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MongoDB (MDB - Free Report) reported fourth-quarter fiscal 2023 adjusted earnings of 57 cents per share, beating the Zacks Consensus Estimate by 714.29%. The company had reported adjusted earnings of 10 cents per share in the year-ago quarter.
Revenues of $361.3 million surged 35.6% year over year and surpassed the consensus mark by 7.59%.
MongoDB’s subscription revenues accounted for 96.4% of revenues and totaled $348.1 million, up 34.8% year over year. Services revenues surged 58.8% year over year to $13.1 million, contributing 3.6% to revenues.
MongoDB added 1,700 customers sequentially to reach 40,800 at the end of the quarter under review. Of this, more than 6,400 were direct-sales customers.
The company’s Atlas revenues soared 50% year over year, contributing 65% to total revenues. Atlas had more than 39,300 customers at the end of the reported quarter, adding 1,700 customers sequentially.
MongoDB ended the quarter with 1,651 customers (with at least $100K in ARR) compared with 1,307 in the year-ago quarter.
Non-GAAP Operating Details
Gross profit in the fiscal fourth quarter surged 42.6% year over year to $280.8 million. In the reported quarter, gross margin expanded 380 basis points (bps) on a year-over-year basis to 77.7%. The year-over-year margin improvement was primarily driven by improved efficiencies.
Research and development (R&D) expenses climbed 27% year over year to $65.6 million. Sales and marketing (S&M) expenses increased 35.9% to $148.6 million. Moreover, general and administrative (G&A) expenses increased 28.5% to $29.5 million.
As a percentage of revenues, R&D expenses contracted 120 bps to 18.1%. G&A expenses declined 40 bps to 8.2%. As a percentage of revenues, S&M expenses expanded 10 bps on a year-over-year basis to 41.1%.
Operating income, on an adjusted basis, was $37.2 million compared with $13 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jan 31, 2023, MongoDB had $1.8 billion in cash, cash equivalents, short-term investments and restricted cash. During the three months ended Jan 31, 2023, MongoDB generated $25.9 million of cash from operations compared with $22.3 million in the year-ago period. Free cash flow was $23.8 million for the three months ended Jan 31, 2023, compared with free cash flow of $16.8 million in the year-ago period.
As of Oct 31, 2022, MongoDB had $1.8 billion in cash, cash equivalents, short-term investments and restricted cash. During the three months ended Oct 31, 2022, MongoDB used $5.7 million of cash from operations, used $1.4 million of cash in capital expenditures and used $1.3 million of cash in principal repayments of finance leases, leading to negative free cash flow of $8.4 million, compared with negative free cash flow of $9.2 million in the year-ago period.
Q4 Highlights
MongoDB continues to gain momentum with hyperscale cloud partners. The company signed a new five-year strategic partnership agreement with Microsoft (MSFT - Free Report) Azure, including commitments to technical integrations, acceleration of joint go-to-market activities, as well as joint focus and incentives to migrate MongoDB on-premises deployments to Atlas on Azure.
Recently, this Zacks Rank #2 (Buy) company expanded its multi-year partnership with Alphabet (GOOGL - Free Report) owned Google Cloud to include a number of new, joint go-to-market programs, along with an initiative to accelerate startups' data journeys. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Additionally, Amazon’s (AMZN - Free Report) AWS awarded MongoDB Marketplace Partner of the Year for the Europe, Middle East and Africa region after witnessing strong growth among joint customers in that geography during the year.
Guidance
For first-quarter fiscal 2024, MongoDB expects revenues between $344 million and $348 million.
Non-GAAP income from operations is anticipated in the range of $10-$13 million. Non-GAAP net income is estimated between 17 cents and 20 cents per share.
For fiscal 2024, MongoDB expects revenues between $1.48 billion and $1.51 billion.
Non-GAAP net income per share is expected between 96 cents and $1.10 per share.
