The News: MongoDB’s revenue for the first quarter of 2024 totaled $368.3 million, up 29% from $285.4 million one year ago, as the developer data platform company reported its latest earnings figures on June 1 for the period ending April 30, 2023. Read the full Q1 earnings press release on the MongoDB website.
MongoDB Revenue in Q1 Rises 29% to $368.3 Million, Beats Estimates
Analyst Take: MongoDB’s revenue increase of 29% for Q1 of fiscal year 2024 marks continuing progress for the open source, scale-out data platform vendor. It was a monster quarter, with revenue up dramatically and a 22% rise in its customer base to more than 43,100, up from about 35,200 a year ago. Those are impressive numbers for a company that builds databases that handle all the app data needed by AI, generative AI, and other growing technologies.
The capabilities of AI are going to require a platform like those offered by MongoDB to enable enterprises to build AI-ready applications to take full advantage of new possibilities from AI and its many forms. And MongoDB has been preparing it and readying it for this moment, which we believe holds strong growth potential.
Here are MongoDB’s Q1 earnings results by the numbers:
- Q1 2024 revenue of $368.3 million, up 29% from $285.4 million YoY. The Q1 revenue figure beat analyst consensus estimates of $347.67 million from Investing.com.
- Q1 2024 non-GAAP net income of $45.3 million, up 197% from $15.2 million YoY.
- Q1 2024 non-GAAP earnings per diluted share (EPS) of $0.56 per share, up from $0.20 per share YoY. The EPS beat analyst consensus estimates of $0.18 per diluted share from Investing.com.
- Q1 2024 non-GAAP gross profit of $280 million, up 30% from $214 million YoY.
- Q1 2024 non-GAAP gross margin of 76%, up from 75% YoY.
- Q1 2024 free cash flow of $51.7 million, compared to $8.4 million YoY.
Also notable is that MongoDB’s fully managed Atlas cloud database business is up 40% up year-on-year, which is creating a strong part of its revenue base. Together with its higher customer numbers, we are seeing good growth, narrowing GAAP losses, and a strong AI story, which are all positives for MongoDB for the future.
This is a company that is in the middle of the right opportunity at the right time, and we think that the street is rewarding MongoDB. Under the continuing leadership of MongoDB’s president and CEO, Dev Ittycheria, and the rest of his leadership team, we believe that MongoDB is continuing to help its customers drive operational efficiencies using its data platform, giving customers broad abilities to store large amounts of structured and unstructured data using well-known tools and formats.
Founded in 2007, MongoDB’s flexible, expandable architecture lets database developers store documents in a JSON-like format that maps directly to native objects in a wide range of programming languages.
MongoDB’s flexible and innovative architecture makes it popular with developers who are building databases for highly available and scalable internet applications. The company’s flagship product is its MongoDB Atlas multi-cloud developer data platform.
MongoDB Revenue by Business Segment
MongoDB’s revenue is made up of database subscription revenue and services revenue.
In Q1 2024, the company generated $355 million in subscription revenue, up 29% from $275 million YoY, and services revenue of $13.6 million, up 25% from $10.9 million YoY.
MongoDB Revenue Guidance for Q2 2024
As part of its Q1 FY2024 earnings report, MongoDB also provided earnings guidance for the second quarter of 2024 and for the full FY2024.
MongoDB said it expects Q2 2024 revenue to be between $388 million to $392 million, with non-GAAP income from operations of $36 million to $39 million. It also expects non-GAAP net income per share of $0.43 to $0.46 cents for the quarter.
The company said it expects FY2024 revenue to be between $1.52 billion and $1.54 billion, with non-GAAP income from operations of $110 million to $125 million. It also expects non-GAAP net income per share of $1.42 to $1.56 for the full FY2024.
MongoDB Revenue Overview
We remain bullish on MongoDB and its business prospects for FY2024 and the future. The company’s customer growth has been rising every quarter since at least January 2021, and that is a solid indicator of its value from customers in the marketplace.
Also continuing to increase is the number of MongoDB customers that are spending more than $100,000 annually with the company. In Q1 2024, that count stands at 1,761 customers, up 28% from 1,379 YoY.
The growing popularity and enterprise use of the MongoDB Atlas database platform is just hitting its stride as greater demand for AI and generative AI arrives for customers, putting MongoDB into a solid position in the marketplace.
Daniel Newman and his co-host of The Six Five Webcast, Patrick Moorhead of Moor Insights and Strategy discussed MongoDB earnings in their latest episode. Check it out here and be sure to subscribe to The Six Five Webcast so you never miss an episode.
Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.
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Author Information
Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.
From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.
A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.
An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.
