MongoDB Inc at Goldman Sachs Communacopia + Technology Conference Transcript

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

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : But let's talk about at a high level, MongoDB, what -- Dev, what are your goals? What are your aspirations for the company 4 to 5 years? Let's say, you come back to the Goldman Sachs Communacopia and Technology Conference, what is it 2027, what would you like MongoDB to look like at that point and what are your strategic goals and how do you plan to accomplish that at a high level?

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : And how big could that be? I mean, it's a big market, and I was just -- we had a chat with Judson Althoff, who is the Chief Commercial Officer and he said that he thinks about you guys, by the way, good partners of MongoDB. And we were struck by the fact that the database market is now the fastest-growing market in software. Used to be GDP-type growth where people like, oh, it's boring. Now it's the fastest 17.6% growth rate, right? And you have a small share and you have this amazing potential. How big can MongoDB be?

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Got it. So on the topic of future growth. I mean things that work for our company, congrats you went from $100 million to $1 billion. Such strategies get you to that point. And there is less than stellar successful rate going from $1 billion to $2 billion, and $2 billion to $5 billion, $5 billion to $10 billion, $10 billion to $15 billion, $15 billion to $30 billion. What -- as these study companies that have gone through those phases, infrastructure software companies, what are the things you've learned and how do you plan to adapt your strategy to achieve your goals?

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Got it. I know this is the basic tenet of Mongo and how you're structured as a database. You have foundational technology and how that's relation -- different from the relational model. If you could just touch upon that, where do you see this as an enduring competitive advantage on the company? You've got millions of dollars in revenue. To go farther, can document model really help supplant the relation database technology out there? So what is -- what are the challenges that you need to conquer more to make this even more mainstream as successful as you've gotten to this point?

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Yes. Somewhere later, I do plan to ask about the financial services discussed with the $1 trillion balance sheet customer. But moving over to Michael, current macroeconomic environment. I know you reported just recently, consumption models. Everybody is just so focused on consumption models. Can you give us a bit of a primer? How much of your Atlas revenue is a fixed component versus a variable component? Is that likely to change? Is that contract by contract sort of different? How different are you maybe -- are you -- maybe you're similar to Snowflake, maybe there are some differences. Help us understand.

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Let's say, I'm one of these digital natives and I do a $1 million ACV with MongoDB and all of a sudden, the business slows down 365. I'm just hypothetically making this up 365 days a year, like doing nothing. In the last day, I just light it up. So what does it leave you with your ability to collect the revenue that I have effectively contacted with you for? At what point do you say, okay, your time is up. We don't care if you're doing -- not doing well, doing well, we're going to recognize revenue because you pay us.

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Got it. So that's -- so it's a good way to think about the consumption model. So 2 thoughts. One, maybe two questions. One is what does it look like coming out of the cycle? How does the consumption model for Mongo Atlas particularly behave and what are the things we should be expecting to see? As crazy as it might sound, how does it look like coming out of this in a more positive cycle? Jan Hatzius is my boss boss's Chief Economist, he's talking about a soft landing, and that could be not bad at all, right? So if we do have a soft landing and things sort of gradually normalize, how does that consumption model behave? Do people say, oh, so shortsighted. I mean, $750,000, why am I worrying about this, maybe let's step it up and catch up. Have you seen things that happen before? What is the likelihood?

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : We're going to give you a bit of rest and resume the consumption debate. And I want to switch to you, Dev. Relational database replacements have been a thing -- a theme in your quarterly earnings conference calls. What do you see as a trend in your pipeline? Do you see bigger bolder things as far as replacing RDBMS is concerned?

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Run it on OCI. I mean take the database and run it on OCI and becomes cloud. 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 12, 2022 / 10:45PM, MDB.OQ - MongoDB Inc at Goldman Sachs Communacopia + Technology Conference

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : And you referenced a customer that it took 4 years for them to see the light at the end of the tunnel and then on the document model. Is that an Atlas deal, Dev, or is that platform?

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : And that it's a consumption model. So if this bank is successful.

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : So your revenue should scale along with the deployment (inaudible)?

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Got it. Coming back to you, Michael. So 2020 second quarter, second quarter was a tough quarter for many companies. And then third quarter, you start to see the beginning of some kind of improvement and then fourth quarter, things are up and running. When you look at the MongoDB business model due to maybe partly because of the fact that it's Atlas -- you're tilting towards Atlas in a pretty big way, your improvement, your acceleration really did not happen until Q1 of 2021. And then after that, you're off to the races, right? Is there anything discerned from that? Is there a lag between improvement in actual new business bookings that, let's say, ServiceNow or at Workday or Salesforce saw in the third quarter versus the first quarter? And then you obviously -- every quarter, you showed back-to-back acceleration. Anything you take away from that?

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : You think the revenue would not be a leading indicator. There are other things that will be a leading indicator. 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 12, 2022 / 10:45PM, MDB.OQ - MongoDB Inc at Goldman Sachs Communacopia + Technology Conference

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Which you saw in Q2, you had like green lights. You've just been cautious in the third quarter, fourth quarter. I plan to ask this, but maybe it's a good discussion. Under what circumstances could that guidance prove to be conservative? And under what circumstances could that guidance not prove to be conservative, especially as we look at the Q4 implied 15, 17, right?

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst :

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : With that, I'm going to do a pulse check given the number of clients in the room. Questions, please ask. 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 12, 2022 / 10:45PM, MDB.OQ - MongoDB Inc at Goldman Sachs Communacopia + Technology Conference Unidentified Analyst If we go back and use your layered cake analogy that I think is really illustrative during COVID when a lot of digital transformation technologies were kind of ramping and ripping, you guys use the layered cake as example to explain why this wasn't expanding as fast as other in place. Why is it working in kind of reverse now when you talk about the existing part of business that if your underlying customers are slowing, why are you feeling that? If you weren't kind of -- it was a layer in the layer cake is in then and it's really about ramping new workloads. So is it about the workloads they're not migrating and they're not ramping new workloads?

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Got it. Good question. Any other question? Unidentified Analyst Maybe one on (inaudible) portfolio. As we think about the portfolio growth that are required to (inaudible) how do you think about the incremental like S&M for sales market (inaudible) required to get to like a lot of kind of get that incremental (inaudible).

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : That would actually compound the cyclicality of the rebound in a very nice way because you have got more and more customers that even if a few of them -- or even if each and every one of them grow the transaction volumes, it's slightly faster compounds to a good effect. Right. Yes, please? Unidentified Analyst Where do you think we are in terms of (inaudible) legacy software providers like (inaudible) and how long is that (inaudible).

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Atlas is greater than the API, you made a reference -- financial reference, I wasn't sure if I completely got it.

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : In terms of the relational back end, okay, got it. Yes, got it. With that, I think we're 16 seconds, 15 seconds down. Thank you so much for your attention and your amazing collaboration making this nice and live and proactive environment. Thank you, Dev and Michael, for participating. I hope...