MDB - Embedded Expectations Analysis - 2020 06 10
MongoDB, Inc. (MDB:USA) currently trades near historical highs relative to UAFRS-based (Uniform) assets, with a 15.0x Uniform P/B. At these levels, the market is pricing in expectations for a massive profitability inflection, but management may have concerns about Atlas capabilities, revenue growth, and business investmentsSpecifically, management may lack confidence in their ability to keep the business steady amidst coronavirus turbulence and sustain revenue growth and $1mn+ ARR customer gains. Moreover, they may be exaggerating their ability to address the lack of scalability of relational databases, the potential of their recent product announcements, and the advantages of using their platforms with Atlas. Furthermore, they may lack confidence in their ability to prevent database issues, help customers navigate app complexity, and continue aggressively investing in their business through sales capacity growth. In addition, they may have concerns about the unfavorable impact of Atlas on margin and the challenges clients face when migrating databases. Finally, they may be exaggerating their position as the modern general-purpose data platform of choice and the suitability of their core competitive strengths
MongoDB operates as a general purpose database platform. The company's primary offerings are: MongoDB Enterprise Advanced, which includes the company's proprietary commercial database server, enterprise management capabilities, its graphical user interface, analytics integrations, technical support and a commercial license to its platform; MongoDB Atlas, which provides customers with automated provisioning and healing, system monitoring, managed backup and restore, default security and other features; and Community Server, which is a free-to-download version of the company's database that does not include all of the features of its commercial platform. The company also provides consulting and training to its customers.
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