MongoDB Inc (MDB) Reports 30% Revenue Growth in Q3 Fiscal 2024
MongoDB Inc (NASDAQ:MDB) announces a 30% year-over-year revenue increase in Q3 Fiscal 2024.
Non-GAAP net income per share rises to $0.96, compared to $0.23 in the year-ago period.
Free cash flow improves significantly to $35.0 million, reversing the negative free cash flow from the previous year.
MongoDB Atlas now represents 66% of total Q3 revenue, with a 36% year-over-year growth.
On December 5, 2023, MongoDB Inc (NASDAQ:MDB) released its 8-K filing, detailing the financial results for the third quarter ended October 31, 2023. The company reported a robust 30% increase in total revenue, reaching $432.9 million, and a significant improvement in profitability.
Financial Performance Overview
MongoDB Inc (NASDAQ:MDB) has demonstrated strong financial performance in the third quarter of Fiscal 2024. Subscription revenue, which constitutes the bulk of the company's earnings, saw a 30% year-over-year increase to $418.3 million. Services revenue also grew by 13%, contributing $14.6 million. The company's gross profit margin improved, with a reported 75% gross margin compared to 72% in the same period last year. Non-GAAP gross profit was even higher at 77%, reflecting a 3% increase from the previous year's non-GAAP gross margin.
Operational Highlights and Customer Growth
MongoDB Inc (NASDAQ:MDB) continued to expand its customer base, now serving over 46,400 customers. The company's flagship product, MongoDB Atlas, has been a significant growth driver, with its revenue up by 36% year-over-year and now accounting for 66% of the total Q3 revenue. The recent launch of MongoDB Atlas Vector Search and other AI-powered capabilities underscore the company's commitment to innovation and competitive positioning in the market.
Profitability and Cash Flow
The company's focus on profitability is evident in the reduction of its loss from operations, which decreased to $45.2 million from $82.9 million in the year-ago period. Non-GAAP income from operations was a gain of $78.5 million, a substantial increase from $19.8 million in the same quarter last year. MongoDB Inc (NASDAQ:MDB) also reported a net loss of $29.3 million, or $0.41 per share, an improvement from a net loss of $84.8 million, or $1.23 per share, in the year-ago period. The non-GAAP net income was $79.1 million, or $0.96 per share, compared to a non-GAAP net income of $18.7 million, or $0.23 per share, in the year-ago period.
From a liquidity perspective, MongoDB Inc (NASDAQ:MDB) ended the quarter with $1.9 billion in cash, cash equivalents, short-term investments, and restricted cash. The company generated $38.4 million of cash from operations and achieved a free cash flow of $35.0 million, a significant improvement from the negative free cash flow of $8.4 million in the year-ago period.
Forward Guidance and Conference Call
Looking ahead, MongoDB Inc (NASDAQ:MDB) has provided guidance for the fourth quarter and full year Fiscal 2024, projecting revenue between $429.0 million to $433.0 million for Q4 and $1.654 billion to $1.658 billion for the full year. Non-GAAP income from operations is expected to be between $35.0 million to $38.0 million for Q4 and $236.3 million to $239.3 million for the full year. Non-GAAP net income per share is anticipated to be in the range of $0.44 to $0.46 for Q4 and $2.89 to $2.91 for the full year.
The company will discuss these financial results and the business outlook in a conference call on December 5, 2023, at 5:00 p.m. Eastern Time.
Conclusion
MongoDB Inc (NASDAQ:MDB)'s third-quarter results reflect a company that is not only growing its top line at a healthy rate but also improving its profitability and cash flow metrics. The strong performance of MongoDB Atlas and the company's innovation in AI capabilities position it well for continued growth. Investors and analysts will likely keep a close eye on the company's ability to sustain this momentum in the coming quarters.
For a detailed understanding of MongoDB Inc (NASDAQ:MDB)'s financials, including reconciliations of non-GAAP measures, readers are encouraged to view the full 8-K filing.
Explore the complete 8-K earnings release (here) from MongoDB Inc for further details.
This article first appeared on GuruFocus.
