MongoDB, Inc. [MDB] Filings

10-Q 1 mdb-20240731.htm 10-Q mdb-20240731

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

___________________

FORM 10-Q

___________________

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-38240

___________________

MONGODB, INC.

(Exact Name of Registrant as Specified in its Charter)

___________________


Delaware		26-1463205
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
1633 Broadway,	38th Floor
New York,	NY	10019
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: 646-727-4092

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.001 per share

MDB

The Nasdaq Stock Market LLC

(Nasdaq Global Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	þ	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

As of August 28, 2024, there were 73,869,454 shares of the registrant’s common stock, par value $0.001 per share, outstanding.

Table of Contents


		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Unaudited Condensed Consolidated Balance Sheets as of July 31, 2024 and January 31, 2024	1
	Unaudited Condensed Consolidated Statements of Operations for the three and six months ended July 31, 2024 and 2023	2
	Unaudited Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended July 31, 2024 and 2023	3
	Unaudited Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended July 31, 2024 and 2023	4
	Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended July 31, 2024 and 2023	5
	Notes to Condensed Consolidated Financial Statements (unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	31

PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	65
Item 3.	Defaults Upon Senior Securities	66
Item 4.	Mine Safety Disclosures	66
Item 5.	Other Information	66
Item 6.	Exhibits	67
Signatures		68

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PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

MONGODB, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands of U.S. dollars, except share and per share data)

(unaudited)


	July 31, 2024		January 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	1,290,901	$	802,959
Short-term investments	973,933		1,212,448
Accounts receivable, net of allowance for doubtful accounts of $7,879 and $8,054 as of July 31, 2024 and January 31, 2024, respectively	311,166		325,610
Deferred commissions	97,644		92,512
Prepaid expenses and other current assets	48,403		50,107
Total current assets	2,722,047		2,483,636

Property and equipment, net	48,389		53,042
Operating lease right-of-use assets	36,873		37,365
Goodwill	69,679		69,679
Acquired intangible assets, net	1,133		3,957
Deferred tax assets	4,765		4,116
Other assets	248,344		217,847
Total assets	$	3,131,230	$	2,869,642
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	10,135	$	9,905
Accrued compensation and benefits	112,063		112,579
Operating lease liabilities	11,048		9,797
Other accrued liabilities	100,795		74,831
Deferred revenue	307,114		357,108
Total current liabilities	541,155		564,220
Deferred tax liability	1,061		285
Operating lease liabilities	28,877		30,918
Deferred revenue	15,612		20,296
Convertible senior notes, net	1,144,977		1,143,273
Other liabilities	36,501		41,661
Total liabilities	1,768,183		1,800,653
Commitments and contingencies (Note 7)

Stockholders’ equity:
Common stock, par value of $0.001 per share; 1,000,000,000 shares authorized as of July 31, 2024 and January 31, 2024; 73,963,083 shares issued and 73,863,712 shares outstanding as of July 31, 2024; 72,840,692 shares issued and 72,741,321 shares outstanding as of January 31, 2024	73		73
Additional paid-in capital	3,210,146		2,777,322
Treasury stock, 99,371 shares (repurchased at an average of $13.27 per share) as of July 31, 2024 and January 31, 2024	(1,319)		(1,319)
Accumulated other comprehensive income	901		4,545
Accumulated deficit	(1,846,754)		(1,711,632)
Total stockholders’ equity	1,363,047		1,068,989
Total liabilities and stockholders’ equity	$	3,131,230	$	2,869,642

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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MONGODB, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands of U.S. dollars, except share and per share data)

(unaudited)


	Three Months Ended July 31,				Six Months Ended July 31,
	2024		2023		2024		2023
Revenue:
Subscription	$	463,805	$	409,334	$	900,701	$	764,048
Services	14,304		14,457		27,969		28,023
Total revenue	478,109		423,791		928,670		792,071
Cost of revenue:
Subscription	106,816		84,822		207,578		162,995
Services	21,437		20,515		43,372		39,791
Total cost of revenue	128,253		105,337		250,950		202,786
Gross profit	349,856		318,454		677,720		589,285
Operating expenses:
Sales and marketing	221,539		195,934		440,983		378,667
Research and development	148,967		125,420		295,027		242,237
General and administrative	50,790		46,103		111,336		85,931
Total operating expenses	421,296		367,457		847,346		706,835
Loss from operations	(71,440)		(49,003)		(169,626)		(117,550)
Other (expense) income:
Interest income	24,260		19,470		47,371		37,507
Interest expense	(2,282)		(2,611)		(4,179)		(5,004)
Other expense, net	(1,170)		(1,865)		(2,210)		(721)
Loss before provision for income taxes	(50,632)		(34,009)		(128,644)		(85,768)
Provision for income taxes	3,897		3,588		6,478		6,075
Net loss	$	(54,529)	$	(37,597)	$	(135,122)	$	(91,843)
Net loss per share, basic and diluted	$	(0.74)	$	(0.53)	$	(1.84)	$	(1.30)
Weighted-average shares used to compute net loss per share, basic and diluted	73,543,427		70,874,117		73,269,824		70,531,581

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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MONGODB, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands of U.S. dollars)

(unaudited)


	Three Months Ended July 31,				Six Months Ended July 31,
	2024		2023		2024		2023
Net loss	$	(54,529)	$	(37,597)	$	(135,122)	$	(91,843)
Other comprehensive income (loss), net of tax:
Unrealized income (loss) on available-for-sale securities	6,989		(5,981)		(2,552)		(5,163)
Foreign currency translation adjustment	(85)		1,105		(1,092)		2,026
Other comprehensive income (loss)	6,904		(4,876)		(3,644)		(3,137)
Total comprehensive loss	$	(47,625)	$	(42,473)	$	(138,766)	$	(94,980)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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MONGODB, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands of U.S. dollars, except share data)

(unaudited)


	Common Stock			Additional Paid-In Capital		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount
Balances as of January 31, 2024	72,741,321	$	73	$	2,777,322	$	(1,319)	$	4,545	$	(1,711,632)	$	1,068,989

Stock option exercises	132,617	—		953		—		—		—		953

Vesting of restricted stock units	399,213	—		—		—		—		—		—
Vesting of performance stock units	77,444	—		—		—		—		—		—
Stock-based compensation	—	—		120,763		—		—		—		120,763

Unrealized loss on available-for-sale securities	—	—		—		—		(9,541)		—		(9,541)
Foreign currency translation adjustment	—	—		—		—		(1,007)		—		(1,007)
Reclassification of derivative related to the Capped Call associated with the 2024 Notes	—	—		169,692		—		—		—		169,692
Net loss	—	—		—		—		—		(80,593)		(80,593)
Balances as of April 30, 2024	73,350,595	73		3,068,730		(1,319)		(6,003)		(1,792,225)		1,269,256
Stock option exercises	41,954	—		353		—		—		—		353
Vesting of restricted stock units	374,560	—		—		—		—		—		—
Stock-based compensation	—	—		122,423		—		—		—		122,423


Issuance of common stock under the Employee Stock Purchase Plan	96,603	—		18,640		—		—		—		18,640
Unrealized gain on available-for-sale securities	—	—		—		—		6,989		—		6,989
Foreign currency translation adjustment	—	—		—		—		(85)		—		(85)

Net loss	—	—		—		—		—		(54,529)		(54,529)
Balances as of July 31, 2024	73,863,712	$	73	$	3,210,146	$	(1,319)	$	901	$	(1,846,754)	$	1,363,047


	Common Stock			Additional Paid-In Capital		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount
Balances as of January 31, 2023	69,906,586	$	70	$	2,276,694	$	(1,319)	$	(905)	$	(1,535,032)	$	739,508

Stock option exercises	213,713	—		1,472		—		—		—		1,472

Vesting of restricted stock units	388,017	1		—		—		—		—		1
Vesting of performance stock units	22,991	—		—		—		—		—		—
Stock-based compensation	—	—		103,955		—		—		—		103,955

