Delaware | 001-38240 | 26-1463205 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
229 W. 43rd Street, 5th Floor New York, NY | 10036 | |
(Address of Principal Executive Offices) | (Zip Code) |
¨ | 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)) |
Exhibit No. | Description | |
99.1 |
MONGODB, INC. | |||
Dated: December 12, 2017 | By: | /s/ Dev Ittycheria | |
Name: Dev Ittycheria Title: President and Chief Executive Officer |
• | Revenue: Total revenue was $41.5 million in the third quarter fiscal 2018, an increase of 58% year-over-year. Subscription revenue was $37.9 million, an increase of 59% year-over-year, and services revenue was $3.6 million, an increase of 44% year-over-year. |
• | Gross Profit: Gross profit was $30.4 million in the third quarter fiscal 2018, representing a 73% gross margin consistent with the year-ago period. Non-GAAP gross profit was $30.7 million, representing a 74% non-GAAP gross margin. |
• | Loss from Operations: Loss from operations was $24.1 million in the third quarter fiscal 2018, compared to $19.3 million in the year-ago period. Non-GAAP loss from operations was $18.4 million, compared to $15.0 million in the year-ago period. |
• | Net Loss: Net loss was $24.2 million, or $1.39 per share based on 17.4 million weighted-average shares outstanding, in the third quarter fiscal 2018. This compares to $19.5 million, or $1.57 per share based on 12.4 million weighted-average shares outstanding, in the year-ago period. Non-GAAP net loss was $18.5 million, or $0.44 per share based on 41.7 million non-GAAP weighted-average shares outstanding, which we refer to as non-GAAP net loss per share. This compares to $15.2 million, or $0.40 per share based on 38.3 million non-GAAP weighted-average shares outstanding, in the year-ago period. |
• | Cash Flow: As of October 31, 2017, MongoDB had $289.1 million in cash, cash equivalents, short-term investments and restricted cash, which includes approximately $201.6 million of net proceeds, after deducting underwriting discounts and commissions and estimated offering expenses, from its initial public offering. During the three months ended October 31, 2017, MongoDB used $10.3 million of cash in operations and $0.1 million in capital expenditures, leading to negative free cash flow of $10.4 million, compared to negative free cash flow of $6.5 million in the year-ago period. |
• | Announced MongoDB 3.6, which includes a number of innovations and enhancements designed to make developers more productive, to expedite data-driven insights and to scale to run in any environment. Key innovations include: Change Streams, which enable developers to easily build event-driven, real-time applications; Retryable Writes, which ensure that if a database server goes down for just a millisecond, the user won’t notice because the database will “retry” the operation in the background; Cross Region Replication for MongoDB Atlas, which ensures that an application stays up even if an entire cloud region goes down, while also allowing MongoDB customers to put data closer to their users for optimal user experience; new diagnostic and intelligence capabilities in MongoDB’s management platform, such as quickly identifying slow running queries and auto-generating recommendations for new indexes, which make it easier than ever for teams to inspect and improve database and application performance. |
• | Completed its initial public offering and listed its shares on the Nasdaq Global Market in October 2017. MongoDB sold 9,200,000 shares of its Class A common stock at a price of $24.00 per share, including the full exercise of the underwriters' option to purchase an additional 1,200,000 shares of Class A common stock, for a total of approximately $201.6 million in net proceeds after taking into account underwriting costs and offering costs. |
