Good day, and welcome to the MongoDB 4th Quarter and Full Year Fiscal 2020 Earnings Conference Call. All participants will be in a listen only mode. After today's presentation, there will be an opportunity to ask questions. Please limit yourself to one question and one follow-up, so we may get to all questioners on today's call. Please note, this event is being recorded.
I would now like to turn the conference over to Mr. Brian Denue from ICR. Please go ahead.
Thank you, Sean. Good afternoon and thank you for joining us today to review MongoDB's Q4 and full year fiscal 20 20 financial results, which we announced in our press release issued after the close of market today. Joining me on the call today are Dave Idocereya, President and CEO of MongoDB and Michael Gordon, MongoDB's COO and CFO. During this call, we may make statements related to our business that are forward looking under federal securities laws. These statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements related to our financial guidance for the 1st fiscal quarter and full year fiscal 2021, the anticipated impact of the coronavirus disease or COVID-nineteen outbreak on our future operating and financial performance the impact of ASC 606 revenue timing and MLAB on our future results of operations our market opportunity and prospects to increase our market share of the global database software market the ability of our data platform strategy and R and D investments to drive sustained long term growth the opportunity created by and scalability of our go to market and growth strategies our expectations regarding the impacts of and opportunities presented by the shift to the cloud the potential advantages, timing and likelihood the success of our new products, product enhancements and planned integrations such as Realm Stitch and anticipated impact of Atlas sales expansion on our gross margins and other financial results.
The words anticipate, continue, estimate, expect, intend, will and similar expressions are intended to identify forward looking statements or similar indications of future expectations. These statements reflect our views only as of today and should not be construed as representing our views as of any subsequent date. We do not have plans to update these statements except as required by law. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For a discussion of the material risks and other important factors that could affect our actual results, please refer to those contained in our quarterly report on Form 10 Q filed with the SEC on December 10, 2019, and in subsequent reports that we filed with the SEC from time to time, including the annual report on Form 10 ks that we intend to file in the near term.
These documents are available in the Investor Relations section of our website at www.mongodv.com. A replay of this call will also be available there for a limited time. Additionally, non GAAP financial measures will be discussed in this conference call. Please refer to the tables in our earnings release on the Investor Relations portion of our website for a reconciliation of these measures to the most directly comparable GAAP financial measure. With that, I'd like to turn the call over to Dave.
Thank you, Brian, and thank you to everyone for joining us today. Let me start off by saying that we live in a time of unprecedented circumstances. The global spread of the COVID-nineteen virus has created an extreme health crisis and resulted in the disruption of the lives of billions of people. The first priority for MongoDB is the safety and well-being of our employees and our customers, and we have been managing the business to that effect. Michael will speak in more detail on how we expect this crisis to impact our financial performance.
Our job as a management team is to keep steady amidst the turbulence, while not losing sight of the long term opportunity ahead of us. Let me now turn to our 4th quarter results. MongoDB delivered strong results capping off an outstanding year for the company. Our technology investments have further strengthened what was already the leading modern data platform. Our investments in sales and marketing have expanded our market reach to make MongoDB available to all customers of all sizes around the world.
I am proud of the performance of our team in fiscal 2020 and believe we are well on our way to establishing MongoDB as one of the primary winners as the database market moves to the cloud. Looking quickly at our Q4 results. In the Q4, we generated revenue of $123,500,000 a 44% year over year increase and above the high end of our guidance. For the full year of fiscal 2020, we generated $421,700,000 in revenues, a 58% year over year increase in growth. We grew subscription revenue 46% year over year in the 4th quarter and 61% for the full year.
Atlas revenue grew over 80% year over year in the 4th quarter and now represents 41% of revenue. And we had another strong quarter of customer growth, ending the quarter with over 17,000 customers. We believe our Q4 and full year fiscal 2020 results demonstrate that we have established ourselves as the modern data platform of choice. We continue to be pleased and encouraged by the breadth of adoption of our platform in terms of use cases, industry verticals and geographies. Our sales force is executing at a high level, and we saw meaningful productivity increases in both our enterprise and corporate channels.
We also continue to be very pleased with the progress of our self serve business as evidenced by a record number of customer additions in Q4, and we continue to expand our self serve operations to become a world class product led growth engine. Entering fiscal 2021, we are pleased with our achievements in 2.5 years since becoming a public company, and we are more confident than ever about our long term prospects. We are pursuing one of the largest and fastest growing markets in all software. IDC projects the database market to be $71,000,000,000 in 2020, growing to $97,000,000,000 in 2023. We have less than 1% share of the global database market and a long runway for growth ahead of us.
As we look ahead, we are keenly aware of the opportunity in front of us. We strongly believe that the database market is at the very beginning of a profound platform shift towards the cloud over the next decade. As the new and existing workloads migrate to the cloud, customers will be forced to examine and modernize their data architectures. Technology histories teaches us that in times of such platform dislocation, new companies emerge as generational leaders. To this end, our belief is that the best way to maximize long term shareholder value is to make key investments that will position us as one of those leaders.
