Summary
MongoDB reported total revenue of $333.6 million for the third quarter of fiscal 2023, up 47.0% from $226.9 million in the prior-year quarter. Year-to-date revenue reached $922.7 million, up 51.9% from $607.3 million. Gross profit was $240.0 million for the quarter, up 51.5% from $158.4 million, and gross margin was 71.9%, up 2.1 percentage points from 69.8%. The company's Atlas offering drove much of the growth, with Atlas revenue up 61% year-over-year and representing 63% of total third quarter revenue. Customer count grew to over 39,100 as of October 31, 2022, from over 31,000 a year earlier. Direct Sales Customers rose to over 5,900 from over 3,900, and customers with at least $100,000 in annualized recurring revenue reached 1,545, up from 1,201.
Profitability remained under pressure. Operating loss was $82.9 million for the quarter, compared with a loss of $76.8 million in the prior-year quarter, and the loss widened 8.0%. Net loss was $84.8 million, compared with $81.3 million, and the loss widened 4.4%. Operating margin was negative 24.9%, up 9.0 percentage points from negative 33.8%. For the first nine months of fiscal 2023, operating loss was $273.7 million, and net loss was $281.0 million, compared with losses of $210.7 million and $222.4 million in the prior-year period. The company continued to invest heavily in sales and marketing and research and development, which increased operating expenses and contributed to the wider losses.
Cash generation was negative. Operating cash flow was negative $5.7 million for the quarter, up 0.8% from negative $5.8 million in the prior-year quarter. Year-to-date operating cash flow was negative $38.8 million, down 153.3% from negative $15.3 million. Capital expenditures were $1.4 million for the quarter, down 36.8% from $2.2 million. Free cash flow, a non-GAAP measure, was negative $8.4 million, compared with negative $9.2 million a year earlier. Deferred revenue was $398.2 million as of October 31, 2022, up 33.7% from $297.9 million a year earlier. The company ended the quarter with a strong liquidity position, though it continues to carry an accumulated deficit.
Management issued guidance for the fourth quarter and full year fiscal 2023. For the fourth quarter, non-GAAP income from operations is expected to be $6 million to $8 million, and non-GAAP net income per share is expected to be $0.06 to $0.08. For the full year, non-GAAP income from operations is expected to be $30.8 million to $32.8 million, and non-GAAP net income per share is expected to be $0.29 to $0.31. Revenue guidance was also provided for both periods. The company noted that the macroeconomic environment negatively affected the business during the quarter, including slower than historical growth of existing Atlas applications. Management expects the macroeconomic environment to continue to negatively impact revenue growth for the remainder of the year. Other risks include the COVID-19 pandemic, the ongoing military conflict between Russia and Ukraine, rising interest rates, inflation, competition, and the company's history of losses.
Operational highlights included a new pay-as-you-go experience for MongoDB Atlas in the Microsoft Azure Marketplace Portal, MongoDB Atlas availability within the Microsoft Intelligent Data Platform, and recognition as a leader in The Forrester Wave Translytical Data Platforms, Q4 2022. MongoDB also announced an overhaul of MongoDB University with more than 300 different assets. The company's net ARR expansion rate remained over 120%. Headcount increased to 4,534 as of October 31, 2022, from 3,223 a year earlier. These investments support long-term growth but weigh on near-term profitability.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2023 | Q2 FY2023 | QoQ | Q3 FY2022 | YoY |
|---|---|---|---|---|---|
| Revenue | $333.6M | $303.7M | +9.9% | $226.9M | +47.0% |
| Gross profit | $240.0M | $215.4M | +11.4% | $158.4M | +51.5% |
| Gross margin | 71.9% | 70.9% | +1.0 pp | 69.8% | +2.1 pp |
| Research & development | $106.4M | $108.0M | -1.5% | $82.3M | +29.3% |
| Sales & marketing | $177.4M | $181.6M | -2.3% | $120.4M | +47.4% |
| General & administrative | $39.1M | $40.6M | -3.7% | $32.6M | +20.0% |
| Total operating expenses | $322.9M | $330.2M | -2.2% | $235.2M | +37.3% |
| Operating income (loss) | -$82.9M | -$114.8M | +27.8% | -$76.8M | -8.0% |
| Operating margin | -24.9% | -37.8% | +13.0 pp | -33.8% | +9.0 pp |
| Net income (loss) | -$84.8M | -$118.9M | +28.6% | -$81.3M | -4.4% |
| Net margin | -25.4% | -39.1% | +13.7 pp | -35.8% | +10.4 pp |
| Customers | 607,288 | 380,395 | +59.6% | 419,381 | +44.8% |
Risks
Adverse macroeconomic conditions, including higher inflation and rising interest rates, negatively impacted the business in the three and nine months ended October 31, 2022, including slower than historical growth of existing Atlas applications. Management expects the macroeconomic environment to continue to negatively impact revenue growth for the remainder of the year.
The conditional conversion feature of the 2026 Notes was triggered during the three months ended October 31, 2022, making the notes convertible at holders' option from November 1, 2022 through January 31, 2023. If holders convert, the company may need to make cash payments that could adversely affect liquidity, or reclassify principal as a current liability and materially reduce net working capital.
Industry publications have reported ransomware attacks on MongoDB instances, which the company believes were successful because users of Community Server failed to turn on recommended security settings. A security incident or perceived incident could cause customers to stop using the platform, deter new customers and lead to litigation, regulatory investigations and reputational harm.
The database market is highly competitive, with legacy providers IBM, Microsoft and Oracle and public cloud providers AWS, Google Cloud Platform and Microsoft Azure able to bundle competing products and devote greater resources. Failure to compete effectively could cause loss of new customers or failure to renew existing customers.
The company has non-cancelable multi-year cloud infrastructure capacity commitments requiring payment irrespective of actual usage, and expects cost of subscription revenue may increase as a percentage of subscription revenue depending on MongoDB Atlas results. Increasing MongoDB Atlas revenue as a percentage of total revenue may also pressure gross margin due to associated hosting costs.
The sales cycle is long and unpredictable, generally three to nine months but can exceed a year for some customers, and a large portion of sales occur toward the end of each quarter. Delays in closing sales, including renewals, may push revenue into the next quarter and create quarterly variability.
The company faces heightened employee attrition in the United States and other countries and risks from remote and hybrid work arrangements, including reduced productivity and lower employee retention. Vaccine mandates in certain jurisdictions could also result in attrition of critically skilled labor and difficulty securing future labor needs.
SaaS KPIs
All quarters →Total Customers
MongoDB Atlas Customers
Direct Sales Customers
Free Cash Flow
Net ARR Expansion Rate
Non-GAAP Gross Margin
Non-GAAP Income from Operations
Summary, forecast, risks and KPIs are extracted from MongoDB, Inc.'s SEC filings for Q3 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 2, 2026.