• | Continued growth of the MongoDB ecosystem, including expanded partnerships with Infosys and Tableau. Together with Infosys, MongoDB launched a new mainframe offloading solution that builds upon the partnership the two companies announced last December to help enterprises accelerate their digital transformation and application modernization strategies. Partnered with Tableau to announce MongoDB Connector for BI is now certified by Tableau as a named connector. For the first time, users can visually analyze rich, modern data structures accessed directly from MongoDB Enterprise Advanced. |
Fourth Quarter Fiscal 2018 | Full Year Fiscal 2018 | |
Revenue | $42.0 million to $42.5 million | $151.5 million to $152.0 million |
Non-GAAP Loss from Operations | $(21.5) million to $(21.0) million | $(76.5) million to $(76.0) million |
Non-GAAP Net Loss per Share | $(0.43) to $(0.42) | $(1.77) to $(1.76) |
October 31, 2017 | January 31, 2017 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 242,745 | $ | 69,305 | |||
Short-term investments | 45,810 | 47,195 | |||||
Accounts receivable, net of allowance for doubtful accounts of $1,456 and $958 as of October 31, 2017 and January 31, 2017, respectively | 35,233 | 31,340 | |||||
Deferred commissions | 9,850 | 7,481 | |||||
Prepaid expenses and other current assets | 5,221 | 3,131 | |||||
Total current assets | 338,859 | 158,452 | |||||
Property and equipment, net | 4,430 | 4,877 | |||||
Goodwill | 1,700 | 1,700 | |||||
Acquired intangible assets, net | 1,848 | 2,511 | |||||
Deferred tax assets | 102 | 114 | |||||
Other assets | 7,056 | 6,778 | |||||
Total assets | $ | 353,995 | $ | 174,432 | |||
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 3,147 | $ | 2,841 | |||
Accrued compensation and benefits | 10,870 | 11,402 | |||||
Other accrued liabilities | 10,788 | 5,269 | |||||
Deferred revenue | 92,447 | 78,278 | |||||
Total current liabilities | 117,252 | 97,790 | |||||
Redeemable convertible preferred stock warrant liability | — | 1,272 | |||||
Deferred rent, non-current | 973 | 1,058 | |||||
Deferred tax liability, non-current | 259 | 108 | |||||
Deferred revenue, non-current | 22,326 | 15,461 | |||||
Total liabilities | 140,810 | 115,689 | |||||
Redeemable convertible preferred stock, par value $0.001 per share; no shares authorized, issued or outstanding as of October 31, 2017; 41,234,841 shares authorized as of January 31, 2017; 41,148,282 shares issued and outstanding with aggregate liquidation preference of $345,997 as of January 31, 2017 | — | 345,257 | |||||
Stockholders’ (deficit) equity: | |||||||
Class A common stock, par value of $0.001 per share; 1,000,000,000 and 162,500,000 shares authorized as of October 31, 2017 and January 31, 2017, respectively; 9,325,098 and no shares issued and outstanding as of October 31, 2017 and January 31, 2017, respectively | 9 | — | |||||
Class B common stock, par value of $0.001 per share; 100,000,000 and 113,000,000 shares authorized as of October 31, 2017 and January 31, 2017, respectively; 41,341,283 and 13,192,992 shares issued as of October 31, 2017 and January 31, 2017, respectively; 41,241,912 and 13,093,621 shares outstanding as of October 31, 2017 and January 31, 2017, respectively | 42 | 13 | |||||
Additional paid-in capital | 632,055 | 62,557 | |||||
Treasury stock, 99,371 shares as of October 31, 2017 and January 31, 2017 | (1,319 | ) | (1,319 | ) | |||
Accumulated other comprehensive loss | (216 | ) | (364 | ) | |||
Accumulated deficit | (417,386 | ) | (347,401 | ) | |||
Total stockholders’ (deficit) equity | 213,185 | (286,514 | ) | ||||
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit) | $ | 353,995 | $ | 174,432 |
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue: | |||||||||||||||
Subscription | $ | 37,885 | $ | 23,805 | $ | 99,603 | $ | 64,018 | |||||||
Services | 3,603 | 2,500 | 9,875 | 7,406 | |||||||||||
Total revenue | 41,488 | 26,305 | 109,478 | 71,424 | |||||||||||
Cost of revenue(1): | |||||||||||||||
Subscription | 7,904 | 4,981 | 21,669 | 13,656 | |||||||||||
Services | 3,167 | 2,238 | 8,789 | 7,866 | |||||||||||
