The News: On December 5, data platform player MongoDB announced its third quarter (Q3) results, reporting total revenue for the quarter of $432.9 million, a 30% increase year-over-year (YoY).
Here are MongoDB Q3 results highlights by the numbers:
- 3Q fiscal 2024 total revenue of $432.9 million, split between subscription revenue ($418.3 million) and services revenue ($14.6 million).
- Total revenue for the quarter is an increase of 30% YoY, subscription revenue for the quarter is also an increase of 30% YoY, and services revenue for the quarter is an increase of 13% YoY.
- Gross profit for the quarter was $325.9 million, a 75% gross margin compared with 72% in the year-ago period.
- Loss from operations was $45.2 million for the quarter compared with a loss from operations of $82.9 in the year-ago period.
- Net loss of $29.3 million or $0.41 per share for the quarter compared with net loss of $84.8 million or $1.23 per share in the year-ago period.
3Q business highlights include the announced general availability of Atlas Vector Search, which simplifies the integration of generative AI and semantic search functionality, as well as the integration between MongoDB Atlas and Amazon Bedrock. In addition, MongoDB announced integration into coding assistant tools Amazon CodeWhisperer and Microsoft Copilot.
For 4Q, MongoDB expects revenue of $429-$433 million, non-generally accepted accounting principles (non-GAAP) income from operations of $35-$38 million, and non-GAAP net income per share of $0.44-$0.46.
For the full year, MongoDB expects revenue of $1.654 billion to $1.658 billion, non-GAAP income from operations of $236.3 million-$239.3 million, and non-GAAP net income per share of $2.89-$2.91.
Read the full press release on the MongoDB website.
MongoDB 3Q Fiscal 2024 Results Beat Expectations
Analyst Take: MongoDB has been growing extraordinarily quickly over the past 2 years. The company’s fundamental focus translates into an opportunity for sustained growth for the company over the next few years, thanks to the trajectory of AI. Companies in the data management sector are quickly becoming perhaps the most critical component of the AI market ecosystem.
The reason is that generative AI technologies have re-energized enterprises to the possibilities of finally leveraging their proprietary data. Data platform players such as MongoDB are key in helping enterprises unlock their data for AI use.
The number of AI models and other generative AI development framework tools has exploded, available from multiple resources. The evolution of AI models over the past 12 months has been nothing short of extraordinary—smaller, more narrowly focused models are coming to market, producing more accurate and purpose-focused outcomes. Technologists have quickly developed tools and methodologies to increase the efficiencies in running these models. Last, excellent open source models are now widely available. In this evolution, it has become evident that the models themselves will not be a differentiator for enterprises. Rather, enterprises leveraging their proprietary data will be the key to creating value. This development has created significant, renewed focus by enterprises to leverage as much of their data as possible, regardless of where it is stored and whether it is structured or unstructured. The federation and normalization of this data is the key to generative AI success. In this regard, MongoDB has positioned itself through a series of investments and partnerships to play a key role in enabling AI for enterprise.
Other insights from The Futurum Group:
MongoDB Posts Stunning 2Q Results, With Revenue Up 40%
MongoDB Loves Developers and It Shows
Author Information
Mark comes to The Futurum Group from Omdia’s Artificial Intelligence practice, where his focus was on natural language and AI use cases.
Previously, Mark worked as a consultant and analyst providing custom and syndicated qualitative market analysis with an emphasis on mobile technology and identifying trends and opportunities for companies like Syniverse and ABI Research. He has been cited by international media outlets including CNBC, The Wall Street Journal, Bloomberg Businessweek, and CNET. Based in Tampa, Florida, Mark is a veteran market research analyst with 25 years of experience interpreting technology business and holds a Bachelor of Science from the University of Florida.
