Summary
MongoDB reported fiscal 2024 third-quarter revenue of $432.94 million, up 29.8% from the prior-year quarter. Gross profit was $325.88 million, up 35.8%. Gross margin was 75.3%, up 3.3 percentage points. The company still recorded an operating loss of $45.22 million, but that loss narrowed 45.5% from the prior-year quarter. Net loss was $29.30 million, narrowing 65.5%. Operating margin was negative 10.4%, up 14.4 percentage points. Year-to-date revenue was $1.23 billion, up 32.8%. Year-to-date gross profit was $915.16 million, up 38.1%. Year-to-date operating loss was $162.77 million, narrowing 40.5%. Year-to-date net loss was $121.14 million, narrowing 56.9%. The top line and bottom line both improved.
The operational picture centered on MongoDB Atlas and AI. Atlas revenue rose 36% from the prior-year quarter and accounted for 66% of total Q3 revenue. Total customers reached over 46,400 as of October 31, 2023, up from over 39,100 a year earlier. Direct sales customers increased to over 6,900 from over 5,900. Atlas customers rose to over 44,900 from over 37,600. Customers with at least $100,000 in annualized recurring revenue or annualized monthly recurring revenue totaled 1,972, up from 1,545. The net ARR expansion rate remained over 120%. Management highlighted the general availability of MongoDB Atlas Vector Search and Atlas Search Nodes, which can deliver up to 60 percent faster query times. It also announced integrations with Amazon Bedrock, Amazon CodeWhisperer, and Microsoft Copilot, and launched new Atlas for Industries vertical initiatives. Headcount grew to 4,849 from 4,534.
Cash generation improved. Operating cash flow was $38.42 million in the quarter, up 768.9% from the prior-year quarter. For the nine months, operating cash flow was $66.85 million, up 272.1%. Capital expenditures were $2.08 million in the quarter, up 50.5%, while year-to-date capital expenditures were $3.34 million, down 48.9%. Deferred revenue was $320.80 million, down 19.4% from the prior-year quarter. Free cash flow, a non-GAAP measure, was $35.0 million, compared with negative free cash flow of $8.4 million a year earlier. Non-GAAP income from operations was $78.5 million, compared with $19.8 million a year earlier.
Guidance points to steady demand but a tougher comparison. For the fourth quarter of fiscal 2024, MongoDB guided revenue to $429.0 million to $433.0 million, non-GAAP income from operations to $35.0 million to $38.0 million, and non-GAAP net income per share to $0.44 to $0.46. For the full fiscal year 2024, the company guided revenue to $1.654 billion to $1.658 billion, non-GAAP income from operations to $236.3 million to $239.3 million, and non-GAAP net income per share to $2.89 to $2.91. MongoDB said it cannot reconcile the non-GAAP income from operations and non-GAAP net income per share guidance to the most directly comparable GAAP measures without unreasonable efforts because of the high variability and low visibility of stock-based compensation and related charges.
Risks remain familiar. Management said the macroeconomic environment continued to hurt the business during the nine months ended October 31, 2023. It cited slower than historical growth rates for existing Atlas applications and expects macroeconomic headwinds on that growth rate in the short term and for the remainder of the year. Other disclosed risks include a history of losses, potential need for additional capital, competition, failure of the platform to satisfy customer demands, challenges integrating acquisitions, security and privacy concerns, inflation, rising interest rates, and the ongoing military conflicts between Russia and Ukraine and Israel and Hamas. The company also depends on expanding its sales and marketing organization and on customer adoption of new products. The Vector Search launch is central to its AI opportunity, and management lists risks around introducing new features and services.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2024 | Q2 FY2024 | QoQ | Q3 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $432.9M | $423.8M | +2.2% | $333.6M | +29.8% |
| Gross profit | $325.9M | $318.5M | +2.3% | $240.0M | +35.8% |
| Gross margin | 75.3% | 75.1% | +0.1 pp | 71.9% | +3.3 pp |
| Research & development | $128.2M | $125.4M | +2.2% | $106.4M | +20.5% |
| Sales & marketing | $193.0M | $195.9M | -1.5% | $177.4M | +8.8% |
| General & administrative | $50.0M | $46.1M | +8.4% | $39.1M | +27.9% |
| Total operating expenses | $371.1M | $367.5M | +1.0% | $322.9M | +14.9% |
| Operating income (loss) | -$45.2M | -$49.0M | +7.7% | -$82.9M | +45.5% |
| Operating margin | -10.4% | -11.6% | +1.1 pp | -24.9% | +14.4 pp |
| Net income (loss) | -$29.3M | -$37.6M | +22.1% | -$84.8M | +65.5% |
| Net margin | -6.8% | -8.9% | +2.1 pp | -25.4% | +18.7 pp |
| Customers | 922,728 | 589,107 | +56.6% | 607,288 | +51.9% |
Risks
Adverse macroeconomic conditions, including higher inflation and interest rates, continued to negatively impact the business during the nine months ended October 31, 2023, causing slower than historical growth for existing MongoDB Atlas applications. Management expects macroeconomic headwinds on the growth rate for existing Atlas applications in the short term.
MongoDB derives more than the majority of revenue from MongoDB Atlas, which represented 66% and 65% of total revenue for the three and nine months ended October 31, 2023. Atlas is primarily usage-based, so slower customer consumption or renewals could make future revenue less predictable.
The 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 usage could materially harm results.
The database market is highly competitive, with legacy providers such as IBM, Microsoft and Oracle and cloud providers such as AWS, GCP and Microsoft Azure. Development of next-generation solutions using AI and machine learning may require significant resources and could intensify competition.
The conditional conversion feature of the 2026 Notes was triggered during the three months ended October 31, 2023, making the notes convertible at holder option from November 1, 2023 through January 31, 2024. If holders convert, MongoDB may need to settle in cash, which could adversely affect liquidity.
Security breaches or incidents could disrupt the platform and lead to liability, regulatory investigations and reputational damage. The filing notes industry reports of ransomware attacks on MongoDB instances, which the company believes were due to Community Server users failing to enable recommended security settings.
The sales cycle is long and unpredictable, generally three to nine months and sometimes more than a year, and rising inflation and interest rates plus global economic uncertainty could cause potential customers to delay technology spending and extend the sales cycle.
MongoDB has non-cancelable multi-year capacity commitments with third-party cloud providers that require payment irrespective of actual usage. If Atlas usage growth slows, these commitments could pressure gross margins and operating results.
MongoDB is subject to evolving U.S. and foreign data privacy and security laws, including the CCPA, GDPR and U.K. GDPR, and new SEC cybersecurity disclosure rules that begin applying to annual reports for the year ended January 31, 2024 and Form 8-K disclosure starting December 18, 2023. Compliance costs and potential fines could be significant.
Growth depends on expanding sales and marketing, but there is significant competition for experienced sales professionals and heightened employee attrition. New hires require significant training and may not become productive as quickly as expected.
Community Server is offered under the SSPL or AGPL, and the SSPL has not been interpreted by courts or approved by the Open Source Initiative. If these licenses are unenforceable or deter adoption, MongoDB's ability to monetize and protect its intellectual property could be harmed.
Deferred revenue decreased 19.4% to $320.8 million in the current quarter compared with the prior-year quarter, and MongoDB expects a higher portion of Atlas contracts to be billed monthly in arrears based on usage without upfront commitments. This shift may reduce visibility into future revenue.
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
Non-GAAP Operating 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
Summary, forecast, risks and KPIs are extracted from MongoDB, Inc.'s SEC filings for Q3 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.