UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________
FORM 8-K
___________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 28, 2019
___________________
MONGODB, INC.
(Exact Name of Registrant as Specified in its Charter)
___________________
Delaware | 001-38240 | 26-1463205 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
1633 Broadway, 38th Floor New York, NY | 10019 | |
(Address of Principal Executive Offices) | (Zip Code) | |
646-727-4092
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
___________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Class A Common Stock, par value $0.001 per share | MDB | The Nasdaq Stock Market LLC | ||
(Nasdaq Global Market) | ||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition.
On September 4, 2019, MongoDB, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter ended July 31, 2019. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8‑K and is incorporated herein by reference.
The information furnished under this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that section. The information shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission made by the Company, regardless of any general incorporation language in such filing.
Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
On August 28, 2019, the Board of Directors (the “Board”) of the Company increased the size of the Board from seven to eight directors and, following the recommendation of the Nominating and Corporate Governance Committee, appointed Archana Agrawal to serve as a member of the Board and as a member of the Board’s Compensation Committee, effective August 29, 2019. Ms. Agrawal's term will expire at the Company’s 2020 Annual Meeting of Stockholders. The Board has determined that Ms. Agrawal is “independent” as contemplated by the Nasdaq Stock Market and other governing laws and applicable regulations.
Ms. Agrawal, age 41, has broad experience in analytics and marketing. Ms. Agrawal is currently Head of Enterprise and Cloud Marketing for Atlassian Corporation Plc, a leading provider of team collaboration and productivity software. Ms. Agrawal joined Atlassian in 2013 as Head of Data Science and Growth Marketing. Previously, Ms. Agrawal was at Ladders, Inc. from 2007 until 2013. She began her career at the IBM Almaden Research Center. Ms. Agrawal holds an M.B.A. from Harvard Business School and received her M.S. in computer science from the University of Illinois at Urbana-Champaign.
There is no arrangement or understanding between Ms. Agrawal and any other person pursuant to which she was selected as a director, and there is no family relationship between Ms. Agrawal and any of the Company’s other directors or executive officers. There are no transactions between Ms. Agrawal and the Company that would be required to be reported under Item 404(a) of Regulation S-K.
As a non-employee director of the Company, Ms. Agrawal will be eligible to participate in the Company’s compensation arrangements for non-employee directors. Under the terms of those arrangements, which are described in more detail in the Company’s annual proxy statement filed with the SEC on May 30, 2019, Ms. Agrawal will receive annual cash compensation of $30,000 for her service as a member of the Board, additional annual cash compensation of $5,000 for her service as a member of the Board’s Compensation Committee and an initial equity award of 2,241 restricted stock units, valued at $330,000, based on the average closing price of the Company’s Class A common stock on the Nasdaq for the 30 trading days immediately prior to the grant date. The award will vest annually over three years, subject to Ms. Agrawal’s continued service through each vesting date.
In connection with this election, the Company and Ms. Agrawal entered into the Company’s standard form of indemnification agreement, a copy of which was filed as Exhibit 10.5 to Form S-1 filed with the SEC on September 21, 2017. This agreement requires the Company to indemnify Ms. Agrawal, to the fullest extent permitted by Delaware law, for certain liabilities to which she may become subject as a result of her affiliation with the Company.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. | Description | |
99.1 | ||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MONGODB, INC. | |||
Dated: September 4, 2019 | By: | /s/ Dev Ittycheria | |
Name: Dev Ittycheria Title: President and Chief Executive Officer | |||
Exhibit 99.1
MongoDB, Inc. Announces Second Quarter Fiscal 2020 Financial Results
Second Quarter Fiscal 2020 Total Revenue of $99.4 million, up 67% Year-over-Year
Continued Strong Growth with Over 15,000 Customers at July 31, 2019
MongoDB Atlas Revenue 37% of Total Q2 Revenue, up over 240% Year-over-Year
New York City, New York - September 4, 2019 - MongoDB, Inc. (NASDAQ: MDB), the leading, modern general purpose database platform, today announced its financial results for the second quarter ended July 31, 2019.
