Summary
MongoDB's first quarter fiscal 2023 revenue reached $285.4 million, up 57.1% from $181.6 million in the prior-year quarter. Subscriptions accounted for 96% of total revenue in both periods. The growth came with strong customer additions. Total customers rose to over 35,200 as of April 30, 2022 from over 26,800 a year earlier. MongoDB Atlas customers grew to over 33,700 from over 25,300. Direct sales customers increased to over 4,800 from over 3,300. Customers spending at least $100,000 in annualized recurring revenue or annualized monthly recurring revenue totaled 1,379, up from 1,057. Atlas revenue climbed 82% year over year and represented 60% of total first quarter revenue, compared with 51% a year earlier. Direct sales customers generated 87% of subscription revenue, up from 84%. MongoDB Enterprise Advanced represented 33% of subscription revenue, down from 40%. The company's net ARR expansion rate remained over 120%. Headcount ended the quarter at 3,798, up from 2,745 a year earlier.
Profitability metrics showed a mix. Gross profit was $207.2 million, up 63.0% from $127.1 million. Gross margin improved to 72.6% from 70.0%, a gain of 2.6 percentage points. Non-GAAP gross margin was 75%, compared with 72% in the year-ago period. Operating loss widened to $75.9 million from $61.4 million. Operating margin was -26.6%, an improvement of 7.2 percentage points from -33.8%. Net loss widened to $77.3 million from $64.0 million. On a non-GAAP basis, income from operations was $17.5 million, compared with a non-GAAP loss from operations of $2.8 million. Non-GAAP net income was $15.2 million, or $0.20 per share, compared with a non-GAAP net loss of $3.9 million, or $0.06 per share.
Cash generation and deferred revenue provided some balance. Operating cash flow was $11.6 million, up 13.3% from $10.2 million. Capital expenditures were $2.5 million, up 304.8% from $0.6 million. Free cash flow was $8.4 million, matching the $8.4 million reported in the year-ago period. Deferred revenue ended the quarter at $375.5 million, up 51.2% from $248.3 million. The company continued to invest heavily in growth. Sales and marketing, research and development, and general and administrative expenses all rose, driven by higher headcount and personnel costs. Management said it intends to keep investing to capture a large market opportunity rather than optimizing for near-term profitability or cash flow. During the quarter, MongoDB announced a multi-year strategic collaboration agreement with AWS, launched a pay-as-you-go option for MongoDB Atlas on Google Cloud, and held a sold-out MongoDB.local event in Paris where OVHcloud announced a managed database offering for MongoDB Enterprise Plan in free beta.
Guidance for the second quarter of fiscal 2023 and the full year fiscal 2023 was issued on June 1, 2022. The company expects a non-GAAP loss from operations of $18.0 million to $16.0 million in the second quarter and a non-GAAP loss from operations of $9.0 million to non-GAAP income from operations of $1.0 million for the full year. Non-GAAP net loss per share guidance is $0.31 to $0.28 for the second quarter and $0.31 to $0.16 for the full year. The outlook includes an estimated negative revenue impact in the second quarter and for the full year fiscal 2023 from the current global macroeconomic environment. Management also flagged that the macroeconomic environment affected the growth of existing applications during the quarter and expects that pressure to continue for the remainder of the year. Risks include the ongoing COVID-19 pandemic, the military conflict between Russia and Ukraine, volatility in the global economy and financial markets, a history of losses, competition, and the need to expand sales and marketing while maintaining security and privacy.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2023 | Q4 FY2022 | QoQ | Q1 FY2022 | YoY |
|---|---|---|---|---|---|
| Revenue | $285.4M | $266.5M | +7.1% | $181.6M | +57.1% |
| Gross profit | $207.2M | $190.7M | +8.7% | $127.1M | +63.0% |
| Gross margin | 72.6% | 71.6% | +1.0 pp | 70.0% | +2.6 pp |
| Research & development | $96.4M | $89.4M | +7.8% | $64.8M | +48.8% |
| Sales & marketing | $150.3M | $144.3M | +4.2% | $97.9M | +53.5% |
| General & administrative | $36.5M | $35.6M | +2.5% | $25.9M | +40.9% |
| Total operating expenses | $283.2M | $269.3M | +5.1% | $188.6M | +50.2% |
| Operating income (loss) | -$75.9M | -$78.6M | +3.4% | -$61.4M | -23.6% |
| Operating margin | -26.6% | -29.5% | +2.9 pp | -33.8% | +7.2 pp |
| Net income (loss) | -$77.3M | -$84.4M | +8.5% | -$64.0M | -20.8% |
| Net margin | -27.1% | -31.7% | +4.6 pp | -35.2% | +8.1 pp |
| Customers | 181,648 | — | — | 130,329 | +39.4% |
Risks
MD&A states that during the three months ended April 30, 2022, the company believes it experienced a macroeconomic impact on the growth of existing applications, which affected revenue growth, and expects the macroeconomic environment to continue to impact it for the remainder of the year. Risk factors cite inflation, higher interest rates, and the Russia-Ukraine conflict as pressures that could reduce IT spending and increase costs.
