MongoDB(MDB)2024-03-08 02:10Financial Data and Key Metrics - Revenue for Q4 FY2024 was 69.2 million, with a 15% operating margin, up from 10% in the prior year [74] - Net income for Q4 was 0.86 per share, compared to 0.57 per share, in the year-ago period [91] - Free cash flow for FY2024 was 24.7 million in FY2023 [109] Business Line Data and Key Metrics - Atlas consumption trends remained stable, with less variability in FY2024 compared to FY2023 [5][108] - Enterprise Advanced (EA) exceeded expectations, driven by multi-year deals and strong demand for on-premise modernization [68][96] - Net ARR expansion rate remained above 120%, with 2,052 customers spending over 1 million annually [69] Market Data and Key Metrics - The company added over 7,000 customers in FY2024, including AI startups and Fortune 500 companies [80] - Atlas customer count reached 46,300, up from 39,300 in the prior year [85] - The company sees stable consumption growth across its portfolio of workloads, driven by underlying application usage [5] Company Strategy and Industry Competition - The company is focused on deepening its product advantage, particularly in AI-enabled workloads, and expanding its sales capacity [99] - MongoDB is well-positioned in the AI stack, operating at the second and third layers to enable customers to build AI applications using proprietary data and LLMs [97] - The company competes effectively against cloud players due to its flexible document architecture, open platform, and developer popularity [98] - MongoDB is investing in relational migration opportunities, leveraging GenAI to reduce the cost and time of rewriting application code [99] Management Commentary on Operating Environment and Future Outlook - The company expects FY2025 to be similar to FY2024, with stable consumption trends and healthy new business acquisition [57] - Management believes AI will be a significant long-term growth driver, but it is still in the early stages, with most enterprises in the experimentation phase [97][20] - The company plans to increase headcount growth to the mid-teens in FY2025, prioritizing sales capacity and product roadmap execution [116] Other Important Information - The company expects Q1 FY2025 revenue to be between 440 million, with non-GAAP operating income of 25 million [24] - Full-year FY2025 revenue guidance is 1.93 billion, with non-GAAP operating income of 201 million [24] - The company anticipates a decline in EA revenue due to fewer multi-year deals and a reduction in unused Atlas commitments [86] Summary of Q&A Session Question: Atlas Stream Processing and its impact on guidance - Atlas Stream Processing is in public preview, with GA timing dependent on customer feedback [9] - The product is embedded in FY2025 guidance but is not expected to be a major needle mover in the near term [25] Question: Operating margin guidance and headcount growth - FY2025 operating margin guidance reflects increased hiring and investments in sales capacity, with a 500 basis point improvement over two years [25][116] Question: AI adoption and its impact on MongoDB - AI adoption is still in the early stages, with most enterprises experimenting and prototyping [18][20] - MongoDB is well-positioned for AI workloads due to its flexible schema and real-time data handling capabilities [18] Question: Relational migration and GenAI impact - Relational migration demand is driven by cost savings, scalability, and AI enablement [39] - GenAI is expected to accelerate migration timelines by reducing the cost of rewriting application code [39] Question: Competition with Snowflake and Databricks - MongoDB does not typically compete with Snowflake and Databricks, as they focus on analytical workloads, while MongoDB targets operational workloads [43] Question: Consumption trends and guidance assumptions - Atlas consumption growth is expected to remain stable, in line with FY2024 trends [86] - The company has more confidence in its guidance due to reduced variability and better understanding of seasonality [62]