I want to spend more time today to explain how our platform strategy and the associated R and D investments are designed to drive our long term growth. To start, let me provide some historical context. There have been 2 fundamental insights that have driven our business to date. The first key insight that led to the founding of the company was that the inflexibility and lack of scalability MongoDB's document model and distributed data architecture address MongoDB's document model and distributed data architecture address these problems resulting in MongoDB's incredible popularity with developers everywhere. The second key insight was that the process of building modern apps was dramatically increasing the burden of undifferentiated work on development teams As apps keep proliferating and apps themselves get decomposed into smaller distributed components due to the use of microservices, containers and other related technologies, the scope and complexity of managing apps and infrastructure grows exponentially.
This undifferentiated work ends up crowding out the resources needed to invest in enhancing the application and ultimately the business. As a result, in 2012, we started building our tools to automate the provisioning, management and security of our database. The logical progression was the introduction of Atlas in 2016, our fully managed databases service offering that enabled organizations to avoid the hassle of managing distributed databases altogether. Today, Atlas continues to be a huge success for us, growing over 80% year over year, representing 41% of our revenue in Q4 and is at a $200,000,000 annualized revenue run rate. Thanks to these two insights, we are the only modern database that is considered to be a true general purpose database, has been adopted by millions of developers around the world and has generated meaningful commercial success, affording us the opportunity to sustain strong growth rates for years to come.
Our success has enabled us to acquire over 15,000 Atlas customers in the past three and a half years, giving us a unique perspective on how we can provide even greater value to customers in the future. The productivity and economics benefits of the cloud such as real time provisioning, almost unlimited scale and usage based pricing are at this point well known. However, we also see the challenges that the movement to the cloud has created. In the 1st decade, the cloud ecosystem largely involved moving existing technology stacks onto the new infrastructure paradigm. This forced developers to deal with a fragmented set of apps and infrastructure tied to discrete use cases, multiple APIs and data spread across many disparate silos.
Developer productivity is impeded as they are unable to seamlessly leverage data for different needs And these problems will only escalate as customers move more workloads to the cloud. This experience led us to a 3rd key insight, the one that is informing our data platform strategy that the apps of the future will dramatically expand in their functionality and scope. Future applications will enable continuous engagement and access to massive amounts of real time data among key constituents, be it users, customers, partners or suppliers. Availability of instantaneous operational data along with insight in that data will increasingly drive business decisions. That means traditional operational workloads will need to incorporate additional functionality such as real time analytics.
In addition, as data on the edge continues to explode due to the increasing use of mobile and IoT apps, future applications will require the ability to effortlessly synchronize data between the edge and the core. Finally, rather than dealing with a large number of complex interfaces, developers will require 1 unified interface designed to bring together data at massive scale to build these new applications more quickly and efficiently. We believe MongoDB is incredibly well positioned to benefit from this emerging trend. We are an operational database, which puts us both at the core of every application we support and makes us a source of its real time mission critical data. We believe developers will credibly expect their core operational database to extend into a full data platform that provides the additional capabilities they need to expand an application scope and functionality.
Many of the exciting product announcements we have made over the past year demonstrate how we are already evolving our data platform for applications with greater functionality and scope. Atlas Data Lake brings transactional and analytical use cases together by allowing customers to query both operational and archive data. Atlas Search brings the previously separate search functionality into the operational database. Finally, the integration of Realm and Stitch will address the issue of edge to core data synchronization. These and other future products will leverage our powerful API to access large amounts of data easily to provide an unparalleled developer experience.
We know that every enterprise's future will be increasingly powered by software and that apps of the future will leverage data in even more sophisticated ways. Consequently, we're confident these investments designed to address even more complex use cases will further extend our position as the leading modern data platform and put us in an even better position to deliver strong long term growth. Now, I'd like to spend a few minutes reviewing some customer wins and interesting use cases from the Q4. Square Enix, producers of Tomb Raider, Dragon Quest and Final Fantasy Video Games chose MongoDB to support its online suite of asynchronous multiplayer features across a wide range of video games. The company continues to invest in MongoDB Atlas for game production to provide the scalability needed for its growing global player base.
Atlas allows Square Enix to scale elastically to meet the demands of the game regardless of the number of concurrent players. Software AG's Cumulocity IoT, a leading IoT platform, powering the shift to a truly connected world chose MongoDB Enterprise Advanced as its operational data store, As data is the key to driving actual insights into an IoT enabled business, MongoDB plays a critical role in helping Software AG customers transform connected device data into immediate value in a scalable and reliable manner. Uncork, a no code application platform that helps large enterprises, healthcare providers and government agencies build complex custom software faster selected MongoDB Atlas as its primary cloud database platform in 2017. The company expanded its use of MongoDB last quarter because they wanted a data platform provider that was cloud agnostic, highly scalable, enterprise security ready and trusted by their Fortune 500 customers. Location aware data infrastructure company Radar Labs chose MongoDB Atlas to power its geolocation platform, which currently runs on more than 25,000,000 devices around the globe, processing billions of location data points each week.
