Cikos hosted MongoDB at the 25th annual Needham Growth Conference for a fireside chat with CFO Michael Gordon and SVP of Finance Serge Tanjga.
The fireside focused on the size of the market opportunity, new business persistence compared to macro pressures on existing workloads, Atlas consumption trends, and management's balance of investing for growth and profitability.
MongoDB has over $20 billion of market opportunity to address each year. As a result of this broad TAM, MongoDB's primary constraint is related to footprint coverage to address the more ample opportunity - not to the market's overall size.
MongoDB noted that there had been no impact on New Business due to the economic backdrop - serving as a testament to the product, market, and execution. New Workloads are a more significant driver of MongoDB's medium-to-longer term business as applications grow and scale over time.
Management noted that part of the improvement in Atlas consumption during Q3 was limited by seasonality.
MongoDB demonstrated material operating profit upside versus expectations during the most recent quarter.
The company discussed the competing trends between investing for the long term, given strong unit economics versus an awareness of the current environment where the increased cost of capital requires a higher return threshold.
Additionally, the company is on track to incur approximately $45 million - $55 million in post-COVID normalization expenses during FY23.
Price Action: MDB shares traded higher by 2.73% at $187.07 on the last check Wednesday.
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