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. All lines have been placed on mute to prevent any background noise. I would now like to turn the conference over to your first speaker, April C., Investor Relations. April, please go ahead. Good afternoon, and welcome to MariaDB's second quarter 2023 earnings conference call. We will be discussing the results announced in our press release issued after the market closed today. With me are MariaDB's Chief Executive Officer, Michael Howard, and Chief Financial Officer, Conor McCarthy. Before we begin, I'd like to remind you that today's conference call will include projections and other forward-looking statements based on the company's current expectations. These forward-looking statements are subject to a number of significant risks and uncertainties, and our results may differ materially from our current expectations. For discussion of factors that could affect our future financial results and business, please refer to the disclosure in today's earnings release and other reports and filings we file from time to time with the Securities and Exchange Commission, including the factors described in our quarterly report on Form 10-Q filed with the SEC on February 13th, 2023. All of our statements are made as of today based on information available to us today. Except as required by law, we assume no obligation to update any such statements. With that, let me turn the call over to Michael. Good afternoon. Welcome to MariaDB's Q2 2023 earnings conference call. I am pleased to announce that we continue to make progress in our journey to the cloud, as demonstrated by 101% year-over-year cloud subscription growth, adjusted for out-of-period corrections in line with recent quarters. We are excited about the potential of our cloud business and confident in our ability to continue driving growth and innovation in this space. The momentum in our cloud subscription business enable us to drive 20% year-over-year total revenue growth in Q2 after adjusting for out-of-period corrections. We also drove 12% year-over-year growth in annual recurring revenue, ARR, ending Q2 with $52.9 million, representing strong progress toward our target of $100 million ARR by the end of 2025. Additionally, we continue to optimize our cost structure during the quarter, streamlining operations as we seek to increase the efficiency of our model. While this is our second quarter as a public company, it is our first earnings conference call, so I'd like to give you a bit more background on the company, then I'll walk through the drivers of our strong quarterly performance. I will then hand the call over to Conor to provide a more detailed review of our financial results. First, let me start with a brief company overview for those new to MariaDB. Our vision is to take databases to new heights of performance and resilience in any cloud at a fraction of the cost of competitors. Our deep Distributed SQL technology and cloud database make that possible, something public cloud vendors can't do. Let me demonstrate the appeal of our technology through some real-life use cases. Development Bank of Singapore, DBS, is one of the largest banks in Southeast Asia with hundreds of billions of dollars in assets. DBS wanted to be bigger, more flexible, and more cost-efficient while becoming more customer-centric. The price point and complexity of their existing proprietary databases did not lend itself to these goals. MariaDB's open source approach, flexibility, and price point did. MariaDB databases have replaced the legacy database systems at a fraction of the cost. Samsung, one of the world's largest consumer electronics and smartphone brands, has sold more than 2 billion Android phones. Every one of them relies on the Samsung Cloud, resulting in billions of database transactions every day. MariaDB's Xpand Distributed SQL database delivers the extraordinary scale making this possible. ServiceNow. 85% of the Fortune 500 use the ServiceNow platform, powered by MariaDB, processing over 25 billion queries per hour with many hundreds of thousands of servers. These use cases demonstrate the strength of our great technology and our price points relative to the overall market. This leads me to the two major pain points that we solve for organizations. First, our technology solves the modern challenges businesses face, namely operating a business continuously and the ability to capture demand when it surges. In tech speak, we call this increasing resilience and scale. Let me give you an example of when you don't have resilience and scale. 14 million people trying to buy concert tickets when the system can only handle 1.5 million. Many disappointed fans. This is a key competitive advantage that enhances our growth prospects and helps drive markets and share gains over time. Second, we are a price point disruptor, addressing these pain points by offering our proven technology at a fraction of competitors' prices. Customers can save up to 90% over complex legacy databases and up to 40% over AWS Aurora on a total cost of ownership or TCO basis. This provides an attractive financial incentive for businesses to switch to MariaDB, driving customer acquisition. It is these strengths that give us the ability to attack the entire relational database market. Relational databases run the world, whether e-commerce, telecom, gaming, payment, SaaS, or banking. According to an IDC Database Management Systems Software Forecast Report, relational databases are 70% of the global database market, and they are expected to grow at a 9.7% CAGR from $45 billion in 2021 to $72 billion by 2026. The most interesting aspect of this market growth is the disruption that is taking place, namely the transition to the cloud, where growth is more than twice as fast. IDC projects a five-year 23% CAGR from $14 billion to $40 billion over the same period. The cloud is where MariaDB is focused and where we have an advantage with our combination of differentiated technology and attractive price point, which drives our wins. We are quickly gaining share in the cloud-based relational database market, consistently delivering more than 90% growth over the past 6 months for our cloud-related business. Our technology is award-winning. With our cloud and Distributed SQL technology winning numerous accolades, including a Gold Stevie Award that was announced earlier today. In Q2, our cloud database, SkySQL, won the prestigious DEVIES