Summary
MongoDB's third quarter fiscal 2022 revenue reached $226.9 million, up 50% from a year earlier. Subscription revenue grew 51%, and services revenue grew 35%. Atlas revenue rose 84% and accounted for 58% of total Q3 revenue, up from 47% a year earlier. The company ended October 31, 2021 with over 31,000 customers, up from over 22,600 a year earlier. Direct Sales Customers exceeded 3,900, compared with over 2,800. Those Direct Sales Customers generated 85% of subscription revenue, up from 82%. Customers spending at least $100,000 in annualized recurring revenue or annualized monthly recurring revenue totaled 1,201, up from 898. Net ARR expansion rate stayed above 120%. MongoDB Enterprise Advanced represented 34% of subscription revenue, down from 43%. These metrics show MongoDB is still adding large customers and expanding existing ones, while its mix continues to shift toward Atlas.
Gross profit was $158.4 million, and gross margin was 69.8%, up 0.4 percentage points year over year. Operating loss was $76.8 million, and the loss widened from the year-ago quarter. Net loss was $81.3 million, or negative $1.22 per diluted share, and the net loss widened year over year. Diluted EPS was flat at negative $1.22. Operating margin was negative 33.8%, an improvement of 4.7 percentage points from the prior-year quarter. Non-GAAP loss from operations was $3.5 million, compared with $16.0 million a year earlier. Non-GAAP net loss was $7.2 million, or $0.11 per share, compared with $18.2 million, or $0.31 per share. The gap between GAAP and non-GAAP results remains wide, largely because of stock-based compensation and acquisition-related charges.
Operating cash flow was negative $5.8 million for the quarter, an improvement from the year-ago quarter. Capital expenditures were $2.2 million, down 61.3% year over year. Free cash flow was negative $9.2 million, compared with negative $14.9 million a year earlier. Deferred revenue was $297.9 million, up 52.1% year over year. Remaining performance obligations were $353.4 million, up 62.3%. The company has a history of losses and expects to continue incurring operating losses and negative cash flows from operations. Management has said it will keep investing heavily to grow the business rather than optimizing for near-term profitability or cash flow.
For the fourth quarter of fiscal 2022, MongoDB guided revenue to $239.0 million to $242.0 million. For the full fiscal year 2022, revenue guidance is $846.3 million to $849.3 million. The company guided fourth-quarter non-GAAP loss from operations to $13.0 million to $11.0 million, and full-year non-GAAP loss from operations to $36.4 million to $34.4 million. Fourth-quarter non-GAAP net loss per share is guided to $0.24 to $0.21, and full-year non-GAAP net loss per share is guided to $0.74 to $0.71. The guidance excludes stock-based compensation and other items, and the company said reconciliation to GAAP is not available without unreasonable efforts. Management noted continued uncertainty from COVID-19, including the Omicron variant and re-imposed restrictions. Other risks include competition, the need to add customers and expand sales and marketing, security and privacy concerns, and the ability to manage growth and retain personnel.
MongoDB also released MongoDB 5.1, its first quarterly release, with time series support for sharding and improvements for real-time analytics. It announced a preview of a new facet operator in Atlas Search. MongoDB Atlas for Government achieved the FedRAMP designation of In process, with the Department of Health and Human Services as the initial agency partner. The company appointed Peder Ulander as Chief Marketing Officer. Total headcount increased to 3,223 as of October 31, 2021, from 2,334 a year earlier. On December 3, 2021, the company redeemed its 2024 convertible notes. These product and organizational moves support the long-term land-and-expand strategy, but the company still faces execution and macro risks.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2022 | Q2 FY2022 | QoQ | Q3 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $226.9M | $198.7M | +14.2% | $150.8M | +50.5% |
| Gross profit | $158.4M | $138.0M | +14.8% | $104.7M | +51.4% |
| Gross margin | 69.8% | 69.5% | +0.4 pp | 69.4% | +0.4 pp |
| Research & development | $82.3M | $72.4M | +13.6% | $54.4M | +51.3% |
| Sales & marketing | $120.4M | $109.4M | +10.0% | $83.2M | +44.6% |
| General & administrative | $32.6M | $28.8M | +13.1% | $25.2M | +29.4% |
| Total operating expenses | $235.2M | $210.6M | +11.7% | $162.8M | +44.5% |
| Operating income (loss) | -$76.8M | -$72.5M | -5.8% | -$58.1M | -32.2% |
| Operating margin | -33.8% | -36.5% | +2.7 pp | -38.5% | +4.7 pp |
| Net income (loss) | -$81.3M | -$77.1M | -5.4% | -$72.7M | -11.9% |
| Net margin | -35.8% | -38.8% | +3.0 pp | -48.2% | +12.4 pp |
| Customers | 419,381 | 268,610 | +56.1% | 298,197 | +40.6% |
Risks
The ongoing COVID-19 pandemic, including the Delta and Omicron variants, could disrupt operations and reduce IT spending. MD&A states some restrictions have been re-imposed and new restrictions may be implemented, which could harm the sales pipeline and results.
MongoDB faces intense competition from legacy database providers such as IBM, Microsoft and Oracle and from public cloud providers AWS, GCP and Microsoft Azure. These competitors can bundle competing products and offer lower prices, which could pressure pricing and customer acquisition.
MongoDB Atlas is a key growth driver, representing 58% of total revenue for the three months ended October 31, 2021. If Atlas fails to achieve market adoption or if increasing Atlas mix pressures gross margin due to hosting costs, results could be harmed.
The sales cycle is long and unpredictable, generally three to nine months and sometimes more than a year, making revenue recognition timing difficult. MD&A notes seasonality and potential variability in quarterly revenue.
Subscription cost of revenue increased due to third-party cloud infrastructure costs, including MongoDB Atlas growth. Non-cancelable multi-year cloud capacity commitments require payment irrespective of actual usage, which could harm margins if usage declines.
Growth depends on expanding sales and marketing, but competition for experienced sales professionals is significant and employee attrition is heightened. Sales and marketing headcount increased to 1,528 as of October 31, 2021 from 1,062 as of October 31, 2020.
The SSPL and AGPL licensing model for Community Server may harm adoption and limit MongoDB's ability to monetize and protect intellectual property. The SSPL has not been approved by the Open Source Initiative or included in the Free Software Foundation's list of free software licenses.
A majority of subscription contracts are one year in duration, and growth depends on renewals and expansion. Net ARR expansion rate remained over 120% during the three months ended October 31, 2021, but any decline in renewals or expansion would harm results.
The conditional conversion feature of the 2024 and 2026 Notes was triggered during the three months ended October 31, 2021, making the notes convertible at holders' option. Cash settlement of conversions could adversely affect liquidity.
Security breaches or ransomware attacks on MongoDB instances could harm reputation and lead to liability. The risk factors note industry publications reported ransomware attacks on MongoDB instances due to users failing to enable recommended security settings.
Stringent and changing data privacy laws, including the CCPA, CPRA, GDPR and a new U.S. executive order on IT security, increase compliance costs and potential liability. Failure to comply could lead to fines and loss of government revenue.
Rapid growth strains management and infrastructure. Total headcount increased to 3,223 as of October 31, 2021 from 2,334 as of October 31, 2020, and failure to manage growth could impair service quality and execution.
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
MongoDB Atlas Revenue Growth
Non-GAAP Loss from Operations
Summary, forecast, risks and KPIs are extracted from MongoDB, Inc.'s SEC filings for Q3 FY2022 (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.