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Q1 2022 Earnings Conference Call
spk_2: today and welcome to the Mongo DB. First quarter of fiscal year, 2000 and 22 earnings conference call. All participants will be in a listen only mode. Should you need assistance please signal conference specialists by pressing the Starkey followed by zero. After today's presentation. There will be an opportunity to ask questions to ask a question. You may press store then one on your touch tone phone and to withdraw your question. Please press star. Then too, please note this event is being recorded. I would now like to turn the conference over to brined in you from I. C. Or please go ahead sir.
spk_1: Thank you chuck. Good afternoon and thank you for joining us today to review Mongo DB? S first quarter fiscal 2022 financial results, which we announced in a press release issued after the close of market today, joining me on the call today are Dave Barataria, President and Ceo of Mongo DB and Michael Gordon? Mongo, Dibs, Ceo and CFO. During this call we will make forward looking statements including statements related to our market in the future growth opportunities. The benefits are a product platform, are competitive landscape, customer behaviors are financial guidance, are planned investments And the anticipated impact of the COVID-19 pandemic on our business and results of operations as well as on our clients in the macroeconomic environment. These statements are subject to a variety of risk and uncertainties cause actual results to differ materially from our expectations. For a discussion that materially rested uncertainty that could affect our actual results, please refer to those described in our sec filings, Including the most recent annual report on Form 10-K. Any forward looking statements made on this call reflect our views only as of today and we undertake no obligation to update them. Additionally, we will discuss non GAAp financial measures on this conference call. We refer to the tables and our earnings release on the investor relations portion of our website. For reconciliation of these measures to the most directly comparable gap financial measure. With that, I'd like to turn the call over today for
spk_0: thanks brian and thank you to everyone for joining us today. I will start by reviewing our first quarter results before giving you a company update. Looking quickly at our first quarter financial results. We generated revenue of 181 point 6,000,039% year over year increase and above the high end of our guidance, We grew subscription revenue 40% year every year. Atlas revenue grew 73% a year every year and now represents 51% of revenue. And we had another strong quarter of customer growth And in the quarter, with over 26,800 customers june marks the fifth anniversary of launching atlas, Armando DB database of the service offering In Q1 Atlas reached a remarkable milestone, becoming the majority of revenue in just under five years, deployed in over 80 regions around the world, across AWS, Azure and g C P. Atlas is now a nearly $400 million revenue run rate business growing over 70% year over year. While we are proud of how quickly we have grown this business since its inception, we are confident that we've only scratched the surface of the opportunity ahead of us. As we look back at the first five years of atlas, we see a story of innovation, aggressive investment and demonstrate ability to take smart risks, some of which seem quite controversial at the time. We lost atlas in June of 2016 as a self serve only offering on aws. Although in retrospect, the decision to launch an independent databases service business seemed like a no brainer. It wasn't obvious at the time. There's a fair amount of skepticism in the market that an independent company could build a successful cloud service while both partnering and competing with the hyper scale cloud vendors. A year later, we launched Atlas on Azure and G C P, even though it was more work and added more expense to support all three cloud providers. We made this a priority, as you understood from the outset, that as the cloud became mainstream, customers would want a multi cloud solution due to the strong initial reception of Atlas and our direct sales channel, we invested aggressively to achieve feature parody between Enterprise Advanced and Atlas. We reached that milestone in mid 2018 ahead of our original schedule and since then have led with innovation on atlas, our ability to quickly ship new features and get customer feedback has not only allowed us to innovate faster, but has also benefited our enterprise advanced customers from an outsider's perspective. One of the more controversial decisions we made was to change our license from a GPL two ss bl in 2018. Our objective was to remain true to our open source roots while ensuring that it could build a meaningful database as a service business in the cloud era. While some suggest that this will limit the adoption of Mongo DB, we had conviction that we could better serve customers with this change, uh, manganese popularity with developers has only continued to grow after adopting, adopting SpL. Given the success of ATlas, a number of open source companies have now switched to similar license structures. Around the same time required M lab