MongoDB Inc at UBS Global TMT Conference (Virtual) Transcript

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

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : Okay. Well, maybe we'll hit a few of those, just to get them out there. So maybe Michael and Serge will start with the broader economic demand backdrop that you described last night. I think on your 2Q call, you mentioned that there was some improvement in the macro. I'm sure there was again this quarter. But you did highlight obviously that COVID still represents a negative. So maybe you could unpack exactly how that manifested itself? Was it distressed industries being little bit lighter? Was it longer sales cycles? Maybe you could describe what the nature of that COVID impact still is in this past quarter and as we look into 4Q?

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : Got it. So maybe a couple of questions there, Michael.

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : So your comments that there might be a little bit more budget scrutiny, budgets are tight. That sounds to me like a broader phenomenon. That doesn't strike me as MongoDB specific, obviously.

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : Yes. And I suppose the correct analysis is, which software companies are skating through that budget pressure better than others. And I think fair to say, 38% revenue growth, 61% Atlas is illustrative of MongoDB, great -- doing a pretty good job, managing through that environment. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 09, 2020 / 3:15PM, MDB.OQ - MongoDB Inc at UBS Global TMT Conference (Virtual)

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : Got it. And just to be clear on Atlas, it sounds like that 60-plus percent growth benefited from, if I'm hearing you correctly, Michael, 2 things: One is, the net customer additions were solid, and we -- I'd love to dig in a little bit as to -- Serge would enable that. And then the second thing you seem to be saying is that the usage pressure that you first saw in March alleviated somewhat versus prior quarters. Fair to say?

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : Okay. Well, let's maybe hit on the net customer adds, because that, I think, for most people was one of the highlights from the quarter. So Michael or Serge, do you mind elaborating on what enabled that? What changes in terms of sales incentives to create that pretty strong result last night?

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : That is helpful. Great. I want to ask you a little bit about the fourth quarter guidance. But before we leave the third quarter that you reported last night, Michael, I did have one question coming in from the audience that I'll read out to you. Were there any material FX impacts on the 3Q earnings worth calling out?

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : Excellent. Thank you. We'll go right to my question. So on the fourth quarter, the revenue guidance of $155 million to $157 million, I think, is 26% year-over-year growth. That's obviously a detail what you put up. Obviously, there's, I'm sure, some element of especially in this environment, being a little bit careful with your guidance. But Michael, do you want to unpack that fourth quarter guidance. What key assumptions it embeds?

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : Excellent. Okay. That's super helpful. And I don't want to press you too much on next year's guide, because I don't think you've given it yet, but...

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : Okay. Maybe one thing I'll try to sneak in, though is, Michael and Serge when you're talking to customers, what do you sense their thinking is the timing of, let's call it, loosely a post pandemic recovery? Because obviously, MongoDB would benefit. So would a lot of other technology companies when that moment hits. But it's anybody's guess as to when that will be. But just internally, at MongoDB, how are you defining that post pandemic recovery timing? Is it sort of summer of '21, what's your best guess, do you think? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 09, 2020 / 3:15PM, MDB.OQ - MongoDB Inc at UBS Global TMT Conference (Virtual)

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : One other way to get at this, not to beat a horse here is, what is MongoDB telling your internal employees in terms of when a back-to-office moment might be? That can sometimes be a loose marker for us. So what's the internal messaging inside your firm?

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : Well, Michael, judging from your well decorated backdrop, I wouldn't be in a rush to get back to the office anytime soon. You look like you got a nice gig there.

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : I think everybody feels that way. Great. Well, why don't we talk about some broader questions outside the quarter. I think that was a good summary of 3Q and your outlook going forward. One of the questions I wanted to ask, Michael and Serge is, just you guys have talked about customers replatforming their legacy database infrastructures in the past. And I'm just curious, if you don't mind updating us on those efforts because on the one hand, there's a greater predilection to move to the cloud. And so some customers may be looking to accelerate those efforts. But on the other hand, sometimes in a period of stress like this, those are the kind of projects that you push because they can sometimes be complex, costly, introduce business risks. So maybe a comment really on replatforming, call it, legacy Oracle database infrastructures. How does that feel for Mongo right now? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 09, 2020 / 3:15PM, MDB.OQ - MongoDB Inc at UBS Global TMT Conference (Virtual)

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : Got it. Perfect. Okay. That's helpful. Another question I wanted to ask you and Serge is the analogy to Snowflake. That was a big event, I think, in broadly the data management software space in the last 3 months, at least for investors. They're obviously more of an analytics database vendor. You're obviously more of an operational database vendor. But both Snowflake and Atlas are both very popular cloud data management systems. And so I'm wondering, if it is stretched to draw a link between the 2 as evidence of a strong adoption curve for cloud-based data management. So I'd love to hear your perspectives on the analogy to Snowflake success versus Atlas?

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : Yes. Especially, I think the demand for modern next-gen cloud hosted data management solution...

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : So Michael, let's talk a little bit about what's changed in the competitive environment. As you said, what makes your market unique is the variety of alternatives that CIOs have. So just thinking out loud over the last 6 months, obviously, Oracle has made a number of changes to its own autonomous database. I know that Couchbase base is more actively talking to investors. So some of those listening might have spoken to them recently. The public cloud vendors with products like Cosmos DB and DynamoDB are always marketing those solutions. Anything stand out to you as being a bit of a shift that you would encourage investors to pay attention to? Or that might have changed your sales motion in any way?

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : Got it. Excellent. We've just got maybe 2 more minutes, so I'd love to just ask you about the product set. MongoDB is always very innovative. You've always got new features coming out. Is there anything that you would flag for investors as potentially being a needle mover either in fiscal '22 or fiscal '23 that the 2 of you are particularly excited about as maybe given you a little extra tailwind?

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : That makes sense. Anything you want to add, Michael?

Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst : Got it. Well, why don't we end there. Michael and Serge, thanks for contributing to making the UBS Tech Conference, a great one this year by doing this fireside and helping our clients understand the story better in one-on-one meetings you've got today. So thank you both. And if we don't catch up, have a wonderful holiday in a few weeks.