MRDB - Earnings call 2 2023

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Operator

Good afternoon. My name is JP, and I will be your conference operator today. At this time, I would like to welcome everyone to the MariaDB Second Quarter Fiscal 2023 Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to your first speaker, [ April Sy ], Investor Relations. go please ], April ahead. [

Unknown Executive

welcome Good Earnings Second XXXX MariaDB's Call. afternoon, and Conference Quarter to

We the With be Chief after Chief will discussing Officer, Financial the release our Executive market issued Officer, press Conor closed Howard; today. Michael me McCarthy. MariaDB's results are and announced in

of today's to These forward-looking current risks we on statements materially significant Before that the I'd a forward-looking include our will company's differ to like call begin, expectations. statements expectations. based subject are projections number you current and may uncertainties, remind conference and and other results our from

For from SEC refer a quarterly factors to February time filed the Securities to affect and Commission, release could please in financial XX-Q with disclosure the reports our earnings time the our today's with future discussion in of Exchange factors described the and report XXXX. and business, file results including Form we and on on other that filings XX,

made today update any required are assume to by obligation statements as our no as law, except information of based available such us And of All we today. to on statements.

let call me turn Michael. to that, over With the

Michael Howard

line to journey the pleased by Good to Call. progress am XXXX we with cloud MariaDB's subscription to year-over-year XXX% to out-of-period our make continue in announce recent for Earnings afternoon, I in corrections the cloud, that demonstrated Conference QX welcome and as adjusted growth, quarters.

cloud in business excited in confident ability our are continue potential and and of driving innovation space. We this about the to our growth

QX after out-of-period XX% business us drive in total our year-over-year revenue corrections. subscription in growth for cloud enabled momentum The adjusting to

$XX.X representing of million by revenue, our progress XX% ARR, strong drove year-over-year end annual target also growth of ending QX the recurring with million, We $XXX XXXX. ARR toward in

streamlining we model. operations Additionally, structure to to the efficiency the our our cost seek as of increase optimize quarter, during we continue

as a it second our is call. public first earnings While conference this company, is quarter our

call then company, detailed on will of over Conor the a review a I'll to performance. to drivers bit give the the I'd financial more our you like provide strong hand results. walk to So I background our quarterly through of then more

with let new those First, a overview start for to brief company me MariaDB.

to vision of new in heights at a resilience the cloud any performance databases of of and is fraction Our competitors. to take cost

distributed deep and that SQL possible, public make do. technology vendors something Our can't database cloud cloud

real-life Let the some me our through use demonstrate technology of appeal cases.

not databases point existing of these of replaced databases while The be wanted and MariaDB's of one Bank billions point DBS systems database of of their proprietary in price at cost. the approach, a largest customer-centric. Asia assets. dollars flexible fraction is Singapore, DBS, becoming the did have bigger, more banks to legacy Southeast complexity did. hundreds with in price and cost-efficient MariaDB goals. more lend more Development open-source and the itself flexibility of to

making this Samsung, largest resulting Xpand them every one billion X electronics extraordinary Android smartphone possible. Cloud, the billions transactions phones. of Samsung delivers of sold distributed and scale than day. the one database on world's the consumer relies database SQL more MariaDB's brands, of Every in has

overall technology over ServiceNow, cases use use servers. queries the XX% MariaDB by XXX the hour of of demonstrate per to ServiceNow the strength many market. of These of processing points XX Fortune our powered thousands platform, our hundreds the with great price relative billion and

that leads solve we This organizations. X to the points for me major pain

scale. resilience continuously businesses to a call In solves surges. namely the face, First, it business demand increasing and capture and operating techspeak, this challenges modern our the technology we ability when

share gains and million, fans. when competitive helps only many a our example and growth that me you you advantage trying time. handle the can This buy Let resilience to scale. enhances people over key and have X.X give of disappointed XX prospects don't tickets when an million concert drive system markets is

to Second, Aurora addressing provides a over ownership Customers price complex databases fraction disruptor save technology total cost to driving of competitors' we up proven offering on attractive prices. over customer a This acquisition. TCO at of for MariaDB, can or XX% a up basis. an financial pain are AWS switch to by points incentive to XX% these our point legacy and businesses

It market, XX XX% CAGR of is to billion the gaming, management market. give X.X% they these forecast strengths at track relational in report, to banking. According XXXX SaaS e-commerce, XX us XXXX. systems databases the software relational to by database an telecom, to database ability entire Relational payment, expected run are and the are whether a databases global or that from database grow the billion IDC world,

namely The growth a this XX that where disruption the as aspect transition more X-year cloud CAGR fast. is projects growth of billion most over place, taking the to is the from IDC than market interesting XX same twice to is period. billion XX% the

with advantage technology The of which our where we differentiated where is point, and price attractive our cloud wins. is MariaDB and have drives combination an focused

are X a the consistently for quickly growth cloud-related in relational market, past months than over share We business. the cloud-based XX% more gaining database delivering

and more the and Our technology In which is technology. validates Stevie automation our SkySQL database productivity earlier including distributed give DEVIES Gold announced technology cloud-native through cloud strategy that award award-winning numerous prestigious QX, accolades, the developers today. our won to with SQL winning was our cloud award,