Awards, which validates our strategy to give developers more productivity through automation and cloud-native technology. We have over 1 billion downloads of our software, nearly 200,000 open source contributions, 650-plus corporate customers in over 60 countries, and $52.9 million in subscription-based ARR at the end of the second quarter, with a target of reaching $100 million by the end of 2025. We have a successful history in disrupting markets. In 2018, we disrupted legacy databases with open source enterprise capabilities and Oracle compatibility at a fraction of legacy prices. In 2020, we launched a second-generation cloud database, which allows our customers to use the cloud of their choice with incredible resilience and scalability that public cloud vendors like Amazon and Microsoft can't deliver with their first-generation cloud databases. Finally, this year, we are adapting our unique high-performance product architecture to other open source databases, which will triple our market opportunity. More to come on that. I encourage you to tune into my keynote tomorrow at our flagship conference, OpenWorks. Now that I've provided an overview of the business and the market, I want to talk about the second quarter results. Like many of our technology peers, we are seeing the impact of macroeconomic headwinds affecting broader technology spending. These trends grew more pronounced in Q2, causing some customers and potential buyers to extend their decision-making timelines, add additional layers of approval, or opt for smaller purchases. That said, demand indicators remain robust. We continue to see healthy pipeline growth. I'm gonna talk about four things that help drive the quarter and put these drivers into the context of our ongoing transformation strategy: innovation, our journey to the cloud, international traction in our partner channel strategy. Innovation is the foundation of our future growth. Here are the most important announcements from the second quarter. In March, we released a new version of SkySQL, a second-generation cloud database. This release further exemplifies our leadership as a price point disruptor. We added the ability for our customers to control their cloud costs with new serverless analytics and new automation that lets customers not only scale to accommodate increases in demand, but also scale back down when demand normalizes in order to save cost. We also released a new version of our distributed SQL database technology, Xpand, that is also available in SkySQL. The new version gives us additional edge against competitors when it comes to scaling the database and handling infrastructure failures. While other solutions can take minutes to respond or even require manual interaction, Xpand's actions are instant, which means that there is no impact to the application, resulting in an uninterrupted scale for unstoppable performance. In April, we broadened the target audience of SkySQL with a solution geared toward MariaDB community users. We have a large community that has downloaded MariaDB over 1 billion times. SkySQL Observability now also lets users monitor their MariaDB community databases running on-prem or on other cloud infrastructure. The size of this user base means even a low level of conversion could generate a very meaningful opportunity and an effective on-ramp to SkySQL. It is still early days, but we have already seen strong interest from existing customers who run hundreds of additional MariaDB community servers not covered by their current subscriptions. Our cloud strategy, in general, allows us to expand our customer base, enjoy more predictable recurring revenue streams. It also drives improved customer retention and a more sustainable business model, positioning us for long-term success. We are confident in our ability to execute on this strategy. As I mentioned in my opening comments, we drove 101% year-over-year cloud subscription growth, adjusted for out-of-period corrections. These new customers span a wide variety of industries, reflecting our strong value proposition and the widespread recognition of our award-winning cloud database solutions. For example, during the quarter, Teal Communications, an IoT networking company, chose to migrate from Amazon RDS to our SkySQL solution because SkySQL gave them better, faster performance while reducing cost. The competitive takeaway from Amazon RDS showcases the strength of our offering and our ability to win over clients seeking better performance and reliability. We also pride ourselves on fostering long-term relationships and becoming a strategic partner with our existing customers. For example, during the quarter, a leading financial services firm specializing in investment management grew meaningfully with us during the quarter. They purchased additional Xpand capacity for a new application they anticipate will attract millions of daily active users. Revenue is proportionate to consumption in the cloud. Internationally, we grew revenue 26% outside of Americas, with particular strength in Asia Pacific, where revenue increased 44.3% off a small base. Overall, international markets held steady at 51.7% of revenue. Our international growth is partly due to our growing partner ecosystem, including resellers, software vendors, technology partners, and OEMs. In the past, this growth was driven by inbound requests and commercial opportunities. More recently, we built a team to actively manage partner relationships, providing technical support and recruiting new partners. This partner ecosystem provides us with significant benefits, including lead generation, new customer acquisition, accelerated database deployment, consumption, and customer support. Our partner strategy continues to drive success both domestically and internationally, with many of our new and expanded deals this quarter coming through our partners. These include customers such as Genesis Digital and GoTransverse, which were won through partnerships with AWS in Q2. At a larger scale, we collaborated with Amdocs as they modernized their cloud suite, which is used by telcos around the world. Through this collaboration, Amdocs migrated from a legacy database system to MariaDB Enterprise database products. The updated suite with MariaDB software has rolled out to three telcos, including Telefónica Germany, with more planned in the future. This is a clear demonstration of the power of our partner strategy, enabling us to