MongoDB Inc

Previous wording

MongoDB is the developer data platform company whose mission is to empower developers to create, transform, and disrupt industries by unleashing the power of software and data. The foundation of our offering is the world’s leading, modern general purpose database. Organizations can deploy our database at scale in the cloud, on-premises, or in a hybrid environment. Built on our unique document-based architecture, our database is designed to meet the needs of organizations for performance, scalability, flexibility and reliability while maintaining the strengths of relational databases. In addition to the database, our developer data platform includes a set of, tightly integrated, capabilities such as search, time series and application-driven analytics that allow developers to address a broader range of application requirements. Our business model combines the developer mindshare and adoption benefits of open source with the economic benefits of a proprietary software subscription business model. MongoDB is headquartered in New York City and our total headcount increased to 5,360 as of July 31, 2024, from 4,626 as of July 31, 2023.

Current wording

MongoDB is the developer data platform company whose mission is to empower developers to create, transform, and disrupt industries by unleashing the power of software and data. The foundation of our offering is the world’s leading, modern general purpose database. Organizations can deploy our database at scale in the cloud, on-premises, or in a hybrid environment. Built on our unique document-based architecture, our database is designed to meet the needs of organizations for performance, scalability, flexibility and reliability while maintaining the strengths of relational databases. In addition to the database, our developer data platform includes a set of, tightly integrated, capabilities such as search, time series and application-driven analytics that allow developers to address a broader range of application requirements. Our business model combines the developer mindshare and adoption benefits of open source with the economic benefits of a proprietary software subscription business model. MongoDB is headquartered in New York City and our total headcount increased to 5,436 as of October 31, 2024, from 4,849 as of October 31, 2023.

Previous wording

We generate revenue primarily from sales of subscriptions, which accounted for 97% of our total revenue for the three and six months ended July 31, 2024 and 97% and 96% for the three and six months ended July 31, 2023, respectively.

Current wording

We generate revenue primarily from sales of subscriptions, which accounted for 97% of our total revenue for each of the three and nine months ended October 31, 2024 and 2023.

Previous wording

MongoDB Atlas is our hosted multi-cloud database-as-a-service (“DBaaS”) offering, which we run and manage in the cloud, and includes comprehensive infrastructure and management, as well as a host of additional features, such as MongoDB Atlas Search, vector search, time series and application-driven analytics. During the three and six months ended July 31, 2024, MongoDB Atlas revenue represented 71% and 70%, respectively, as compared to 63% and 64% of our total revenue during the three and six months ended July 31, 2023, respectively, reflecting the continued growth of MongoDB Atlas since its introduction in June 2016. We have experienced strong growth in self-serve customers of MongoDB Atlas, which are charged monthly in arrears based on their usage. We have also seen growth in MongoDB Atlas customers sold by our sales force, which typically sign annual contracts and pay in advance or are invoiced monthly in arrears based on usage. Customers sold by our sales force may also sign contracts that remain in effect until terminated and are invoiced monthly in arrears based on usage. We expect to continue to see a higher portion of our MongoDB Atlas contracts to be billed monthly in arrears based on usage without requiring upfront commitments.

Current wording

MongoDB Atlas is our hosted multi-cloud database-as-a-service (“DBaaS”) offering, which we run and manage in the cloud, and includes comprehensive infrastructure and management, as well as a host of additional features, such as MongoDB Atlas Search, vector search, time series and application-driven analytics. During the three and nine months ended October 31, 2024, MongoDB Atlas revenue represented 68% and 70%, respectively, as compared to 66% and 65% of our total revenue during the three and nine months ended October 31, 2023, respectively, reflecting the continued growth of MongoDB Atlas since its introduction in June 2016. We have experienced strong growth in self-serve customers of MongoDB Atlas, which are charged monthly in arrears based on their usage. We have also seen growth in MongoDB Atlas customers sold by our sales force, which typically sign annual contracts and pay in advance or are invoiced monthly in arrears based on usage. Customers sold by our sales force may also sign contracts that remain in effect until terminated and are invoiced monthly in arrears based on usage. We expect to continue to see a higher portion of our MongoDB Atlas contracts to be billed monthly in arrears based on usage without requiring upfront commitments.

Previous wording

MongoDB Enterprise Advanced is our proprietary commercial database server offering for enterprise customers that can run in the cloud, on-premises or in a hybrid environment. MongoDB Enterprise Advanced revenue represented 24% of our subscription revenue for both the three and six months ended July 31, 2024 and 26% for both the three and six months ended July 31, 2023. We sell subscriptions directly through our field and inside sales teams, as well as indirectly through channel partners. The majority of our subscription contracts are one year in duration and are invoiced upfront. When we enter into multi-year subscriptions, the customer is typically invoiced on an annual basis or pays upfront.

