MongoDB delivered a blowout second quarter. The total revenue of $199 million beat the consensus of $183 million by a wide margin. The revenue growth accelerated to 44%, faster than sub 40% in the last four quarters. MongoDB Atlas (the cloud offering) revenue came in at $112 million, up 83% YoY and 19% QoQ. Atlas accounts for 56% of the total revenue, improving from 51% in the last quarter and 44% a year ago. The enterprises across all sectors ramping up spendings in infrastructure software could explain the strength of MongoDB's growth, an exciting trend we also observed in other usage-based SaaS companies such as DDOG and ESTC. Management mentioned that some of the largest companies in the world are increasingly moving mission-critical workloads to the MongoDB platform. The number of customers spending >100K increased to 1126 from 819 a year ago.

Open-Source Platforms Winning in the Cloud

Close

Open-Source Platforms Winning in the Cloud

In addition to solid enterprise demand, MongoDB is riding at least two other secular trends: "multi-cloud" and "database as a service" (DBaaS). For multi-cloud, MongoDB's product is widely popular on AWS and GCP, and to a less extent, Microsoft Azure. To establish itself as a general-purpose DBaaS platform, MongoDB has broadened its product offerings under two themes: "easy to use" (Atlas Serverless, Live Resharding) and "expand capabilities" (Native time series, Atlas Search). Customers' adoption of MongoDB's new offerings is likely to boost Atlas' growth further.

• "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." - Dev Ittycheria, CEO of MongoDB