Unrealized gain on available-for-sale securities	—	—		—		—		818		—		818
Foreign currency translation adjustment	—	—		—		—		921		—		921
Net loss	—	—		—		—		—		(54,246)		(54,246)
Balances as of April 30, 2023	70,531,307	71		2,382,121		(1,319)		834		(1,589,278)		792,429
Stock option exercises	265,477	1		2,035		—		—		—		2,036
Vesting of restricted stock units	432,093	—		—		—		—		—		—
Stock-based compensation	—	—		113,312		—		—		—		113,312


Issuance of common stock under the Employee Stock Purchase Plan	114,508	—		19,781		—		—		—		19,781
Unrealized loss on available-for-sale securities	—	—		—		—		(5,981)		—		(5,981)
Foreign currency translation adjustment	—	—		—		—		1,105		—		1,105
Net loss	—	—		—		—		—		(37,597)		(37,597)
Balances as of July 31, 2023	71,343,385	$	72	$	2,517,249	$	(1,319)	$	(4,042)	$	(1,626,875)	$	885,085

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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MONGODB, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands of U.S. dollars)

(unaudited)


	Six Months Ended July 31,
	2024		2023
Cash flows from operating activities
Net loss	$	(135,122)	$	(91,843)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	7,175		8,546
Stock-based compensation	243,186		217,267
Amortization of debt discount and issuance costs	1,704		1,694
Amortization of finance right-of-use assets	1,987		1,987
Amortization of operating right-of-use assets	5,071		4,479
Deferred income taxes	26		(377)
Amortization of premium and accretion of discount on short-term investments, net	(13,461)		(25,509)

Realized and unrealized gain on financial instruments, net	(852)		(1,294)
Unrealized foreign exchange loss	1,204		1,299
Change in operating assets and liabilities:
Accounts receivable, net	13,299		12,158
Prepaid expenses and other current assets	1,382		(2,785)
Deferred commissions	(19,973)		(4,440)
Other long-term assets	(9,309)		(138)
Accounts payable	199		(356)

Accrued liabilities	29,213		3,459
Operating lease liabilities	(5,368)		(4,656)
Deferred revenue	(54,313)		(91,350)
Other liabilities, non-current	(3,833)		287
Net cash provided by operating activities	62,215		28,428
Cash flows from investing activities
Purchases of property and equipment	(1,590)		(1,258)

Investments in non-marketable securities	(5,500)		(2,056)

Proceeds from maturities of marketable securities	435,000		755,000
Purchases of marketable securities	(185,633)		(650,599)
Net cash provided by investing activities	242,277		101,087
Cash flows from financing activities

Proceeds from settlement of capped calls	170,589		—
Proceeds from the issuance of common stock under the Employee Stock Purchase Plan	18,640		19,781
Proceeds from exercise of stock options	1,306		3,509

Principal payments of finance leases	(3,639)		(2,703)


Net cash provided by financing activities	186,896		20,587
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(2,551)		1,415
Net increase in cash, cash equivalents and restricted cash	488,837		151,517
Cash, cash equivalents and restricted cash, beginning of period	803,643		456,339
Cash, cash equivalents and restricted cash, end of period	$	1,292,480	$	607,856
Supplemental cash flow disclosure
Cash paid during the period for:
Income taxes, net of refunds	$	5,127	$	5,654
Interest expense	$	2,672	$	2,775





Reconciliation of cash, cash equivalents and restricted cash within the condensed consolidated balance sheets, end of period, to the amounts shown in the statements of cash flows above:
Cash and cash equivalents	$	1,290,901	$	607,175
Restricted cash, non-current	1,579		681
Total cash, cash equivalents and restricted cash	$	1,292,480	$	607,856

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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MONGODB, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Organization and Description of Business

MongoDB, Inc. (“MongoDB” or the “Company”) was originally incorporated in the state of Delaware in November 2007 under the name 10Gen, Inc. In August 2013, the Company changed its name to MongoDB, Inc. The Company is headquartered in New York City. MongoDB is the developer data platform company. The foundation of the Company’s offering is the leading, modern general purpose database, which is built on a unique document-based architecture. Organizations can deploy the Company’s database at scale in the cloud, on-premises, or in a hybrid environment. The Company’s robust platform enables developers to build and modernize applications rapidly and cost-effectively across a broad range of use cases. In addition to selling subscriptions to its software, the Company provides post-contract support, training and consulting services for its offerings. The Company’s fiscal year ends on January 31.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying interim condensed consolidated financial statements are unaudited and have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. These interim unaudited condensed consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. The interim unaudited condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and in the opinion of management, reflect all adjustments, including normal recurring adjustments, which are considered necessary to fairly state the Company’s financial position and results of operations as of and for the periods presented. All intercompany transactions and accounts have been eliminated. The results of operations for the interim periods should not be considered indicative of results for the full year or for any other future year or interim period.

The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. Therefore, these interim unaudited condensed consolidated financial statements and accompanying footnotes should be read in conjunction with the Company’s annual consolidated financial statements and related footnotes included in its Annual Report on Form 10-K for the fiscal year ended January 31, 2024 (the “2024 Form 10-K”).

Use of Estimates

The preparation of the interim unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, assumptions and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Such estimates include, but are not limited to, revenue recognition, allowances for doubtful accounts, the period of benefit for deferred contract acquisition costs, the incremental borrowing rate related to the Company’s lease liabilities, stock-based compensation, legal contingencies, fair value of acquired intangible assets and goodwill, useful lives and carrying values of acquired intangible assets and property and equipment, fair value of financial instruments and accounting for income taxes. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events.

The global macroeconomic conditions, including slower economic growth, persistent inflation and a high interest rate environment, continue to impact demand and supply for a broad variety of goods and services, including demand from the Company’s customers.

Estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require the exercise of judgment. As of the date of issuance of these financial statements, the Company is not aware of any specific event or circumstance that would require the Company to update its estimates, assumptions and judgments or adjust the carrying value of its assets or liabilities. These estimates may change as new events occur and additional information is obtained and are recognized in the condensed consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to the Company’s financial statements.

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MONGODB, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Significant Accounting Policies

There have been no changes to the Company’s significant accounting policies as described in the Company’s 2024 Form 10-K.

Recently Issued Accounting Pronouncements

Improvements to Reportable Segment Disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires companies to provide disclosures of significant segment expenses and other segment items. The guidance requires companies to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. The guidance is applied retrospectively and is effective for the Company for fiscal year ending January 31, 2025, and for interim periods beginning February 1, 2025. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements.

Improvements to Income Tax Disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires companies to disclose additional information about income taxes, primarily their rate reconciliation information and income taxes paid. The new guidance requires companies to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if the items meet a quantitative threshold. Additionally companies will be required to disclose annually income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes and to disaggregate the information by jurisdiction based on a quantitative threshold. The guidance is effective for the Company for the fiscal year ending January 31, 2026, and early adoption is permitted. The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements.

3. Fair Value Measurements

The following tables present information about the Company’s financial assets that have been measured at fair value on a recurring basis as of July 31, 2024 and January 31, 2024 and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands):


	Fair Value Measurement as of July 31, 2024
	Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents:
Money market funds	$	790,418	$	—	$	—	$	790,418
Short-term investments:
U.S. government treasury securities	973,933		—		—		973,933


Total financial assets	$	1,764,351	$	—	$	—	$	1,764,351


	Fair Value Measurement as of January 31, 2024
	Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and cash equivalents:
Money market funds	$	512,456	$	—	$	—	$	512,456
Short-term investments:
U.S. government treasury securities	1,212,448		—		—		1,212,448
Total financial assets	$	1,724,904	$	—	$	—	$	1,724,904

The Company utilized the market approach and Level 1 valuation inputs to value its money market mutual funds and U.S. government treasury securities because published net asset values were readily available.