Current wording

MongoDB Enterprise Advanced is our proprietary commercial database server offering for enterprise customers that can run in the cloud, on-premises or in a hybrid environment. MongoDB Enterprise Advanced revenue represented 25% and 24% of our subscription revenue for the three and nine months ended October 31, 2024, respectively, and 27% for both the three and nine months ended October 31, 2023. We sell subscriptions directly through our field and inside sales teams, as well as indirectly through channel partners. The majority of our subscription contracts are one year in duration and are invoiced upfront. When we enter into multi-year subscriptions, the customer is typically invoiced on an annual basis or pays upfront.

Previous wording

We also generate revenue from services, which consist primarily of fees associated with consulting and training services. Revenue from services accounted for 3% of our total revenue for both the three andsix months ended July 31, 2024 and 3% and 4% for the three and six months ended July 31, 2023, respectively. We expect to continue to invest in our services organization as we believe it plays an important role in accelerating our customers’ realization of the benefits of our platform, which helps drive customer retention and expansion.

Current wording

We also generate revenue from services, which consist primarily of fees associated with consulting and training services. Revenue from services accounted for 3% of our total revenue for each of the three andnine months ended October 31, 2024 and 2023. We expect to continue to invest in our services organization as we believe it plays an important role in accelerating our customers’ realization of the benefits of our platform, which helps drive customer retention and expansion.

Previous wording

We believe the market for our offerings is large and growing. According to IDC, the worldwide database software market, which it refers to as the Database Management Software market, was $93 billion in 2023 growing to approximately $170 billion in 2028. This represents a 13% compound annual growth rate.

Current wording

We believe the market for our offerings is large and growing. According to IDC, the worldwide Data Management Software market, was $94 billion in 2023 growing to approximately $170 billion in 2028. This represents a 13% compound annual growth rate.

Previous wording

Adverse macroeconomic conditions include slower or negative economic growth, higher inflation and higher interest rates. During the six months ended July 31, 2024, the macroeconomic environment negatively impacted our business. For instance, we experienced slower than historical growth rates for our existing MongoDB Atlas applications. While the impact of these macroeconomic conditions on our business, results of operations and financial position remain uncertain over the long term, we expect to experience macroeconomic headwinds on growth rate for our existing MongoDB Atlas applications in the short term.

Current wording

Adverse macroeconomic conditions include slower or negative economic growth, higher inflation and higher interest rates. During the nine months ended October 31, 2024, the macroeconomic environment negatively impacted our business. For instance, we experienced slower than historical growth rates for our existing MongoDB Atlas applications. While the impact of these macroeconomic conditions on our business, results of operations and financial position remain uncertain over the long term, we expect to experience macroeconomic headwinds on growth rate for our existing MongoDB Atlas applications in the short term.

Previous wording

We are intensely focused on continuing to grow our customer base. We have invested, and expect to continue to invest, in our sales and marketing efforts and developer community outreach, which are critical to driving customer acquisition. As of July 31, 2024, we had over 50,700 customers across a wide range of industries and in over 100 countries, compared to over 45,000 customers as of July 31, 2023. All affiliated entities are counted as a single customer and our definition of “customer” excludes users of our free offerings.

Current wording

We are intensely focused on continuing to grow our customer base. We have invested, and expect to continue to invest, in our sales and marketing efforts and developer community outreach, which are critical to driving customer acquisition. As of October 31, 2024, we had over 52,600 customers across a wide range of industries and in over 100 countries, compared to over 46,400 customers as of October 31, 2023. All affiliated entities are counted as a single customer and our definition of “customer” excludes users of our free offerings.

Previous wording

As of July 31, 2024, we had over 7,300 customers that were sold through our direct sales force and channel partners, as compared to over 6,800 such customers as of July 31, 2023. These customers, which we refer to as our Direct Sales Customers, accounted for 87% of our subscription revenue for both the three and six months ended July 31, 2024 and 88%of our subscription revenue for both the three andsix months ended July 31, 2023. We plan to continue to invest in acquiring new customers and additional workloads from existing customers across all of our channels. We had over 49,200 MongoDB Atlas customers as of July 31, 2024 compared to over 43,500 as of July 31, 2023. The growth in MongoDB Atlas customers included new customers to MongoDB and existing MongoDB Enterprise Advanced customers adding incremental MongoDB Atlas workloads.