We our XX the ARR subscription-based $XXX of XXX,XXX of a of with over the reaching at X billion target and million corporate countries contributions, nearly open-source in second end XXXX. quarter the software, XXX-plus end million have by in downloads $XX.X over customers of

a cloud legacy XXXX, which of their first-generation databases XXXX, at in that like history cloud deliver use launched scalability databases. we can't database, We and a choice enterprise with of compatibility Oracle legacy second-generation customers the cloud prices. Microsoft have to allows incredible disrupted fraction we a In and In open-source and with Amazon capabilities our resilience successful with markets. cloud vendors public their disrupting

architecture come that, More I and other product unique to adapting you my at our Finally, encourage open-source tomorrow OpenWorks. keynote high-performance databases, tune conference our opportunity. triple our will to this on year, to into flagship which we market are

market, and want technology These about growth. some we Like headwinds That we of overview pronounced layers customers the trends potential impact in that macroeconomic spending. time or QX, second the extend affecting more opt Now peers, our talk see robust, I've remain additional and the demand continue results. grew I an of technology broader to are quarter many healthy seeing provided approval business to buyers of causing of purchases. indicators add and their for decision-making smaller to pipeline lines, the said,

our the about channel cloud, drive journey talk help transformation things I'm quarter these context and innovation, our the ongoing traction strategy: and strategy. that of going our the put international to to drivers X into partner

Innovation our the foundation of is growth. future

we our new accommodate cloud price In costs We order but quarter. in customers a normalizes the also to scale Here customers important announcements ability are as back control point to demand of demand serverless second-generation the added for This their only release database. when new scale leadership SkySQL, released the version down new and from disruptor. our analytics a to most a further cloud costs. with lets second automation increases March, not exemplifies that save in

version that and handling Xpand, The the a against new when edge comes database failures. of gives competitors it new our also infrastructure us technology, version released database also on available additional is to SQL distributed We SkySQL. scaling

are which to or respond that no is application, for can minutes While even instant, to unstoppable Xpand's take an manual require solutions means interaction, resulting there uninterrupted the performance. other in scale actions impact

toward In community solution a April, broadened of geared target we users. MariaDB audience the SkySQL with

MariaDB downloaded level of meaningful community that still or MariaDB conversion run also community We to have early infrastructure. SkySQL base interest size over customers effective has an SkySQL. other of running by large low but who databases this user in existing a their on-prem opportunity subscriptions. not a now days, observability billion have covered is monitor very already times. additional a of MariaDB users on-ramp from servers seen on even current generate community their could cloud we X means The hundreds strong lets It

streams. success. base, customer also predictable strategy us business expand retention model, It in cloud long-term positioning sustainable a improved customer drives and allows for Our our more recurring more general enjoy us revenue to

are strategy. our We on in execute confident ability this to

we reflecting growth for wide our span corrections. in XXX% adjusted award-winning of out-of-period solutions. These customers cloud my As comments, database our a strong subscription recognition drove industries, of proposition the value mentioned I year-over-year variety cloud new widespread opening and

reducing For our offering Communications, our clients SkySQL better cost. Amazon from example, solution while Teal from competitive The an performance better, strength ability showcases to reliability. and during the quarter, IoT to company, the migrate seeking win over takeaway SkySQL and RDS networking of Amazon RDS performance gave faster them our chose because to

a becoming our on long-term with ourselves fostering and pride existing also We strategic customers. partner relationships

additional quarter. attract of application services firm financial us the example, a management capacity Xpand quarter, meaningfully new for the millions active in For leading purchased with will anticipate during grew a during specializing users. investment They daily they

Revenue to strength in base. small of is of revenue international where with held we Asia consumption cloud. steady the at grew particular off XX% in a Internationally, Americas, increased the XX.X% Overall, revenue outside XX.X% proportionate Pacific markets revenue.

growth OEMs. is resellers, the to this partly growth was growing due driven inbound international technology commercial opportunities. including partners past, vendors, by and Our In requests software and our ecosystem, partner

and customer significant customer recruiting manage generation, us technical built benefits, acquisition, actively ecosystem recently, with This and partners. we providing More a support. database lead partner new deployment, relationships, accelerated support to new consumption team partner provides including

Our through customers Transfers through continues this drive coming [ internationally, with Genesis to with new were of Go quarter partnerships many partners. strategy AWS and These partner our such won as and in domestically expanded both QX. and Digital success, which deals ], our include

our in new legacy is strategy, telcos world. MariaDB with out X the Germany, of scale, larger suite database Amdocs clear presence. is This a rolled modernize suite, The by the expand demonstration from market Telefonica has including us around their a to planned customers, cloud migrated At reach system and power database collaboration, of this monetize products. which our updated with as to quickly future. more Through to the Amdocs software enabling partner we with technology collaborate a enterprise they MariaDB used our telcos,

relationships will partner and leverage continue and enhance our marketing partner Going efficiency drive to greater we sales our and to forward, sales prioritize teams.

