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) |
¨ | 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: June 5, 2019 | By: | /s/ Dev Ittycheria | |
Name: Dev Ittycheria Title: President and Chief Executive Officer |
• | Revenue: Total revenue was $89.4 million in the first quarter fiscal 2020, an increase of 78% year-over-year. Subscription revenue was $84.0 million, an increase of 82% year-over-year, and services revenue was $5.4 million, an increase of 33% year-over-year. |
• | Gross Profit: Gross profit was $61.2 million in the first quarter fiscal 2020, representing a 68% gross margin, compared to 73% the year-ago period. Non-GAAP gross profit was $62.8 million, representing a 70% non-GAAP gross margin. |
• | Loss from Operations: Loss from operations was $30.6 million in the first quarter fiscal 2020, compared to $26.7 million in the year-ago period. Non-GAAP loss from operations was $12.6 million, compared to $18.9 million in the year-ago period. |
• | Net Loss: Net loss was $33.2 million, or $0.61 per share, based on 54.7 million weighted-average shares outstanding in the first quarter fiscal 2020. This compares to $26.6 million, or $0.53 per share, based on 50.4 million weighted-average shares outstanding, in the year-ago period. Non-GAAP net loss was $12.1 million, or $0.22 per share. This compares to $18.8 million, or $0.37 per share in the year-ago period. |
• | Cash Flow: As of April 30, 2019, MongoDB had $476.9 million in cash, cash equivalents, short-term investments and restricted cash. During the three months ended April 30, 2019, MongoDB generated $3.2 million of cash in operations and used $0.4 million in capital expenditures, leading to free cash flow of $2.8 million, compared to negative free cash flow of $8.4 million in the year-ago period. |
• | Announced a new business partnership with Google Cloud Platform (GCP) that will provide deeper product integration and unified billing for joint customers. MongoDB Atlas will be integrated directly within the GCP Console and we have expanded our go to market relationship. Offering Atlas as a first class service on GCP means customers will get a seamless experience as Atlas will be tightly coupled with core GCP services such as identity and access management, logging and monitoring, as well as open source projects like Kubernetes and Tensorflow. |
• | Acquired Realm, the company behind the Realm mobile database and synchronization platform, to expand MongoDB’s mobile product offerings and deepen its relationship with developer communities focused on mobile and serverless development. There are more than 100,000 active developers using Realm. |
• | Named a Leader by Forrester Research in two recent reports. The Forrester Wave™: Big Data NoSQL 2019, Q1 2019 gave MongoDB the highest scores possible in the Data Security, Performance, Scalability, High Availability, Global Distribution and Ability to Execute criteria. The Forrester Wave™: Database-As-A-Service, Q2 2019 gave MongoDB the highest scores possible in the High Availability, Disaster Recovery, Multimodel Support, Automation, User Access and Roadmap criteria. |
Second Quarter Fiscal 2020 | Full Year Fiscal 2020 | |
Revenue | $90.0 million to $92.0 million | $375.0 million to $381.0 million |
Non-GAAP Loss from Operations | $(16.5) million to $(15.5) million | $(63.0) million to $(59.0) million |
Non-GAAP Net Loss per Share | $(0.29) to $(0.27) | $(1.11) to $(1.04) |
• | stock-based compensation expense; |
• | amortization of intangible assets for the recently acquired customer relationships and acquired technology associated with the acquisitions of mLab and WiredTiger; |
• | amortization of the founder holdback associated with the mLab acquisition, 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 and non-GAAP net loss per share, non-cash interest expense related to our convertible senior notes. |
April 30, 2019 | January 31, 2019 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 158,060 | $ | 147,831 | |||
Short-term investments | 318,346 | 318,139 | |||||
Accounts receivable, net of allowance for doubtful accounts of $1,770 and $1,539 as of April 30, 2019 and January 31, 2019, respectively | 61,600 | 72,808 | |||||
Deferred commissions | 16,932 | 15,878 | |||||
Prepaid expenses and other current assets | 12,251 | 11,580 | |||||