And an early member of MongoDB's not MongoDB for Startups program, the company continues to make big bets on MongoDB to help scale the delivery of its rich geolocation services, so its developers can focus on the company's goal of making every app on every device contextually aware. In summary, we are encouraged by our traction as evidenced by our strong Q4 results. The success and our track record of execution give us confidence to aggressively pursue our long term opportunity. We believe the market is evolving in ways that will increasingly play to our core strengths and further establish MongoDB as the modern data platform of choice for developers. Before I turn over the call to Michael, I want to take this opportunity to personally thank our Co Founder and CTO, Elliot Horowitz, for his vision and technical leadership for over almost 13 years.
I talked today about the foundational insight that Elliot and the co founders had, namely that legacy database technology was not designed to address the needs of modern applications. Out of that insight came the document model, a query language and the tremendous popularity of MongoDB in the developer community. Thanks to Elliot's vision and leadership, today MongoDB is the world's most popular modern database platform. It will cross 500,000,000 revenues this year, has over 90,000,000 downloads and over 17,000 customers all around the world. The company and in particular the entering team assembled by Elliott has never been in better shape.
And there is a strong and deep leadership team ready to take the baton to further vision of improving developers' lives by making it stunningly easy to work with data. We're excited that Eli will continue to stay involved and become a technical advisor to MongoDB after leaving his full time role. With that, let me turn the call over to Michael to review our financial results.
Our outlook for the Q1 and full fiscal year 2021. First, I'll start with our Q4 results. Total revenue in the quarter was $123,500,000 up 44% year over year. Subscription revenue was 117 $800,000 up 46% year over year. And professional services revenue was $5,700,000 up 17% year over year.
Our strong performance in the quarter benefited from broad based strength on both Atlas and Enterprise Advance. It is worth noting that 1 large multiyear Enterprise Advance deal with a Fortune 50 customer drove $3,500,000 of our outperformance. As a reminder, due to revenue recognition mechanics associated with ASC 606, we generally recognize the term license revenue for all the contract years upfront, not just the initial year. The rapid adoption of Atlas continues to be the largest contributor to our growth. Atlas grew over 80% in the quarter and now represents 41% of total revenue compared to 32% in the Q4 of fiscal 2019 and 40% last quarter.
Atlas continues to benefit from strength in both our self-service and direct sales channels, while experiencing a growth headwind from the historical mLab customer base, which we anniversaried in the Q4. During the Q4, we grew our customer base by over 1100 customers sequentially, bringing our total customer count to over 17,000, which is up from over 13,400 in the year ago period. Of our total customer count, over 2,000 are direct sales customers, which compares to over 17.50 in the year ago period. The growth in our total customer count is being driven in large part by Atlas, which had over 15,400 customers at the end of the quarter compared to over 11,400 in the year ago period. The sequential growth in total customers includes growth in our enterprise advanced customers as well as new Atlas customers.
It is important to keep in mind that the growth in our Atlas customer base reflects new customers to MongoDB in addition to existing customers adding incremental Atlas workloads. We also continue to see healthy expansion from our customers, which is a key component of our growth strategy. Our net air expansion rate in the 4th quarter remained above 120%. We ended the quarter with 751 customers with at least $100,000 in ARR and annualized MRR, which is up from 557 in the year ago period. We also ended the year with 62 customers with at least $1,000,000 in ARR and annualized MRR, which is up from $39,000,000 in the year ago period.
Moving down the P and L, I'll be discussing our results on a non GAAP basis unless otherwise noted. Please note that we have provided additional disclosures in our earnings release showing the non GAAP reconciliation of the individual OpEx line items to help you with your understanding and modeling of the business. Gross profit in the Q4 was $91,200,000 representing a gross margin of 74% compared to 72% last quarter and 71% in the year ago period. Gross margin benefited from the large multiyear EA license revenue associated with the Fortune 50 customer we mentioned earlier. Overall, we are pleased with our gross margin performance, which reflects greater efficiency and scale in our Atlas business.
However, we continue to expect that we'll see some modest reduction in overall gross margin as Atlas continues to become a bigger portion of our revenue. Our operating loss was $12,000,000 or negative 10 percent operating margin for the 4th quarter compared to a negative 11% margin in the year ago period. Net loss in the 4th quarter was $14,500,000 or $0.25 a share based on 56,900,000 weighted average shares outstanding. This compares to a loss of $0.17 per share on 53,800,000 shares outstanding in the year ago period. Turning to the balance sheet and cash flow.