“MongoDB’s strong second quarter results are the latest indication of our growing leadership position as the modern data platform of choice,” said Dev Ittycheria, President and Chief Executive Officer of MongoDB. “Our best-in-class product and increasingly sophisticated go-to-market strategy are driving strong adoption for a growing number of use cases by customers of all sizes.”
Ittycheria added, “The recent release of MongoDB 4.2 and introduction of new products and features such MongoDB Atlas Data Lake and MongoDB Full-Text Search further extend the value of our platform and enable customers to get more value from their data. We are confident that our innovative product offerings will position MongoDB for continued success.”
Second Quarter Fiscal 2020 Financial Highlights
• | Revenue: Total revenue was $99.4 million in the second quarter fiscal 2020, an increase of 67% year-over-year. Subscription revenue was $94.2 million, an increase of 71% year-over-year, and services revenue was $5.2 million, an increase of 15% year-over-year. |
• | Gross Profit: Gross profit was $69.2 million in the second quarter fiscal 2020, representing a 70% gross margin, compared to 72% in the year-ago period. Non-GAAP gross profit was $71.1 million, representing a 72% non-GAAP gross margin. |
• | Loss from Operations: Loss from operations was $37.7 million in the second quarter fiscal 2020, compared to $27.1 million in the year-ago period. Non-GAAP loss from operations was $14.8 million, compared to $17.9 million in the year-ago period. |
• | Net Loss: Net loss was $37.3 million, or $0.67 per share, based on 55.6 million weighted-average shares outstanding in the second quarter fiscal 2020. This compares to $27.8 million, or $0.54 per share, based on 51.2 million weighted-average shares outstanding, in the year-ago period. Non-GAAP net loss was $14.7 million or $0.26 per share. This compares to $17.5 million or $0.34 per share in the year-ago period. |
• | Cash Flow: As of July 31, 2019, MongoDB had $436.6 million in cash, cash equivalents, short-term investments and restricted cash. During the three months ended July 31, 2019, MongoDB used $12.6 million of cash from operations and $1.2 million in capital expenditures, leading to negative free cash flow of $13.8 million, compared to negative free cash flow of $18.0 million in the year-ago period. |
We adopted the new revenue recognition accounting standard Accounting Standards Codification (“ASC”) 606 effective as of January 31, 2019 and applied as of February 1, 2018, on a full retrospective basis. All amounts and disclosures in this press release have been updated to comply with the new revenue recognition standard.
A reconciliation of each Non-GAAP measure to the most directly comparable GAAP measure has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
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Second Quarter Fiscal 2020 and Recent Business Highlights
• | Made significant product announcements in June that further MongoDB’s mission to provide the best way to work with data. MongoDB 4.2 added distributed transactions, client-side field level encryption, an updated Kubernetes operator and more to the core MongoDB database. MongoDB extended its expertise beyond the database to a data platform with the announcements of MongoDB Atlas Data Lake and MongoDB Atlas Full-Text Search, and the general availability of MongoDB Charts. The company also unveiled its vision for Realm, the mobile database acquired in May, to give developers a better way to work with data throughout the application lifecycle. |
• | Continued engagement with the growing MongoDB community as the company hosted its most successful developer event to date at MongoDB World in New York City, June 17-19. MongoDB World 2019 saw record attendance of MongoDB users from 40 countries, offered 106 sessions and featured a global hackathon with 900 participants that built 83 projects on MongoDB. |
• | Saw growing momentum with all three major cloud providers. The company experienced strong initial traction with GCP in the first quarter of the partnership. MongoDB also expanded its relationship with Microsoft by launching the availability of MongoDB Atlas on the Microsoft Azure Marketplace, simplifying billing for joint customers, and joining Microsoft's Strategic Partner Reported ACR co-sell program. The company also delivered another record Atlas quarter on AWS. |
Business Outlook
Based on information as of today, September 4, 2019, MongoDB is issuing the following financial guidance for the third quarter and full year fiscal 2020.
