MongoDB Enters the Market With a Bang

By Chris Lange Updated Jan 12, 7:01AM EST · Published Oct 19, 12:00PM EDT

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MongoDB Enters the Market With a Bang — © Thinkstock

MongoDB Inc. (NASDAQ: MDB) entered the market with a bang on Thursday, adding to the number of explosive IPOs that we have seen this quarter. The company priced its shares at $24, above its expected price range of $20 to $22 per share, for 8 million shares, with an overallotment option for an additional 1.2 million shares. At this price, the entire offering is valued up to $220.8 million.

The underwriters for the offering are Morgan Stanley, Goldman Sachs, Barclays, Allen, Stifel, Canaccord Genuity and JMP Securities.

This company is the leading modern, general purpose database platform provider. Its platform unleashes the power of software and data for developers and the applications they build. Ultimately, management believes that software applications are redefining how organizations across industries engage with their customers, operate their businesses and compete with each other.

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At the end of July, 2017, this company had over 4,300 customers across a wide range of industries and in more than 85 countries, compared to over 1,700 and 3,200 customers as of January, 2016 and 2017, respectively. Its customers include over half of the Global Fortune 100 companies.

In terms of finances, MongoDB said the following:

For the fiscal years ended January 31, 2015, 2016 and 2017, our total revenue was $40.8 million, $65.3 million and $101.4 million, respectively, representing year-over-year growth of 60% for fiscal year 2016 and 55% for fiscal year 2017. For the six months ended July 31, 2017, our total revenue was $68.0 million, representing a 51% increase over revenue for the six months ended July 31, 2016. We believe our net annual recurring revenue, or ARR, expansion rate, which has been over 120% for each of the last ten fiscal quarters, demonstrates the attractiveness of our platform to our customers.

The company noted that although it has not yet determined how it will allocate the net proceeds of this offering, management currently intends to use those net proceeds for working capital and other general corporate purposes.

Shares of Mongo were last seen up 24% at $29.85, with a range of $29.21 to $34.00 on the day thus far. As of noon Eastern, over 7 million shares have moved.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.