The following table summarizes the amortized cost and fair value of the Company’s short-term investments by remaining contractual maturity as of July 31, 2024 and January 31, 2024 (in thousands):

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MONGODB, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)


	July 31, 2024						January 31, 2024
	Amortized Cost		Unrealized Gains (Losses)		Fair Value		Amortized Cost		Unrealized Gains (Losses)		Fair Value
Due within one year	$	485,188	$	(1,232)	$	483,956	$	520,006	$	(543)	$	519,463
Due after one year and within three years	489,066		911		489,977		690,211		2,774		692,985
Total short-term investments	$	974,254	$	(321)	$	973,933	$	1,210,217	$	2,231	$	1,212,448

As of July 31, 2024, unrealized net losses on the Company’s U.S. government treasury securities were approximately $0.3 million. As of January 31, 2024, unrealized gains on the Company’s U.S. government treasury securities were approximately $2.2 million. These unrealized gains and losses were caused by fluctuations in interest rates, which results in changes to the market value of these securities. Because the decline in fair value is due to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity, the Company concluded that an allowance for credit losses was unnecessary for short-term investments as of July 31, 2024. Gross realized gains and losses were not material for each of the three and six months ended July 31, 2024 and 2023. There were no material short-term investments in a continuous loss position for greater than twelve months.

Convertible Senior Notes and Capped Calls

The Company measures the fair value of its outstanding convertible senior notes on a quarterly basis for disclosure purposes. The Company considers the fair value of its convertible senior notes as of July 31, 2024 to be a Level 2 measurement due to limited trading activity of the convertible senior notes.

The fair value measurements for the derivative asset related to the Capped Calls associated with the 2024 Notes (as defined herein) are determined using the Black-Scholes option-pricing model with Level 1 and Level 2 inputs. The derivative asset recognized during the three months ended April 30, 2024 was cash settled in June 2024.

Refer to Note 5, Convertible Senior Notes, for further details on the convertible senior notes and Capped Calls.

Non-marketable Securities

As of July 31, 2024 and January 31, 2024, the total amount of non-marketable equity and debt securities included in other assets on the Company’s condensed consolidated balance sheets was $18.4 million and $12.9 million, respectively. The Company invested an additional $5.5 million and $2.1 million of its cash in non-marketable equity securities during the six months ended July 31, 2024 and 2023, respectively. The Company recognized immaterial net unrealized losses on certain of these non-marketable securities during the three and six months ended July 31, 2024. During the three months ended July 31, 2023 the Company recognized a net unrealized loss of $0.9 million and a net unrealized gain of $1.3 million during the six months ended July 31, 2023. Refer to Note 2, Summary of Significant Accounting Policies, in the Notes to Consolidated Financial Statements included in Part II, Item 8 of the Company’s 2024 Form 10-K for further information. The Company considers these assets as Level 3 within the fair value hierarchy when an impairment or observable price changes in orderly transactions are recognized on these non-marketable securities during the period. The estimation of fair value for these investments is inherently complex due to the lack of readily available market data and inherent lack of liquidity and requires the Company’s judgment and the use of significant unobservable inputs in an inactive market. In addition, the determination of whether an orderly transaction is for the identical or a similar investment requires significant management judgment, including understanding the differences in the rights and obligations of the investments, the extent to which those differences would affect the fair values of those investments and the stage of operational development of the entities.

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4. Goodwill and Acquired Intangible Assets, Net

The following table summarizes the changes in the carrying amount of goodwill during the periods presented (in thousands):


	July 31, 2024		January 31, 2024
Balance, beginning of year	$	69,679	$	57,779
Increase in goodwill related to business combinations	—		11,900
Balance, end of period	$	69,679	$	69,679

On September 27, 2023, the Company acquired the assets of Grainite, Inc. (“Grainite”), for total cash consideration of $15.0 million. Grainite is a stream processing application company and the transaction is intended to accelerate the development of the Company’s stream processing offering. The Company accounted for the transaction as a business combination, after determining that the acquired set of assets, the fair value of which was not concentrated in a single asset, or group of similar assets, and included (a) an assembled workforce and (b) intangible asset, met the definition of a business. As a result, the Company allocated the estimated fair value of $3.1 million of the identifiable asset acquired to the developed technology intangible asset. The fair value assigned to the intangible asset was determined through the use of a third-party valuation firm using replacement cost approach methodology, and includes the expected profit margin of a hypothetical third-party developer and a market participant’s opportunity cost. Judgment was applied for a number of assumptions used in the valuation of the identified intangible asset. The excess of the cash consideration over the identifiable intangible assets in the amount of $11.9 million was allocated to goodwill. This transaction is accounted for as an asset acquisition for tax purposes, and therefore both the goodwill and acquired intangible asset are deductible for tax purposes. Tax impacts were not material. Acquisition-related transaction costs were not material and have been expensed as incurred and included in general and administrative expenses in the condensed consolidated statements of operations. The business combination did not have a material impact on the Company’s condensed consolidated financial statements.

The gross carrying amount and accumulated amortization of the Company’s intangible assets are as follows (in thousands):


	July 31, 2024
	Gross Carrying Value		Accumulated Amortization		Net Book Value		Weighted-Average Remaining Useful Life (in years)
Developed technology	$	41,200	$	(40,067)	$	1,133	1.7
Customer relationships	15,200		(15,200)		—		—
Total	$	56,400	$	(55,267)	$	1,133


	January 31, 2024
	Gross Carrying Value		Accumulated Amortization		Net Book Value		Weighted-Average Remaining Useful Life (in years)
Developed technology	$	41,200	$	(37,328)	$	3,872	1.0
Customer relationships	15,200		(15,115)		85		0.3
Total	$	56,400	$	(52,443)	$	3,957

Acquired intangible assets are amortized on a straight-line basis. Amortization expense of intangible assets was $0.1 million and $2.8 million for the three and six months ended July 31, 2024, respectively, and $2.3 million and $4.6 million for the three and six months ended July 31, 2023, respectively. Amortization expense for developed technology was included as research and development expense in the Company’s interim condensed consolidated statements of operations. Amortization expense for customer relationships was included as sales and marketing expense in the Company’s interim condensed consolidated statements of operations.

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As of July 31, 2024, future amortization expense related to the intangible assets is as follows (in thousands):


Years Ending January 31,
Remainder of 2025	$	340
2026	680
2027	113
2028	—
2029	—

Total	$	1,133

5. Convertible Senior Notes

The net carrying amounts of the Company’s 2026 Notes (as defined herein) were as follows for the periods presented (in thousands):


	July 31, 2024		January 31, 2024

Principal	$	1,149,972	$	1,149,972

Unamortized debt issuance costs	(4,995)		(6,699)
Net carrying amount	$	1,144,977	$	1,143,273

As of July 31, 2024, the estimated fair value (Level 2) of the outstanding 2026 Notes, which is utilized solely for disclosure purposes, was approximately $1.5 billion. The fair value was determined based on the closing trading price per $100 of the 2026 Notes as of the last day of trading for the period. The fair value of the 2026 Notes is primarily affected by the trading price of the Company’s common stock and market interest rates.

In January 2020, the Company issued $1.0 billion aggregate principal amount of 0.25% convertible senior notes due 2026 in a private placement and, also in January 2020, the Company issued an additional $150.0 million aggregate principal amount of convertible senior notes pursuant to the exercise in full of the initial purchasers’ option to purchase additional convertible senior notes (collectively, the “2026 Notes”). The 2026 Notes are senior unsecured obligations of the Company and interest is payable semiannually in arrears on July 15 and January 15 of each year, beginning on July 15, 2020, at a rate of 0.25% per year. The 2026 Notes will mature on January 15, 2026, unless earlier converted, redeemed or repurchased. The total net proceeds from the offering, after deducting initial purchase discounts and estimated debt issuance costs, were approximately $1.1 billion.

Refer to Note 6, Convertible Senior Notes, in the Notes to Consolidated Financial Statements included in Part II, Item 8 of the Company’s 2024 Form 10-K for further information on the 2026 Notes.

