On Thursday, MongoDB, a startup database company with a reported value of $1.6 billion which grants it so-called unicorn status, filed for its initial public offering with the Securities and Exchange Commission (SEC) and will be listed under the ticker symbol MDB on the Nasdaq. It will take on tech giants operating in the space including Amazon, Microsoft, and Oracle.
As reported by Tech Crunch, MongoDB assists companies with managing their databases, including big names like Adobe, Citigroup, and eBay, through its MongoDB open-source database and Atlas, a database-as-a-service product. The Atlas database even runs on cloud-computing platforms provided by competitors, like Amazon Web Services (AWS) and Microsoft Azure.
According to Business Insider, Dev Ittycheria, the CEO of MongoDB, stated that Oracle was their biggest target in the space, saying, “We believe Oracle is incredibly vulnerable because they’ve lost the developer’s heart and soul.”
MongoDB took advantage of the JOBS Act “confidential filing” provisions, allowing it to shield its intentions from the public eye until 15 days prior to the investor roadshow to release its financials. The rule helps startups prepare to list before being subjected to the high-level of scrutiny associated with the move until just weeks before the company makes its debut.
Currently, MongoDB isn’t turning a profit, having reported a loss of $45.76 million on $67.9 million in revenue during the six-month period ending on July 31. However, it has shown growth based on the $45.1 million in revenue reported during the same time last year.
Additional evidence that the losses are narrowing including information that shows the MongoDB lost $1.71 a share during the most recent six-month period in comparison to a loss of $1.93 a share during the same timeframe last year.
MongoDB does face fierce competition in the database space, including from AWS and Microsoft Azure as those platforms offer database services to customers on their own.
Filing for an IPO can provide the company with a level of liquidity, and many tech companies like Amazon and Google have experienced astounding success on the stock market. However, not all IPOs have the same results. Recently, businesses like Blue Apron and Snap have struggled, while Cloudera, a company associated with big data, has stayed above its IPO price.