MongoDB shrugs off economic slowdown in storming quarter, adds record new customers
Customers are focussed on removing complexity from their stack...
Database company MongoDB saw “no change in deal activity in sales cycles” despite a troubled broader macroeconomic environment as it grew revenues 53% to $304 million and added a record quarterly 1,800 new customers in Q2 – with the New York-headquartered company ending the quarter with over 37,000 customers.
Over the summer the company released a MongoDB relational migrator (compatible with Oracle, Microsoft SQL Server, MySQL, and PostgreSQL; designed to analyse relational schemas and map them to MongoDB schemas) in a bid to help customers replatform existing applications from relational databases to the noSQL offering – which makes it easier to build new functionality into existing applications among other perks.
The preview release of “queryable encryption” which allows customers to encrypt sensitive data from the client side, store it as fully randomized encrypted data on the database server side, and run expressive queries on the encrypted data has also got the market excited as data breaches continue to be rampant.
See also: One to watch -- Homomorphic encryption specialist Enveil
MongoDB’s fully-managed cloud database Atlas grew 73% on-year; it now represents 64% of revenue. The company continues to bite a chunk out of the global database market, but as executives noted on the call, they still have less than 1% of the market share: “We will be investing for the long slice of opportunity” they added.
“Customers are very focused on removing complexity from the technology stack. They understand that complexity is a tax that increases expenses, creates risks and slows down innovation” said CEO Dev Ittycheria.
He added: “Perhaps the best way to illustrate how the perception MongoDB has changed is to review our relationship with one of the world's premier commercial investment banks. Four years ago, a senior executive of the bank told me that he didn't think MongoDB was ready to be declared a standard for their mission-critical applications. At the time, they had a myriad of relational and non-relational technologies deployed…
“Since then, not only has the bank become more focused on and confident in moving workloads to cloud, but the bank's leadership team also observed how overwhelmingly popular MongoDB had become with their development teams across the organization. As a result, they decided to make MongoDB one of their enterprise standard offerings as part of the journey to the cloud. In the second quarter, they signed a multimillion dollar agreement… to use MongoDB as a preferred platform for mission-critical workloads.”
The company was not without headwinds however, noting that “slower than historical consumption growth is a result of slower usage growth of our customers' underlying applications due to macro conditions.
“Our customers spend on our platform is well aligned with the performance of their business in the current environment… and consequently, their applications are growing more slowly” Ittycheria pointed out.
Net losses in the second quarter doubled year-on-year to $15.6 million however. MongoDB blamed the return of in-person events, saying apropos that quarterly loss: “In Q2, we saw the return of large in-person events most notably our flagship event MongoDB World, which attracted approximately 3,000 attendees…”