Current wording

As of October 31, 2024, we had over 7,400 customers that were sold through our direct sales force and channel partners, as compared to over 6,900 such customers as of October 31, 2023. These customers, which we refer to as our Direct Sales Customers, accounted for 88% of our subscription revenue for each of the three and nine months ended October 31, 2024 and 2023. We plan to continue to invest in acquiring new customers and additional workloads from existing customers across all of our channels. We had over 51,100 MongoDB Atlas customers as of October 31, 2024 compared to over 44,900 as of October 31, 2023. The growth in MongoDB Atlas customers included new customers to MongoDB and existing MongoDB Enterprise Advanced customers adding incremental MongoDB Atlas workloads.

Previous wording

The economic attractiveness of our subscription-based model is driven by customer renewals and increasing existing customer subscriptions over time, referred to as land-and-expand. We believe that there is a significant opportunity to drive additional sales to existing customers, and expect to invest in sales and marketing and customer success personnel and activities to achieve additional revenue growth from existing customers. If an application grows and requires additional capacity, our customers increase their usage of our platform. Growth of an application is impacted by a number of factors including the macroeconomic environment. During the six months ended July 31, 2024, we believe we experienced a negative impact from the macroeconomic environment on the growth of existing Atlas applications, which affected our revenue growth. We expect the macroeconomic environment to continue to negatively impact our revenue growth for the remainder of the year. In addition, our customers add incremental workloads or expand their subscriptions to our platform as they migrate additional existing applications or build new applications, either within the same department or in other lines of business or geographies. Also, as customers modernize their information technology infrastructure and move to the cloud, they may migrate applications from legacy databases. Our goal is to increase the number of customers that standardize on our platform within their organization, as well as add new workloads with new and existing customers. Over time, the subscription amount for our typical Direct Sales Customer has increased.

Current wording

The economic attractiveness of our subscription-based model is driven by customer renewals and increasing existing customer subscriptions over time, referred to as land-and-expand. We believe that there is a significant opportunity to drive additional sales to existing customers, and expect to invest in sales and marketing and customer success personnel and activities to achieve additional revenue growth from existing customers. If an application grows and requires additional capacity, our customers increase their usage of our platform. Growth of an application is impacted by a number of factors including the macroeconomic environment. During the three and nine months ended October 31, 2024, we believe we experienced a negative impact from the macroeconomic environment on the growth of existing Atlas applications, which affected our revenue growth. We expect the macroeconomic environment to continue to negatively impact our revenue growth for the remainder of the year. In addition, our customers add incremental workloads or expand their subscriptions to our platform as they migrate additional existing applications or build new applications, either within the same department or in other lines of business or geographies. Also, as customers modernize their information technology infrastructure and move to the cloud, they may migrate applications from legacy databases. Our goal is to increase the number of customers that standardize on our platform within their organization, as well as add new workloads with new and existing customers. Over time, the subscription amount for our typical Direct Sales Customer has increased.

Previous wording

We calculate annualized recurring revenue (“ARR”) and annualized monthly recurring revenue (“MRR”) to help us measure our subscription revenue performance. ARR includes the revenue we expect to receive from our customers over the following 12 months based on contractual commitments and, in the case of Direct Sales Customers of MongoDB Atlas, by annualizing the prior 90 days of their actual usage of MongoDB Atlas, assuming no increases or reductions in their subscriptions or usage. For all other customers of our self-serve products, we calculate annualized MRR by annualizing the prior 30 days of their actual usage of such products, assuming no increases or reductions in usage. ARR and annualized MRR exclude professional services. The number of customers with $100,000 or greater in ARR and annualized MRR was 2,189 and 1,855 as of July 31, 2024 and 2023, respectively. Our ability to increase sales to existing customers will depend on a number of factors, including customers’ satisfaction or dissatisfaction with our products and services, competition, pricing, economic conditions or overall changes in our customers’ spending levels.

Current wording

We calculate annualized recurring revenue (“ARR”) and annualized monthly recurring revenue (“MRR”) to help us measure our subscription revenue performance. ARR includes the revenue we expect to receive from our customers over the following 12 months based on contractual commitments and, in the case of Direct Sales Customers of MongoDB Atlas, by annualizing the prior 90 days of their actual usage of MongoDB Atlas, assuming no increases or reductions in their subscriptions or usage. For all other customers of our self-serve products, we calculate annualized MRR by annualizing the prior 30 days of their actual usage of such products, assuming no increases or reductions in usage. ARR and annualized MRR exclude professional services. The number of customers with $100,000 or greater in ARR and annualized MRR was 2,314 and 1,972 as of October 31, 2024 and 2023, respectively. Our ability to increase sales to existing customers will depend on a number of factors, including customers’ satisfaction or dissatisfaction with our products and services, competition, pricing, economic conditions or overall changes in our customers’ spending levels.

