MongoDB Reports 22% Revenue Growth to $529.4 Million in Latest Quarter

MongoDB, Inc. reported significant financial performance improvements in its latest quarterly filing, with total revenue reaching $529.4 million for the three months ended October 31, 2024, a 22% increase from $432.9 million in the same period last year. Subscription revenue, which constitutes the bulk of the company's income, rose to $512.2 million, up from $418.3 million, driven primarily by growth in its Direct Sales Customers. For the nine months ended October 31, 2024, total revenue increased to $1.46 billion, compared to $1.23 billion in the prior year, reflecting a 19% year-over-year growth.

Despite the revenue growth, MongoDB reported a net loss of $9.8 million for the third quarter, a notable improvement from a loss of $29.3 million in the same quarter of 2023. However, for the nine-month period, the net loss widened to $144.9 million from $121.1 million, attributed to increased sales and marketing expenses as well as research and development costs. The company’s operating expenses totaled $421.9 million for the quarter, up from $371.1 million a year earlier, with sales and marketing expenses alone increasing by 13% to $218 million.

In terms of operational metrics, MongoDB's customer base expanded significantly, with over 52,600 customers as of October 31, 2024, compared to 46,400 a year prior. The number of customers utilizing MongoDB Atlas, the company's cloud database service, grew to over 51,100, up from 44,900. The company also reported a net annual recurring revenue (ARR) expansion rate of approximately 120%, indicating strong customer retention and growth potential. The total headcount increased to 5,436, reflecting ongoing investments in talent to support growth.

Strategically, MongoDB completed the acquisition of Grainite, Inc. in September 2023 for $15 million, aimed at enhancing its stream processing capabilities. The company also announced plans to redeem its 2026 convertible senior notes, with a redemption notice issued on October 16, 2024, as the last reported sale price of its common stock met the necessary conditions. Looking ahead, MongoDB anticipates continued growth in its subscription revenue, particularly from MongoDB Atlas, although it acknowledges potential macroeconomic headwinds that may impact growth rates in the short term. The company maintains a strong liquidity position, with cash, cash equivalents, and short-term investments totaling approximately $2.3 billion as of the end of October 2024.