The News: On August 31, data platform player MongoDB announced its 2Q results, reporting total revenue for the quarter of $423.8 million, a 40% increase year-over-year (YoY).
Here are MongoDB’s Q2 results highlights by the numbers:
- 2Q fiscal 2024 total revenue of $423.8 million, split between subscription revenue ($409.3 million) and services revenue ($14.5 million). Total revenue for the quarter is an increase of 40% YoY, subscription revenue for the quarter is an increase of 40% YoY, and services revenue for the quarter is an increase of 20% YoY.
- Gross profit for the quarter of $318.5 million, 75% gross margin compared to 71% in the year-ago period.
- Loss from operations of $49 million for the quarter compared to loss from operations of $114.8 million in the year-ago period.
- Net loss of $37.6 million or $0.53 per share for the quarter compared to net loss of $118.9 million or $1.74 per share in the year-ago period.
2Q business highlights:
New product launch of Atlas Vector Search, which simplifies the integration of generative AI and semantic search functionality. Expanded partnership with Google Cloud that enables developers working in MongoDB to use Google Cloud’s Vertex AI models and tools.
3Q and full year guidance highlights:
For 3Q, MongoDB expects revenue of $400-$404 million, non-GAAP income from operations of $41-$44 million, and non-GAAP net income per share of $0.47-$0.50. For the full year, MongoDB expects revenue of $1.596 to $1.608 billion, non-GAAP income from operations of $189-$197 million, and non-GAAP net income per share of $2.27-$2.35. Read the full press release on Mongo’s 2Q 2024 results on the company website.
MongoDB Posts Stunning 2Q Results, With Revenue Up 40%
Analyst Take: MongoDB is in a favorable position for growth, thanks to the trajectory of AI. While it is popular to make that point for lots of different types of companies that impact AI or are impacted by it, in this case, companies in the data management sector are quickly becoming a key 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 like MongoDB are key in helping enterprises unlock their data for AI use.
The focus in enterprise AI for the next year or two will be on AI enablement tools and platforms. It is important to remember how new and explosive the generative AI movement is. To review briefly: before October 2022, some enterprises were working to build proprietary AI applications and systems, though it required specific expertise in data science and data engineering, a very limited resource. Generative AI platforms introduced the democratized interface – now AI models can simply be told what to do and do not require AI expertise to guide them. This evolution quickly expanded the market of enterprises who could work with AI, since data scientists and data engineers were not required to interface with the models. In addition, the number of models and other generative AI development framework tools exploded, available from multiple resources. The models themselves are only part of building generative AI applications – developers need frameworks, SDKs, and libraries and, most importantly in this case, access to and manipulation of proprietary enterprise data.
MongoDB has positioned itself through a series of investments and partnerships to play a key role in enabling AI for enterprise.
Daniel Newman and his co-host of The Six Five Webcast, Patrick Moorhead of Moor Insights and Strategy discussed MongoDB’s 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.
Other insights from The Futurum Group:
The Six Five – On The Road at MongoDB .local NYC with MongoDB’s Sahir Azam
MongoDB Loves Developers and It Shows
MongoDB Revenue in Q1 Rises 29% to $368.3 Million, Beats Estimates
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.
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.