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MongoDB (MDB) Q4 Earnings Beat Estimates, Revenues Jump Y/Y
MongoDB (MDB - Free Report) reported fourth-quarter fiscal 2023 adjusted earnings of 57 cents per share, beating the Zacks Consensus Estimate by 714.29%. The company had reported adjusted earnings of 10 cents per share in the year-ago quarter.
Revenues of $361.3 million surged 35.6% year over year and surpassed the consensus mark by 7.59%.
MongoDB’s subscription revenues accounted for 96.4% of revenues and totaled $348.1 million, up 34.8% year over year. Services revenues surged 58.8% year over year to $13.1 million, contributing 3.6% to revenues.
MongoDB, Inc. Price, Consensus and EPS Surprise
MongoDB, Inc. price-consensus-eps-surprise-chart | MongoDB, Inc. Quote
User Base Up
MongoDB added 1,700 customers sequentially to reach 40,800 at the end of the quarter under review. Of this, more than 6,400 were direct-sales customers.
The company’s Atlas revenues soared 50% year over year, contributing 65% to total revenues. Atlas had more than 39,300 customers at the end of the reported quarter, adding 1,700 customers sequentially.
MongoDB ended the quarter with 1,651 customers (with at least $100K in ARR) compared with 1,307 in the year-ago quarter.
Non-GAAP Operating Details
Gross profit in the fiscal fourth quarter surged 42.6% year over year to $280.8 million. In the reported quarter, gross margin expanded 380 basis points (bps) on a year-over-year basis to 77.7%. The year-over-year margin improvement was primarily driven by improved efficiencies.
Research and development (R&D) expenses climbed 27% year over year to $65.6 million. Sales and marketing (S&M) expenses increased 35.9% to $148.6 million. Moreover, general and administrative (G&A) expenses increased 28.5% to $29.5 million.
As a percentage of revenues, R&D expenses contracted 120 bps to 18.1%. G&A expenses declined 40 bps to 8.2%. As a percentage of revenues, S&M expenses expanded 10 bps on a year-over-year basis to 41.1%.
Operating income, on an adjusted basis, was $37.2 million compared with $13 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jan 31, 2023, MongoDB had $1.8 billion in cash, cash equivalents, short-term investments and restricted cash. During the three months ended Jan 31, 2023, MongoDB generated $25.9 million of cash from operations compared with $22.3 million in the year-ago period. Free cash flow was $23.8 million for the three months ended Jan 31, 2023, compared with free cash flow of $16.8 million in the year-ago period.
As of Oct 31, 2022, MongoDB had $1.8 billion in cash, cash equivalents, short-term investments and restricted cash. During the three months ended Oct 31, 2022, MongoDB used $5.7 million of cash from operations, used $1.4 million of cash in capital expenditures and used $1.3 million of cash in principal repayments of finance leases, leading to negative free cash flow of $8.4 million, compared with negative free cash flow of $9.2 million in the year-ago period.
Q4 Highlights
MongoDB continues to gain momentum with hyperscale cloud partners. The company signed a new five-year strategic partnership agreement with Microsoft (MSFT - Free Report) Azure, including commitments to technical integrations, acceleration of joint go-to-market activities, as well as joint focus and incentives to migrate MongoDB on-premises deployments to Atlas on Azure.
Recently, this Zacks Rank #2 (Buy) company expanded its multi-year partnership with Alphabet (GOOGL - Free Report) owned Google Cloud to include a number of new, joint go-to-market programs, along with an initiative to accelerate startups' data journeys. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Additionally, Amazon’s (AMZN - Free Report) AWS awarded MongoDB Marketplace Partner of the Year for the Europe, Middle East and Africa region after witnessing strong growth among joint customers in that geography during the year.
Guidance
For first-quarter fiscal 2024, MongoDB expects revenues between $344 million and $348 million.
Non-GAAP income from operations is anticipated in the range of $10-$13 million. Non-GAAP net income is estimated between 17 cents and 20 cents per share.
For fiscal 2024, MongoDB expects revenues between $1.48 billion and $1.51 billion.
Non-GAAP net income per share is expected between 96 cents and $1.10 per share.