10-Q: MongoDB Reports Q2 2024 Results: Revenue Growth Amidst Macroeconomic Headwinds

• MongoDB's total revenue for the second quarter of 2024 reached $478.1 million, a 13% increase compared to $423.8 million in the same period last year.
• Subscription revenue was the primary driver, accounting for $463.8 million, while services contributed $14.3 million.
• MongoDB Atlas revenue represented 71% of total revenue, demonstrating its continued growth.
• The company reported a net loss of $54.5 million for the quarter, compared to a net loss of $37.6 million in Q2 2023.
• Operating cash flow for the six months ended July 31, 2024, was $62.2 million, compared to $28.4 million for the same period in 2023.
• The company had over 50,700 customers as of July 31, 2024, including over 7,300 direct sales customers.
• The net ARR expansion rate was approximately 119%, a decrease from historical rates due to a smaller contribution from expanding customers.
• The company experienced slower than historical growth rates for existing MongoDB Atlas applications due to macroeconomic conditions.

Score: 5

Explanation: The document presents a mixed picture. While revenue growth is positive, the increase in net loss and the impact of macroeconomic conditions are concerning. The company is still growing but faces challenges.

• Subscription revenue continues to be the primary growth driver, increasing by 13% year-over-year.
• MongoDB Atlas is experiencing strong growth, now representing 71% of total revenue.
• Operating cash flow has significantly improved, reaching $62.2 million for the first six months of 2024.
• The company has increased its customer base to over 50,700, including over 7,300 direct sales customers.

• The company's net loss increased to $54.5 million in Q2 2024, compared to $37.6 million in Q2 2023.
• The net ARR expansion rate has declined to approximately 119%, indicating a smaller contribution from expanding customers.
• The company experienced slower than historical growth rates for existing MongoDB Atlas applications due to macroeconomic conditions.
• Gross margin declined slightly to 73% due to an increase in MongoDB Atlas revenue as a percentage of total revenue.

• The company is facing macroeconomic headwinds, including slower economic growth, higher inflation, and higher interest rates, which are impacting the growth of existing MongoDB Atlas applications.
• The company's future revenue may be more difficult to predict due to fluctuations in customer usage patterns and the timing of revenue recognition.
• The company is subject to intense competition in the database software market.
• The company's ability to retain and expand revenue from existing customers is crucial for its success.
• The company's reliance on third-party cloud providers exposes it to potential service disruptions and security breaches.
• The company's international operations are subject to various risks, including currency fluctuations and changes in regulations.
• The company is subject to various data privacy and security laws and regulations, and any failure to comply could result in penalties and reputational damage.
• The company is subject to intellectual property rights claims by third parties, which may be costly to defend and could limit its ability to use certain technologies.

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 document indicates that the worldwide database software market was $93 billion in 2023 and is expected to grow to approximately $170 billion in 2028, representing a 13% compound annual growth rate. This highlights the significant market opportunity for MongoDB.

• MongoDB competes with established legacy database software providers such as IBM, Microsoft, and Oracle, as well as public cloud providers like AWS, GCP, and Microsoft Azure.
• The company's growth in MongoDB Atlas revenue and customer base indicates a strong position in the modern database market, particularly in the cloud-based database-as-a-service segment.
• The company's net ARR expansion rate of 119% is a key metric for subscription-based businesses, although it has declined from historical rates.
• The company's focus on developer adoption through free offerings like Community Server and the free tier of MongoDB Atlas is a common strategy in the open-source and developer-focused software space.

• Shareholders may be concerned about the increased net loss and the impact of macroeconomic conditions on the company's growth.
• Employees may be affected by the company's efforts to manage costs and improve efficiency.
• Customers may be impacted by the company's ability to provide high-quality support and maintain service level commitments.
• Suppliers and creditors may be affected by the company's financial performance and ability to meet its obligations.

• The company plans to continue to invest in sales and marketing efforts and developer community outreach.
• The company intends to continue to invest in its services organization.
• The company will continue to monitor the macroeconomic environment and adjust business practices accordingly.

• On July 9, 2024, a putative class action lawsuit was filed against MongoDB, CEO Dev Ittycheria, and CFO Michael Gordon, alleging material misstatements and/or omissions regarding the company's sales strategy and financial results.

• 2007-11: MongoDB, Inc. was originally incorporated in the state of Delaware under the name 10Gen, Inc.
• 2009-02: MongoDB platform has been downloaded from the website more than 500 million times since February 2009.
• 2013-08: The Company changed its name to MongoDB, Inc.
• 2016-06: MongoDB Atlas was introduced in June 2016.
• 2018-10-16: MongoDB 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.
• 2024-07-09: A putative class action lawsuit, captioned Baxter v. MongoDB, Inc., et al., was filed.
• 2024-07-31: End of the reporting period for the quarterly report.
• 2024-08-28: As of August 28, 2024, there were 73,869,454 shares of the registrants common stock outstanding.