As of July 31, 2024, the conditional conversion feature of the 2026 Notes was not triggered as the last reported sale price of the Company's common stock was not more than or equal to 130% of the conversion price for at least 20 trading days in the period of 30 consecutive trading days and therefore the 2026 Notes are not convertible, in whole or in part, from August 1, 2024 through October 31, 2024. Whether the 2026 Notes will be convertible following such period will depend on the satisfaction of this condition or another conversion condition in the future.

Capped Calls

In connection with the pricing of the issuance of the Company’s convertible notes due June 15, 2024 (the “2024 Notes”) and the 2026 Notes, the Company entered into privately negotiated capped call transactions with certain counterparties (the “Capped Calls”). The Capped Calls associated with the 2024 Notes each have an initial strike price of approximately $68.15 per share, subject to certain adjustments, which corresponded to the initial conversion price of the 2024 Notes. These Capped Calls have initial cap prices of $106.90 per share, subject to certain adjustments.

In April 2024, the Company elected cash settlement for the Capped Calls associated with the 2024 Notes. The settlement period of the Capped Calls associated with the 2024 Notes ranges between April 2024 and June 2024 with cash receipt in June 2024. Upon the cash settlement election, the instrument, initially indexed to the Company’s own stock, no

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longer met the criteria for equity classification and was reclassified from stockholder’s equity to assets on the Company’s condensed consolidated balance sheet. The reclassification resulted in the recognition of a derivative asset, with an estimated fair value at cash settlement election date of $169.7 million, with a corresponding increase in additional paid in capital, which is reflected as a noncash financing activity for the three months ended April 30, 2024. The derivative asset was included in prepaid expenses and other current assets on the Company’s condensed consolidated balance sheet. The fair value of the derivative instrument as of April 30, 2024, was $170.2 million and as a result the Company recognized an unrealized gain of $0.5 million, which was recorded in other income (expense), net, on the Company’s interim condensed consolidated statement of operations. The fair values of the derivative asset related to the Capped Calls associated with the 2024 Notes were determined using the Black-Scholes option-pricing model with significant inputs being the Company’s share price and the risk free rate, based on the Secured Overnight Offering Rate, at each valuation date. The impact of volatility was not significant on the fair value measurements. In June 2024, the derivative asset was settled and the Company received $170.6 million in cash and recognized a realized gain of $0.9 million for the three and six months ended July 31, 2024, which was recorded in other income (expense), net, on the Company’s interim condensed consolidated statement of operations.

The Capped Calls associated with the 2026 Notes each have an initial strike price of approximately $211.20 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2026 Notes. These Capped Calls have initial cap prices of $296.42 per share, subject to certain adjustments. The Company did not unwind any of these Capped Calls through July 31, 2024.

Refer to Note 6, Convertible Senior Notes, in the Notes to Consolidated Financial Statements included in Part II, Item 8 of the Company’s 2024 Form 10-K for further information on the Capped Calls and the 2024 Notes.

6. Leases

The Company has entered into non-cancelable operating and finance lease agreements, principally real estate for office space globally. The Company may receive renewal or expansion options, leasehold improvement allowances or other incentives on certain lease agreements. Lease terms range from one to 12 years and may include renewal options, which the company deems reasonably certain to be renewed. The exercise of the lease renewal option is at the Company's discretion.

Lease Costs

The components of the Company’s lease costs included in its interim condensed consolidated statements of operations were as follows (in thousands):


	Three Months Ended July 31,				Six Months Ended July 31,
	2024		2023		2024		2023
Finance lease cost:
Amortization of finance lease right-of-use assets	$	994	$	993	$	1,987	$	1,987
Interest on finance lease liabilities	578		658		1,177		1,334
Operating lease cost	3,134		3,103		6,157		5,761
Short-term lease cost	1,516		1,224		3,032		2,587
Total lease cost	$	6,222	$	5,978	$	12,353	$	11,669

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Balance Sheet Components

The balances of the Company’s finance and operating leases were recorded on the condensed consolidated balance sheets as follows (in thousands):


	July 31, 2024		January 31, 2024
Finance Lease:
Property and equipment, net	$	21,527	$	23,514
Other accrued liabilities, current	5,899		6,179
Other liabilities, non-current	34,152		37,511
Operating Leases:
Operating lease right-of-use assets	$	36,873	$	37,365
Operating lease liabilities, current	11,048		9,797
Operating lease liabilities, non-current	28,877		30,918

Maturities of Lease Liabilities

Future minimum lease payments under non-cancelable finance and operating leases on an annual undiscounted cash flow basis as of July 31, 2024 were as follows (in thousands):


Year Ending January 31,	Finance Lease		Operating Leases
Remainder of 2025	$	3,630	$	6,855
2026	8,711		12,668
2027	8,711		8,240
2028	8,711		6,105
2029	8,711		5,478
Thereafter	7,985		8,001
Total minimum payments	46,459		47,347
Less imputed interest	(6,408)		(7,422)
Present value of future minimum lease payments	40,051		39,925
Less current obligations under leases	(5,899)		(11,048)
Non-current lease obligations	$	34,152	$	28,877

7. Commitments and Contingencies

Non-cancelable Material Commitments

During the six months ended July 31, 2024, other than certain non-cancelable operating leases described in Note 6, Leases, there have been no material changes outside the ordinary course of business to the Company’s contractual obligations and commitments from those disclosed in the 2024 Form 10-K.

Legal Matters

The Company investigates all claims, litigation and other legal matters as they arise. From time to time, the Company has become involved in claims, litigation and other legal matters arising in the ordinary course of business, including intellectual property, labor and employment and breach of contract claims. For example, on July 9, 2024, a putative class action lawsuit, captioned Baxter v. MongoDB, Inc., et al., was filed in the United States District Court for the Southern District of New York against MongoDB, CEO Dev Ittycheria, and CFO Michael Gordon. The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act, and alleges that defendants made material misstatements and/or omissions, including regarding MongoDB’s sales strategy and its financial results. The complaint is purportedly brought on behalf of a putative class of persons who purchased or otherwise acquired MongoDB common stock between August 31,

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2023 and May 30, 2024. It seeks unspecified monetary damages, costs and attorneys’ fees, and other unspecified relief. The Company intends to vigorously defend themself in this matter.

Although claims and litigation are inherently unpredictable, as of July 31, 2024, other than as disclosed above, the Company is currently not aware of any matters that, if determined adversely to the Company, would individually or taken together have a material adverse effect on its business, financial position, results of operations or cash flows. The Company accrues estimates for resolution of legal and other contingencies when losses are probable and estimable. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors.

Indemnification

The Company enters into indemnification provisions under its agreements with other companies in the ordinary course of business, including business partners, landlords, contractors and parties performing its research and development. Pursuant to these arrangements, the Company agrees to indemnify, hold harmless and reimburse the indemnified party for certain losses suffered or incurred by the indemnified party as a result of the Company’s activities. The terms of these indemnification agreements are generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable. To date, the Company has not incurred material costs as a result of such commitments. The Company maintains commercial general liability insurance and product liability insurance to offset certain of the Company’s potential liabilities under these indemnification provisions.

The Company has entered into indemnification agreements with each of its directors and executive officers. These agreements require the Company to indemnify such individuals, to the fullest extent permitted by Delaware law, for certain liabilities to which they may become subject as a result of their affiliation with the Company.

8. Revenue

Disaggregation of Revenue

Based on the information provided to and reviewed by the Company’s Chief Executive Officer, its Chief Operating Decision Maker, the Company believes that the nature, amount, timing and uncertainty of its revenue and cash flows and how they are affected by economic factors is most appropriately depicted through the Company’s primary geographical markets and subscription product categories. The Company’s primary geographical markets are North and South America (“Americas”); Europe, Middle East and Africa (“EMEA”); and Asia Pacific. The Company also disaggregates its subscription products between its MongoDB Atlas-related offerings and other subscription products, which include MongoDB Enterprise Advanced.