Total cost of revenue | 11,071 | 7,219 | 30,458 | 21,522 | |||||||||||
Gross profit | 30,417 | 19,086 | 79,020 | 49,902 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing(1) | 28,050 | 18,656 | 77,087 | 56,110 | |||||||||||
Research and development(1) | 16,588 | 13,300 | 45,414 | 38,540 | |||||||||||
General and administrative(1) | 9,829 | 6,385 | 26,533 | 19,916 | |||||||||||
Total operating expenses | 54,467 | 38,341 | 149,034 | 114,566 | |||||||||||
Loss from operations | (24,050 | ) | (19,255 | ) | (70,014 | ) | (64,664 | ) | |||||||
Other income (expense), net | 170 | (177 | ) | 846 | 56 | ||||||||||
Loss before provision for income taxes | (23,880 | ) | (19,432 | ) | (69,168 | ) | (64,608 | ) | |||||||
Provision for income taxes | 336 | 103 | 817 | 253 | |||||||||||
Net loss | $ | (24,216 | ) | $ | (19,535 | ) | $ | (69,985 | ) | $ | (64,861 | ) | |||
Net loss per share attributable to common stockholders, basic and diluted | $ | (1.39 | ) | $ | (1.57 | ) | $ | (4.74 | ) | $ | (5.41 | ) | |||
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 17,421,642 | 12,418,879 | 14,749,500 | 11,983,324 | |||||||||||
(1) Includes stock-based compensation expense as follows: | |||||||||||||||
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cost of revenue—subscription | $ | 183 | $ | 131 | $ | 503 | $ | 425 | |||||||
Cost of revenue—services | 123 | 70 | 292 | 397 | |||||||||||
Sales and marketing | 1,704 | 1,095 | 4,400 | 4,346 | |||||||||||
Research and development | 1,505 | 1,206 | 4,072 | 4,518 | |||||||||||
General and administrative | 2,184 | 1,732 | 5,799 | 6,831 | |||||||||||
Total stock‑based compensation expense | $ | 5,699 | $ | 4,234 | $ | 15,066 | $ | 16,517 |
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cash flows from operating activities | |||||||||||||||
Net loss | $ | (24,216 | ) | $ | (19,535 | ) | $ | (69,985 | ) | $ | (64,861 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||
Depreciation and amortization | 929 | 901 | 2,789 | 2,781 | |||||||||||
Stock-based compensation | 5,695 | 4,234 | 15,066 | 16,517 | |||||||||||
Deferred income taxes | 101 | 17 | 163 | 37 | |||||||||||
Change in fair value of warrant liability | - | 59 | (101 | ) | (144 | ) | |||||||||
Change in operating assets and liabilities: | |||||||||||||||
Accounts receivable | (3,007 | ) | (3,841 | ) | (4,653 | ) | 4,600 | ||||||||
Prepaid expenses and other current assets | 822 | (384 | ) | (2,120 | ) | (1,435 | ) | ||||||||
Deferred commissions | (1,848 | ) | (1,714 | ) | (2,217 | ) | (2,344 | ) | |||||||
Other long-term assets | (36 | ) | 11 | (670 | ) | (203 | ) | ||||||||
Accounts payable | 675 | (741 | ) | 687 | (272 | ) | |||||||||
Deferred rent | (275 | ) | (207 | ) | (85 | ) | (493 | ) | |||||||
Accrued liabilities | 918 | 1,692 | 2,163 | 2,057 | |||||||||||
Deferred revenue | 9,942 | 13,834 | 21,794 | 15,768 | |||||||||||
Net cash used in operating activities | (10,300 | ) | (5,674 | ) | (37,169 | ) | (27,992 | ) | |||||||
Cash flows from investing activities | |||||||||||||||
Purchases of property and equipment | (88 | ) | (785 | ) | (1,714 | ) | (1,422 | ) | |||||||
Proceeds from maturities of marketable securities | 10,000 | 19,917 | 74,230 | 114,792 | |||||||||||
Purchases of marketable securities | (4,125 | ) | — | (72,879 | ) | (82,036 | ) | ||||||||
Net cash provided by (used in) investing activities | 5,787 | 19,132 | (363 | ) | 31,334 | ||||||||||
Cash flows from financing activities | |||||||||||||||
Proceeds from exercise of stock options, including early exercised stock options | 2,217 | 2,919 | 8,201 | 7,187 | |||||||||||
Repurchase of early exercised stock options | (75 | ) | (22 | ) | (149 | ) | (22 | ) | |||||||
Proceeds from the IPO, net of underwriting discounts and commissions | 205,494 | — | 205,494 | — | |||||||||||
Proceeds from exercise of redeemable convertible preferred stock warrants | - | — | 1 | — | |||||||||||
Payment of offering costs | (1,167 | ) | — | (2,344 | ) | — | |||||||||
