CEO: “We’ve been hiring like mad”
Database provider MongoDB beat analyst expectations with earnings reported late Wednesday, announcing quarterly revenues of $99.4 million, up 67 percent year-over-year, and halving operating losses y-o-y for the quarter to $14.8 million.
The company added 800 customers during the quarter, bringing customer count to 15,000. CEO Dev Ittycheria told investors: “We’re confident we’ll be able to… capitalise on our long-term opportunity in the $64 billion global database software market.”
The New York-based company told analysts on an earnings call that its fully managed cloud database offering Atlas grew over 240 percent in the quarter and now represents 37 percent of its total revenue, double that of the same quarter last year.
Against this backdrop of strong revenue growth and rapid expansion (“we’re hiring like mad”, as Ittycheria put it on the earnings call) it also managed to sharply trim losses, MongoDB earnings showed. CFO Michael Gordon said: “Our operating loss was $14.8 million or a negative 15 percent operating margin for the second quarter.”
That compares with a negative 30 percent margin in the year-ago period.He described the 1,500 basis points improvement in operating margin as “particularly impressive, given our growth profile and the investments we are making”.
What is MongoDB?
MongoDB provides a non-relational database designed to manage an avalanche of rapidly changing data types including “polymorphic” data generated by new classes of web, mobile, social, and IoT apps.
Its case for growth: the database world has long been dominated by relational databases like those provided by Oracle, in which you pre-define your database schema based on your business’s requirements and set up rules to govern the relationships between fields in your tables.
In such databases, related information is stored in separate tables, then linked through the use of foreign keys and joins.
While such databases are fast, powerful and deeply entrenched in many businesses, any changes in schema require a migration procedure that can take the database offline or significantly reduce application performance; both unpalatable, at best, in today’s enterprise or organisational environment.
MongoDB Earnings: Atlas Growth a Highlight
Its managed Atlas service has been performing particularly well. CEO Dev Ittycheria said Wednesday: “MongoDB Atlas Data Lake allows customers to quickly Query data on S3 in any format using the MongoDB Query Language.
“We believe that other solutions in the analytics markets have been plagued by high upfront investments, complex implementations and a need for specialized skills. By contrast with Atlas Data Lake, our customers can leverage their existing MongoDB expertise and incur no upfront costs to quickly derive value from their data.
The company flagged two recent customers as examples of its reach: Halliburton Energy Services, which is using MongoDB to underpin analysis of digital operations in the field, orchestrating multiple inbound and outbound data streams and applications.
Dreamus, a subsidiary of SK Telecom, South Korea’s largest telecommunications firm, meanwhile, has replaced MySQL with MongoDB for its new mobile music service, citing the inability of its relational database to scale.
Recent SEC filings show a number of company share owners cashing out, meanwhile: CRO Cedric Pech sold 29,809 shares of the firm’s stock in a transaction dated Monday, June 10, for a total value of $5,391,255.74. Director John Dennis Mcmahon meanwhile sold 20,000 shares of MongoDB stock in a transaction worth $3,444,200.00.
Insiders have sold a total of 205,471 shares of company stock valued at $32,106,036 over the last three months. 25.08% of the stock is currently owned by insiders.