The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst
: Okay. Great. Michael, just to put my positive hat on here, you're absorbing a $30 million, $35 million revenue hit in fiscal '23, but you
raised your full year revenue guidance by $11 million. So that tells me that ex the macro impact, you're actually raising by $41 million
to $46 million, which is substantially above the Q1 beat and substantially above the full year guidance raised last April quarter. So
clearly, something is going very right in the business. So I wanted to ask you what that is, what 1 or 2 things contributed to that ex
macro implied raise?
Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst
: Got it. Okay. Go ahead, Dev.
Question: Karl Emil Keirstead - UBS Investment Bank, Research Division - Analyst
: Great. And then maybe as a follow-up, Dev and Mike, one of the risks that I was trying to evaluate and I think investors were -- was
basically MongoDB's exposure to, call it, the next-gen cloud Internet fintech companies, kind of loosely the Coinbases of the world.
You're well aware that Snowflake called out that customer cohort as hitting the brakes on spending and that translated to a usage
hit for Snowflake. Did that cohort impact your revenue performance in the quarter? And maybe you could comment about your
exposure to that group. I think that might be of interest.
Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst
: Congrats on the quarter. I'm curious to get your perspective, Dev or Michael, whoever wants to jump in. When you look at the
consumption side of the business and the [asset side], what are the sensitivities that you're modeling if indeed we enter a slow
economic environment? What's the best way to think about what kinds of industries maybe that's cut or what kinds of use cases do
you anticipate slower consumption growth rates? And how does your model behave in response to those kind of changes? I mean
are you capped with respect to the downside in the event that those consumption trends start to go south? Or how does your model
zig and zag with what's happening at the customer level? What bigger insulation do you have to ensure that your business is
protected?
Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst
: Got it. Very, very clear. With respect to your model, is there any consideration at all to make the model maybe a bit more
subscription-like and a bit less consumption since the economic downturn is at least -- is a bit more unpredictable to consumption
models? If not, that's totally okay, but just curious to get your perspective on any changes that you might be contemplating.
|