The following table presents the Company’s revenues disaggregated by primary geographical markets, subscription product categories and services (in thousands):


	Three Months Ended July 31,				Six Months Ended July 31,
	2024		2023		2024		2023
Primary geographical markets:
Americas	$	284,789	$	253,485	$	556,882	$	475,831
EMEA	136,824		113,446		260,120		218,569
Asia Pacific	56,496		56,860		111,668		97,671
Total	$	478,109	$	423,791	$	928,670	$	792,071

Subscription product categories and services:
MongoDB Atlas-related	$	339,683	$	267,258	$	653,538	$	505,014
Other subscription	124,122		142,076		247,163		259,034
Services	14,304		14,457		27,969		28,023
Total	$	478,109	$	423,791	$	928,670	$	792,071

Customers located in the United States accounted for 53% of total revenue for both the three and six months ended July 31, 2024, and 53% and 54% three and six months ended July 31, 2023, respectively. No other country accounted for 10% or more of revenue for the periods presented.

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Contract Liabilities

The Company’s contract liabilities are recorded as deferred revenue in the Company’s condensed consolidated balance sheets and consist of customer invoices issued or payments received in advance of revenues being recognized from the Company’s subscription and services contracts. Deferred revenue, including current and non-current balances, as of July 31, 2024 and January 31, 2024 was $322.7 million and $377.4 million, respectively. Approximately 27% and 37% of the total revenue recognized for the six months ended July 31, 2024 and 2023, respectively, was from deferred revenue at the beginning of each respective period.

Remaining Performance Obligations

Remaining performance obligations represent the aggregate amount of the transaction price in contracts allocated to performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations include unearned revenue, multi-year contracts with future installment payments and certain unfulfilled orders against accepted customer contracts at the end of any given period. As of July 31, 2024, the aggregate transaction price allocated to remaining performance obligations was $694.0 million. Approximately 58% is expected to be recognized as revenue over the next 12 months and the remainder thereafter. The Company applies the practical expedient to omit disclosure with respect to the amount of the transaction price allocated to remaining performance obligations if the related contract has a total duration of 12 months or less.

Unbilled Receivables

Revenue recognized in excess of invoiced amounts creates an unbilled receivable, which represents the Company’s unconditional right to consideration in exchange for goods or services that the Company has transferred to the customer. Unbilled receivables are recorded as part of accounts receivable, net in the Company’s condensed consolidated balance sheets. As of July 31, 2024 and January 31, 2024, unbilled receivables were $17.7 million and $22.7 million, respectively.

Allowance for Doubtful Accounts

The Company considers expectations of forward-looking losses, in addition to historical loss rates, to estimate its allowance for doubtful accounts on its accounts receivable. The following is a summary of the changes in the Company’s allowance for doubtful accounts (in thousands):


	Allowance for Doubtful Accounts
Balance at January 31, 2024	$	8,054
Provision	3,853
Recoveries/write-offs	(4,028)
Balance as of July 31, 2024	$	7,879

The decrease in allowance for doubtful accounts as of July 31, 2024 was primarily driven by the increased collections during the period.

Costs Capitalized to Obtain Contracts with Customers

Deferred commissions were $314.2 million and $294.2 million as of July 31, 2024 and January 31, 2024, respectively, of which $216.6 million and $201.7 million comprised the non-current portion and was included in other assets on the Company’s consolidated balance sheets as of July 31, 2024 and January 31, 2024, respectively. Amortization expense with respect to deferred commissions, which is included in sales and marketing expense in the Company’s interim condensed consolidated statements of operations, was $27.2 million and $53.6 million for the three and six months ended July 31, 2024, respectively, and $24.0 million and $47.6 million for the three and six months ended July 31, 2023, respectively. There was no impairment loss in relation to the costs capitalized for the periods presented.

9. Equity Incentive Plans and Employee Stock Purchase Plan

Equity Incentive Plan

The Company adopted the 2008 Stock Incentive Plan (as amended, the “2008 Plan”) and the 2016 Equity Incentive Plan (as amended the “2016 Plan”), primarily for the purpose of granting stock-based awards to eligible employees, directors and consultants, including stock options, restricted stock units (“RSUs”) and other stock-based awards. With the

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establishment of the 2016 Plan in December 2016, all shares available for grant under the 2008 Plan were transferred to the 2016 Plan. The Company no longer grants any stock-based awards under the 2008 Plan and any shares underlying stock options canceled under the 2008 Plan will be automatically transferred to the 2016 Plan.

Stock Options

The 2016 Plan provides for the issuance of incentive stock options to eligible employees and non-statutory stock options to eligible employees, directors or consultants. The Company’s Board of Directors, or a committee thereof, determines the vesting schedule for all equity awards. Stock option awards generally vest over a period of four years with 25% vesting on the one-year anniversary of the award and the remainder vesting monthly over the next 36 months of the grantee’s service to the Company. There were no stock options granted during the six months ended July 31, 2024.

The following table summarizes stock option activity for the six months ended July 31, 2024 (in thousands, except share and per share data and years):


	Shares	Weighted-Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value
Balance - January 31, 2024	835,623	$	8.14	2.6	$	327,884
Stock options exercised	(174,571)	7.47
Stock options forfeited and expired	—	—
Balance - July 31, 2024	661,052	$	8.31	2.1	$	161,328
Vested and exercisable - January 31, 2024	835,623	$	8.14	2.6	$	327,884
Vested and exercisable - July 31, 2024	661,052	$	8.31	2.1	$	161,328

Restricted Stock Units

The 2016 Plan provides for the issuance of RSUs to eligible employees, directors and consultants. RSUs granted to new employees generally vest over a period of four years with 25% vesting on the one-year anniversary of the award and the remainder vesting quarterly over the next 12 quarters, subject to the grantee’s continued service to the Company. RSUs granted to existing employees generally vest quarterly over a period of four years, subject to the grantee’s continued service to the Company.

The following table summarizes RSU activity for the six months ended July 31, 2024:


	Shares	Weighted-Average Grant Date Fair Value per RSU
Unvested - January 31, 2024	3,566,406	$	290.59
RSUs granted	1,159,005	330.52
RSUs vested	(773,773)	289.67
RSUs forfeited and canceled	(241,293)	294.86
Unvested - July 31, 2024	3,710,345	$	302.98

2017 Employee Stock Purchase Plan

In October 2017, the Company’s Board of Directors adopted, and stockholders approved, the 2017 Employee Stock Purchase Plan (the “2017 ESPP”). Subject to any plan limitations, the 2017 ESPP allows eligible employees to contribute, normally through payroll deductions, up to 15% of their earnings for the purchase of the Company’s common stock at a discounted price per share. In June 2024, the Company issued 96,603 shares of its common stock under the 2017 ESPP. The Company’s current offering period began on June 17, 2024 and is expected to end December 16, 2024.

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Stock-Based Compensation Expense

Total stock-based compensation expense recognized in the Company’s interim condensed consolidated statements of operations is as follows (in thousands):


	Three Months Ended July 31,				Six Months Ended July 31,
	2024		2023		2024		2023
Cost of revenue—subscription	$	7,519	$	6,075	$	13,682	$	11,589
Cost of revenue—services	3,401		3,342		6,656		6,290
Sales and marketing	41,040		40,376		80,653		77,982
Research and development	55,188		48,413		110,361		92,479
General and administrative	15,275		15,106		31,834		28,927
Total stock-based compensation expense	$	122,423	$	113,312	$	243,186	$	217,267

10. Net Loss Per Share

The Company calculates basic net loss per share by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, less shares subject to repurchase. Diluted net loss per share is computed by giving effect to all potentially dilutive common shares outstanding for the period, including stock options, restricted stock units and shares underlying the conversion option of the convertible senior notes. Basic and diluted net loss per share was the same for each period presented, as the inclusion of all potential common shares outstanding would have been anti-dilutive due to the net loss reported for each period presented.

