MongoDB Q1 Earnings

The Six Five team discusses MongoDB Q1 Earnings.

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Transcript:

Pat Moorhead: MongoDB. They absolutely crushed it. What’s going on in Mongo?

Daniel Newman: MonsterDB, I mean MongoDB. Monster quarter. Look, I like that the company had a huge number, a huge growth in its big customer base. It saw revenues grow almost 30%. Another company that’s been able to tell an AI story. The operating database that enables you to build apps and take advantage of all this app data. So the kind of Uber experiences cannot be built without MongoDB. The company’s still generating losses in terms of on an earnings basis, but they’re growing faster than people are expecting. They’re narrowing losses substantially on a year-over-year basis. Like I said, they’re adding customers at a really good clip. And Pat, I think they’re cementing themselves in the role that they have to play. Look, a developer data platform is going to be critical. They basically are able to come out and say, “Look, the AI breakthroughs are basically where software development is going to now start to shine.”

So embedding AI deeply in the applications, the capabilities of AI are going to require a platform like what MongoDB offers for people to actually build a applications that we’re going to use where we’re going to be able to utilize and take advantage. So you know, also saw, Pat, some fairly strong growth in cloud. The Atlas business, which is the cloud business, is now 40% up year-on-year, 65% of revenue. So it’s creating a pretty strong overall part of the revenue base which people want to see, right? Moving to the modern ARR, which is what everyone’s focused on. And Pat, listen, 43,100 customers now paying MongoDB. So these are good numbers. You saw the good growth, narrowing losses, a strong AI story. They’re in the middle of the right opportunity at the right time, and I think the street’s rewarding them. But this is just continued good behavior. This isn’t some breakthrough. This is between you and me, what I expected.

Pat Moorhead: Yeah, this is a great example of a company that puts together an offering, database offering, that is operational in nature. It’s what you would put some of your most important applications behind and then scaling it across to the multi-cloud. And obviously they’ve got a big presence inside of AWS. And all the times we use throwaway lines like, “Data is the new oil, and companies being able to mine and leverage.” I mean, companies like MongoDB are right at the center. I need to do a little bit more research to understand their play in AI, but it’s very straightforward to me. You can’t have AI without data. And different levels of AI have different sizes and levels of big data. But literally whenever you have AI, whether it’s ML, DL, generative AI or analytics based AI, you have to have a solid data platform. And that’s exactly where Mongo sits is having a very strong developer data platform that is really going out to developers to go out there, create, transform, disrupt industries out there. And Mongo’s got a lot of customers. 40,000 customers across a hundred different countries. And the platform’s been downloaded 365 million times. So just incredible amount of scale.