Summary
MongoDB's first quarter fiscal 2024 total revenue was $368.3 million, up 29% from the prior-year quarter. Gross profit was $270.8 million, up 30.7%. Gross margin was 73.5%, up 0.9 percentage points. The company reported an operating loss of $68.5 million, an improvement of $7.4 million from the prior-year quarter. Net loss was $54.2 million, an improvement of $23.1 million. Operating margin was negative 18.6%, up 8.0 percentage points. On a non-GAAP basis, gross profit was $279.9 million, a 76% non-GAAP gross margin. Non-GAAP income from operations was $43.7 million, compared to $17.5 million in the prior-year period. Non-GAAP net income was $45.3 million, or $0.56 per share, compared to $15.2 million, or $0.20 per share, in the prior-year period.
Cash generation improved. Operating cash flow was $53.7 million, up $42.2 million from the prior-year quarter. Capital expenditures were $0.62 million, down $1.92 million. Free cash flow was $51.8 million, compared to $8.4 million in the prior-year period. Deferred revenue was $412.8 million, up $37.3 million from the prior-year quarter. MongoDB said its existing cash and short-term investments will be sufficient to fund operating and capital needs for at least the next 12 months.
Operational momentum was broad. Total customers reached over 43,100 as of April 30, 2023, up from over 35,200 a year earlier. Direct Sales Customers were over 6,700, up from over 4,800. MongoDB Atlas customers were over 41,600, up from over 33,700. Customers with $100,000 or greater in annualized recurring revenue and annualized monthly recurring revenue were 1,761, up from 1,379. Atlas revenue represented 65% of total first quarter revenue, up from 60% a year earlier, and Atlas revenue grew 40% year-over-year. The net ARR expansion rate remained over 120%. MongoDB Enterprise Advanced revenue represented 28% of subscription revenue, down from 33% a year earlier. Direct Sales Customers accounted for 88% of subscription revenue, up from 87%. Headcount increased to 4,527 from 3,798. MongoDB extended its strategic partnership with Alibaba through 2027, a collaboration that has led to 8x growth in consumption since 2019. Temenos reported that its Banking Cloud on MongoDB Atlas processed more than 150,000 banking transactions per second. The company also announced a MongoDB.local series across 29 cities in 19 countries.
Guidance points to continued growth. For the second quarter of fiscal 2024, MongoDB expects revenue of $388.0 million to $392.0 million, non-GAAP income from operations of $36.0 million to $39.0 million, and non-GAAP net income per share of $0.43 to $0.46. For the full fiscal year 2024, revenue guidance is $1.522 billion to $1.542 billion, non-GAAP income from operations is $110.0 million to $125.0 million, and non-GAAP net income per share is $1.42 to $1.56. Management said the macroeconomic environment continued to negatively impact the business during the quarter. The company experienced slower than historical growth rates for existing Atlas applications and expects macroeconomic headwinds on that growth rate in the short term. It also expects the macroeconomic environment to continue to negatively impact revenue growth for the remainder of the year. Other risks include the company's history of losses, the possibility that it may need additional capital, competition, and the challenges in the banking industry. The company also flagged risks related to inflation, rising interest rates, and volatility in the global economy and financial markets. MongoDB said it cannot provide a reconciliation of non-GAAP guidance to GAAP without unreasonable efforts because of the high variability of stock-based compensation and other charges.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2024 | Q4 FY2023 | QoQ | Q1 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $368.3M | $361.3M | +1.9% | $285.4M | +29.0% |
| Gross profit | $270.8M | $272.2M | -0.5% | $207.2M | +30.7% |
| Gross margin | 73.5% | 75.3% | -1.8 pp | 72.6% | +0.9 pp |
| Research & development | $116.8M | $110.9M | +5.3% | $96.4M | +21.2% |
| Sales & marketing | $182.7M | $189.9M | -3.8% | $150.3M | +21.6% |
| General & administrative | $39.8M | $44.3M | -10.1% | $36.5M | +9.0% |
| Total operating expenses | $339.4M | $345.1M | -1.7% | $283.2M | +19.8% |
| Operating income (loss) | -$68.5M | -$72.9M | +6.0% | -$75.9M | +9.7% |
| Operating margin | -18.6% | -20.2% | +1.6 pp | -26.6% | +8.0 pp |
| Net income (loss) | -$54.2M | -$64.4M | +15.8% | -$77.3M | +29.8% |
| Net margin | -14.7% | -17.8% | +3.1 pp | -27.1% | +12.3 pp |
| Customers | 285,447 | — | — | 181,648 | +57.1% |
Risks
Adverse macroeconomic conditions, including higher inflation and interest rates, continued to negatively impact the business in FY2024 Q1. MD&A states the company experienced slower than historical growth rates for existing MongoDB Atlas applications and expects macroeconomic headwinds on that growth rate in the short term.
The company derives the majority of revenue from MongoDB Atlas, which is primarily recognized on a usage basis. The filing states adverse macroeconomic conditions resulted in slower than historical growth of existing Atlas applications for the three months ended April 30, 2023, and future revenue may be less predictable due to usage fluctuations.
Business depends substantially on customers renewing subscriptions and expanding usage, and a majority of subscription contracts were one year in duration in fiscal year 2023. Failure to renew on the same or more favorable terms or to expand customer usage could materially harm results.
Industry publications have reported ransomware attacks on MongoDB instances, which the company believes were due to Community Server users failing to enable recommended security settings. A security breach or incident could cause customers to reduce or terminate use and expose the company to litigation, regulatory investigations and reputational damage.
The filing highlights the need to develop next-generation solutions using AI and machine learning, and warns that social, ethical and security issues related to AI may cause reputational harm, legal liability and additional R&D costs. Rapid AI evolution requires resources to develop, test and maintain offerings or partnerships.
The sales cycle is generally three to nine months and can extend to more than a year for some customers. Rising inflation, interest rates and global economic uncertainty may cause customers to reduce or delay technology spending, extending the sales cycle and increasing quarterly revenue variability.
The database software market is highly competitive, with legacy providers IBM, Microsoft and Oracle and cloud providers AWS, Google Cloud Platform and Microsoft Azure. Larger competitors can bundle competing products and may lower prices, potentially causing customer loss or failure to renew.
Growth depends on expanding the sales and marketing organization and hiring experienced sales professionals, particularly for larger enterprises. The filing cites significant competition for such professionals and heightened employee attrition in the United States and other countries.
The company is subject to stringent and evolving data privacy and security laws, including the GDPR, UK GDPR, CCPA and cross-border transfer restrictions. Noncompliance could lead to fines, litigation, operational changes and increased compliance costs.
The filing cites recent volatility in the banking sector and notes the company maintains cash balances at third-party financial institutions in excess of government-insured limits. If banks face insolvency, customers may be unable to pay or renew on time.
SaaS KPIs
All quarters →Total Customers
MongoDB Atlas Customers
Direct Sales Customers
Net ARR Expansion Rate
Customers over $100K ARR
Summary, forecast, risks and KPIs are extracted from MongoDB, Inc.'s SEC filings for Q1 FY2024 (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 2, 2026.