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data):


	Three Months Ended July 31,				Six Months Ended July 31,
	2024		2023		2024		2023
Numerator:
Net loss	$	(54,529)	$	(37,597)	$	(135,122)	$	(91,843)

Denominator:
Weighted-average shares used to compute net loss per share, basic and diluted	73,543,427		70,874,117		73,269,824		70,531,581

Net loss per share, basic and diluted	$	(0.74)	$	(0.53)	$	(1.84)	$	(1.30)

In connection with the issuance of the 2024 Notes and 2026 Notes, the Company entered into Capped Calls, which were not included for purposes of calculating the number of diluted shares outstanding, as their effect would have been anti-dilutive. The Capped Calls are expected to partially offset the potential dilution to the Company’s common stock upon any conversion of the 2026 Notes. During the three months ended April 30, 2024, the Company elected a settlement in cash, as opposed to the Company’s common stock, of the Capped Calls associated with 2024 Notes. In June 2024 the related derivative was settled and the Capped Calls associated with the 2024 Notes were successfully unwound, refer to Note 5. Convertible Senior Notes for more information.

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The following weighted-average outstanding potentially dilutive shares of common stock were excluded from the computation of diluted net loss per share for the periods presented because the impact of including them would have been anti-dilutive:


	Three Months Ended July 31,		Six Months Ended July 31,
	2024	2023	2024	2023
Stock options pursuant to the 2016 Equity Incentive Plan	323,985	448,447	337,310	476,450
Stock options pursuant to the 2008 Stock Incentive Plan	362,121	988,792	378,588	1,070,891
Unvested restricted stock units	3,985,680	4,498,170	3,909,360	4,276,548
Unvested executive PSUs	173,085	254,321	187,271	254,321


Shares underlying the conversion option of the 2026 Notes	5,445,002	5,445,002	5,445,002	5,445,002
Total	10,289,873	11,634,732	10,257,531	11,523,212

11. Income Taxes

The Company recorded a provision for income taxes of $3.9 million and $6.5 million for the three and six months ended July 31, 2024, respectively, and $3.6 million and $6.1 million for the three and six months ended July 31, 2023, respectively. The provisions recorded during each of the three and six months ended July 31, 2024 and 2023 were driven by the increase in global income and the associated foreign taxes as the Company continues its global expansion. The calculation of income taxes was based upon the estimated annual effective tax rates for the year applied to the jurisdictional mix of current period loss before tax plus the tax effect of any significant unusual items, discrete events or changes in tax law.

The Company regularly assesses the need for a valuation allowance against its deferred tax assets. In making that assessment, the Company considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. The Company has maintained a valuation allowance on U.S., U.K. and Ireland net deferred tax assets, as it is more likely than not that some or all of the deferred tax assets will not be realized.

The Company assesses uncertain tax positions in accordance with ASC 740-10, Accounting for Uncertainties in Tax. As of January 31, 2024, the Company’s net unrecognized tax benefits totaled $81.6 million, $0.7 million of which would have an impact on the Company’s effective tax rate if recognized.

In 2021, the Organization for Economic Cooperation and Development (“OECD”) published Pillar Two Model Rules defining a global minimum tax, which calls for the taxation of large corporations at a minimum rate of 15%. The OECD has since issued administrative guidance providing transition and safe harbor rules around the implementation of the Pillar Two global minimum tax. In the first quarter of the Company’s fiscal year ending January 31, 2025, enacted Pillar Two legislation of a number of countries became effective. Pillar Two did not have a significant impact on the Company’s condensed consolidated financial statements for the six months ended July 31, 2024. While the Company is monitoring developments and evaluating the potential impact on future periods, the Company does not expect Pillar Two to have a significant impact on its consolidated financial statements for the fiscal year ending January 31, 2025.

The Company continues to monitor and interpret the impact of proposed and enacted global tax legislation. To date, globally enacted tax legislation has not materially impacted income tax expense of the financial statements due to the presence of net operating losses and full valuation allowances within the Company’s two most significant tax jurisdictions, the United States and Ireland.

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MONGODB, INC.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Unless the context otherwise indicates, references in this report to the terms “MongoDB,” “the Company,” “we,” “our” and “us” refer to MongoDB, Inc., its divisions and its subsidiaries. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with (1) our interim unaudited condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and (2) the audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2024 (the “2024 Form 10-K”). All information presented herein is based on our fiscal calendar year, which ends January 31. Unless otherwise stated, references to particular years, quarters, months or periods refer to our fiscal years ended January 31 and the associated quarters, months and periods of those fiscal years.

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements are often identified by the use of 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, including our expectations regarding our future growth opportunity, revenue and revenue growth, investments, strategy, operating expenses and the anticipated impact of the global economic uncertainty and financial market conditions, caused by the macroeconomic environment, on our business, results of operations and financial condition. Such forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified herein, and those discussed in the section titled “Risk Factors,” set forth in Part 2, Item 1A of this Quarterly Report on Form 10-Q. You should not rely upon forward-looking statements as predictions of future events. Furthermore, such forward-looking statements speak only as of the date of this report. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

Our corporate website is located at www.mongodb.com. We make available free of charge, on or through our corporate website, our annual, quarterly and current reports, and any amendments to those reports, as soon as reasonably practicable after electronically filing such reports with, or furnishing such reports to, the Securities and Exchange Commission (“SEC”). Information contained on our corporate website is not part of this Quarterly Report on Form 10-Q or any other report filed with or furnished to the SEC.

Overview

MongoDB is the developer data platform company whose mission is to empower developers to create, transform, and disrupt industries by unleashing the power of software and data. The foundation of our offering is the world’s leading, modern general purpose database. Organizations can deploy our database at scale in the cloud, on-premises, or in a hybrid environment. Built on our unique document-based architecture, our database is designed to meet the needs of organizations for performance, scalability, flexibility and reliability while maintaining the strengths of relational databases. In addition to the database, our developer data platform includes a set of, tightly integrated, capabilities such as search, time series and application-driven analytics that allow developers to address a broader range of application requirements. Our business model combines the developer mindshare and adoption benefits of open source with the economic benefits of a proprietary software subscription business model. MongoDB is headquartered in New York City and our total headcount increased to 5,360 as of July 31, 2024, from 4,626 as of July 31, 2023.

We generate revenue primarily from sales of subscriptions, which accounted for 97% of our total revenue for the three and six months ended July 31, 2024 and 97% and 96% for the three and six months ended July 31, 2023, respectively.

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MongoDB Atlas is our hosted multi-cloud database-as-a-service (“DBaaS”) offering, which we run and manage in the cloud, and includes comprehensive infrastructure and management, as well as a host of additional features, such as MongoDB Atlas Search, vector search, time series and application-driven analytics. During the three and six months ended July 31, 2024, MongoDB Atlas revenue represented 71% and 70%, respectively, as compared to 63% and 64% of our total revenue during the three and six months ended July 31, 2023, respectively, reflecting the continued growth of MongoDB Atlas since its introduction in June 2016. We have experienced strong growth in self-serve customers of MongoDB Atlas, which are charged monthly in arrears based on their usage. We have also seen growth in MongoDB Atlas customers sold by our sales force, which typically sign annual contracts and pay in advance or are invoiced monthly in arrears based on usage. Customers sold by our sales force may also sign contracts that remain in effect until terminated and are invoiced monthly in arrears based on usage. We expect to continue to see a higher portion of our MongoDB Atlas contracts to be billed monthly in arrears based on usage without requiring upfront commitments.

MongoDB Enterprise Advanced is our proprietary commercial database server offering for enterprise customers that can run in the cloud, on-premises or in a hybrid environment. MongoDB Enterprise Advanced revenue represented 24% of our subscription revenue for both the three and six months ended July 31, 2024 and 26% for both the three and six months ended July 31, 2023. We sell subscriptions directly through our field and inside sales teams, as well as indirectly through channel partners. The majority of our subscription contracts are one year in duration and are invoiced upfront. When we enter into multi-year subscriptions, the customer is typically invoiced on an annual basis or pays upfront.