Net cash provided by financing activities | 206,469 | 2,897 | 211,203 | 7,165 | |||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 22 | (74 | ) | 182 | 42 | ||||||||||
Net increase in cash, cash equivalents, and restricted cash | 201,978 | 16,281 | 173,853 | 10,549 | |||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 41,287 | 27,581 | 69,412 | 33,313 | |||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 243,265 | $ | 43,862 | $ | 243,265 | $ | 43,862 |
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Reconciliation of GAAP gross profit to non-GAAP gross profit: | |||||||||||||||
Gross profit on a GAAP basis | $ | 30,417 | $ | 19,086 | $ | 79,020 | $ | 49,902 | |||||||
Add back: | |||||||||||||||
Stock-based compensation expense: Cost of Revenue—Subscription | 183 | 131 | 503 | 425 | |||||||||||
Stock-based compensation expense: Cost of Revenue—Services | 123 | 70 | 292 | 397 | |||||||||||
Non-GAAP gross profit | $ | 30,723 | $ | 19,287 | $ | 79,815 | $ | 50,724 | |||||||
Reconciliation of GAAP loss from operations to non-GAAP loss from operations: | |||||||||||||||
Loss from operations on a GAAP basis | $ | (24,050 | ) | $ | (19,255 | ) | $ | (70,014 | ) | $ | (64,664 | ) | |||
Add back: | |||||||||||||||
Stock-based compensation expense | 5,699 | 4,234 | 15,066 | 16,517 | |||||||||||
Non-GAAP loss from operations | $ | (18,351 | ) | $ | (15,021 | ) | $ | (54,948 | ) | $ | (48,147 | ) | |||
Reconciliation of GAAP net loss to non-GAAP net loss: | |||||||||||||||
Net loss on a GAAP basis | $ | (24,216 | ) | $ | (19,535 | ) | $ | (69,985 | ) | $ | (64,861 | ) | |||
Add back: | |||||||||||||||
Stock-based compensation expense | 5,699 | 4,234 | 15,066 | 16,517 | |||||||||||
Change in fair value of warrant liability | – | 59 | (101 | ) | (144 | ) | |||||||||
Non-GAAP net loss | $ | (18,517 | ) | $ | (15,242 | ) | $ | (55,020 | ) | $ | (48,488 | ) | |||
Reconciliation of GAAP weighted average shares outstanding, basic and diluted, to non-GAAP weighted average shares outstanding, basic and diluted: | |||||||||||||||
Weighted average shares used to compute net loss per share attributable to common stockholders, basic and diluted, on a GAAP basis | 17,421,642 | 12,418,879 | 14,749,500 | 11,983,324 | |||||||||||
Add back: | |||||||||||||||
Additional weighted average shares giving effect to conversion of preferred stock at the beginning of the period | 24,316,192 | 25,853,450 | 26,064,330 | 25,853,450 | |||||||||||
Non-GAAP weighted average shares used to compute net loss per share, basic and diluted | 41,737,834 | 38,272,329 | 40,813,830 | 37,836,774 |
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net cash used in operating activities | $ | (10,300 | ) | $ | (5,674 | ) | $ | (37,169 | ) | $ | (27,992 | ) | |||
Capital expenditures | (88 | ) | (785 | ) | (1,714 | ) | (1,422 | ) | |||||||
Capitalized software | — | — | — | — | |||||||||||
Free cash flow | $ | (10,388 | ) | $ | (6,459 | ) | $ | (38,883 | ) | $ | (29,414 | ) |
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Calculation of net loss per share, basic and diluted, on a GAAP basis | |||||||||||||||
Net loss | $ | (24,216 | ) | $ | (19,535 | ) | $ | (69,985 | ) | $ | (64,861 | ) | |||
Divided by: | |||||||||||||||
Weighted average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 17,421,642 | 12,418,879 | 14,749,500 | 11,983,324 | |||||||||||
Net loss per share attributable to common stockholders, basic and diluted, on a GAAP basis | $ | (1.39 | ) | $ | (1.57 | ) | $ | (4.74 | ) | $ | (5.41 | ) | |||
Calculation of non-GAAP net loss per share, basic and diluted | |||||||||||||||
Non-GAAP net loss | $ | (18,517 | ) | $ | (15,242 | ) | $ | (55,020 | ) | $ | (48,488 | ) | |||
Divided by: | |||||||||||||||
Non-GAAP weighted average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 41,737,834 | 38,272,329 | 40,813,830 | 37,836,774 | |||||||||||
Non-GAAP net loss per share attributable to common stockholders, basic and diluted | $ | (0.44 | ) | $ | (0.40 | ) | $ | (1.35 | ) | $ | (1.28 | ) |