Previous wording

We also examine the rate at which our customers increase their spend with us, which we call net ARR expansion rate. We calculate net ARR expansion rate by dividing the ARR at the close of a given period (the “measurement period”), from customers who were also customers at the close of the same period in the prior year (the “base period”), by the ARR from all customers at the close of the base period, including those who churned or reduced their subscriptions. For Direct Sales Customers included in the base period, measurement period or both such periods that were self-serve customers in any such period, we also include annualized MRR from those customers in the calculation of the net ARR expansion rate. As of July 31, 2024, our net ARR expansion rate was approximately 119%, as compared to historically being over 120%. The decline versus historical periods is attributable to a smaller contribution from expanding customers. Our net ARR expansion rate may fluctuate in future periods due to a variety of factors, including the volume and type of workloads that we onboard, growth rate of historical workloads on our platform and changes in the macroeconomic environment.

Current wording

We also examine the rate at which our customers increase their spend with us, which we call net ARR expansion rate. We calculate net ARR expansion rate by dividing the ARR at the close of a given period (the “measurement period”), from customers who were also customers at the close of the same period in the prior year (the “base period”), by the ARR from all customers at the close of the base period, including those who churned or reduced their subscriptions. For Direct Sales Customers included in the base period, measurement period or both such periods that were self-serve customers in any such period, we also include annualized MRR from those customers in the calculation of the net ARR expansion rate. As of October 31, 2024, our net ARR expansion rate was approximately 120%. Historically, our net ARR expansion rate has been over 120%. The decline versus most historical periods is attributable to a smaller contribution from expanding customers. Our net ARR expansion rate may fluctuate in future periods due to a variety of factors, including the volume and type of workloads that we onboard, growth rate of historical workloads on our platform and changes in the macroeconomic environment.

Previous wording

For thethree months ended July 31, 2024, our total revenue increased to$478.1 million as compared to$423.8 million for thethree months ended July 31, 2023, primarily driven by an increase in subscription revenue from our Direct Sales Customers. Our net loss increased to$54.5 million for thethree months ended July 31, 2024 as compared to$37.6 million for thethree months ended July 31, 2023, primarily driven by higher sales and marketing spend and research and development costs during the three months ended July 31, 2024, partially offset by the increase in revenue.

Current wording

For thethree months ended October 31, 2024, our total revenue increased to$529.4 million as compared to$432.9 million for thethree months ended October 31, 2023, primarily driven by an increase in subscription revenue from our Direct Sales Customers. Our net loss decreased to$9.8 million for thethree months ended October 31, 2024 as compared to$29.3 million for thethree months ended October 31, 2023, primarily driven by higher sales and marketing spend and research and development costs during the three months ended October 31, 2024.

Previous wording

For thesix months ended July 31, 2024, our total revenue increased to$928.7 million as compared to$792.1 million for thesix months ended July 31, 2023, primarily driven by an increase in subscription revenue from our Direct Sales Customers. Our net loss increased to $135.1 million for thesix months ended July 31, 2024 as compared to$91.8 million for thesix months ended July 31, 2023, primarily driven by higher sales and marketing spend and research and development costs during the six months ended July 31, 2024, partially offset by the increase in revenue.

Current wording

For thenine months ended October 31, 2024, our total revenue increased to$1,458.0 million as compared to$1,225.0 million for thenine months ended October 31, 2023, primarily driven by an increase in subscription revenue from our Direct Sales Customers. Our net loss increased to $144.9 million for thenine months ended October 31, 2024 as compared to$121.1 million for thenine months ended October 31, 2023, primarily driven by higher sales and marketing spend and research and development costs during the nine months ended October 31, 2024.

Previous wording

Our operating cash flow was $62.2 million and $28.4 million for the six months ended July 31, 2024 and 2023, respectively.

Current wording

Our operating cash flow was $99.7 million and $66.9 million for the nine months ended October 31, 2024 and 2023, respectively.

Previous wording

Total revenue growth reflects increased demand for our platform and related services. Subscription revenue increased by $54.5 million primarily due to an increase of $43.2 million from our Direct Sales Customers, inclusive of the impact from Direct Sales Customers who were self-serve customers of MongoDB Atlas in the prior-year period.