Many of our enterprise customers initially get to know our software by using Community Server, which is our free-to-download version of our database that includes the core functionality developers need to get started with MongoDB without all the features of our commercial platform. Our platform has been downloaded from our website more than 500 million times since February 2009. We also offer a free tier of MongoDB Atlas, which provides access to our hosted database solution with limited processing power and storage, as well as certain operational limitations. As a result, with the availability of both Community Server and MongoDB Atlas free tier offerings, our direct sales prospects are often familiar with our platform and may have already built applications using our technology. A core component of our growth strategy for MongoDB Atlas and MongoDB Enterprise Advanced is to convert developers and their organizations who are already using Community Server or the free tier of MongoDB Atlas to become customers of our commercial products and enjoy the benefits of either a self-managed or hosted offering.

We also generate revenue from services, which consist primarily of fees associated with consulting and training services. Revenue from services accounted for 3% of our total revenue for both the three and six months ended July 31, 2024 and 3% and 4% for the three and six months ended July 31, 2023, respectively. We expect to continue to invest in our services organization as we believe it plays an important role in accelerating our customers’ realization of the benefits of our platform, which helps drive customer retention and expansion.

We believe the market for our offerings is large and growing. According to IDC, the worldwide database software market, which it refers to as the Database Management Software market, was $93 billion in 2023 growing to approximately $170 billion in 2028. This represents a 13% compound annual growth rate.

We have experienced rapid growth and have made substantial investments in developing our platform and expanding our sales and marketing footprint. We intend to continue to invest to grow our business to take advantage of our market opportunity.

Key Factors Affecting Our Performance

Macroeconomic and Other Factors

Our operational and financial performance is subject to risks including those caused by the adverse macroeconomic environment and the geopolitical landscape.

Adverse macroeconomic conditions include slower or negative economic growth, higher inflation and higher interest rates. During the six months ended July 31, 2024, the macroeconomic environment negatively impacted our business. For instance, we experienced slower than historical growth rates for our existing MongoDB Atlas applications. While the impact of these macroeconomic conditions on our business, results of operations and financial position remain uncertain over the long term, we expect to experience macroeconomic headwinds on growth rate for our existing MongoDB Atlas applications in the short term.

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We continue to monitor the developments of the macroeconomic environment and the geopolitical landscape. As these factors develop and we evaluate their impact on our business, we may adjust our business practices accordingly. For further discussion of the potential impacts of these and other factors on our business, operating results, and financial condition, see the section titled “Risk Factors” included in Part II, Item 1A of this Quarterly Report on Form 10-Q.

Growing Our Customer Base and Expanding Our Global Reach

We are intensely focused on continuing to grow our customer base. We have invested, and expect to continue to invest, in our sales and marketing efforts and developer community outreach, which are critical to driving customer acquisition. As of July 31, 2024, we had over 50,700 customers across a wide range of industries and in over 100 countries, compared to over 45,000 customers as of July 31, 2023. All affiliated entities are counted as a single customer and our definition of “customer” excludes users of our free offerings.

As of July 31, 2024, we had over 7,300 customers that were sold through our direct sales force and channel partners, as compared to over 6,800 such customers as of July 31, 2023. These customers, which we refer to as our Direct Sales Customers, accounted for 87% of our subscription revenue for both the three and six months ended July 31, 2024 and 88% of our subscription revenue for both the three and six months ended July 31, 2023. We plan to continue to invest in acquiring new customers and additional workloads from existing customers across all of our channels. We had over 49,200 MongoDB Atlas customers as of July 31, 2024 compared to over 43,500 as of July 31, 2023. The growth in MongoDB Atlas customers included new customers to MongoDB and existing MongoDB Enterprise Advanced customers adding incremental MongoDB Atlas workloads.

Retaining and Expanding Revenue from Existing Customers

The economic attractiveness of our subscription-based model is driven by customer renewals and increasing existing customer subscriptions over time, referred to as land-and-expand. We believe that there is a significant opportunity to drive additional sales to existing customers, and expect to invest in sales and marketing and customer success personnel and activities to achieve additional revenue growth from existing customers. If an application grows and requires additional capacity, our customers increase their usage of our platform. Growth of an application is impacted by a number of factors including the macroeconomic environment. During the six months ended July 31, 2024, we believe we experienced a negative impact from the macroeconomic environment on the growth of existing Atlas applications, which affected our revenue growth. We expect the macroeconomic environment to continue to negatively impact our revenue growth for the remainder of the year. In addition, our customers add incremental workloads or expand their subscriptions to our platform as they migrate additional existing applications or build new applications, either within the same department or in other lines of business or geographies. Also, as customers modernize their information technology infrastructure and move to the cloud, they may migrate applications from legacy databases. Our goal is to increase the number of customers that standardize on our platform within their organization, as well as add new workloads with new and existing customers. Over time, the subscription amount for our typical Direct Sales Customer has increased.

We calculate annualized recurring revenue (“ARR”) and annualized monthly recurring revenue (“MRR”) to help us measure our subscription revenue performance. ARR includes the revenue we expect to receive from our customers over the following 12 months based on contractual commitments and, in the case of Direct Sales Customers of MongoDB Atlas, by annualizing the prior 90 days of their actual usage of MongoDB Atlas, assuming no increases or reductions in their subscriptions or usage. For all other customers of our self-serve products, we calculate annualized MRR by annualizing the prior 30 days of their actual usage of such products, assuming no increases or reductions in usage. ARR and annualized MRR exclude professional services. The number of customers with $100,000 or greater in ARR and annualized MRR was 2,189 and 1,855 as of July 31, 2024 and 2023, respectively. Our ability to increase sales to existing customers will depend on a number of factors, including customers’ satisfaction or dissatisfaction with our products and services, competition, pricing, economic conditions or overall changes in our customers’ spending levels.

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We also examine the rate at which our customers increase their spend with us, which we call net ARR expansion rate. We calculate net ARR expansion rate by dividing the ARR at the close of a given period (the “measurement period”), from customers who were also customers at the close of the same period in the prior year (the “base period”), by the ARR from all customers at the close of the base period, including those who churned or reduced their subscriptions. For Direct Sales Customers included in the base period, measurement period or both such periods that were self-serve customers in any such period, we also include annualized MRR from those customers in the calculation of the net ARR expansion rate. As of July 31, 2024, our net ARR expansion rate was approximately 119%, as compared to historically being over 120%. The decline versus historical periods is attributable to a smaller contribution from expanding customers. Our net ARR expansion rate may fluctuate in future periods due to a variety of factors, including the volume and type of workloads that we onboard, growth rate of historical workloads on our platform and changes in the macroeconomic environment.

Components of Results of Operations

Revenue

Subscription Revenue. Our subscription revenue is comprised of term licenses and hosted as-a-service solutions. Revenue from our MongoDB Atlas offering is primarily generated on a usage basis and is billed either monthly in arrears or paid upfront. Subscriptions to term licenses include technical support and access to new software versions on a when-and-if available basis. Revenue from our term licenses is recognized upfront for the license component and ratably for the technical support and when-and-if available update components. Associated contracts are typically billed annually in advance. The majority of our subscription contracts are one year in duration. When we enter into multi-year subscriptions, the customer is typically invoiced on an annual basis or pays upfront. Our subscription contracts are generally non-cancelable and non-refundable.

Services Revenue. Services revenue is comprised of consulting and training services and is recognized over the period of delivery of the applicable services. We recognize revenue from services agreements as services are delivered.

We expect our revenue may vary from period to period based on, among other things, the timing and size of new subscriptions, customer usage patterns, the proportion of term license contracts that commence within the period, the rate of customer renewals and expansions, delivery of professional services, the impact of significant transactions and seasonality of or fluctuations in usage from our MongoDB Atlas customers.

Cost of Revenue

Cost of Subscription Revenue. Cost of subscription revenue primarily includes third-party cloud infrastructure expenses for our hosted as-a-service solutions. We expect our cost of subscription revenue to increase in absolute dollars as our subscription revenue increases and, depending on the results of MongoDB Atlas, our cost of subscription revenue may increase as a percentage of subscription revenue as well. Cost of subscription revenue also includes personnel costs, including salaries, bonuses and benefits and stock-based compensation, for employees associated with our subscription arrangements principally related to technical support and allocated shared costs, as well as depreciation and amortization.