Third Quarter Fiscal 2020 | Full Year Fiscal 2020 | |
Revenue | $98.0 million to $100.0 million | $390.0 million to $395.0 million |
Non-GAAP Loss from Operations | $(16.5) million to $(15.5) million | $(62.0) million to $(59.0) million |
Non-GAAP Net Loss per Share | $(0.29) to $(0.27) | $(1.11) to $(1.06) |
Reconciliation of non-GAAP loss from operations and non-GAAP net loss per share guidance to the most directly comparable GAAP measures is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.
Conference Call Information
MongoDB will host a conference call today, September 4, 2019, at 5:00 p.m. (Eastern Time) to discuss its financial results and business outlook. A live webcast of the call will be available on the “Investor Relations” page of MongoDB’s website at https://investors.mongodb.com. To access the call by phone, dial 800-289-0438 (domestic) or 323-794-2423 (international). A replay of this conference call will be available for a limited time at 844-512-2921 (domestic) or 412-317-6671 (international). The replay conference ID is 1930605. A replay of the webcast will also be available for a limited time at https://investors.mongodb.com.
About MongoDB
MongoDB is the leading modern, general purpose database platform, designed to unleash the power of software and data for developers and the applications they build. Headquartered in New York, MongoDB has more than 15,000
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customers in over 100 countries. The MongoDB database platform has been downloaded over 70 million times and there have been more than one million MongoDB University registrations.
Forward-Looking Statements
This press release includes certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning our financial guidance for the third fiscal quarter and full year fiscal 2020, the anticipated impact of our go-to-market, growth and product strategies and anticipated benefits from the acquisition of Realm. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “will,” “would” or the negative or plural of these words or similar expressions or variations. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and factors that are beyond our control including, without limitation: our limited operating history; our history of losses; failure of our database platform to satisfy customer demands; the effects of increased competition; our investments in new products and our ability to introduce new features, services or enhancements; our ability to effectively expand our sales and marketing organization; our ability to continue to build and maintain credibility with the developer community; our ability to add new customers or increase sales to our existing customers; our ability to maintain, protect, enforce and enhance our intellectual property; the growth and expansion of the market for database products and our ability to penetrate that market; our ability to integrate acquired businesses and technologies successfully or achieve the expected benefits of such acquisitions; our ability to maintain the security of our software and adequately address privacy concerns; our ability to manage our growth effectively and successfully recruit and retain additional highly-qualified personnel; the price volatility of our common stock; and those risks detailed from time-to-time under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings and reports, including our Annual Report on Form 10-K filed on April 1, 2019 and our Quarterly Report on Form 10-Q filed on June 7, 2019, as well as future filings and reports by us. Except as required by law, we undertake no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise.
Non-GAAP Financial Measures
This press release includes the following financial measures defined as non-GAAP financial measures by the SEC: non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss per share and free cash flow. Non-GAAP gross profit and non-GAAP gross margin exclude stock-based compensation expense. Non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss per share exclude:
• | stock-based compensation expense; |
• | amortization of intangible assets for the acquired technology and acquired customer relationships associated with the purchase of Realm, as well as for the prior acquisitions of mLab and WiredTiger; |
• | amortization of the founder holdback associated with the mLab purchase that was deemed to be compensation expense for GAAP purposes; |
• | acquisition costs associated with the purchase of Realm; and |
• | in the case of non-GAAP net loss, non-cash interest expense related to our convertible senior notes and a non-recurring income tax benefit associated with the acquisition of Realm intangible assets. |
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MongoDB uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating MongoDB’s ongoing operational performance. MongoDB believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in MongoDB’s industry, many of which present similar non-GAAP financial measures to investors.
Free cash flow represents net cash used in operating activities less capital expenditures and capitalized software development costs, if any. MongoDB uses free cash flow to understand and evaluate its liquidity and to generate future operating plans. The exclusion of capital expenditures and amounts capitalized for software development facilitates comparisons of MongoDB’s liquidity on a period-to-period basis and excludes items that it does not consider to be indicative of its liquidity. MongoDB believes that free cash flow is a measure of liquidity that provides useful information to investors in understanding and evaluating the strength of its liquidity and future ability to generate cash that can be used for strategic opportunities or investing in its business in the same manner as MongoDB’s management and board of directors.
