MongoDB delivered a blowout second quarter. The total revenue of $199 million beat the consensus of $183 million by a wide margin. The revenue growth accelerated to 44%, faster than sub 40% in the last four quarters. MongoDB Atlas (the cloud offering) revenue came in at $112 million, up 83% YoY and 19% QoQ. Atlas accounts for 56% of the total revenue, improving from 51% in the last quarter and 44% a year ago. The enterprises across all sectors ramping up spendings in infrastructure software could explain the strength of MongoDB's growth, an exciting trend we also observed in other usage-based SaaS companies such as DDOG and ESTC. Management mentioned that some of the largest companies in the world are increasingly moving mission-critical workloads to the MongoDB platform. The number of customers spending >100K increased to 1126 from 819 a year ago.
In addition to solid enterprise demand, MongoDB is riding at least two other secular trends: "multi-cloud" and "database as a service" (DBaaS). For multi-cloud, MongoDB's product is widely popular on AWS and GCP, and to a less extent, Microsoft Azure. To establish itself as a general-purpose DBaaS platform, MongoDB has broadened its product offerings under two themes: "easy to use" (Atlas Serverless, Live Resharding) and "expand capabilities" (Native time series, Atlas Search). Customers' adoption of MongoDB's new offerings is likely to boost Atlas' growth further.
"Our field sales team is increasingly being pulled into higher-level strategic conversations at the C-suite of the largest companies in the world, and we are adjusting our approach to more effectively serve that audience." - Dev Ittycheria, CEO of MongoDB
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