quickly reach new customers, monetize our technology, and expand our market presence. Going forward, we will continue to prioritize and enhance our partner relationships to drive greater sales efficiency and leverage our partner marketing and sales teams. As we progress through 2023, we plan to keep innovating and investing to capture the large opportunity ahead of us, while also placing increased rigor on expense discipline and focusing on what we can control. Before we dive into the financial results, I am excited to share our announcement that Conor McCarthy has joined MariaDB as CFO, effective April 10, bringing over 30 years of experience leading finance organizations at high-growth companies and a significant experience scaling SaaS businesses. We are confident his experience will positively impact the next chapter of our growth. It is my pleasure to now hand it over to Conor to provide more detail on our second quarter 2023 financial results. Thank you, Michael. I'm thrilled to be MariaDB's new CFO and to join this exceptional management team at such an exciting time for our company. My experience over the last 30 years has been leading finance organizations, including scaling several SaaS businesses. During that time, I've had the opportunity to be part of a lot of success stories, and I know what it takes. Thanks to MariaDB's clear market differentiation and ongoing innovation, I am confident we can scale and capture market share in the $74 billion relational database market. I look forward to working with the team to achieve our goals and to drive growth in the coming months and years. As Michael mentioned, second quarter 2023 total revenue was $13.5 million, an increase of 26% year-over-year, or 20% after adjusting for out-of-period corrections. Subscription revenue accounted for 89% of our second quarter revenue of $12 million, up 26.4% year-over-year, primarily as a result of increased adoption of our cloud-based solutions and expansion within our existing customer base. Cloud subscription revenue grew 101% adjusted for out-of-period corrections, continuing the migration of our on-premises business to the cloud. Services revenue consists primarily of consulting, training, remote database administration, and enterprise architect services, and accounted for 11% of our second quarter revenue at $1.5 million, up 22.7% year-over-year, primarily as a result of increased demand for our consulting and training services. Given the contractual nature of our business, we have a high level of visibility into our future revenue streams and are pleased to report that our ARR continues to increase, reflecting the strong renewal rates and growth potential of our customer base. Our ARR for the quarter was $52.9 million, up 12%. Net retention rate for accounts greater than $100,000 was 106.1%, which included an adverse foreign exchange impact of approximately 200 basis points. Our gross profit was $10.3 million at 76.1% margin, up from 70.5% in the second quarter of 2022, an improvement of 5.6 percentage points. The year-over-year improvement in gross profit margin profile was driven by our continued focus on cost control and efficiency and positions us well for sustainable profitability over the long term. Turning now to operating expenses. Sales and marketing expenses for the second quarter were $7.3 million, or 54.1% of revenue, down from 55.9% in the second quarter of 2022. Research and development expenses were $9.3 million, or 68.8% of revenue, down from 83.1% in the year-ago quarter. General and administrative expenses were $6.7 million, or 49.8% of revenue, up from 28.6% in the second quarter of 2022, driven largely by the addition of public company costs. Our loss from operations was $13 million versus a loss of $10.4 million in the second quarter of 2022. Net loss for the second quarter was $11.9 million, representing a loss of $0.18 per share compared to a loss of $14.5 million or $1.05 per share a year ago. Turning to the balance sheet. We ended the quarter with $9.7 million in cash and cash equivalents. At the end of April, we had cash and cash equivalents of $21.1 million. We are also in advanced discussions with a large commercial bank about a loan facility that includes both a term loan and a revolving credit facility. We are actively exploring options to raise equity. Given the strong growth record of our business and our impressive customer base, we believe funding will be available for the business in both the short and long term. We are keenly aware of the challenging market conditions affecting the technology budgets and are closely monitoring any impact on sales cycles, pipeline conversion, deal sizes, and retention, among other things. We remain confident in our ability to drive sustained growth and profitability over the long term. With our growing pipeline of opportunities, we believe our ARR will continue to increase and reach over $100 million by the end of 2025. We are also actively pursuing a balanced approach to growth and profitability with a focus on achieving sustained profitability by the end of 2025. We believe that our cloud-based solutions will be a key driver of growth, and we believe our cloud-related CAGR through 2025 will be over 75%. As we continue to invest in product development and sales and marketing efforts, we believe that we are well-positioned to capture additional market share and expand our customer base. We are excited about the opportunities ahead and remain committed to delivering value to our stakeholders in the years to come. Over the next 90 days, my priorities include ensuring the proper balance of growth and profitability and improving our balance sheet. Given our strong growth record and impressive customer base, we remain confident that funding will be available for the business in both the short and long term. Thank you. Now I will turn it back over to Michael for concluding comments. Thank you, Conor. In closing, I would encourage you to sign up for our event, MariaDB OpenWorks 2023 on May ninth through 10th in New York City and virtually. We will be demonstrating the award-winning technology I discussed earlier and have some exciting new announcements that impact the world of open source. You can register at mariadb.com/openworks. Thank you for your interest in MariaDB. That will conclude today's conference. Thank you for your participation. You may now disconnect.
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