Non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. In particular, other companies may report non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss per share, free cash flow or similarly titled measures but calculate them differently, which reduces their usefulness as comparative measures. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, as presented below. This earnings press release and any future releases containing such non-GAAP reconciliations can also be found on the Investor Relations page of MongoDB’s website at https://investors.mongodb.com.
Investor Relations
Brian Denyeau
ICR for MongoDB
646-277-1251
ir@mongodb.com
Media Relations
Mark Wheeler
MongoDB
866-237-8815 x7186
communications@mongodb.com
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MONGODB, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
(unaudited)
July 31, 2019 | January 31, 2019 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 186,684 | $ | 147,831 | |||
Short-term investments | 249,369 | 318,139 | |||||
Accounts receivable, net of allowance for doubtful accounts of $1,479 and $1,539 as of July 31, 2019 and January 31, 2019, respectively | 66,783 | 72,808 | |||||
Deferred commissions | 18,093 | 15,878 | |||||
Prepaid expenses and other current assets | 12,444 | 11,580 | |||||
Total current assets | 533,373 | 566,236 | |||||
Property and equipment, net | 59,629 | 73,664 | |||||
Operating lease right-of-use assets | 11,698 | — | |||||
Goodwill | 55,484 | 41,878 | |||||
Acquired intangible assets, net | 40,102 | 15,894 | |||||
Deferred tax assets | 1,897 | 1,193 | |||||
Other assets | 39,414 | 34,611 | |||||
Total assets | $ | 741,597 | $ | 733,476 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 2,658 | $ | 2,153 | |||
Accrued compensation and benefits | 25,670 | 25,982 | |||||
Operating lease liabilities | 3,729 | — | |||||
Other accrued liabilities | 25,921 | 14,169 | |||||
Deferred revenue | 131,024 | 122,333 | |||||
Total current liabilities | 189,002 | 164,637 | |||||
Deferred rent, non-current | — | 2,567 | |||||
Deferred tax liability, non-current | 114 | 106 | |||||
Operating lease liabilities, non-current | 9,002 | — | |||||
Deferred revenue, non-current | 19,175 | 15,343 | |||||
Convertible senior notes, net | 223,356 | 216,858 | |||||
Other liabilities, non-current | 61,605 | 69,399 | |||||
Total liabilities | 502,254 | 468,910 | |||||
Stockholders’ equity: | |||||||
Class A common stock, par value of $0.001 per share; 1,000,000,000 shares authorized as of July 31, 2019 and January 31, 2019; 46,885,379 and 36,286,573 shares issued and outstanding as of July 31, 2019 and January 31, 2019, respectively | 47 | 36 | |||||
Class B common stock, par value of $0.001 per share; 100,000,000 shares authorized as of July 31, 2019 and January 31, 2019; 9,452,608 and 18,134,608 shares issued as of July 31, 2019 and January 31, 2019, respectively; 9,353,237 and 18,035,237 shares outstanding as of July 31, 2019 and January 31, 2019, respectively | 9 | 18 | |||||
Additional paid-in capital | 804,224 | 754,612 | |||||
Treasury stock, 99,371 shares (repurchased at an average of $13.27 per share) as of July 31, 2019 and January 31, 2019 | (1,319 | ) | (1,319 | ) | |||
Accumulated other comprehensive loss | (332 | ) | (174 | ) | |||
Accumulated deficit | (563,286 | ) | (488,607 | ) | |||
Total stockholders’ equity | 239,343 | 264,566 | |||||
Total liabilities and stockholders’ equity | $ | 741,597 | $ | 733,476 | |||
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MONGODB, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenue: | |||||||||||||||
Subscription | $ | 94,156 | $ | 55,086 | $ | 178,150 | $ | 101,155 | |||||||
