MongoDB, Inc.

Good day and welcome to the MongoDB third quarter fiscal year 2022 earnings call. All participants will be in 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. 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 Denue from ICR. Please go ahead.

Thank you, Eileen. Good afternoon, and thank you for joining us today to review MongoDB's third quarter fiscal 2022 financial results, which we announced in our press release issued after the close of the market today. Joining the call today are Dave Itacharia, President and CEO of MongoDB, and Michael Gordon, MongoDB's COO and CFO. During this call, we will make four 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 and our planned investments. These statements are subject to a variety of risks and uncertainties, including those related to the ongoing COVID-19 pandemic and its impacts on our business, results of operations, clients and the macroeconomic environment, They cause actual results to differ materially from our expectations. For a discussion that may tailor risks and uncertainties that could affect our actual results, please refer to the risks described in our SEC filings, including our most recent quarterly report on Form 10-Q. Any forward-looking statements made in 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 a reconciliation of these measures to the most directly comparable GAAP financial measure. With that, I'd like to turn the call over to Dave.

Thank you, Brian, and thank you to everyone for joining us today. I will start by reviewing our third quarter results before giving you a company update. Looking quickly at our third quarter financial results, we generated revenue of $227 million, a 50% year-over-year increase and above the high end of our guidance. Atlas revenue grew 84% year-over-year, representing 58% of revenue, and is now over a half a billion revenue run rate. We had another strong quarter of customer growth, ending the quarter with over 31,000 customers. Our third quarter results demonstrate that customers are increasingly choosing MongoDB to build modern apps that run their businesses. We had another strong quarter of customer additions, led by a self-service channel. Both our field sales and inside sales teams again perform well. A key driver of results is the healthy expansion of our customers as many of them are meaningfully increasing their adoption of MongoDB. As you'll hear from Michael, some of our largest customers made increased multi-year commitments to MongoDB in Q3. Our performance is clear evidence that MongoDB is emerging as an enterprise standard in a growing number of accounts. Our excellent Q3 performance is the result of continuously strong go-to-market execution as well as a confluence of two factors, secular trends that reinforce our technical advantages and our growing credibility and influence with customers. Let me start with the secular trends that play to our strengths. First, the ability to move fast and innovate quickly, whether it's pivoting to a digital-first strategy, quickly seizing new market opportunities, or responding to new threats, has never been more important. MongoDB's document model maps data to the way developers think and code, removing friction from the development process to enable developers to move incredibly fast. Second, while there's been a proliferation of single-purpose databases, that address specific needs. The result is that most customers find the challenges of learning, managing, and supporting a myriad of technologies and resulting data silos to be overwhelming. Consequently, there's growing demand for a modern general purpose database platform that supports a broad range of workloads to dramatically reduce the cost and complexity of a company's data infrastructure. MongoDB's application data platform is designed to address this specific need. Third, the performance and scale expectations of modern applications continue to grow. MongoDB's distributed architecture supports unlimited horizontal scaling, allowing organizations to linearly scale costs as applications grow and to easily address data sovereignty regulations or to ensure responsive and predictable performance, whether users are local or across the world. Today, we have customers who have workloads doing over 1 million transactions per second, with data sizes of hundreds of terabytes. Legacy platforms struggle to address these demanding performance and scale requirements. Fourth, the accuracy, availability, and security of data are of paramount importance. MongoDB allows developers to easily build resilient mission-critical applications with native replication, fast and automatic failover, and retriable operations. MongoDB also offers sophisticated security controls for access, auditing, and end-to-end encryption, whether data is in use or at rest. And fifth, customers want choice on where and how they deploy their applications. Developers can build and run MongoDB applications in their own data center, in any cloud, and at the edge. However, technical advantages are not enough unless there are customer proof points to validate these technical claims. As a disruptor of a massive market with a long-standing entrenched technology, we had to build our credibility one workload at a time. We usually land in an account by identifying a pain point that simply cannot be addressed by legacy technology. We then leverage the success of the first workload to expand across divisional and geographic boundaries. Eventually, we uplevel the conversation to the C-suite and become a standard for future app development. While it's still early days, we believe a key driver of our success this year has been the growing trend of customers choosing MongoDB as an enterprise standard, which is having a positive impact on our ability to increase our penetration of these accounts over time. With more than 31,000 customers, which is up 10x since our IPO four years ago, we have all types of customers using MongoDB to do a wide variety of