10-Q: MongoDB Reports Q1 2025 Results: Revenue Growth Continues Amidst Macroeconomic Headwinds

• MongoDB's total revenue for the first quarter of 2025 reached $450.6 million, a 22% increase compared to $368.3 million in the same period last year.
• Subscription revenue accounted for $436.9 million, or 97% of total revenue, while services revenue contributed $13.7 million.
• The company experienced a net loss of $80.6 million, compared to a net loss of $54.2 million in the first quarter of 2024, primarily due to increased operating expenses.
• Operating cash flow was $63.6 million, compared to $53.7 million in the same period last year.
• MongoDB Atlas revenue represented 70% of total revenue, up from 65% in the prior year, indicating continued growth in its cloud-based offering.
• The company had over 49,200 customers as of April 30, 2024, compared to over 43,100 customers as of April 30, 2023.
• The number of customers with $100,000 or greater in ARR and annualized MRR was 2,137 as of April 30, 2024, compared to 1,761 as of April 30, 2023.
• The company's net ARR expansion rate has consistently been over 120%, demonstrating its ability to expand within existing customers.

Score: 6

Explanation: The document presents a mixed picture. While revenue growth is strong and the company is expanding its customer base, the increasing net loss and macroeconomic headwinds are concerning. The sentiment is cautiously optimistic, but with some reservations.

• Subscription revenue continues to be the primary driver of growth, accounting for 97% of total revenue.
• MongoDB Atlas is experiencing strong growth, with revenue increasing as a percentage of total revenue.
• The company is successfully expanding its customer base and increasing revenue from existing customers.
• The company has a strong cash position with $2.1 billion in cash, cash equivalents, and short-term investments.
• The company's net ARR expansion rate remains strong, indicating successful upselling and cross-selling efforts.

• The company's net loss increased to $80.6 million, compared to $54.2 million in the same period last year.
• The company experienced a negative impact from the macroeconomic environment on the growth of existing Atlas applications.
• Gross margin declined slightly to 73% due to an increase in subscription revenue from MongoDB Atlas as a percentage of total revenue.
• Sales and marketing expenses increased by 20% year-over-year, driven by higher event costs and personnel expenses.
• General and administrative expenses increased by 52% year-over-year, due to higher personnel costs and value-added tax expenses.

• The company is facing macroeconomic headwinds that are negatively impacting the growth of existing MongoDB Atlas applications.
• The company's future revenue may be less predictable due to fluctuations in customer usage of MongoDB Atlas.
• The company is subject to risks related to security breaches and other security incidents.
• The company is subject to risks related to the enforcement of the SSPL and AGPL licenses.
• The company is subject to risks related to the use of third-party open source software.
• The company is subject to risks related to the volatility of the global economy and financial markets.
• The company is subject to risks related to the volatility of the banking sector.
• The company is subject to risks related to the ongoing geopolitical instability resulting from the conflicts between Russia and Ukraine and Israel and Hamas.

The company expects to experience macroeconomic headwinds on growth rate for existing MongoDB Atlas applications in the short term and will continue to monitor the developments of the macroeconomic environment and the geopolitical landscape.

• The company is intensely focused on continuing to grow its customer base.
• The company plans to continue to invest in acquiring new customers and additional workloads from existing customers across all of its channels.
• The company expects to continue to invest in its services organization as it plays an important role in accelerating customers realization of the benefits of the platform.
• The company believes the market for its offerings is large and growing.

The company operates in the database software market, which is highly competitive and rapidly evolving. The company competes with established legacy database software providers, public cloud providers, and other non-relational database software providers. The company's growth is driven by the increasing demand for modern, scalable, and flexible database solutions.

• MongoDB's revenue growth of 22% year-over-year is strong compared to the overall database software market's projected compound annual growth rate of 13% through 2028, as estimated by IDC.
• The company's focus on cloud-based solutions with MongoDB Atlas aligns with the industry trend of increasing adoption of database-as-a-service offerings.
• While specific competitor results are not detailed in this document, MongoDB's net ARR expansion rate of over 120% suggests strong customer retention and expansion, which is a key metric for SaaS companies.
• The company's investment in sales and marketing, as well as research and development, is consistent with the strategies of other high-growth technology companies in the database and cloud space.
• The company's gross margin of 73% is within the range of other software companies, but may be impacted by the higher costs associated with its cloud-based offering.

• Shareholders may be concerned about the increasing net loss, but encouraged by the revenue growth and customer expansion.
• Employees may be affected by the company's efforts to manage costs and improve efficiency.
• Customers may benefit from the company's continued investment in its platform and services.
• Suppliers may see increased business opportunities as the company continues to grow.
• Creditors may be concerned about the company's increasing net loss, but reassured by its strong cash position.

• The company will continue to invest in its sales and marketing efforts.
• The company will continue to invest in its research and development efforts.
• The company will continue to monitor the macroeconomic environment and adjust its business practices accordingly.

• 2007-11: MongoDB, Inc. was originally incorporated in the state of Delaware.
• 2009-02: MongoDB platform has been downloaded from the website more than 500 million times since this date.
• 2013-08: The Company changed its name to MongoDB, Inc.
• 2016-06: MongoDB Atlas was introduced.
• 2018-10-16: The company changed the license for Community Server from the AGPL to the SSPL.
• 2020-01: The company issued $1.15 billion aggregate principal amount of 0.25% convertible senior notes due 2026.
• 2023-09-27: The company acquired the assets of Grainite, Inc.
• 2024-04-30: End of the reporting period for the first quarter of fiscal year 2025.
• 2024-05-29: There were 73,350,695 shares of the registrants common stock outstanding.