Current wording

Total revenue growth reflects increased demand for our platform and related services. Subscription revenue increased by $93.9 million primarily due to an increase of $82.7 million from our Direct Sales Customers, inclusive of the impact from Direct Sales Customers who were self-serve customers of MongoDB Atlas in the prior-year period.

Previous wording

The increase in subscription cost of revenue was primarily due to a $32.7 million increase in third‑party cloud infrastructure costs, including costs associated with the growth of MongoDB Atlas. The increase in third-party infrastructure costs was partly offset by continued cost efficiencies realized as we scale MongoDB Atlas. In addition, subscription cost of revenue was higher due to a $8.2 million increase in personnel costs and stock-based compensation associated with increased headcount in our support organization. The increase in services cost of revenue was primarily due to a $3.1 million increase in third-party consultant costs related to the delivery of consulting and training services and a $1.0 million increase in personnel costs and stock-based compensation associated with increased headcount in our services organization. Total headcount in our support and services organizations increased 14% from July 31, 2023 to July 31, 2024.

Current wording

The increase in subscription cost of revenue was primarily due to a $16.3 million increase in third‑party cloud infrastructure costs, including costs associated with the growth of MongoDB Atlas. The increase in third-party infrastructure costs was partly offset by continued cost efficiencies realized as we scale MongoDB Atlas. In addition, subscription cost of revenue was higher due to a $4.7 million increase in personnel costs and stock-based compensation associated with increased headcount in our support organization. The increase in services cost of revenue was primarily due to a $2.7 million increase in personnel costs and stock-based compensation, associated with increased headcount in our services organization, and a $1.7 million increase in third-party consultant costs related to the delivery of consulting and training services. Total headcount in our support and services organizations increased 22% from October 31, 2023 to October 31, 2024.

Previous wording

Our overall gross margin declined slightly to 73%. Our subscription gross margin declined slightly to 77% due to an increase in subscription revenue from MongoDB Atlas as a percentage of our total revenue. Services gross margin declined due to the impact of higher costs related to the delivery of consulting and training services.

Current wording

Our overall gross margin decreased slightly to 74%. Our subscription gross margin declined slightly to 78% due to an increase in subscription revenue from MongoDB Atlas as a percentage of our total revenue. Services gross margin declined due to the impact of higher costs related to the delivery of consulting and training services.

Previous wording

The increase in sales and marketing expense was primarily driven by a $19.6 million increase in personnel costs and stock-based compensation, a $26.5 million increase in spend on in-person events and marketing programs and a $13.0 million increase in commission expense. Our sales and marketing headcount was 2,540 as of July 31, 2024, compared to 2,202 as of July 31, 2023.

Current wording

The increase in sales and marketing expense was primarily driven by a $15.3 million increase in personnel costs and stock-based compensation, a $5.3 million increase in commission expense, and a $2.1 million increase in spend on in-person events and marketing programs. Our sales and marketing headcount was 2,489 as of October 31, 2024, compared to 2,268 as of October 31, 2023.

Previous wording

The increase in research and development expense was primarily driven by a $17.5 million increase in personnel costs and stock-based compensation as we grew our research and development headcount by 20%. In addition, research and development expense increased $4.0 million due to higher third-party infrastructure expenses related to development costs of our MongoDB Atlas offering.

Current wording

The increase in research and development expense was primarily driven by a $20.0 million increase in personnel costs and stock-based compensation as we grew our research and development headcount by 11%. In addition, research and development expense increased $2.4 million due to higher third-party infrastructure expenses related to development costs of our MongoDB Atlas offering.

Previous wording

The increase in general and administrative expense was due to higher costs to support the growth of our business. In particular, these higher costs were driven by an increase in general and administrative personnel headcount resulting in $4.0 million higher personnel costs and stock-based compensation. In addition, general and administrative expenses increased due to higher professional fees and higher software costs.

Current wording

The increase in general and administrative expense was due to higher costs to support the growth of our business. In particular, these higher costs were driven by an increase in general and administrative personnel headcount resulting in higher personnel costs and stock-based compensation.

Previous wording

The provision for income taxes during the three months ended July 31, 2024 and 2023 was primarily due to foreign taxes as we continue our global expansion.

Current wording

The decrease in the provision for income taxes during the three months ended October 31, 2024 and 2023 was primarily due to foreign taxes.

Previous wording

Total revenue growth reflects increased demand for our platform and related services. Subscription revenue increased by $136.7 million primarily due to an increase of $114.3 million from our Direct Sales Customers, inclusive of the impact from Direct Sales Customers who were self-serve customers of MongoDB Atlas in the prior-year period.

