This stat isn’t just a case study of Go To Market. At that scale, you need $100k and $1M+ deals. Slack started as a free tool, and as it crossed $1B, its majority became Enterprise. MongoDB has become pretty Enterprise, and that’s common for people north of $1B ARR. #6 - Top 100 Customers Are 33% Of Revenue. They know across thousands and thousands of customers that customer spend will grow 2.1x after two years, so they can lean in and invest in that knowledge. Mongo lets you try its products for free and scale up. As you build up a great sales team, they’ll get better at getting revenue up front, and that’s great up to a point. It means you do not have to rip off the customer or get every single dollar upfront. They still grow 2x in spend over the first 24 months. Here you can see the magic in MongoDB’s business model.Īfter 24 months, the average customer has grown 2.1x. It can be gamed a bit and is subject to interpretation.īut you know what isn’t? Revenue growth. High NRR is magical, but NRR as a metric isn’t a GAAP metric. #5 - The Average Customer Spend More Than Doubles After Two Years. If your million-dollar customers are growing at that rate and new logos are growing at almost 30%, at the end of the day, you’re probably going to breeze to $10B in ARR. Mongo’s $1M+ customers are up 30%, which is pretty epic. Yet leaders like MongoDB are growing quicker than startups, and it’s usually the opposite.ĬIOs and others want to concentrate their budget on vendors they trust, so if you have a strong brand, you can benefit from this trend. Budgets are tight, and folks are looking to shrink their number of vendors. Many people complain that there’s no budget in Enterprise and that it’s impossible to close bigger deals. $1M+ and bigger customers fuel MongoDB’s growth. #4 - $1M+ Customers Are Up 30%, Even With Economic Headwinds. MongoDB is crushing it, adding +24% new customers while growing +29% overall - a bullish sign for the future. That’s your future, not just your present. If you’re growing at 50%, you want to see at least 25% growth. If you’re growing at 30%, it’s good to see at least 15% growth in your new customer base. Adding new customers does, and ideally, growing new customers at least half as fast as revenue. Upselling your existing base and raising prices to keep top-line growth growing isn’t adding real long-term value. They milk the base, and the new customer account doesn’t remotely approach the new revenue growth rate. MongoDB is growing 29% at $1.4B in ARR, but what a lot of people at scale have trouble with is getting new customers. #3 - New Customer Count Is Up 24%-a Very Good Sign. This chart shows the awesome power of high NRR and how you have to invest in customers that scale with you over time. MongoDB isn’t trying to force it, even if they could. That ACV grows and grows gently over time to $1M+ deals.īut new workloads and new use cases of MongoDB are only about 10% of new bookings.īecause it takes time, and this is the power of NRR and playing the long game. You put more workloads in the database, and then you add more over time. #2 - New Workloads Are Only A Small Percentage Of Today’s Revenue, But Are The Majority Of Tomorrows. So we’re seeing signs of coming off the lows.Īre we near or past the lows in SaaS and Cloud buying patterns? We’ll see. Usage was up, although not quite like the days of 24 months ago. And when you have partial utility-based pricing like MongoDB does, you see the impact fast.įolks pulled usage down as much as they could to save money, although logo churn remained low.īut last quarter saw a bounce back. #1 - 2022 Saw A Slowdown In Usage Growth, But 2023 Saw A Potential Bounce Back.Įven with MongoDB’s epic growth, 2022 saw a big slowdown in usage growth. Let’s look at nine interesting learnings about this leading company. While many less efficient public SaaS companies are trading at tough multiples of 3-4x ARR, and the average is about 6x ARR, MongoDB is almost 20x ARR. That’s about as good as it gets in SaaS and Cloud! MongoDB is at a stunning $1.5B in ARR, 29% overall growth, and is worth $29B. Instead of looking at those who are struggling, let’s take a look at the epic growth story of MongoDB, a company crushing it in 2023. MongoDB is one of those that has never stopped. Some SaaS and Cloud leaders have seen big impacts from the post-2020 hangover, but others keep accelerating.
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