MongoDB, Inc. Class A

Performing some portfolio rebalancing.  I wanted to add to my position in MDB, after their blow-out results from Q1.  Ultimately, I would like MDB to be as large a position as NET, SNOW and DDOG, as I think the company will benefit from similar tailwinds as enterprise IT spend recovers and AI drives new use cases and workloads.  AI also has the potential to increase the productivity of developers, resulting in more applications.  These applications will require a database, monitoring, security and delivery, which should increase consumption of those services broadly.

Specific to MongoDB's outstanding Q1 report, the highlights in my view were:
- Potential revenue growth acceleration going into Q2 (estimated growth rate already same as prior quarter - similar beat would represent upside).
- Record total customer additions
- Significant number of new customers are AI stand-alone companies (200 of them, including marquee names). These companies are benefiting from rapid growth and seemingly unlimited funding (similar to 2021).
- Huge improvement in profitability measures.  FCF margin hit 14%.  Large beats on Non-GAAP EPS.

The only problem is that the stock is getting pricey, but probably still has some upside over the long term.  I will continue to add on dips where possible.

love to see record total customer additions with revenue expansion (unsure of their net revenue retention, but assuming it's pretty good?)

Rico

My $MDB trades

Bought 38% more MDB

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