 31, 2024, compared to $13.0 million of cash used in operations in the year-ago period.
- The company's gross profit was $1.26 billion for the full year fiscal 2024, representing a 75% gross margin compared to 73% in the year-ago period.
Worse than expected
15 March 2024 4:11 PM
Annual Results
- The company experienced slower than historical growth rates for existing MongoDB Atlas applications due to adverse macroeconomic conditions.
Better than expected
7 March 2024 4:09 PM
Quarterly Report
- MongoDB's revenue growth, particularly in Atlas, exceeded expectations.
- The company's operating margin improved significantly, indicating better cost management.
- MongoDB's free cash flow generation was much better than the previous year, showing improved financial health.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.