MongoDB Inc at Citi Global TMT Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Tyler Radke - Citi - Analyst : Just for investors that maybe have a little bit less familiarity of Mongo. Just give a quick overview of who Mongo is. And in the context of the database market where you play, how is GenAI play into sort of where you're going?

Question: Tyler Radke - Citi - Analyst : No, no. That's great framing and nice way to kind of break up the different ways that it impacts you. I got to sort of weave that in with sort of the recent trends in the business because Q1 was obviously a tough start to the to the year, you took down the full-year guide. You talked about weaker consumption. Yet, we're still in this environment where there's a lot of interest and signs of spending on AI -- so clearly, you're not seeing the tailwinds yet from what you just laid out. Can you just walk us through sort of -- what happened in Q1? What elements sort of got better in Q2? And then how do you sort of think about the timing of some of these ultimate GenAI tailwinds?

Question: Tyler Radke - Citi - Analyst : Okay. And then going back to 2Q, where you did see certainly a much better beat and raise. I think you talked about the new business growth, new workload acquisition improving and then consumption tracking slightly higher, but maybe not materially higher to sort of alter --

Question: Tyler Radke - Citi - Analyst : Right, and as you think about the consumption piece, which you sort of attribute to macro, arguably, that's the least out of your control out of everything. What gives you confidence that this isn't just kind of the new normal, right? And I know you have some great charts at Analyst Day sort of showing that macro impact But do you see any signals or anything that gives you confidence that we can sort of return to a higher level of underlying consumption that we've seen in the last two years?

Question: Tyler Radke - Citi - Analyst : Yes. One of the -- I think this is probably the biggest upside surprise at least investors last quarter was the guide for Q3, which suggested some of your strongest sequential growth that you've guided for in a while. You also raised the full year more than you beat in the quarter sort of implying strength in the pipeline. How would you sort of effecate that increase in guidance between the Atlas piece, which probably benefited a bit from better-than-expected consumption, better new workload growth versus EA just based off of what you're seeing in the second half?

Question: Tyler Radke - Citi - Analyst : Okay. Great. And I appreciate the explanation on Q4 because we got that question a lot. So maybe if we think about some of the new products and some of the announcements that you've had over the last year, on GenAI, you rolled out Vector database, you've rolled out stream processing. I think there's been some other new capabilities that were announced at local this year. Where are we at just in terms of the maturity of those products and are you expecting them to be starting to move the needle by the second half of this year? Is this more of an FY26 story? Just talk us through the impact of those new products?

Question: Tyler Radke - Citi - Analyst : Yes. No, that's helpful. And I actually did want to hit on relational migrate. And I think for Mongo since IPO, clearly, this massive opportunity of sort of like locked up spend in these legacy SQL databases. But I'd say it's been a market that you've slowly chipped away at, right? But I think about a quarter of the business roughly over time has come from relational migrations. As you think about this relational migrator product, which I think -- you've had a couple of iterations of and there's some more features that are GA. Like how significant of an accelerant in that legacy relational opportunity do you think this could be? And as you think about all the AI-enabled products you think this one could maybe move the needle the most?

Question: Tyler Radke - Citi - Analyst : As we think about sort of the new applications being built, particularly these -- this, hopefully, wave of GenAI-enabled applications, which you alluded to earlier, this could be a big accent to the overall database market but very early to tell. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2024 / 7:50PM, MDB.OQ - MongoDB Inc at Citi Global TMT Conference You've talked about having 1,000, I think, AI customers already today. I guess what are the signals or the metrics that you're looking at that gives you confidence that you're sort of winning the lion's share of those workloads. There's obviously a number of competitive vector databases out there, postcrisis sort of been at least talked a lot by investors. So what sort of gives you the confidence that your market share in Gen AI is at least as good as is in like the cloud and mobile type of applications.

Question: Tyler Radke - Citi - Analyst : Got it. And then on the partnership side with the hyperscalers, clearly, the hyperscalers have seen probably the most momentum from an AI monetization. Granted, a lot of that could be training in GPU cost that we see their numbers. But part of the narrative that we hear talking to IT executive is this notion around consolidation, right? If I'm going to be deploying Microsoft open AI service, maybe it makes sense to leverage some of their database capabilities as well or other data management capabilities. Can you speak to that dynamic? What have you sort of seen on the hyperscaler front? And how do you sort of make sure that you're still in that strategic position even if customers are doing more directly with the hyperscalers?

Question: Tyler Radke - Citi - Analyst : Got it. So talking about the direct sales force and your go-to-market team, I think at the second half of last year, you did sort of increase investments at least on the quota-carrying side. Can you talk about just so your aspirations in terms of how fast you want to grow your sales force? Obviously, we've heard in the past, how Dave has talked about you're under resource -- it's not the win rates are good, but it's the deals that you're not in that, I guess, keeps them up at night. So where we are in terms of building that out? And -- how do you sort of think about the balance of investing versus showing leverage?

Question: Tyler Radke - Citi - Analyst : One of the elements of the database market that's been very important over time is the idea of pricing, right? Just given your strong renewal rates in the database market. Obviously, there's maybe companies -- the larger players in the space that have abused pricing and angered some customers. But how do you think about pricing? I know that -- in the past, you've done some price increases on EA and list prices. Is that something you're looking at this year? How do you just overall think about your pricing power?

Question: Tyler Radke - Citi - Analyst : Got it. Makes sense. And then as we think about the top of funnel trends, you continue to see pretty healthy customer additions. Obviously, the MongoDB historically sort of been synonymous with open source. I know you made some more protective changes to the licensing with SSPL in years past. But what are some of the things that you're doing as a company to ensure that you still get that leading-edge developer mind share, and what are some of the metrics that you track beyond just downloads to the community version or customer additions to ensure that that's healthy?

Question: Tyler Radke - Citi - Analyst : Maybe in the minute and a half that we have left, I'd love just to turn it over to you if there's anything we didn't hit on that you wanted to cover or just sort of what the message is for this well-attended session.