Current wording

Total revenue growth reflects increased demand for our platform and related services. Subscription revenue increased by $230.5 million primarily due to an increase of $197.0 million from our Direct Sales Customers, inclusive of the impact from Direct Sales Customers who were self-serve customers of MongoDB Atlas in the prior-year period.

Previous wording

The increase in subscription cost of revenue was primarily due to a $16.0 million increase in third‑party cloud infrastructure costs, including costs associated with the growth of MongoDB Atlas. The increase in third-party infrastructure costs was partly offset by continued cost efficiencies realized as we scale MongoDB Atlas. In addition, subscription cost of revenue was higher due to a $4.3 million increase in personnel costs and stock-based compensation associated with increased headcount in our support organization. Total headcount in our support and services organizations increased 14% from July 31, 2023 to July 31, 2024.

Current wording

The increase in subscription cost of revenue was primarily due to a $49.0 million increase in third‑party cloud infrastructure costs, including costs associated with the growth of MongoDB Atlas. The increase in third-party infrastructure costs was partly offset by continued cost efficiencies realized as we scale MongoDB Atlas. In addition, subscription cost of revenue was higher due to a $12.9 million increase in personnel costs and stock-based compensation associated with increased headcount in our support organization. The increase in services cost of revenue was primarily due to a $6.6 million increase in third-party consultant costs related to the delivery of consulting and training services and a $3.7 million increase in personnel costs and stock-based compensation associated with increased headcount in our services organization. Total headcount in our support and services organizations increased 22% from October 31, 2023 to October 31, 2024.

Previous wording

Our overall gross margin declined slightly to 73%. Our subscription gross margin declined slightly to 77% due to an increase in subscription revenue from MongoDB Atlas as a percentage of our total revenue. Services gross margin declined due to the impact of higher third-party consultant and training costs, services personnel costs and stock-based compensation.

Current wording

Our overall gross margin declined slightly to 74%. Our subscription gross margin declined to 77% due to an increase in subscription revenue from MongoDB Atlas as a percentage of our total revenue. Services gross margin declined due to the impact of higher third-party consultant and training costs, services personnel costs and stock-based compensation.

Previous wording

The increase in sales and marketing expense was primarily driven by an $8.3 million increase in commission expense, a $7.8 million increase in personnel costs and stock-based compensation, a $7.3 million increase in spend on in-person events and marketing programs. Our sales and marketing headcount was 2,540 as of July 31, 2024, compared to 2,202 as of July 31, 2023.

Current wording

The increase in sales and marketing expense was primarily driven by a $34.9 million increase in personnel costs and stock-based compensation, a $28.6 million increase in spend on in-person events and marketing programs and a $18.4 million increase in commission expense. Our sales and marketing headcount was 2,489 as of October 31, 2024, compared to 2,268 as of October 31, 2023.

Previous wording

The increase in research and development expense was primarily driven by a $39.7 million increase in personnel costs and stock-based compensation as we grew our research and development headcount by 20%. In addition, research and development expense increased $8.3 million due to higher third-party infrastructure expenses related to development costs of our MongoDB Atlas offering.

Current wording

The increase in research and development expense was primarily driven by a $59.7 million increase in personnel costs and stock-based compensation as we grew our research and development headcount by 11%. In addition, research and development expense increased $10.7 million due to higher third-party infrastructure expenses related to development costs of our MongoDB Atlas offering.

Previous wording

The increase in general and administrative expense was primarily driven by higher costs to support the growth of our business. In particular, these higher costs were primarily driven by an increase in general and administrative personnel headcount resulting in $12.5 million higher personnel costs and stock-based compensation. General and administrative expense also increased $9.5 million due to value-added tax expense related to our operations in certain non-US jurisdictions. In addition, general and administrative expenses increased $3.0 million due to higher professional fees and higher software costs.

Current wording

The increase in general and administrative expense was primarily driven by higher costs to support the growth of our business. In particular, these higher costs were primarily driven by an increase in general and administrative personnel headcount resulting in $17.4 million higher personnel costs and stock-based compensation. General and administrative expense also increased $7.8 million due to value-added tax expense related to our operations in certain non-US jurisdictions. In addition, general and administrative expenses increased $6.2 million due to higher professional fees and higher software costs.

Previous wording

Other income, net, for the six months ended July 31, 2024 improved primarily due to higher interest income from our short-term investments.

Current wording

Other income, net, for the nine months ended October 31, 2024 improved primarily due to higher interest income from our short-term investments.

Previous wording

The provision for income taxes during the six months ended July 31, 2024 and 2023, was primarily due to foreign taxes as we continue our global expansion.

