IPO of the Week: MongoDB, Inc.

Josef Schuster
Dr. Josef Schuster is the founder of Chicago-based IPOX Schuster LLC and chief architect of the IPOX® Indexes. The IPOX methodology is implemented in an IPO and spin-off strategy at Catalyst Funds. Before founding IPOX, Dr. Schuster pursued his academic work on European IPOs in the Financial Markets Group (FMG) at the London School of Economics (LSE), where he completed his MSc and PhD and conceived the idea to start IPOX. He regularly appears in the media as an expert in global New Listings and respective investment products.

Company Description

MongoDB

Incorporated in 2007 under the name 10Gen, and launched the Server in 2009, MongoDB is a database software provider.

Business Model

MongoDB generates revenue primarily from sales of subscription/software of MongoDB platform and hosted database-as-a-services (DBaaS) solutions. The company also derives revenue from post-contract support, training and consulting services.

IPO History

On 10/19/2017, MongoDB went public on Nasdaq led by prestige banks including Morgan Stanley, Goldman Sachs, Barclays and Allen & Co. The stock was priced at $24.00, above the boosted marketed range of $20.00 to $22.00. With a full subscription of 8.0 million offered shares and the 15% over-allotment option fully exercised, MongoDB was valued at $1.20 billion at offer. MongoDB opened at $33.00, a 37.5% pop from its offer price, and finished the first day with a 33.63% initial return. MongoDB was included in the IPOX® 100 U.S. Portfolio on 12/21/2018 and currently weighs circa 0.74% of the portfolio.

Historical Performance

Growth Outlook

Industry Comparison

Company

Stock

Symbol

IPO/Spin-off

Date

Initial
Return

Offer to Date

2019

YTD

Beta to S&P

EPS

2018

Revenue

(in millions)

2018 Net Income

(in millions)

P/S
ratio

MongoDB

MDB US

10/19/2017

33.63%

593.17%

98.66%

1.51

-$1.90

267.02

-99.01

24.5x

Oracle

ORCL US

Oracle went public on 3/12/1986

17.17%

1.07

$0.93

39,831.0

3,825.0

4.5x

Microsoft

MSFT US

Microsoft went public on 3/13/1986

33.07%

1.07

$2.15

110,360.0

16,571.0

7.5x

IBM

IBM US

IBM went public on 1/13/1978

19.98%

1.05

$9.57

79,591.0

8,728.0

1.5x

Other Competitors

Amazon Web Service (AWS)

Subsidiary of Amazon (AMZN US) with a $400 billion valuation standalone

MariaDB

Espoo, Finland based private company, with Alibaba Group behind

Couchbase

Known as Membase, Santa Clara, CA-based private company

DataStax

Santa Clara, CA-based private company, preparing 2019 IPO