amazing things to run and transform their businesses. We have had tremendous success in acquiring customers from large global 2,000 organizations to cutting-edge startups across all major industries in most geographies. This creates a compelling social proof effect. When we are able to reference customers in particular industries or geographies who are aggressively adopting MongoDB, Other customers in those same industries or geos are more interested in engaging with us. While we feel confident about our position in the marketplace, we are not standing still. We recently moved to a quarterly product release schedule starting with MongoDB 5.1 to bring new features and capabilities more quickly to market. Highlights of MongoDB 5.1 include time series enhancements such as support for sharding, improved capabilities for joins and graph traversals to do more sophisticated real-time analytics, and enhancements to our client-side field-level encryption security feature to work with any KMIP-compliant key management system. In addition, we announced a preview of our ability to provide 100x faster facets and counts in Atlas Search. Faceted search allows users to filter and quickly navigate search results by categories. Fast facets and counts are essential in a search-first application such as product catalogs and content search. MongoDB combines the core database and search database into one unified developer and operational experience, differentiating it from all other standalone application search offerings in the market. Last but not least, we also announced Atlas Data API, which allows developers to easily access the MongoDB data via standard REST-like interface. It exposes MongoDB's rich query and aggregation capabilities via a fully managed, scalable, and resilient API, which allows customers to quickly build microservices on Atlas and easily integrate with a wide array of tech stacks. We made these product announcements at our .local developer conference in London, which is our first in-person event since the start of COVID-19. We also just returned from AWS reInvent, where we announced the expansion of our relationship with AWS, including the launch of a pay-as-you-go MongoDB Atlas on the AWS Marketplace. Customers who are used to buying services from the AWS Marketplace can find a simple and integrated way to subscribe to MongoDB Atlas, starting even with a free trial, and use Atlas without the need for an upfront commitment. This makes it even easier to start using Atlas. Now I'd like to spend a few minutes reviewing some customer wins and interesting use cases from the quarter. Coinbase, which is dedicated to increasing economic freedom in the world by building a more accessible, transparent, and equitable financial system, is the trusted choice of more than 73 million individuals, businesses, and institutions to interact with the crypto economy. The company is moving more workloads to MongoDB Atlas so it can build new products and services quickly and meet the scale and availability requirements of the unprecedented growth in the cryptocurrency markets. The adoption of Atlas Data Lake gives their engineers a simple and powerful way to create resilient data pipelines that enable downstream analytics on the large volumes of data generated by the platform. Global technology and communications leader Verizon is working with MongoDB to bring data closer to the edge as part of its multi-axis edge computing and 5G data architecture. This can enable the next generation of low latency applications such as machine learning, intelligent edge, robotics, AR, VR, autonomous vehicle, telemedicine, and more. QHealth is a healthcare technology company that makes it easy for individuals to access health information and places diagnostic information at the center of care. Their revolutionary new device, the QHealth monitoring system, paired with their COVID-19 test is the first at-home molecular COVID-19 test available over the counter without a prescription. And it is used by the NBA, Johnson & Johnson, and the Mayo Clinic. The company chose MongoDB Atlas, Search, and RealmSync to power their mobile application, mobile database, and synchronization, enabling consumers to receive data from their QHealth devices on their smartphones and securely stored in the cloud. Telecom Italia Mobile, or TIM, the communications industry leader in Italy and Brazil, develops fixed mobile and cloud infrastructure, data centers, service offerings, and products for communications and entertainment. Accompanying at the forefront of digital technologies, TIM selected MongoDB Atlas for FlyTogether, its core digital service delivery platform, to accelerate the transition to Google Cloud and enable flexible delivery of digital services through a microservices architecture. MongoDB has been a partner in maximizing the customer experience across all of its digital channels. In summary, we had another excellent quarter. Our strong performance is a result of the seeds we planted years ago, such as launching Atlas, releasing multi-document asset transactions, and expanding our go-to-market channels to complement our enterprise sales organization. Our continued success further fuels our aspirations. We not only expect to benefit from the seeds already planted, but we will continue to plant new seeds that drive long-term growth. Customers are embracing the vision of our application data platform that simplifies their data architecture while accelerating the pace of innovation. We believe the seeds we're planting today will yield strong results in the years to come. Before I turn it over to Michael, I would officially like to welcome our new CMO, Peter Ulander, to MongoDB. A developer at his core, Peter joined us from AWS where he led developer and enterprise marketing. He brings deep experience in the cloud, open source, engaging with developers, and has a track record of helping brands from startups to tech leaders take advantage of major market transitions. With that, here's Michael.