We ended the quarter with $987,000,000 in cash, cash equivalents, short term investments and restricted cash. Operating cash flow in the Q4 was negative $8,600,000 After taking into consideration approximately $2,300,000 in capital expenditures and principal repayments of finance lease liabilities, free cash flow was negative $10,900,000 in the quarter. This compares to negative free cash flow of $12,600,000 in the Q4 of fiscal 2019. I'd now like to turn to our outlook for the Q1 and full year fiscal 2021. First, our guidance includes our current best estimate for the anticipated impact of COVID-nineteen on our results.
Obviously, the situation is evolving rapidly, but we felt that it was important to attempt to incorporate some impact despite all of the uncertainty. For the Q1, we expect revenue to be in the range of $119,000,000 to $121,000,000 We expect non GAAP loss from operations to be $14,000,000 to $12,000,000 and non GAAP net loss per share to be in the range of $0.25 to $0.22 based on 57,500,000 weighted average shares outstanding. For the full fiscal year 2021, we expect revenues to be in the range of $510,000,000 to 530,000,000 dollars For the full fiscal year 2021, we expect non GAAP loss from operations to be $78,000,000 to $68,000,000 and non GAAP net loss per share to be in the range of $1.40 to $1.23 per share based on 57,900,000 weighted average shares outstanding. Let me provide some additional color to our guidance by discussing and attempting to quantify the potential impact of the COVID-nineteen virus on our business. Like many global organizations, we believe our operations will likely be impacted by the slowdown in economic activity that is occurring globally.
Our fiscal 2021 planning was completed before the recent acceleration in the spread of the virus, but the current and rapidly evolving realities on the ground led us to decide to update our current forecast. Our current assumption is that the disruption caused by COVID-nineteen will impact Q1 revenues by approximately $1,000,000 to $2,000,000 and fiscal 'twenty one revenues by approximately $15,000,000 to $25,000,000 due to anticipated weaker bookings in the first half of the year. To be clear, at this point, we are seeing minimal impact across our sales channels around the world, including closing transactions in the Q1, even in the countries hardest hit by COVID-nineteen. However, as a management team, we believe that it is now prudent and responsible to incorporate that into our outlook that we expect what could be a much more challenging economic environment in the coming weeks months. Our guidance assumes a more normalized business environment in the second half of the year.
Obviously, the situation regarding COVID-nineteen is changing rapidly and we will continue to evaluate its potential impact on our business. With respect to our overall investment cadence, we had made the decision before the COVID-nineteen outbreak that we want to continue investing in the business aggressively to pursue our market opportunity. We are funding high priority projects across the organization, including: 1st, growing our sales capacity globally, which still remains in its early stages from a scale perspective. For context, even in the United States, we still do not have coverage in roughly a quarter of the NFL cities and only have 2 or fewer reps in half of the NFL cities. Given our strong historic productivity, we believe that the primary governor and productive capacity should be organizational capacity.
2nd, continue investing in our marketing organization, particularly in our product led growth team in order to continue to drive our self-service Atlas business and overall Atlas adoption. Finally, as Dave described in his remarks, continuing with robust R and D investments both deliver on our data platform vision and to further enhance our core products. Given the attractive long term opportunity we have in front of us, we think it continues to be important and appropriate to keep investing in these high return areas. To summarize, MongoDB delivered excellent 4th quarter results. Our focus on executing on our product roadmap and expanding our go to market reach is driving high levels of growth at scale.
The steps we've taken to establish MongoDB as the modern general purpose data platform of choice positions us for continued long term success. While we expect to see an impact to our business from the COVID-nineteen situation in the short term, we remain committed to strong execution in order to capture our long term market opportunity. And with that, we'd like to open up to questions. Operator?
Thank Our first question will come from Sanjit Singh with Morgan Stanley. Please go ahead. Hi.
Thank you for taking the questions and congrats the team on another strong year. Really great to see the strong results coming out of Q4. And Michael, thank you for framing the guidance. That was very helpful. I was wondering if you could just sort of take us behind the curtains a little bit in terms of how you sort of came up with the $1,000,000 to $2,000,000 impact in Q1, the $15,000,000 to $25,000,000 for the full year?
Specifically, how do you expect this to potentially impact the business? Is it going to be more on the sales sold side part of the business, the self serve or maybe on the professional services? And how and to what extent do you see assume like lower close rates? Any sort of color that you could give us to contextualize the guidance would be helpful.
Yes, great. Thank you for the question. Happy to provide the guidance. Obviously, it's a rapidly evolving situation, so it's hard to capture it all with a point estimate. But what we tried to do is we tried to look at the landscape and say what are some potential outcomes that might be appropriate to incorporate into our guidance.
And so fundamentally what we did is we said let's imagine that in the first half of the year, we see a slowdown in overall economic activity and the way that would flow through is through in sales activity and bookings activity. I think that's specifically for the direct sales side of the business. I think it is less likely that we would see that on the self-service side. And so what we tried to do is we tried to look at the regions that were most affected and run some sensitivity analysis around what different scenarios might look like. We have assumed, as I mentioned in the prepared remarks, we have assumed a normalization of activity in the second half of the year.
