MongoDB (MDB) is a developer and provider of a general purpose database platform. Its software has been downloaded over 30 million times since February 2009 and over 10 million times in the last 12 months alone. MDB currently has 4,300+ customers across a wide range of industries and in more than 85 countries. Companies that historically have not primarily relied on software innovation are increasingly modernizing their operations by investing significantly in software application development and hiring developers.
MDB says its unique platform architecture combines the best of both relational and non-relational databases. Its document-based architecture enables developers to manage data in a more natural way, making it easy and intuitive for developers to build applications. Customers can run MDB’s platform in any environment: in the cloud, on-premise or in a hybrid environment.
MDB’s platform is offered under a software subscription business model, with subscription revenue accounting for 90+% of revenue. In terms of their product offerings, MDB offers Community Server as an open source offering, analogous to a "freemium" offering. Community Server is a free-to-download version of MDB’s database that does not include all of the features of its commercial platform. This allows developers to evaluate MDB’s platform for free, which likely has contributed to its popularity and has driven enterprise adoption of its subscription offering.
Its primary subscription package is MongoDB Enterprise Advanced, its comprehensive offering for enterprise customers. MongoDB Enterprise Advanced includes MDB’s proprietary database server, advanced security, enterprise management capabilities, its graphical user interface, analytics integrations, technical support etc. MDB also offers MongoDB Atlas, a cloud hosted database-as-a-service, or DBaaS, offering that includes comprehensive infrastructure and management of MDB’s Community Server offering.
Quickly turning to the financials, MDB is not yet profitable, but is growing strongly. In FY16 (Jan), revenue grew 60% to $65.3 million. Then, in FY17, it grew 55% to $101.4 milloin. In 1HFY18, revenue grew 51% YoY to $68.0 million.
Gross margin in FY17 came in at 70.5% vs 68% in FY16. In 1H18, gross margin was 71.5% vs 68.3% last year.