control. and through capture ahead us can of placing while we XXXX, opportunity discipline on plan the on what expense to to investing innovating also large rigor increased As we and progress we focusing keep

share high-growth we I'm to years effective the a bringing organizations significant dive at excited XX April Conor as businesses. MariaDB into has financial McCarthy scaling finance experience announcement that SaaS of and joined leading over Before companies CFO XX, our results, experience

We the of positively next our his will impact chapter are experience confident growth.

to detail Conor second XXXX quarter is It over to results. it to our now my on provide more pleasure hand financial

Conor McCarthy

exceptional new thrilled MariaDB's and an company. join I'm to such be our CFO to exciting at Michael. you, for Thank team this time management

been has scaling several years finance XX My experience last over leading organizations, the SaaS businesses. including

can During confident and clear success what innovation, be I've in the relational part drive had to scale and to to capture and the that lot market market our of time, it growth achieve ongoing the we I look the I months database market. takes. forward differentiation and billion I team to am a in know coming to opportunity and MariaDB's working of years. goals stories, with Thanks share XX

subscription revenue at million, grew revenue up architect XX% $XX of As training customer result consulting business our second adjusting for increase revenue revenue increased XX.X% consulting, our XXX% XX% adoption revenue within primarily $XX.X of $X.X migration consists increased for a administration as remote year-over-year demand Michael training, was to XX.X% primarily Cloud million, our continuing for for a result Subscription primarily XX% and solutions database and existing services. as of mentioned, on-premises revenue cloud-based accounted and of our out-of-period cloud. after of or enterprise XX% out-of-period of base. adjusted expansion second of the for of services accounted million, year-over-year quarter Services up second XXXX corrections. quarter corrections, the total our quarter and year-over-year our of an

strong pleased renewal our nature ARR revenue contractual base. increase, that our high potential to to we business, our and streams into visibility rates of our customer are and reflecting Given future of growth the continues report level of the have a

of $XX.X quarter XX%. basis rate impact the included $XXX,XXX up was XXX greater accounts an approximately which million, retention for exchange for adverse than was points. ARR XXX.X%, Our Net foreign

on in us second a Our positions was X.X improvement $XX.X cost gross profile margin XXXX, The the from points. well efficiency by long margin, an improvement our of profit year-over-year of was and for in focus XX.X% million up driven profitability profit percentage quarter gross control the over sustainable continued term. XX.X% and

largely the XX.X% second revenue, Turning General now down or expenses year-ago XX.X% Sales XX.X% million of XX.X% the million million second to expenses in second and were down development the in driven were were marketing expenses in XX.X% quarter addition or from from $X.X expenses. $X.X or for of $X.X quarter operating quarter. of Research XX.X% and the of the costs. revenue, from quarter company public of by and administrative revenue, up XXXX of XXXX.

$XX was million, per the operations loss $XX.X million in to quarter Net $XX.X from million $X.XX share loss loss compared representing share versus million of loss Our of loss a a per a the XXXX. was second year quarter or $X.XX a for of $XX.X second ago. of

with cash balance and sheet. end equivalents and cash cash we $X.X the the $XX.X to of cash quarter million equivalents. Turning in ended had We the million. of April, At

term loan with a commercial a bank in loan that about credit a includes revolving facility a large are facility. both and We discussions also advanced

to options raise exploring actively are we equity. Additionally,

our strong business growth the in believe available term. for will we customer long funding of the impressive and short both business base, Given the our be and record

increase the market drive retention, confident closely in sustained of growth opportunities, any We of are and conditions other million by the impact to pipeline we things. over With long term. sizes affecting and $XXX our monitoring this, among ability technology deal end the ARR keenly will believe Despite aware we profitability growing our pipeline of over challenging conversion, and budgets sales our reach the to remain cycles, are XXXX. on and continue

our by be our will We We pursuing cloud-based will approach focus through sustained and to be that driver a of on the solutions CAGR a achieving XXXX growth, believe XX%. end a XXXX. profitability cloud-related are we also balanced believe of key actively profitability growth and with over

believe customer well positioned product capture we continue we and to that we As our invest base. development in expand and sales to market are share efforts, additional marketing and

come. to in are delivering stakeholders the the opportunities to our remain excited to and committed about We ahead value years

XX the our balance improving days, priorities balance sheet. include my the Over of growth ensuring next and profitability proper and

record remain long both and term. and Given in available our funding growth that base, be will strong confident short business we impressive for the customer the

Thank I will to concluding you. Michael back And now for comments. over turn it

Michael Howard

encourage I MariaDB and XXXX sign event for City XX Thank on you, up New through May closing, In Conor. OpenWorks virtually. X you our to in would York

open demonstrating technology earlier will new be that source. have announcements and discussed world some We the award-winning exciting I the of impact

in interest you MariaDB. Thank for your

Operator

conclude And for that conference. you today's will Thank participation. your

disconnect. now may You

MariaDB (MRDB) 8 May 232023 Q2 Earnings call transcript