So obviously if things persist or prolonged, we of course would have to reevaluate that approach. But fundamentally, I think we're exceptionally well positioned in the market overall. We haven't seen any meaningful impact in the business to date. We have the benefit of having a wide diversification of customers and geographies and industries that we serve. There certainly some industries that are harder hit and other industries that are actually benefiting and that diverse portfolio is certainly working for us.
But we wanted to try and do our best to sort of call it out, recognizing how the situation continues to evolve.
Thank you, Michael. That was super clear. And then for my follow-up, maybe for Dave. One of the things I've been trying to think through is self hosted enterprise advanced and what's sort of the outlook for that. And clearly this quarter with that large Fortune 50 deal seems to underscore that this is going to continue to be a growth category even as Atlas continues to post sort of leading growth in the company.
Can you sort of give us your view on sort of the positioning and the growth opportunity within Enterprise Advanced going forward?
Yes, sure, Sanjeet. We believe that the growth of EA will continue to be strong. Why? Because there are many customers who want to consume MongoDB on their own in terms of maintaining and managing their own database infrastructure, either because they have a lot of sunk costs or there's regulatory requirements that require them to run EA on their premises or in certain data centers that they're allowed to do business in. So one of our key value propositions to our customers is the ability to run and use MongoDB anywhere.
And so we don't force fit every customer to consume it as a service in Atlas. And so and customers like that choice. And we have many customers who both procure EA as well as continue to invest in Atlas.
Appreciate it, Dave. Thank you.
Our next question will come from Raimo Lenschow with Barclays. Please go ahead.
Hey, congrats on the quarter, but also congrats for trying to kind of put an impact on the COVID situation for the business. Well done on that one. The two quick questions. So first one is, can you talk a little bit about Atlas? The growth this quarter, if I look organic, came down a little bit, but I do seem to remember that last year we had not just MLAP, but I think there were some other factors in the Q4.
Could you just remind us because we're trying to understand like the underlying growth run rate a little bit better? And then the follow-up is like what's the trigger points that you guys are looking for in terms of like changing in terms of maybe investment cadence as this kind of situation unfolds around COVID-nineteen? Thank you.
Yes, sure. So it was another strong quarter. Thanks for the question, Ramon. It was another strong quarter for Atlas. To your point, I think the two things that are worth calling out are, it was the Q1 where we had mLab in the base and we have talked about the different growth profile.
Those cohorts are contracting as we indicated and called out at the time of the acquisition. And also you're correct that in fiscal 2019 Q4, we did call out specific overconsumption that was not seasonally related, but specifically related to the life cycle of a couple of large apps that were in deployment. And so I think when you start to neutralize or normalize for both of those, it was another very strong Atlas quarter. So I think overall, we feel quite good about that. And then in terms of the second question, in terms of investment, I think maybe just to try and take a step back from an overall perspective, we as a management team have a very long term orientation.
We're very, very early on in the stages of trying to capitalize on our opportunity. We will continue to invest as we see good rates of return on the investments that we're making. We see that in both the R and D side as well as in the sales and marketing side. Certainly, if there were to be macroeconomic factors that would change or other size that sort of eroded or degraded those investment opportunities, we would modulate the levels of investment appropriately. And we've done that throughout the last many several years.
And so we'll just sort of continue to do that as we think about our role is sort of balancing, maximizing the long term potential, but also making sure that it's not a growth at all cost mindset, but instead sort of being prudent allocators of capital.
Got it. Thank you.
Our next question will come from Heather Bellini with Goldman Sachs. Please go ahead.
Great. Thank you so much. And hopefully, all of your families are doing well. So, wishing you guys the through this. Just had a couple of questions.
The first, thank you, Dave. The first on the direct business and again, thank you as everyone said for trying to clarify or quantify something that I know is probably impossible to do right now. But is there anything you could share with us about kind of the linearity over a typical quarter? Like what typically on average, how much comes in month 1 versus month 3? And I'm thinking on your enterprise business where you typically have deferred associated with that just so we can think about how that how the sales run through, not the revenue because I know that's ratable.
And then also just if you could share with us, Michael, just Atlas, you said less likely to be impacted. Is there anything you could share with us about what the profile is of an Atlas customer that may make them less susceptible to what's going on from a macro standpoint? Thank you very much.
Sure. So maybe I'll take the first one. So I've been in enterprise software now for almost 20 years and the lesson I've learned is that customers are trained to obviously try and get as much leverage as possible. And in every business I've been involved with, the quarters do tend to be back end loaded. And I would say there's nothing different about MongoDB.
I would tell you that one of the things that really differentiates us is that we have a very, very rigorous culture of qualification in our sales process. So the forecast that roll up to Michael and me, we have a lot of confidence in based on the rigor that the sales team puts in, in terms of forecast of forecast of the business. So our confidence in the forecast is a measure of the qualification process. And as you know, for 2.5 years as a public company, we've done a really good job. Michael, you want to handle the second question?