Total current assets | 567,189 | 566,236 | |||||
Property and equipment, net | 60,309 | 73,664 | |||||
Operating lease right-of-use assets | 12,378 | — | |||||
Goodwill | 41,878 | 41,878 | |||||
Acquired intangible assets, net | 14,223 | 15,894 | |||||
Deferred tax assets | 1,753 | 1,193 | |||||
Other assets | 36,511 | 34,611 | |||||
Total assets | $ | 734,241 | $ | 733,476 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 2,080 | $ | 2,153 | |||
Accrued compensation and benefits | 24,122 | 25,982 | |||||
Operating lease liabilities | 3,575 | — | |||||
Other accrued liabilities | 20,138 | 14,169 | |||||
Deferred revenue | 128,252 | 122,333 | |||||
Total current liabilities | 178,167 | 164,637 | |||||
Deferred rent, non-current | — | 2,567 | |||||
Deferred tax liability, non-current | 109 | 106 | |||||
Operating lease liabilities, non-current | 9,827 | — | |||||
Deferred revenue, non-current | 15,443 | 15,343 | |||||
Convertible senior notes, net | 220,079 | 216,858 | |||||
Other liabilities, non-current | 62,748 | 69,399 | |||||
Total liabilities | 486,373 | 468,910 | |||||
Stockholders’ equity: | |||||||
Class A common stock, par value of $0.001 per share; 1,000,000,000 shares authorized as of April 30, 2019 and January 31, 2019; 41,843,367 and 36,286,573 shares issued and outstanding as of April 30, 2019 and January 31, 2019, respectively | 42 | 36 | |||||
Class B common stock, par value of $0.001 per share; 100,000,000 shares authorized as of April 30, 2019 and January 31, 2019; 13,532,080 and 18,134,608 shares issued as of April 30, 2019 and January 31, 2019, respectively; 13,432,709 and 18,035,237 shares outstanding as of April 30, 2019 and January 31, 2019, respectively | 13 | 18 | |||||
Additional paid-in capital | 775,185 | 754,612 | |||||
Treasury stock, 99,371 shares (repurchased at an average of $13.27 per share) as of April 30, 2019 and January 31, 2019 | (1,319 | ) | (1,319 | ) | |||
Accumulated other comprehensive loss | (103 | ) | (174 | ) | |||
Accumulated deficit | (525,950 | ) | (488,607 | ) | |||
Total stockholders’ equity | 247,868 | 264,566 | |||||
Total liabilities and stockholders’ equity | $ | 734,241 | $ | 733,476 |
Three Months Ended April 30, | |||||||
2019 | 2018 | ||||||
Revenue: | |||||||
Subscription | $ | 83,994 | $ | 46,069 | |||
Services | 5,394 | 4,070 | |||||
Total revenue | 89,388 | 50,139 | |||||
Cost of revenue(1): | |||||||
Subscription | 22,595 | 10,070 | |||||
Services | 5,577 | 3,679 | |||||
Total cost of revenue | 28,172 | 13,749 | |||||
Gross profit | 61,216 | 36,390 | |||||
Operating expenses: | |||||||
Sales and marketing(1) | 46,120 | 33,197 | |||||
Research and development(1) | 30,868 | 18,645 | |||||
General and administrative(1) | 14,805 | 11,227 | |||||
Total operating expenses | 91,793 | 63,069 | |||||
Loss from operations | (30,577 | ) | (26,679 | ) | |||
Other income (loss), net | (2,801 | ) | 591 | ||||
Loss before provision for income taxes | (33,378 | ) | (26,088 | ) | |||
Provision (benefit) for income taxes | (138 | ) | 467 | ||||
Net loss | $ | (33,240 | ) | $ | (26,555 | ) | |
Net loss per share, basic and diluted | $ | (0.61 | ) | $ | (0.53 | ) | |
Weighted-average shares used to compute net loss per share, basic and diluted | 54,710,746 | 50,350,052 |
(1) | Includes stock‑based compensation expense as follows: |
Three Months Ended April 30, | |||||||
2019 | 2018 | ||||||
Cost of revenue—subscription | $ | 988 | $ | 359 | |||
Cost of revenue—services | 593 | 184 | |||||
Sales and marketing | 4,940 | 2,218 | |||||
Research and development | 4,520 | 2,206 | |||||
General and administrative | 2,968 | 2,610 | |||||
Total stock‑based compensation expense | $ | 14,009 | $ | 7,577 |
Three Months Ended April 30, | |||||||
2019 | 2018 | ||||||
Cash flows from operating activities | |||||||
Net loss | $ | (33,240 | ) | $ | (26,555 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 2,300 | 817 | |||||
Stock-based compensation | 14,009 | 7,508 | |||||
Amortization of debt discount and issuance costs | 3,221 | — | |||||
Amortization of finance right-of-use assets | 994 | — | |||||
Non-cash interest on finance lease liabilities | 905 | — | |||||
Deferred income taxes | (557 | ) | 4 | ||||
Accretion of discount on short-term investments | (1,509 | ) | (381 | ) | |||
Change in operating assets and liabilities: | |||||||