Services | 5,212 | 4,525 | 10,606 | 8,595 | |||||||||||
Total revenue | 99,368 | 59,611 | 188,756 | 109,750 | |||||||||||
Cost of revenue(1): | |||||||||||||||
Subscription | 24,373 | 12,116 | 46,968 | 22,186 | |||||||||||
Services | 5,829 | 4,378 | 11,406 | 8,057 | |||||||||||
Total cost of revenue | 30,202 | 16,494 | 58,374 | 30,243 | |||||||||||
Gross profit | 69,166 | 43,117 | 130,382 | 79,507 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing(1) | 53,524 | 36,537 | 99,644 | 69,734 | |||||||||||
Research and development(1) | 37,140 | 21,430 | 68,008 | 40,075 | |||||||||||
General and administrative(1) | 16,174 | 12,254 | 30,979 | 23,481 | |||||||||||
Total operating expenses | 106,838 | 70,221 | 198,631 | 133,290 | |||||||||||
Loss from operations | (37,672 | ) | (27,104 | ) | (68,249 | ) | (53,783 | ) | |||||||
Other income (loss), net | (3,005 | ) | (432 | ) | (5,806 | ) | 159 | ||||||||
Loss before provision for income taxes | (40,677 | ) | (27,536 | ) | (74,055 | ) | (53,624 | ) | |||||||
Provision (benefit) for income taxes | (3,341 | ) | 246 | (3,479 | ) | 713 | |||||||||
Net loss | $ | (37,336 | ) | $ | (27,782 | ) | $ | (70,576 | ) | $ | (54,337 | ) | |||
Net loss per share, basic and diluted | $ | (0.67 | ) | $ | (0.54 | ) | $ | (1.28 | ) | $ | (1.07 | ) | |||
Weighted-average shares used to compute net loss per share, basic and diluted | 55,647,707 | 51,185,258 | 55,186,945 | 50,784,422 | |||||||||||
(1) | Includes stock‑based compensation expense as follows: |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Cost of revenue—subscription | $ | 1,214 | $ | 489 | $ | 2,202 | $ | 848 | |||||||
Cost of revenue—services | 721 | 281 | 1,314 | 465 | |||||||||||
Sales and marketing | 5,944 | 2,129 | 10,884 | 4,347 | |||||||||||
Research and development | 6,114 | 2,904 | 10,634 | 5,110 | |||||||||||
General and administrative | 3,669 | 3,206 | 6,637 | 5,816 | |||||||||||
Total stock‑based compensation expense | $ | 17,662 | $ | 9,009 | $ | 31,671 | $ | 16,586 | |||||||
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MONGODB, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Cash flows from operating activities | |||||||||||||||
Net loss | $ | (37,336 | ) | $ | (27,782 | ) | $ | (70,576 | ) | $ | (54,337 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||
Depreciation and amortization | 3,731 | 806 | 6,029 | 1,623 | |||||||||||
Stock-based compensation | 17,662 | 9,078 | 31,671 | 16,586 | |||||||||||
Amortization of debt discount and issuance costs | 3,277 | 1,094 | 6,498 | 1,094 | |||||||||||
Amortization of finance right-of-use assets | 994 | — | 1,988 | — | |||||||||||
Non-cash interest on finance lease liabilities | 918 | — | 1,823 | — | |||||||||||
Deferred income taxes | (3,675 | ) | 43 | (4,232 | ) | 47 | |||||||||
Accretion of discount on short-term investments | (1,242 | ) | (689 | ) | (2,751 | ) | (1,070 | ) | |||||||
Change in operating assets and liabilities: | |||||||||||||||
Accounts receivable | (4,740 | ) | (7,549 | ) | 6,220 | 6,469 | |||||||||
Prepaid expenses and other current assets | 135 | 2,025 | (125 | ) | (840 | ) | |||||||||
Deferred commissions | (4,059 | ) | (2,087 | ) | (7,046 | ) | (3,355 | ) | |||||||
Operating lease right-of-use assets | 899 | — | 1,119 | — | |||||||||||
Other long-term assets | (5 | ) | 116 | 27 | 46 | ||||||||||
Accounts payable | 708 | 245 | 440 | (394 | ) | ||||||||||
Deferred rent | — | 445 | — | 917 | |||||||||||
Accrued liabilities | 4,961 | 3,924 | 8,285 | 1,957 | |||||||||||
Operating lease liabilities | (887 | ) | — | (1,082 | ) | — | |||||||||
Deferred revenue | 6,066 | 3,479 | 12,333 | 6,356 | |||||||||||