Yes. I think just on the second question, just to sort of make sure there's not any confusion. My comments about the likely impact on the business, at least from what we hypothesized, yes, is self serve. Obviously, Atlas or EA, there's sort of the direct sales side of things. But when you think about some of the potential impacts on a direct sales model of not being able to go to customer sites, people being quarantined or cities being in virtual lockdown, that shouldn't really affect the self-service side of the business as much.
Obviously, it's not immune to macroeconomic outcomes, but some of those sort of specific things that we're starting to see roll out across the geographies have a much more potential to directly affect to affect the direct sales side of the business.
Okay, great. Thank you very much.
Our next question will come from Brad Reback with Stifel. Please go ahead.
Great. Thanks very much. Dave, so you just alluded to your obviously decades of experience in software and the fact that you lived through 'eight and 'nine. Any lessons from that experience that you think are applicable to the situation we're in now and how you might or how you sort of position the business or the organization? Thanks.
Yes. So, well, I'm old enough to Brad to tell you that I also lived through 2,000, 2,001. So I was a public company officer then and I was a public company officer in 2,008, 2,009. And so I would tell you that we believe that while sentiment can change quickly, the underlying trends don't change as fast. So deals and progression typically still happen.
It's maybe deals who start early in the sales cycle that may have and end up having more approvals required and so sales cycles may start lengthening. As we said in the prepared remarks, we see minimal impact right now, but prudence dictated that based on our judgment experience and having seen this before that some impact given the macroeconomic environment was warranted.
Great. Thank you very much.
Our next question will come from Brent Bracelin with Piper Sandler. Please go ahead.
Thank you and good afternoon. I guess, Dave, I wanted to kind of go back to the Atlas business and really try to understand how economically sensitive that business is? Obviously, in the downturn databases weren't usage based cloud models. And so how are you thinking about just the Atlas business? Are there unique characteristics of cloud and databases and modern applications where maybe there won't be a lot of variability, but the new business, the new Atlas potential business could be at risk?
Any way you could kind of frame Atlas given again it is new, we really didn't have usage based transactional revenue streams in the last downturn and any insights specifically to how you're thinking about the Atlas impact potentially would be super helpful? And then one quick follow-up for Michael, if I could.
Sure. So, I would just tell you the Atlas business is consistent with the data business as a whole and that database software is incredibly sticky. Obviously, the database is the heart of every software application and people are not going to shut down existing applications, existing services, existing websites because they still have to conduct business. And so on top of that with Atlas, they've essentially handed off the ongoing management of their database infrastructure to us. So in times when people may want to do a little bit of belt tightening, it's very unlikely that they'll decide to bring those workloads back in house.
In fact, they will like the variable cost model associated with Atlas. On top of that, it's most workloads we see have a pretty predictable usage pattern. It's only a few workloads like games or some very seasonal workloads related to say the Q4 retail environment, etcetera, or some e commerce environment, say around Mother's Day, etcetera. And so those kinds of events, you see some spike in usage. So in fact, we are seeing spikes in usage with customers who are in the cryptocurrency business.
We're seeing spikes in usage with gaming companies. Obviously, there's a lot of people at home playing online games. We're seeing a lot of spikes in usage in terms of telcos and cable companies and their usage is going up. So I would say in general though the usage patterns tend to be fairly predictable. And on top of that, with the fact that people have handed off the management of their database to us through Atlas, those workloads tend to be very, very sticky.
Super helpful. And then this is a follow-up for Michael. You did talk about a large EA deal with a Fortune 50 customer. Could you just give us a little more color? Was that a kind of data based replacement opportunity?
Was it tied to kind of new application build? Any color there on why you won the deal, how competitive it was and kind of the proof points that tipped the scale in your favor there?
Yes. So, we would normally like over index on talking about any one customer, but just given the magnitude and the fact that it was a long term deal and impacted the numbers, we just wanted to put that in context. We've had a long term relationship with this customer, but this is a meaningful expansion and effectively where the platform going forward for non relational workloads. And typically what we would see is that there would be a mix of both new applications as well as migrations in scenarios like that.
Okay, great. Thank you.
Our next question will come from Tyler Radke with Citi. Please go ahead.
Hey, thanks very much for taking my question. I wanted to ask a couple on the $1,000,000 customers, which I think grew almost 60% year over year. I wonder if you could talk a little bit about some of the common use cases you're seeing. When you get to that type of a deal, are you seeing more legacy replacement?
And then if you could give us
a sense for how much of kind of those incremental $1,000,000 customers are coming from EA versus Atlas and just how to think about $1,000,000 customers on Atlas going forward? Thank you.
Yes. Just to be clear, our $1,000,000 count went from 39 to 62 just for everyone's benefit. And it's incredibly diversified set of customers. So I would not say there's any one predictable sort of use cases. And even in those particular customers, we have a land and expand business model.
