Revenue

9 Months Ended

Oct. 31, 2021

Revenues [Abstract]

Revenue

Revenue

Disaggregation of Revenue

Based on the information provided to and reviewed by the Company’s Chief Executive Officer, its Chief Operating Decision Maker, the Company believes that the nature, amount, timing and uncertainty of its revenue and cash flows and how they are affected by economic factors is most appropriately depicted through the Company’s primary geographical markets and subscription product categories. The Company’s primary geographical markets are North and South America (“Americas”); Europe, Middle East and Africa (“EMEA”); and Asia Pacific. The Company also disaggregates its subscription products between its MongoDB Atlas-related offerings and other subscription products, which include MongoDB Enterprise Advanced.

The following table presents the Company’s revenues disaggregated by primary geographical markets, subscription product categories and services (in thousands):

	Three Months Ended October 31,				Nine Months Ended October 31,
	2021		2020		2021		2020
Primary geographical markets:
Americas	$	138,036	$	93,255	$	368,339	$	261,836
EMEA	66,183		44,552		178,490		123,762
Asia Pacific	22,674		12,964		60,459		33,783
Total	$	226,893	$	150,771	$	607,288	$	419,381
Subscription product categories and services:
MongoDB Atlas-related	$	131,123	$	71,110	$	336,390	$	186,354
Other subscription	86,748		72,959		247,432		215,049
Services	9,022		6,702		23,466		17,978
Total	$	226,893	$	150,771	$	607,288	$	419,381

Customers located in the United States accounted for 55% of total revenue for both the three and nine months ended October 31, 2021 and 57% of total revenue for both the three and nine months ended October 31, 2020. No other country accounted for 10% or more of revenue for the three and nine months ended October 31, 2021. Customers located in the United Kingdom accounted for 10% of total revenue for both the three and nine months ended October 31, 2020.

Contract Liabilities

The Company’s contract liabilities are recorded as deferred revenue in the Company’s condensed consolidated balance sheet and consist of customer invoices issued or payments received in advance of revenues being recognized from the Company’s subscription and services contracts. Deferred revenue, including current and non-current balances, as of October 31, 2021 and January 31, 2021 was $297.9 million and $238.0 million, respectively. Approximately 30% and 35% of the total revenue recognized for the nine months ended October 31, 2021 and 2020, respectively, was from deferred revenue at the beginning of each respective period.

Remaining Performance Obligations

Remaining performance obligations represent the aggregate amount of the transaction price in contracts allocated to performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations include unearned revenue, multi-year contracts with future installment payments and certain unfulfilled orders against accepted customer contracts at the end of any given period. As of October 31, 2021, the aggregate transaction price allocated to remaining performance obligations was $353.4 million. Approximately 61% is expected to be recognized as revenue over the next 12 months and the remainder thereafter. The Company applies the practical expedient to omit disclosure with respect to the amount of the transaction price allocated to remaining performance obligations if the related contract has a total duration of 12 months or less.

Unbilled Receivables

Revenue recognized in excess of invoiced amounts creates an unbilled receivable, which represents the Company’s unconditional right to consideration in exchange for goods or services that the Company has transferred to the customer. Unbilled receivables were recorded as part of accounts receivable, net in the Company’s condensed consolidated balance sheets. As of October 31, 2021 and January 31, 2021, unbilled receivables were $6.9 million and $5.7 million, respectively.

Allowance for Doubtful Accounts

The adoption of ASU 2016-13 on February 1, 2020 required the Company to shift from an incurred loss impairment model to an expected credit loss model. Accordingly, the Company is required to consider expectations of forward-looking losses, in addition to historical loss rates, to estimate its allowance for doubtful accounts on its account receivables. The following is a summary of the changes in the Company’s allowance for doubtful accounts (in thousands):

	Allowance for Doubtful Accounts
Balance at January 31, 2021	$	6,024
Provision	3,652
Recoveries/write-offs	(4,680)
Balance as of October 31, 2021	$	4,996

Costs Capitalized to Obtain Contracts with Customers

Deferred commissions were $153.4 million and $118.6 million as of October 31, 2021 and January 31, 2021, respectively. Amortization expense with respect to deferred commissions, which is included in sales and marketing expense in the Company’s condensed consolidated statement of operations, was $13.3 million and $33.5 million for the three and nine months ended October 31, 2021, respectively, and $7.2 million and $20.5 million for the three and nine months ended October 31, 2020, respectively. There was no impairment loss in relation to the costs capitalized for the periods presented.