Net cash used in operating activities | (12,593 | ) | (16,852 | ) | (9,379 | ) | (24,901 | ) | |||||||
Cash flows from investing activities | |||||||||||||||
Purchases of property and equipment | (1,207 | ) | (1,194 | ) | (1,596 | ) | (1,561 | ) | |||||||
Acquisition, net of cash acquired | (38,629 | ) | — | (38,629 | ) | — | |||||||||
Proceeds from maturities of marketable securities | 140,000 | 60,000 | 280,000 | 118,000 | |||||||||||
Purchases of marketable securities | (70,001 | ) | (300,467 | ) | (209,025 | ) | (300,467 | ) | |||||||
Net cash provided by (used in) investing activities | 30,163 | (241,661 | ) | 30,750 | (184,028 | ) | |||||||||
Cash flows from financing activities | |||||||||||||||
Proceeds from exercise of stock options, including early exercised stock options | 4,913 | 7,818 | 11,350 | 8,106 | |||||||||||
Proceeds from the issuance of common stock under the Employee Stock Purchase Plan | 6,394 | 5,626 | 6,394 | 5,626 | |||||||||||
Repurchase of early exercised stock options | (1 | ) | (157 | ) | (31 | ) | (309 | ) | |||||||
Proceeds from borrowings on convertible senior notes, net of issuance costs | — | 293,161 | — | 293,161 | |||||||||||
Payment for purchase of capped calls | — | (37,086 | ) | — | (37,086 | ) | |||||||||
Proceeds from tenant allowance related to build to suit lease | — | 376 | — | 376 | |||||||||||
Net cash provided by financing activities | 11,306 | 269,738 | 17,713 | 269,874 | |||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (252 | ) | (75 | ) | (233 | ) | (83 | ) | |||||||
Net increase in cash, cash equivalents, and restricted cash | 28,624 | 11,150 | 38,851 | 60,862 | |||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 158,574 | 112,139 | 148,347 | 62,427 | |||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 187,198 | $ | 123,289 | $ | 187,198 | $ | 123,289 | |||||||
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MONGODB, INC.
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(in thousands, except share and per share data)
(unaudited)
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Reconciliation of GAAP gross profit to non-GAAP gross profit: | |||||||||||||||
Gross profit on a GAAP basis | $ | 69,166 | $ | 43,117 | $ | 130,382 | $ | 79,507 | |||||||
Gross margin (Gross profit/Total revenue) on a GAAP basis | 70 | % | 72 | % | 69 | % | 72 | % | |||||||
Add back: | |||||||||||||||
Stock-based compensation expense: Cost of Revenue—Subscription | 1,214 | 489 | 2,202 | 848 | |||||||||||
Stock-based compensation expense: Cost of Revenue—Services | 721 | 281 | 1,314 | 465 | |||||||||||
Non-GAAP gross profit | $ | 71,101 | $ | 43,887 | $ | 133,898 | $ | 80,820 | |||||||
Non-GAAP gross margin (Non-GAAP gross profit/Total revenue) | 72 | % | 74 | % | 71 | % | 74 | % | |||||||
Reconciliation of GAAP loss from operations to non-GAAP loss from operations: | |||||||||||||||
Loss from operations on a GAAP basis | $ | (37,672 | ) | $ | (27,104 | ) | $ | (68,249 | ) | $ | (53,783 | ) | |||
Add back: | |||||||||||||||
Stock-based compensation expense | 17,662 | 9,009 | 31,671 | 16,586 | |||||||||||
Amortization of intangible assets and Founder Holdback associated with acquisitions | 5,018 | 221 | 8,598 | 442 | |||||||||||
Acquisition costs | 231 | — | 577 | — | |||||||||||
Non-GAAP loss from operations | $ | (14,761 | ) | $ | (17,874 | ) | $ | (27,403 | ) | $ | (36,755 | ) | |||
Reconciliation of GAAP net loss to non-GAAP net loss: | |||||||||||||||
Net loss on a GAAP basis | $ | (37,336 | ) | $ | (27,782 | ) | $ | (70,576 | ) | $ | (54,337 | ) | |||
Add back: | |||||||||||||||
Stock-based compensation expense | 17,662 | 9,009 | 31,671 | 16,586 | |||||||||||