So invariably, those customers are deploying MongoDB for more and more applications and different types of workloads. So it's not one app per se that's growing very, very quickly. And so we're very, very encouraged by and we've been talking about this ever since we've been a public company that our businesses will land expand and the durability of our business is that it's not tied to any one specific app, but that over time people end up standardizing on MongoDB. And as they get more and more value of MongoDB, they start using us for more and more different workloads. So I wouldn't say there's any one particular use case or any common theme across those $1,000,000 accounts except the fact that it's most of them are classic land expand accounts.
And do you have
a sense just on the second part of the question around how much of those customers are on Atlas versus EA and maybe just what you expect that to look like going forward?
That's also frankly a very healthy mix of both. So there's no one any concentration of both either EA customers or Atlas customers. And so we've seen customers invest very, very aggressively in EA, but we're also seeing a lot of other customers invest aggressively in Atlas. And again, because of an earlier question, frankly, we have customers who do both. So we get the best of both worlds.
Some workloads they want to maintain in house and other workloads they think make more sense to use a fully managed service like Atlas.
Thank you.
Our next question will come from Jack Andrews with Needham. Please go ahead.
Good afternoon. Thanks for taking my question. I was wondering if you could just provide an update to trends you're seeing around legacy migrations, especially since you announced some new partnerships that look to accelerate that trend? Yes. So we are actually seeing a lot of interest of customers who are trying to re platform legacy database infrastructure.
One of the challenges for people is that they ultimately have to not just move the work the data, but then potentially have to rewrite the application. And so we've talked in the past about using our SI partners in that and now we announced some other partnerships where we're offering customers migration toolkits to our partners to frankly reduce the amount of work and heavy lifting required to migrate off relational workloads to MongoDB. And so the degree to which we can make that easier and easier for customers to migrations we see from legacy workloads to MongoDB. Okay, thanks. And then just as a quick follow-up, could you touch on your auto scaling capability and how that may be impacting your own business and then whether that's a source of margin leverage for you over time?
Yes. I mean, so auto scaling is basically enabling customers to not worry. I mean, the whole premise for building MongoDB is to really get the database out of the way. And one of the classic challenges is doing capacity planning with the database because you want to ensure that you offer good service and good predictable performance to your end users. And so with auto scaling, we basically take that to the next level is that the performance demands of your application grow, the database scales elastically.
And so this gives customers peace of mind in terms of not having to worry about having any degradation of performance for their users, customers or partners with the ability to auto scale. And typically, we find that this is also a win win for customers because they don't have to pay for some fixed utilization cost when a fixed cost when the utilization drops. And so it's a win win for both customers and for us. And so it means candidly more upscaling and also sometimes a little bit downscaling. But in general, it's a win win and it allows us to build really healthy long term relationship with customers.
Great. Thanks, Enda. Congratulations on the results. Thank you.
Our next question will come from Patrick Walravens with JMP Securities. Please go ahead.
Great. And let me add my congratulations to trying to estimate the COVID-nineteen impact. I think you're the
first ones to do it.
Thank you.
Yes. So Dave, the what sorts of tools and I'll give you an example in a second, but what sorts of tools do you have to manage the business maybe a little differently if we are heading into a real economic slowdown? And as an example, we hosted a call with Salesforce this morning. And they talked about how in the last downturn, one of the things that many of us really focused on was making sure they maintain the customer relationship even if it meant so keep the contract even if it means it's a lower pricing or a significantly lower contract value. The theory being that when you come out the other it's easier to expand an existing customer than to sign up again.
So just any kind of tools like that that you guys have, I'd love to hear what they might be.
Yes. So I would say that there's a couple things that we do. One is we put a lot of rigor, as I mentioned to an early question, in our forecasting process because to us a revenue forecast is by definition also an expense forecast. And so the more fidelity we have in our forecast, the better sense we have in terms of how to really size the capacity of the business relative to that forecast. And so we put enormous amount of rigor on the on our forecasting process and we feel really good about the quality of the forecast that we get from our sales force, which so that's point number 1.
Point number 2 is, we obviously spend invest a lot of time with customers. And with Atlas, we get even higher levels of data and instrumentation on how customers are using our platform. And so that gives us a sense about like are they using it properly? Are they running into any issues? Have they configured their database correctly?
Are they seeing any performance degradation, etcetera. And again, the database is the heart of every application. And so people care very quickly if there's any issues. And so we spend a lot of time focusing on making sure that they're getting a lot of satisfaction and delight from both MongoDB and from Atlas. And so I would say in general, we don't see today any real impact on the business, but we do again prudently think that there will be some impact, which is why we gave the guide that we did.
And we're obviously going to monitor this very, very carefully, both in terms of our pipeline, our sales pipeline. We're also tracking, obviously, self-service funnel. That funnel is also very, very strong. And but if you see any changes, we can respond very, very quickly. Great.
Thank you.
Our next question will come from Richard Davis with Canaccord. Please go ahead.
