So the growth rates of Cloud infrastructure leaders have been all over the place:
- Cloudflare is growing 30% at $1.6 Billion in ARR
- GitLab is growing 30% at $730m ARR
- Microsoft Azure, Google Cloud are on fire, fueled by AI
But others are seeing more headwinds due to downturns in the “B2B2B” segment of tech. And MongoDB is one of them, seeing consumption usage down, even as net new customer growth remains strong.
Revenue growth has slowed from epic rates on the way to $1B ARR, to a still stunning 29% at $1.5B ARR … to 13% today as they come up on $2B ARR.
To some extent, that growth is understated, however, as its core Atlas product is still growing a stunning 27%. But workload usage has slowed, which brings down Mongo’s revenue, if not its customer count.
5 Interesting Learnings:
#1. New Customer Count Still Up +12% to 50,700
So Mongo’s challenge isn’t that it isn’t bringing in new customers at scale. It still is. At the end of they day, even at almost $2B ARR, Mongo still has double-digit customer growth, and NRR of 110% or more. That combo is super powerful at scale. It suggests a great 5+ year run ahead.
#2. 87% of Revenue Comes From Direct Sales
42,000+ of Mongo’s 50,700 customers sign up directly without sales — PLG, more or less. But they are small — at least to start. 87% of Mongo’s revenue comes from the bigger ones, the 7,300 that go through Direct Sales.
#3. NRR Still Strong at 119%, And Barely Down From 120% Historical Average
Most important is that Mongo isn’t seeing a material decline in NRR. Even if workload usage / volume are down from historical rates for now.
#4. Not Directly Seeing Revenue Benefits from AI Workloads Yet
AI isn’t benefiting Mongo yet directly.
#5. Seeing Macro Impacts in Consumption, But Not in New Business
Mongo’s customers are growing workloads more slowly, mpacting revenue growth. But they aren’t seeing a downturn in new business.
And a great SaaStr deep dive with CEO Dev Ittycheria here:
