MongoDB’s second quarter revenues grew 67% over the year to $99.4 million, ahead of the market’s forecast of $91 million. Loss from operations increased from $27.1 million last year to $37.7 million. On an adjusted basis, loss of $0.26 per share was better than the Street’s forecast of a loss of $0.28 per share.
During the quarter, MongoDB’s subscription revenues grew 71% over the year to $94.2 million, and services revenues increased 15% over the year to $5.2 million. It added 800 customers in the quarter to end with more than 15,000 customers. It is seeing a strong uptick in Atlas adoption, and revenues for the offering grew more than 240% over the year and accounted for 37% of revenues. By the end of the quarter, Atlas had more than 13,200 customers compared with more than 12,300 reported a quarter ago.
For the third quarter, it expects revenues of $98-$100 million with a net loss of $0.29-$0.27 per share. It expects to end the year with revenues of $390-$395 million and a net loss of $1.11-$1.06 per share. The market was looking for third quarter revenues of $94 million with a loss of $0.28 per share and revenues of $382.05 million for the year with a loss of $1.06 per share.
MongoDB’s Formula for Success: Products, Partners, Go-to-Market Strategy
MongoDB is growing its market presence through product upgrades and innovation. Last quarter, it announced the availability of MongoDB version 4.2 that offers key features such as distributed asset transactions and client-side field level encryption that expand its security capabilities. It also announced the launch of Atlas Data Lake that will allow customers to quickly query data on S3 in any format using the MongoDB Query Language.
The release suggests that MongoDB is looking beyond its core database market and expanding into other areas such as analytics. Additional features released as part of the 4.2 upgrade include the MongoDB Full-Text Search that will give end users the ability to filter, rank, and sort their data to quickly serve the most relevant search results. The capability will also help developers on the platform to build sophisticated search queries within applications.
MongoDB is also integrating its acquisitions into its platform. Recently it announced plans to integrate Realm’s mobile database into its serverless platform Stitch. By connecting Realm’s Synchronization Protocol with MongoDB’s Atlas Global Cloud Database on the back-end, MongoDB will be able to offer Realm Sync as a powerful way for developers to connect data to device.
Besides product expansion, MongoDB is also investing in improving its go-to-market strategy. It has built a three-pronged go-to-market strategy to target the entire database market. The three prongs include the field sales organization that focuses on major regions, an inside sales channel that focuses on the mid-market, and a self-serve channel that is seeing strong adoption rates.
Finally to help attract and retain enterprise customers, MongoDB is ensuring that it has strong cloud partnerships. Its platform can operate on all major cloud providers. It already had a strong partnership with the Google Cloud and AWS. It recently expanded its relationship with Microsoft by launching the availability of Atlas on Microsoft Azure Marketplace.
To further simplify usage, MongoDB also allows developers to interact with MongoDB graphically using MongoDB Compass, a GUI for MongoDB. Compass allows developers to explore and manipulate their data, create visual queries and aggregation pipelines and then export these queries as code to their applications. MongoDB also supports the startup environment by operating a MongoDB for Startups program that has registered over 700 startups. The startup accelerator program offers access to MongoDB Atlas and support to help startups build and scale their businesses.
Its stock is currently trading at $131.35 with a market capitalization of $7.4 billion. It had climbed to a 52-week high of $184.78 in June this year. The stock has recovered from the 52-week low of $62.30 that it was trading at in October last year. It has delivered a stellar performance since it listed at $24 apiece in October 2017.