MongoDB, Inc.

Good day and welcome to the MongoDB first quarter fiscal year 2022 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. And to withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Brian Dinu from ICR. Please go ahead, sir.

Thank you, Chuck. Good afternoon, and thank you for joining us today to review MongoDB's first quarter fiscal 2022 financial results, which we announced in our press release issued after the close of market today. Joining me on the call today are Dave Itacheria, President and CEO of MongoDB, and Michael Gordon, MongoDB's COO and CFO. During this call, we will make forward-looking statements, including statements related to our market and future growth opportunities, the benefits of our product platform, our competitive landscape, customer behaviors, our financial guidance, our 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 risks and uncertainties that cause actual results to differ materially from our expectations. For a discussion of the material risks and uncertainties that could affect our actual results, please refer to those described in our SEC filings, including our 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. Please refer to the tables in our earnings release on the investor relations portion of our website, for reconciliation of these measures to the most directly comparable GAAP financial measure. With that, I'd like to turn the call over to Dave.

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 $181.6 million, a 39% year-over-year increase, and above the high end of our guidance. We grew subscription revenue 40% year-over-year, Atlas revenue grew 73% year-over-year and now represents 51% of revenue, and we had another strong quarter of customer growth, ending the quarter with over 26,800 customers. June marks the fifth anniversary of launching Atlas, our MongoDB database as a 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 GCP, 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 demonstrated ability to take smart risks, some of which seemed quite controversial at the time. We launched Atlas in June of 2016 as a self-serve only offering on AWS. Although in retrospect, the decision to launch an independent database of service business seemed like a no-brainer, it wasn't obvious at the time. There was 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 hyperscale cloud vendors. A year later, we launched Atlas on Azure and GCP, Even though it was more work and added more expense to support all three cloud providers, we made this a priority as we 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 in our direct sales channel, we invested aggressively to achieve feature parity 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 AGPL to SSPL in 2018. Our objective was to remain true to our open source roots while ensuring that we could build a meaningful database as a service business in the cloud era. While some suggested this will limit the adoption of MongoDB, we had conviction that we could better serve customers with this change. MongoDB's popularity with developers has only continued to grow after adopting SSPL. Given the success of Atlas, a number of open source companies have now switched to similar license structures. Around the same time, we acquired MLAB, which not only increased our scale in the cloud, but also increased our expertise in the self-serve channel. We uncovered a virtuous cycle between our field sales organization, our inside sales team, our customer success organization, and our self-serve channel. Investments in any one area led to the acceleration for the entire cycle, and this virtuous cycle has been a key enabler of our growth. To give you some context, the majority of Atlas revenue was originally sourced by our self-serve channel, but the majority of growth has come through the direct sales channel. In 2019, we acquired Realm, the world's leading independent mobile database, and now beta versions of Atlas Search and Atlas Data Lake. With these actions, we took the first steps to move from offering a database to becoming a comprehensive application data platform. Our expanded product vision was driven by our customers' desire to leverage MongoDB more broadly across their organization. In 2020, we continued to make changes that made it easier for customers to start using Atlas. These changes resulted in a big uptick in new customers, resulting in over 25,000 customers of almost every size and from nearly every geography and industry using Atlas today. Looking back at the first five years of Atlas, we see a few key lessons learned. First, while innovation, strong execution, and unconventional thinking contributed to the growth of Atlas, none of this would have been possible without MongoDB's outstanding product market fit in a massive market. which is estimated by IDC to be 73 billion in 2021. With 175 million cumulative downloads, of which over 70 million were in the last 12 months, MongoDB continues to be the world's most popular modern general purpose database. The popularity of MongoDB is the foundational pillar for the success of Atlas. Second, given a choice, customers would rather focus resources on building new applications and shipping new features quickly than spend time and resources on the undifferentiated heavy lifting of managing their distributed application data infrastructure. Third, multi-cloud is proving to be even more important than we originally imagined. Customers have experienced firsthand that cloud providers do have outages, so building resilience across cloud providers is critical for many customers. Moreover, as cloud providers differentiate among themselves, being able to leverage different services from different cloud providers is something customers want to do. Customers value solutions that make it easy to move from one cloud provider to another, reducing lock-in with any one cloud vendor. As we look to the future, there are a number of reasons why we are bullish about our long-term prospects. First, we are seeing increased enterprise adoption of Atlas. In the first quarter, approximately two-thirds of new business won by our field sales team was Atlas, more than double the percentage from two years ago. Not only are customers choosing more of Atlas, They are building or moving mission-critical workloads onto Atlas, which is the biggest driver of growth of our more than 1,000 six-figure customers. Second, cloud partners are recognizing the value that MongoDB and Atlas bring to their own businesses. Using Q1 as an example, we had a record co-sell quarter with AWS, GCP, and Alibaba. We are seeing increasing opportunities to expand ways we partner with cloud providers through both technical integrations as well as go-to-market initiatives. to enable more customers around the world to derive the benefits of using MongoDB. Finally, our C-level customer conversations indicate that our application data platform strategy is clearly resonating in the marketplace. Customers increasingly tell us that they prefer to standardize on a general purpose platform rather than use a myriad of single function databases that add more cost and increase the complexity of running workloads in the cloud. Now I'd like to spend a few minutes reviewing some customer wins and interesting use cases from the first quarter. Commerce Tools, the leading next-generation e-commerce platform, selected Atlas to power the world's most popular e-commerce sites. Used by over 200 leading global brands such as Audi, AT&T, and Tiffany, Commerce Tools is now able to scale its platform and flexible API-first approach to support the world's biggest retailers, so they can design unique and seamless shopping experiences across all digital touchpoints. At the beginning of May, MongoDB and Commerce Tools helped one of the world's largest toy companies launch a massive and highly anticipated campaign to millions of fans across the world without a hitch. UiPath, a leading enterprise automation software company offering an end-to-end automation platform that combines robotic process automation with a full suite of capabilities to enable organizations to rapidly scale digital business operations. Chose MongoDB as their underlying data persistent platform to increase efficiency for its developers and accelerate time to market with new features and functionality. Leading provider of cloud-based compliance solutions, Avalara is migrating from SQL Server to MongoDB to support its complex data requirements. With more than 30,000 customers in 95 countries, the company needed a database to keep up with billions of transactions as it rapidly scales its platform to support new industries, geographies, and compliance services. One of the largest grocery chains in the world chose Atlas to strengthen its digital portfolio and scale its services across the e-commerce platform and in-store offerings. The company, which has more than 2,000 stores, selected MongoDB to replace Cosmos DB after searching for a scalable solution with a flexible data model that would give its developers a richer feature set and better visibility to their data. TAPL, created by leading Japanese internet company CyberAgent, is a dating application with over 6 million registered users. The app, which has made over 200 million matches since inception, was deployed in Atlas for ease of use. The capacity stores 7.5 billion documents and the ability to upgrade very large clusters while scaling to accommodate large user growth. In summary, we're off to a strong start in fiscal 22. With that, I'll turn it over to Michael.