Accounts receivable | 10,960 | 14,018 | |||||
Prepaid expenses and other current assets | (260 | ) | (2,865 | ) | |||
Deferred commissions | (2,987 | ) | (1,268 | ) | |||
Operating lease right-of-use assets | (2,051 | ) | — | ||||
Other assets | 32 | (70 | ) | ||||
Accounts payable | (268 | ) | (639 | ) | |||
Deferred rent | 251 | 472 | |||||
Accrued liabilities | 3,073 | (1,967 | ) | ||||
Operating lease liabilities | 2,074 | — | |||||
Deferred revenue | 6,267 | 2,877 | |||||
Net cash provided by (used in) operating activities | 3,214 | (8,049 | ) | ||||
Cash flows from investing activities | |||||||
Purchases of property and equipment | (389 | ) | (367 | ) | |||
Proceeds from maturities of marketable securities | 140,000 | 58,000 | |||||
Purchases of marketable securities | (139,024 | ) | — | ||||
Net cash provided by investing activities | 587 | 57,633 | |||||
Cash flows from financing activities | |||||||
Proceeds from exercise of stock options, including early exercised stock options | 6,437 | 288 | |||||
Repurchase of early exercised stock options | (30 | ) | (152 | ) | |||
Net cash provided by financing activities | 6,407 | 136 | |||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 19 | (8 | ) | ||||
Net increase in cash, cash equivalents, and restricted cash | 10,227 | 49,712 | |||||
Cash, cash equivalents, and restricted cash, beginning of period | 148,347 | 62,427 | |||||
Cash, cash equivalents, and restricted cash, end of period | $ | 158,574 | $ | 112,139 |
Three Months Ended April 30, | |||||||
2019 | 2018 | ||||||
Reconciliation of GAAP gross profit to non-GAAP gross profit: | |||||||
Gross profit on a GAAP basis | $ | 61,216 | $ | 36,390 | |||
Gross margin (Gross profit/Total revenue) on a GAAP basis | 68 | % | 73 | % | |||
Add back: | |||||||
Stock-based compensation expense: Cost of Revenue—Subscription | 988 | 359 | |||||
Stock-based compensation expense: Cost of Revenue—Services | 593 | 184 | |||||
Non-GAAP gross profit | $ | 62,797 | $ | 36,933 | |||
Non-GAAP gross margin (Non-GAAP gross profit/Total revenue) | 70 | % | 74 | % | |||
Reconciliation of GAAP loss from operations to non-GAAP loss from operations: | |||||||
Loss from operations on a GAAP basis | $ | (30,577 | ) | $ | (26,679 | ) | |
Add back: | |||||||
Stock-based compensation expense | 14,009 | 7,577 | |||||
Amortization of intangible assets and Founder Holdback associated with acquisitions | 3,580 | 221 | |||||
Acquisition costs | 346 | — | |||||
Non-GAAP loss from operations | $ | (12,642 | ) | $ | (18,881 | ) | |
Reconciliation of GAAP net loss to non-GAAP net loss: | |||||||
Net loss on a GAAP basis | $ | (33,240 | ) | $ | (26,555 | ) | |
Add back: | |||||||
Stock-based compensation expense | 14,009 | 7,577 | |||||
Amortization of intangible assets and Founder Holdback associated with acquisitions | 3,580 | 221 | |||||
Acquisition costs | 346 | — | |||||
Non-cash interest expense related to convertible senior notes | 3,221 | — | |||||
Non-GAAP net loss | $ | (12,084 | ) | $ | (18,757 | ) | |
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 | $ | (0.61 | ) | $ | (0.53 | ) | |
Add back: | |||||||
Stock-based compensation expense | 0.26 | 0.15 | |||||
Amortization of intangible assets and Founder Holdback associated with acquisitions | 0.06 | 0.01 | |||||
Acquisition costs | 0.01 | — | |||||
Non-cash interest expense related to convertible senior notes | 0.06 | — | |||||
Non-GAAP net loss per share, basic and diluted | $ | (0.22 | ) | $ | (0.37 | ) |
Three Months Ended April 30, | |||||||
2019 | 2018 | ||||||
Net cash provided by (used in) operating activities | $ | 3,214 | $ | (8,049 | ) | ||
Capital expenditures | (389 | ) | (367 | ) | |||
Capitalized software | — | — | |||||
Free cash flow | $ | 2,825 | $ | (8,416 | ) |
As of | |||||||||||||||||
4/30/2017 | 7/31/2017 | 10/31/2017 | 1/31/2018 | 4/30/2018 | 7/31/2018 | 10/31/2018 | 1/31/2019 | 4/30/2019 | |||||||||
Total Customers | 3,700+ | 4,300+ | 4,900+ | 5,700+ | 6,600+ | 7,400+ | 8,300+ | 13,400+ | 14,200+ | ||||||||
Direct Sales Customers(a) | 1,300+ | 1,350+ | 1,400+ | 1,450+ | 1,550+ | 1,600+ | 1,700+ | 1,750+ | 1,800+ | ||||||||
MongoDB Atlas Customers | 1,300+ | 1,900+ | 2,600+ | 3,400+ | 4,400+ | 5,300+ | 6,200+ | 11,400+ | 12,300+ | ||||||||
Customers over $100K(b) | 268 | 296 | 320 | 354 | 394 | 438 | 490 | 557 | 598 |