Cost of Services Revenue. Cost of services revenue primarily includes personnel costs, including salaries, bonuses and benefits, and stock‑based compensation, for employees associated with our professional service contracts, as well as, travel costs, allocated shared costs and depreciation and amortization. We expect our cost of services revenue to increase in absolute dollars as our services revenue increases.

Gross Profit and Gross Margin

Gross Profit. Gross profit represents revenue less cost of revenue.

Gross Margin. Gross margin, or gross profit as a percentage of revenue, has been and will continue to be affected by a variety of factors, including the average sales price of our products and services, the mix of products sold, transaction volume growth and the mix of revenue between subscriptions and services. We expect our gross margin to fluctuate over time depending on the factors described above and, to the extent MongoDB Atlas revenue increases as a percentage of total revenue, our gross margin may decline as a result of the associated hosting costs of MongoDB Atlas.

Operating Expenses

Our operating expenses consist of sales and marketing, research and development and general and administrative expenses. Personnel costs are the most significant component of each category of operating expenses. Operating expenses

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also include travel and related costs and allocated overhead costs for facilities, information technology and employee benefit costs.

Sales and Marketing. Sales and marketing expense consists primarily of personnel costs, including salaries, sales commission and benefits, bonuses and stock‑based compensation. These expenses also include costs related to marketing programs, travel‑related expenses and allocated overhead. Marketing programs consist of advertising, events, corporate communications, and brand‑building and developer‑community activities. We expect our sales and marketing expense to increase in absolute dollars over time as we expand our sales force and increase our marketing resources, expand into new markets and further develop our self-serve and partner channels.

Research and Development. Research and development expense consists primarily of personnel costs, including salaries, bonuses and benefits, and stock‑based compensation. It also includes amortization associated with intangible acquired assets and allocated overhead. We expect our research and development expenses to continue to increase in absolute dollars, as we continue to invest in our developer data platform and develop new products.

General and Administrative. General and administrative expense consists primarily of personnel costs, including salaries, bonuses and benefits, and stock‑based compensation for administrative functions including finance, legal, human resources and external legal and accounting fees, as well as allocated overhead. We expect general and administrative expense to increase in absolute dollars over time as we continue to invest in the growth of our business, as well as incur the ongoing costs of compliance associated with being a publicly-traded company.

Other Income (Expense), Net

Other income (expense), net consists primarily of interest income, interest expense, gains and losses on financial instruments, net and gains and losses from foreign currency transactions.

Provision for Income Taxes

Provision for income taxes consists primarily of state income taxes in the United States and income taxes in certain foreign jurisdictions in which we conduct business.

We account for income taxes and the related accounts under the liability method. Deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted rates expected to be in effect during the year in which the basis differences reverse.

We regularly assess the need for a valuation allowance against our deferred tax assets. In making that assessment, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. We have maintained a valuation allowance on U.S., U.K. and Ireland net deferred tax assets, as it is more likely than not that some or all of the deferred tax assets will not be realized.

Three and Six Months Ended July 31, 2024 Summary

For the three months ended July 31, 2024, our total revenue increased to $478.1 million as compared to $423.8 million for the three months ended July 31, 2023, primarily driven by an increase in subscription revenue from our Direct Sales Customers. Our net loss increased to $54.5 million for the three months ended July 31, 2024 as compared to $37.6 million for the three months ended July 31, 2023, primarily driven by higher sales and marketing spend and research and development costs during the three months ended July 31, 2024, partially offset by the increase in revenue.

For the six months ended July 31, 2024, our total revenue increased to $928.7 million as compared to $792.1 million for the six months ended July 31, 2023, primarily driven by an increase in subscription revenue from our Direct Sales Customers. Our net loss increased to $135.1 million for the six months ended July 31, 2024 as compared to $91.8 million for the six months ended July 31, 2023, primarily driven by higher sales and marketing spend and research and development costs during the six months ended July 31, 2024, partially offset by the increase in revenue.

Our operating cash flow was $62.2 million and $28.4 million for the six months ended July 31, 2024 and 2023, respectively.

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Results of Operations

The following tables set forth our results of operations for the periods presented in U.S. dollars (unaudited, in thousands) and as a percentage of our total revenue. Percentage of revenue figures are rounded and therefore may not subtotal exactly.


	Three Months Ended July 31,				Six Months Ended July 31,
	2024		2023		2024		2023
Consolidated Statements of Operations Data:
Revenue:
Subscription	$	463,805	$	409,334	$	900,701	$	764,048
Services	14,304		14,457		27,969		28,023
Total revenue	478,109		423,791		928,670		792,071
Cost of revenue:
Subscription(1)	106,816		84,822		207,578		162,995
Services(1)	21,437		20,515		43,372		39,791
Total cost of revenue	128,253		105,337		250,950		202,786
Gross profit	349,856		318,454		677,720		589,285
Operating expenses:
Sales and marketing(1)	221,539		195,934		440,983		378,667
Research and development(1)	148,967		125,420		295,027		242,237
General and administrative(1)	50,790		46,103		111,336		85,931
Total operating expenses	421,296		367,457		847,346		706,835
Loss from operations	(71,440)		(49,003)		(169,626)		(117,550)
Other income, net	20,808		14,994		40,982		31,782
Loss before provision for income taxes	(50,632)		(34,009)		(128,644)		(85,768)
Provision for income taxes	3,897		3,588		6,478		6,075
Net loss	$	(54,529)	$	(37,597)	$	(135,122)	$	(91,843)

(1) Includes stock‑based compensation expense as follows (unaudited, in thousands):


	Three Months Ended July 31,				Six Months Ended July 31,
	2024		2023		2024		2023
Cost of revenue—subscription	$	7,519	$	6,075	$	13,682	$	11,589
Cost of revenue—services	3,401		3,342		6,656		6,290
Sales and marketing	41,040		40,376		80,653		77,982
Research and development	55,188		48,413		110,361		92,479
General and administrative	15,275		15,106		31,834		28,927
Total stock‑based compensation expense	$	122,423	$	113,312	$	243,186	$	217,267

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	Three Months Ended July 31,				Six Months Ended July 31,
	2024		2023		2024		2023
Percentage of Revenue Data:
Revenue:
Subscription	97	%	97	%	97	%	96	%
Services	3	%	3	%	3	%	4	%
Total revenue	100	%	100	%	100	%	100	%
Cost of revenue:
Subscription	22	%	20	%	22	%	21	%
Services	5	%	5	%	5	%	5	%
Total cost of revenue	27	%	25	%	27	%	26	%
Gross profit	73	%	75	%	73	%	74	%
Operating expenses:
Sales and marketing	46	%	46	%	47	%	48	%
Research and development	31	%	30	%	32	%	30	%
General and administrative	11	%	11	%	12	%	11	%
Total operating expenses	88	%	87	%	91	%	89

MongoDB, Inc. [MDB] Filings
10-Q	[2024-08-30]
10-Q	[2024-05-31]
10-K	[2024-03-15]
10-Q	[2023-12-07]
10-Q	[2023-09-01]
10-Q	[2023-06-02]
10-K	[2023-03-17]
10-Q	[2022-12-08]
10-Q	[2022-09-02]
10-Q	[2022-06-03]
10-K	[2022-03-18]
10-Q	[2021-12-08]
10-Q	[2021-09-03]
10-Q	[2021-06-04]
10-K	[2021-03-22]
10-Q	[2020-12-09]
10-Q	[2020-09-03]
10-Q	[2020-06-05]
10-K	[2020-03-27]
10-Q	[2019-12-10]
10-Q	[2019-09-05]
10-Q	[2019-06-07]
10-K	[2019-04-01]
10-Q	[2018-12-06]
10-Q	[2018-09-07]
10-Q	[2018-06-07]
10-K	[2018-03-30]
10-Q	[2017-12-15]
S-1	[2017-09-21]