Amortization of intangible assets and Founder Holdback associated with acquisitions | 5,018 | 221 | 8,598 | 442 | |||||||||||
Acquisition costs | 231 | — | 577 | — | |||||||||||
Non-cash interest expense related to convertible senior notes | 3,277 | 1,094 | 6,498 | 1,094 | |||||||||||
Non-recurring income tax benefit associated with the acquisition of Realm intangible assets | (3,536 | ) | — | (3,536 | ) | — | |||||||||
Non-GAAP net loss | $ | (14,684 | ) | $ | (17,458 | ) | $ | (26,768 | ) | $ | (36,215 | ) | |||
Reconciliation of GAAP net loss per share, basic and diluted, to non-GAAP net loss per share, basic and diluted: | |||||||||||||||
Net loss per share, basic and diluted, on a GAAP basis | $ | (0.67 | ) | $ | (0.54 | ) | $ | (1.28 | ) | $ | (1.07 | ) | |||
Add back: | |||||||||||||||
Stock-based compensation expense | 0.32 | 0.18 | 0.57 | 0.33 | |||||||||||
Amortization of intangible assets and Founder Holdback associated with acquisitions | 0.09 | — | 0.15 | 0.01 | |||||||||||
Acquisition costs | — | — | 0.01 | — | |||||||||||
Non-cash interest expense related to convertible senior notes | 0.06 | 0.02 | 0.12 | 0.02 | |||||||||||
Non-recurring income tax benefit associated with the acquisition of Realm intangible assets | (0.06 | ) | — | (0.06 | ) | — | |||||||||
Non-GAAP net loss per share, basic and diluted | $ | (0.26 | ) | $ | (0.34 | ) | $ | (0.49 | ) | $ | (0.71 | ) | |||
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The following table presents a reconciliation of free cash flow to net cash used in operating activities, the most directly comparable GAAP measure, for each of the periods indicated (unaudited, in thousands):
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net cash used in operating activities | $ | (12,593 | ) | $ | (16,852 | ) | $ | (9,379 | ) | $ | (24,901 | ) | |||
Capital expenditures | (1,207 | ) | (1,194 | ) | (1,596 | ) | (1,561 | ) | |||||||
Capitalized software | — | — | — | — | |||||||||||
Free cash flow | $ | (13,800 | ) | $ | (18,046 | ) | $ | (10,975 | ) | $ | (26,462 | ) | |||
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MONGODB, INC.
CUSTOMER COUNT METRICS
The following table presents certain customer count information as of the periods indicated:
As of | |||||||||||||||||
7/31/2017 | 10/31/2017 | 1/31/2018 | 4/30/2018 | 7/31/2018 | 10/31/2018 | 1/31/2019 | 4/30/2019 | 7/31/2019 | |||||||||
Total Customers | 4,300+ | 4,900+ | 5,700+ | 6,600+ | 7,400+ | 8,300+ | 13,400+ | 14,200+ | 15,000+ | ||||||||
Direct Sales Customers(a) | 1,350+ | 1,400+ | 1,450+ | 1,550+ | 1,600+ | 1,700+ | 1,750+ | 1,800+ | 1,850+ | ||||||||
MongoDB Atlas Customers | 1,900+ | 2,600+ | 3,400+ | 4,400+ | 5,300+ | 6,200+ | 11,400+ | 12,300+ | 13,200+ | ||||||||
Customers over $100K(b) | 296 | 320 | 354 | 394 | 438 | 490 | 557 | 598 | 622 | ||||||||
(a) Direct Sales Customers are customers that were sold through our direct sales force and channel partners.
(b) Represents the number of customers with $100,000 or greater in annualized recurring revenue (“ARR”) and annualized monthly recurring revenue (“MRR”). We define ARR as the subscription revenue we would contractually expect to receive from customers over the following 12 months assuming no increases or reductions in their subscriptions. ARR excludes self-service products, including MongoDB Atlas not sold on a commitment basis. ARR also excludes professional services. For customers who utilize our self-service offerings, we measure the annualized MRR, which is calculated by annualizing their usage of our self-serve products in the prior 30 days and assuming no increases or reductions in their usage.
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