MongoDB, Inc. (NASDAQ:MDB) Q2 2021 Earnings Conference Call - Final Transcript

Sep 02, 2020 • 05:00 pm ET

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MongoDB, Inc. (NASDAQ:MDB) Q2 2021 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. We will now begin the question-and-answer session. [Operator Instructions] And our first question will come from Keith Weiss with Morgan Stanley. Please go ahead.

Analyst
Keith Weiss

Excellent. Thank you, guys, for taking the question, and congratulations on a very impressive quarter. Very impressive in terms of the momentum that you guys are keeping up is on both sort of the top line in terms of the nice growth that you saw there, as well as operationally in terms of those hires that you guys are able to get is both very impressive.

One of the numbers, in particular, that I wanted to ask you about that really popped out the news, the number of new customer additions that we saw in the quarter, it looks like over 1,800 new customers. That's frankly the biggest number that I have on my spreadsheet here, have you guys ever historically adding and what is admittedly a very difficult IT spending environment. So Dev, for you, is there any change in kind of like go-to-market or sort of a better motion like you're talking about in self-service, like what's driving that strength and sort of that upper momentum that we're seeing in those new customer adds?

Executive
Dev Ittycheria

Yeah. Thanks, Keith. We're obviously very pleased with the customer additions for the quarter. I would tell you that we made some changes to sales incentives at the beginning of the year prior to the outbreak of COVID-19, where we made a conscious decision that we just wanted to accelerate the acquisition of new customers this year. And we decided that because we saw how customers grew really, really quickly, once they got onto our platform and, in particular, on Atlas.

And because we saw that growth happen, we said, gosh, why we just focus more on acquiring new customers and they naturally will grow more. And so, before we would force -- force may be a strong word, we would incentivize our salespeople to get upfront commitments and for many customers, they're not completely sure one of the platforms to how quickly their workloads will grow, how much data they will have, how many users they will have. So it ended up being a bit of a -- adding a little bit more friction to the sales process, because you had to naturally -- they had to naturally try and convince the customer to make some form of commitment.

Because we took that objection away, we've just seen -- frankly, it's unleashed the productivity of our salespeople. It's cut down the cycle time of some deals because avoiding that negotiation allows them to get on the platform more quickly and allows us both on the direct side and even on the self-serve side to just add a lot more new customers.

Analyst
Keith Weiss

Got it. That makes a ton of sense. And then, Mike, a question for you, and this is related to the guidance. The implied -- like Q4 guide, if we take the full year and we subtract