Company Profile
Founded
MongoDB (ticker: MBD) was founded in 2007 as 10gen.
MongoDB was co-founded by three core founders of the famous former DoubleClick company: Dwight Merriman, Gilt Groupe, Kevin Ryan, and Eliot Horowitz.
Note: DoubleClick, this company is extremely important. It is the company that made Google a money printing machine. The company was acquired by Google.
Original founding purpose
10gen’s initial goal was to build a platform-as-a-service architecture based entirely on open source components; but the company could not find an existing database platform that met its cloud architecture “principles.” Therefore, the company began to develop a “document”-oriented database system called MongoDB.
After realizing the potential of the software itself, the team at 10gen decided to abandon its cloud platform and instead focus on maintaining MongoDB. In February 2009, 10gen made MongoDB public to the world as an open source project.
IPO
The company launched its initial public offering of shares on October 20, 2017.
Deep dive MongoDB products
SQL vs. NoSQL database
Prior to this, databases including IBM, Oracle and Microsoft’s Sybase were mainly relational databases using the structured programming language SQL. Compared with the relational database that traditionally uses SQL, MongoDB’s database is called a NoSQL database.
Advantages of MongoDB
MongoDB is an open source NoSQL file database. Due to the use of JSON document data storage structure, MongoDB has three advantages: flexibility, easy expansion, and high performance. Compared with traditional relational databases, users do not need to define the data structure in advance when using MongoDB to store data. Users can store data types such as videos or abstract text. However, more structured databases will have difficulty managing these data. type.
Atlas
MongoDB Atlas is a real-time cloud online database developed by MongoDB and based on cloud native file database as a service. Atlas can be used on all major cloud platforms and is distributed in 115 different cloud regions around the world.
Its Atlas database has attracted more than 85 million downloads and Atlas collections. Additionally, its community consists of over 1 million developers, and its services are used by many of the world’s most famous companies.
Customers
According to the MongoDB website, there are currently 49,000 MongoDB customers around the world.
Famous investor
MongoDB (then known as 10gen) had received U.S. government funding through In-Q-Tel, the CIA-funded venture capital arm. This has caused concern in other countries, such as India.
Competitors
Oracle
Oracle, a database company, has the most powerful traditional database products in the world, plus many derivatives of large-scale enterprise software. In the past two years, Oracle has blossomed in cloud services and emerged from the predicament. It is the number one competitor to MongoDB. .
Microsoft
Microsoft has the largest number of enterprise customers in the world. It also owns Sybase, a large database product, and is one of the three largest cloud service providers in the world. It is a super giant rival to MongoDB.
IBM
IBM itself has two major database products, DB2 with a long history and Informix, which was later acquired through acquisition.
Snowflake
Different from Oracle and Microsoft, Snowflake (ticker: SNOW) is a native data processing expert in cloud computing and a direct competitor of MongoDB in cloud data processing.
Databricks
Databricks has not yet gone public and is a direct competitor of Snowflake. The company is on the rise. Databricks, an expert in cloud computing, data analysis, and artificial intelligence, is expected to launch an IPO soon. In October 2023, Huida and Capital One took a stake in Databricks at a valuation of US$43 billion in the latest round of financing.
How is the company performing?
Financial report
The company’s revenue growth has decelerated sharply in recent quarters. Revenue in the second quarter of 2024 (as of July 31) was US$478 million, an increase of 13% compared with the same period in 2023. That’s down from 17% growth in fiscal 2025 and 31% growth in the previous fiscal year.
The company’s gross profit margin is 73.54%, which is a common figure for software companies.
In addition, the loss in the second quarter of 2024 was US$55 million, which was higher than the loss of US$38 million in the second quarter of 2023.
Market valuation
Since the company is currently losing money, the P/E ratio is zero.
Share price performance
Slowing revenue growth appears to have had a significant impact on the company’s stock price, which is down more than 20% from last year.
Investors better be cautious
The company’s revenue growth rate is declining compared with 2023, which has to make people question whether its price-to-earnings ratio of 12 can attract investors. Given this situation, it may be best for investors to stay on the sidelines and not act recklessly until they see definite signs of improvement.
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