The database market is highly competitive, with legacy providers IBM, Microsoft, Oracle and cloud providers AWS, GCP and Microsoft Azure; larger competitors can bundle competing products, offer low or no cost, and withstand reduced technology spending. MongoDB Atlas revenue represented 60% of total revenue in the quarter ended April 30, 2022, compared to 51% in the prior-year quarter, increasing exposure to cloud provider competition.
Risk factors specifically note industry publications reported ransomware attacks on MongoDB instances, which the company believes were due to users of Community Server failing to turn on recommended security settings. A security incident or perceived incident could cause customers to stop using the platform and lead to litigation, regulatory investigations, and reputational harm.
The sales cycle is generally three to nine months and can exceed a year for some customers, and a large portion of sales occur toward the end of each quarter, so delays can push revenue into the next quarter. This creates quarterly revenue variability and forecasting difficulty.
Growth depends on expanding the sales and marketing organization and hiring experienced sales professionals, with heightened employee attrition in the United States and other countries; remote and hybrid work may reduce retention and productivity. Sales and marketing headcount rose to 1,864 as of April 30, 2022 from 1,281 as of April 30, 2021.
The company is subject to stringent and changing data privacy and security obligations, including GDPR, CCPA, CPRA, and cross-border transfer restrictions; GDPR fines can reach 20 million euros or 4% of total worldwide global turnover. Compliance costs and potential liability could increase.
Community Server is offered under SSPL or AGPL, which have not been interpreted by courts and may be unenforceable; competitors could use the software to compete, and the company has limited visibility into licensee use. This could harm monetization and adoption.
The conditional conversion feature of the 2026 Notes was triggered during the three months ended April 30, 2022, making the notes currently convertible at holders' option. If holders convert, the company may be required to settle in cash, which could adversely affect liquidity and require reclassifying the notes as a current liability.
MongoDB Atlas revenue represented 60% of total revenue in the quarter ended April 30, 2022, compared to 51% in the prior-year quarter. MD&A states that to the extent MongoDB Atlas revenue increases as a percentage of total revenue, gross margin may decline due to associated hosting costs, even though gross margin was up 2.6 pp to 72.6% in the quarter.
SaaS KPIs
All quarters →Total Customers
MongoDB Atlas Customers
Direct Sales Customers
Free Cash Flow
Net ARR Expansion Rate
Customers over $100K ARR
Non-GAAP Gross Margin
MongoDB Atlas Revenue % of Total Revenue
Direct Sales Customers Revenue % of Subscription Revenue
MongoDB Enterprise Advanced % of Subscription Revenue
MongoDB Atlas Revenue Growth YoY
Non-GAAP Income from Operations
Summary, forecast, risks and KPIs are extracted from MongoDB, Inc.'s SEC filings for Q1 FY2023 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.