Current wording

The decrease in the provision for income taxes during the nine months ended October 31, 2024 and 2023, was primarily due to foreign taxes.

Previous wording

We have generated significant operating losses and negative cash flows from operations as reflected in our accumulated deficit and historical consolidated statements of cash flows. As of July 31, 2024, we had an accumulated deficit of $1.8 billion. We expect to continue to incur operating losses, may continue to experience negative cash flows from operations in the future and may require additional capital resources to execute strategic initiatives to grow our business. Our future capital requirements and adequacy of available funds will depend on many factors, including our growth rate and any impact on it from global macroeconomic conditions, including rising interest rates, inflation and recent volatility in the banking sector, the timing and extent of spending to support development efforts, the expansion of sales and marketing and international operation activities, the timing and size of new subscription introductions and customer usage of our developer data platform, the continuing market acceptance of our subscriptions and services and the impact of the macroeconomic conditions on the global economy and our business, financial condition and results of operations. As the impact of macroeconomic conditions on the global economy and our operations continues to evolve, we will continue to assess our liquidity needs. We may in the future enter into arrangements to acquire or invest in complementary businesses, services and technologies, including intellectual property rights. We may be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise additional capital when desired, our business, operating results and financial condition would be adversely affected.

Current wording

We have generated significant operating losses and negative cash flows from operations as reflected in our accumulated deficit and historical consolidated statements of cash flows. As of October 31, 2024, we had an accumulated deficit of $1.9 billion. We expect to continue to incur operating losses, may continue to experience negative cash flows from operations in the future and may require additional capital resources to execute strategic initiatives to grow our business. Our future capital requirements and adequacy of available funds will depend on many factors, including our growth rate and any impact on it from global macroeconomic conditions, including rising interest rates, inflation and recent volatility in the banking sector, the timing and extent of spending to support development efforts, the expansion of sales and marketing and international operation activities, the timing and size of new subscription introductions and customer usage of our developer data platform, the continuing market acceptance of our subscriptions and services and the impact of the macroeconomic conditions on the global economy and our business, financial condition and results of operations. As the impact of macroeconomic conditions on the global economy and our operations continues to evolve, we will continue to assess our liquidity needs. In the future, we may enter into arrangements to acquire or invest in complementary businesses, services and technologies, including intellectual property rights. We may be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise additional capital when desired, our business, operating results and financial condition would be adversely affected.

Previous wording

Cash provided by operating activities during the six months ended July 31, 2024 was $62.2 million, driven primarily by an increase in our cash collections reflecting overall growth of our sales and expansion of our customer base. Accordingly, our accounts receivable decreased by $13.3 million. In addition, our net loss of $135.1 million, includes non‑cash charges of $243.2 million for stock‑based compensation and $7.2 million for depreciation and amortization. Our accrued liabilities increased by $29.2 million reflecting our increase in expenses and timing of payments. Partially offsetting these benefits to our operating cash flow were a decrease in deferred revenue of $54.3 million, amortization of premium and accretion of discount on short-term investments, net of $13.5 million, an increase in deferred commissions of $20.0 million and other net non-cash charges of $7.8 million.

Current wording

Cash provided by operating activities during the nine months ended October 31, 2024 was $99.7 million, driven primarily by an increase in our cash collections reflecting the overall growth of our sales and expansion of our customer base. Accordingly, our accounts receivable increased by $11.3 million. In addition, our net loss of $144.9 million, includes non‑cash charges of $368.9 million for stock‑based compensation and $9.6 million for depreciation and amortization. Our accrued liabilities increased by $22.5 million reflecting our increase in expenses and timing of payments. Partially offsetting these benefits to our operating cash flow were a decrease in deferred revenue of $71.4 million, amortization of premium and accretion of discount on short-term investments, net of $19.1 million, an increase in deferred commissions of $38.8 million and other net non-cash charges of $15.9 million.

Previous wording

Cash provided by operating activities during the six months ended July 31, 2023 was $28.4 million, driven primarily by an increase in our cash collections reflecting overall growth of our sales and expansion of our customer base. Accordingly, our accounts receivable decreased by $12.2 million. In addition, our net loss of $91.8 million, includes non‑cash charges of $217.3 million for stock‑based compensation and $8.5 million for depreciation and amortization. Partially offsetting these benefits to our operating cash flow were a decrease in deferred revenue of $91.4 million, as well as accretion of the discount on our short-term investments of $25.5 million.