Hey, thanks. I'm thinking in a tough environment, one of the pitches if I was a salesman for you guys is I could offer kind of a hard dollar ROI. And I think you can pretty much offer that. And I might just make sure I'm not mistaken, but can I walk in and go, listen, you can get rid of your old systems and save money? It's not like one of these companies just say, oh, we're going to save everyone 2 minutes a day.
You're like, I don't know what that means. Is that a fair assessment of the business model there? Thanks.
Oh, absolutely. One of the compelling benefits of MongoDB and Atlas and the fact that you don't have to manage databases is the total cost of ownership of MongoDB is so much lower legacy technology.
Got it. And then the second quick follow-up, when you guys go up against other, because there are a bunch of other NoSQL database companies, and you and I both hate that phrase, but whatever, we'll use it. Is it oftentimes, is it performance benchmarking or is this a business where developer mind share and market share matters? I mean, obviously, if I'm used to the UI and I've moved from one company to another, I'll take your system with me or recommend it. Is it can you tell which one is more important or has that maybe reached a tipping point to one side or the other?
Thanks.
Yes. I would tell you that it's much more the latter than the former. There's a in databases historically there's been a lot of benchmarks used, but a lot of the benchmarks are jerry rigged with certain tests that make one vendor look better than another vendor and customers and developers in particular become wiser What it is, is really all about making a developer's life easier. And one of the real hallmarks of MongoDB is and the reason why we are the most popular modern database in the world is that we can get customers and developers up and running very, very quickly. The document model, our query language, the fact that our database scales very, very easily, the fact that they can consume it as a service, the fact that they can use it for almost every any particular use case because it's true general purpose platform, not some niche solution makes us a very, very compelling solution, which is why our business has grown so quickly and it's all developer led.
And we're investing a lot in the business. We've made a lot of investments in expanding our developer relations capabilities to engage with our developers. And given everyone's now working virtually, we're going to see do a lot more online seminars and education to get developers up to speed on all the latest features and benefits of MongoDB. And on top of that, we continue to invest a lot in our self serve business where developers either developers sitting in a garage or developers from a large Fortune 500 organization can engage with MongoDB and get going very, very quickly.
Thank you so much.
Thank you.
Our next question will come from Rishi Jaluria with D. A. Davidson. Please go ahead.
Hey, guys. Thanks so much for taking my questions. Two quick ones and let me echo my colleagues and appreciating the fact that you're trying to put a natural dollar figure around the impact of coding your guidance. I think it's a great lesson that a lot of other enterprise software companies might be able to follow your lead on this. First, just wanted to maybe understand with MongoDB World turning virtual this year, how should we be thinking about the potential impact, be that on new bookings or on lead generation or anything to that effect?
And then for Dave, with Elliott stepping down, obviously, Bob brought a lot of kind of vision and great that he's staying on in a little bit of an advisory role. Just what would you be looking for in Elliott's replacement as CTO if you are in fact looking for 1? Thanks.
Sure. So let me take both questions. On the first question on World, I want to be clear, World was never designed to be pipeline acceleration conference. This is really designed to be an education conference for our community. And in fact, the more meaty and technical and in-depth the content, the better.
And so obviously, there's big investments by our organization, especially on the engineers who are actually building our capabilities. That's who the developers want to spend time with. They want to meet the people who are writing the code, ask technical deep technical questions, spend time with the experts. So it was never really a pipeline acceleration conference. Obviously, around that conference, we may arrange meetings with more senior level stakeholders.
But if you look at the content from prior years, it was really, really focused on serving the needs of the technical community of MongoDB. So we don't see any potential impact on making MongoDB World a virtual conference. On the and candidly, frankly, now that it's virtual, I should mention, we're in fact reimagining the conference and frankly trying to maybe since it's virtual appealing it being able to reach many more developers at one time because we only used to broadcast the keynotes where we had 10,015 people listen to the keynotes, but the individual conference were not broadcast or video streamed. And so we're reimagining the conference so that more people can get access and hear the latest and greatest about MongoDB. With regards to Elliot, obviously, we're incredibly grateful for his contributions and leadership over the last 13 years.
He has really assembled an incredibly strong team. 2 of his key lieutenants have been with the company for more than 7 plus years and they're stepping up within a bigger role. And Sahir, our Chief Product Officer, was put in place a couple of quarters ago. And so that was also part of setting up the transition for this move. And so we've really, really got a strong deep bench under Elliot.
There's no plans to recruit a CTO from the outside at this point. And I couldn't be prouder of the team that's here because I feel that we have a massive opportunity in front of us and a world class team
to help us get there.
Great. That's really helpful. Thank you.
This concludes our question and answer session. I would like to turn the conference back over to David Echeria for any closing remarks.
Well, again, I am very grateful for all of you who are able to listen to the conference. Obviously, my thoughts and prayers to all of you and those affected by COVID-nineteen. We hope we will get through this quickly. And obviously, we're focused as a business on serving the needs of our customers and employees. And we'll talk to you at our next earnings call.
Thank you.
Thank you.
The conference has now concluded. Thank you for attending today's presentation and you may now disconnect.