Solid Q2 for MongoDB as cloud platform Atlas continues to drive growth

Derek du Preez Profile picture for user ddpreez September 3, 2021
MongoDB’s Atlas platform is approaching a $0.5 billion run rate as the document model database continues to gain traction with the enterprise.

MongoDB CEO Dev Ittycheria

MongoDB has reported another strong quarter and is seeing continued growth from its cloud-based platform Atlas. CEO Dev Ittycheria told analysts this week that the document model database is proving popular with buyers that recognize that they need to be more productive and build applications more quickly. 

Atlas' strong performance is the largest contributor to MongoDB's growth, where the cloud platform grew 83% in revenue in Q2 compared to the same period last year. Atlas now represents 56% of total revenue at MongoDB, compared to 44% in Q2 last year. 

Ittycheria said that the Atlas is now approaching a $0.5 billion run rate. 

Looking at the top-level figures, total revenue in the quarter was $198.7 million, up 44% year-over-year, and subscription revenue was $191.4 million, up 44% year-over-year. Professional services revenue stood at $7.4 million. 

Net loss in the second quarter was $15.2 million or $0.24 per share based on 63.4 million weighted average shares outstanding. This compares to a loss of $12.7 million or $0.22 per share on 58.4 million weighted average shares outstanding in the year ago period.

MongoDB also ended the quarter with 1,126 customers with at least $100,000 in annual recurring revenue, which is up from 819 in the same period last year. Chief Operating Officer and CFO Michael Gordon said that this growth in customers with $100,000 or more in ARR is "an indication of the success of our land and expand go-to-market strategy and the fact that we're increasingly becoming a strategic partner and a database standard for our customers".

Performance, scale and sales

CEO Dev Ittycheria told market analysts that the numbers MongoDB is seeing reflect its position in a rapidly changing market. He said: 

Businesses across nearly every industry have realized that in today's highly dynamic global markets, speed of development is a meaningful competitive advantage. Businesses that can develop software faster are able to improve their products faster, and ultimately, grow more quickly than the competition.

We believe our strong second quarter results are a clear indication that customers use MongoDB as a critical platform to accelerate their digital innovation agenda. Customers of all types are using MongoDB because they can develop so much faster using our platform to build new applications and re-platform legacy applications across a broad range of use cases to drive their business forward.

Ittycheria said that MongoDB has three intrinsic advantages for buyers. He explained: 

First, MongoDB's document model is designed around how developers think and code, unlike legacy data technologies. This enables developers to be far more productive and build applications faster, as compared to any other technology.

Second, MongoDB's document model is a superset of other data models, tabular, key value, time series, graph and other kinds of data relationships can be easily created using documents. The document model enables MongoDB to address a wide range of use cases and reduces the need for customers to use niche technologies that only serve a single purpose.

Third, MongoDB is designed for performance and scale. With MongoDB sophisticated capabilities to replicate, manage and distribute data at massive scale, organizations increasingly choose MongoDB to address the most demanding requirements.

Legacy technologies are fundamentally not designed for today's scale and performance expectations, requiring developers to spend an enormous amount of time working around their architectural limitations.

Ittycheria also pointed to how MongoDB is changing the way it organizes and executes on sales, where the company is seeking to go deeper with its high value customers. He added: 

Our second quarter results give us even more conviction to continue investing in both our product portfolio and our go-to-market initiatives. Starting with go-to-market, our field sales team is increasingly being pulled into higher level strategic conversations at the C-suite of the largest companies in the world and we are adjusting our approach to more effectively serve that audience.

Last year we experimented with increasing our focus on our most promising customers. Our hypothesis was that by going deep into an account with more resources, it will position us more strategically and allow us to penetrate the account more quickly.

Those investments produced excellent returns and most accounts that ran this experiment grew faster than we expected. This is giving us confidence to expand this deeper coverage model to more accounts this year, while also focusing on expanding our field sales capacity in all regions.

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