Current wording

Cash provided by operating activities during the nine months ended October 31, 2023 was $66.9 million, driven primarily by an increase in our cash collections reflecting the overall growth of our sales and expansion of our customer base. Accordingly, our accounts receivable decreased by $11.8 million. In addition, our net loss of $121.1 million, includes non‑cash charges of $333.1 million for stock‑based compensation and $13.3 million for depreciation and amortization. Our accrued liabilities increased by $20.3 million reflecting our increase in expenses and timing of payments. Partially offsetting these benefits to our operating cash flow were a decrease in deferred revenue of $138.7 million, accretion of the discount on our short-term investments of $36.4 million, and an increase in deferred commissions of $17.2 million.

Previous wording

Cash provided by investing activities during the six months ended July 31, 2024 was $242.3 million, due to purchases of marketable securities, net of maturities, of $249.4 million, cash used for investments in non-marketable securities of $5.5 million and purchases of property and equipment of $1.6 million.

Current wording

Cash used in investing activities during the nine months ended October 31, 2024 was $411.1 million, due to purchases of marketable securities, net of maturities, of $401.8 million, cash used for investments in non-marketable securities of $5.8 million and purchases of property and equipment of $3.6 million.

Previous wording

Cash provided by investing activities during the six months ended July 31, 2023 was $101.1 million, primarily due to maturities of marketable securities, net of purchases, of $104.4 million. The proceeds were partially offset by $2.1 million of additional investment in non-marketable securities and $1.3 million of cash used for purchases of property and equipment.

Current wording

Cash used in investing activities during the nine months ended October 31, 2023 was $64.2 million, primarily due to maturities of marketable securities, net of purchases, of $43.9 million. The proceeds were partially offset by $2.1 million of additional investment in non-marketable securities and $3.3 million of cash used for purchases of property and equipment. In addition, on September 27, 2023, we used $15.0 million of net cash to acquire the assets of Grainite, Inc.

Previous wording

Cash provided by financing activities during the six months ended July 31, 2024 was $186.9 million, due to proceeds from the settlement of capped calls of $170.6 million, proceeds from the issuance of common stock under the Employee Stock Purchase Plan and exercises of stock options of $19.9 million, partly offset by principal payments of finance leases of $3.6 million.

Current wording

Cash provided by financing activities during the nine months ended October 31, 2024 was $186.3 million, due to proceeds from the settlement of capped calls of $170.6 million, proceeds from the issuance of common stock under the Employee Stock Purchase Plan and exercises of stock options of $20.3 million, partly offset by principal payments of finance leases of $4.5 million.

Previous wording

Cash provided by financing activities during the six months ended July 31, 2023 was $20.6 million, due to proceeds from the issuance of common stock under the Employee Stock Purchase Plan and exercises of stock options, partly offset by principal repayments of finance leases.

Current wording

Cash provided by financing activities during the nine months ended October 31, 2023 was $20.5 million, due to proceeds from the issuance of common stock under the Employee Stock Purchase Plan and exercises of stock options, partly offset by principal repayments of finance leases.

Previous wording

We have in the past and expect in the future to experience seasonal fluctuations in our revenue and operating results from time to time. We may experience variability and reduced comparability of our quarterly revenue and operating results with respect to the timing and nature of certain of our contracts, particularly multi-year contracts that contain a term license. We may also experience fluctuations as MongoDB Atlas revenue is recorded on a consumption basis and varies with usage, including due to seasonal factors. As MongoDB Atlas revenue continues to increase as a percentage of total revenue, these fluctuations may have a greater impact on our results of operations. We believe that seasonal fluctuations that we have experienced in the past may continue in the future.

Current wording

We have experienced seasonal fluctuations in our revenue and operating results and this trend may continue in the future. We may experience variability and reduced comparability of our quarterly revenue and operating results with respect to the timing and nature of certain contracts, particularly multi-year contracts that contain a term license. We may also experience fluctuations as MongoDB Atlas revenue is recorded on a consumption basis and varies with usage, including seasonality factors. As MongoDB Atlas revenue continues to increase as a percentage of total revenue, these fluctuations may have a greater impact on our results of operations.

Previous wording

During the six months ended July 31, 2024, there were no material changes outside the ordinary course of business to our contractual obligations and commitments from those disclosed in our 2024 Form 10-K. Refer to Note 6, Leases and Note 7, Commitments and Contingencies, in our Notes to Unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for further details.

Current wording

During the nine months ended October 31, 2024, there were no material changes outside the ordinary course of business to our contractual obligations and commitments from those disclosed in our 2024 Form 10-K. Refer to Note 6, Leases and Note 7, Commitments and Contingencies, in our Notes to Unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for further details.