Ladies and gentlemen, welcome to MariaDB's third quarter of fiscal year 2023 conference call. At this time, all participants are in a listen-only mode and have been muted to prevent any background noise. I would like to now hand the conference over to your first speaker today, April Scee, Investor Relations. April, please go ahead. Good afternoon, and welcome to MariaDB's third 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, Paul O'Brien, 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 in 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 August 14th, 2023. All results presented today are GAAP results. All of our statements are made as of today, based on information available to us today, and except as required by law, we assume no obligation to update any such statements. With that, let me turn the call over to Paul. Good afternoon, thank you for joining us on the MariaDB Q3 2023 earnings call. Not long after our last earnings call, I was brought on as CEO to lead MariaDB in its next chapter as a public company. My diverse background, rooted in go-to-market strategies and business development, helps MariaDB capitalize on its strength and technology and expand our market footprint. My mission is, first, to lead us to the next phase of growth, ensuring that our innovative technology is not only robust, but also marketable and desirable. We need to translate our technical capabilities into substantial value for our clients and shareholders alike. Second, I am working with Conor, our CFO, who joined in April, as well as with the management team and the board on strategic, operational, and financial reviews, with an aim to attain profitability in a much shorter timeframe, creating a more resilient business. Conor and his team, I'm pleased to report, have been conducting a thorough review of our financial strategies and operation, and are driving a more balanced approach to profitability. This is already yielding positive results, which Conor will discuss shortly, and we believe this momentum will continue. I am confident this organization can better balance profitability and growth, and it's my privilege to guide us on this journey. I look forward to sharing our progress with all of you in the coming quarters. During the third quarter, our revenue grew 22% year-over-year, which is consistent with our revenue growth rate for the last few years. Also, our annual recurring revenue, or ARR, grew 14% year-over-year, ending the third quarter with $55 million. In addition, we continue to work on optimizing our cost structure, increasing the efficiency of our model, and focusing investment dollars on the highest ROI opportunities. We are fortunate to have a very strong core business, and based on my initial review, I am confident we can bring spending in line with industry peers. Before discussing third quarter highlights, I'll offer a brief introduction for those of you who are newer to MariaDB. Following this, I will highlight the main drivers of our quarterly performance and a quick peek at our future product direction. Afterwards, Conor will provide a more detailed analysis of our financial results. Databases are the key to success of any business. They are the heartbeat of all applications, whether it's mobile, web, or IoT. If you're using a cell phone, filling a prescription, or making a financial transaction, you will find a MariaDB database behind it. With over 1 billion downloads, nearly 200,000 open source contributions, and by reaching over 1 billion users through Linux distributions, we are not just serving the relational database marketplace, we're helping shape its future. Relational databases are the backbone of every industry, from e-commerce to telecom, from gaming to payments, from SaaS to banking. The market is projected to grow at a 10% CAGR from $45 billion in 2021 to $77 billion by 2027. This is a very meaningful market opportunity. We believe this growth will happen in both on-premise systems, where a majority of applications in the databases live, as well as in the cloud. Our MariaDB database was built from the ground up, reimagining what is possible. Our databases give companies the freedom to deploy anywhere in the cloud: private, hybrid, and public. It gives companies the ability to run secure transactions as well as fast analytics, all on the same open-source system, saving customers up to 90% of proprietary database costs. The future for the relational database market is immense, we are eager to push the boundaries in the near term with emerging innovation in artificial intelligence and machine learning, also known as AI/ML. This will further expand our market opportunity. We are confident we can continue to lead the revolution in relational database ecosystems. Now, let's move on to our third quarter highlights and discuss the factors that drove our performance during the period. Our third quarter was driven by three factors: winning new public sector customers, expanding our embedded offering through our partner ecosystem, and increasing discipline in our path to profitability. Let me speak more in depth about each of these three. First, let's talk about public sector clients. Our public sector sales team has been exceptionally successful, leveraging a more focused go-to-market approach, and we are in the process of replicating this playbook across our business. We continue to add public sector customers at a brisk rate for three key reasons. First, our open source approach provides a high level of transparency that public sector entities often require. Unlike proprietary software, the code can be audited, modified, and distributed, which helps governmental organizations ensure compliance with various regulatory and security standards. Second, since we provide up to a 90% savings over legacy databases, we are a more financially feasible choice for the public sector organizations, which often operate under strict budget constraints. Third, our robust security features, including advanced access control, data encryption, and audit capabilities, are crucial for public sector customers dealing with sensitive and classified data. Last year, a Security Technical Implementation Guide, STIG, was approved for MariaDB Enterprise Server. This is an important third-party validation of our security credentials, which accelerates buyers' vetting process and opens up a much broader opportunity to sell in the defense industry and in other industries, such as financial services. These advantages, transparency, cost effectiveness, and security, make MariaDB very attractive to the public sector, which is validated by our recent wins. For example, a prominent military contractor who chose MariaDB Enterprise Server to power an application related to combat systems, a win that we expect will set us up for future projects with this contractor and the military more broadly. Now, let's talk about our expansion with hardware application vendors who are embedding MariaDB Server into their offerings. Our partner strategy continues to drive success globally. Many of our new deals and customer expansion, particularly in this past quarter, came through our partner ecosystem. Partners enable us to quickly reach new customers, monetize our technology, and expand our market presence with greater sales efficiency. During the quarter, we had a few notable wins. A major telecom communications provider that packaged MariaDB databases with additional software using Kubernetes and containers to power 5G network infrastructures. A major network and cybersecurity solutions company now uses MariaDB databases embedded in each firewall device using private cloud. MariaDB has a number of advantages when it comes to embedding our technology into hardware and software offerings. First, MariaDB is a modern cloud-native solution, which is more attractive than proprietary legacy databases due to our significant performance and cost advantages. Second, our open source model leads to dramatic cost savings, up to 90% compared to proprietary databases. Finally, within the landscape of open source relational database ecosystems, MariaDB stands out, offering a compelling alternative to Oracle-owned MySQL and PostgreSQL, which lacks a single leading commercial open source vendor behind it. All of these factors make MariaDB a leading contender in the database market, and we are confident we will continue to expand our footprint with every type of embedded solution. I want to address a new area of focus for our products moving forward. The explosion of AI/ML has added significant new data storage and processing demands that traditional databases are not designed to address. We see huge opportunity in the AI/ML database market, and we are looking at ways to enhance MariaDB Enterprise Server with capabilities specifically designed for the development of AI/ML-enabled applications. This means our database systems will not just store and retrieve data. It will allow customers to predict, classify, even communicate with it in bespoke ways tailored to their specific business needs. We will talk about these and other AI initiatives in due time, but our vision is to provide an accessible, affordable AI/ML database solution that enables companies to more easily add these capabilities to their applications. We are well equipped to fulfill this vision because of our proven track record, loyal customer base, deep open source database expertise, and five years of foundational experience in AI/ML technology. As we progress through 2023, we plan to continue capturing the large opportunity ahead of us, while also placing increased rigor on expense, discipline, and focusing on what we can control. With that said, I'll now hand it over to Conor to provide more detail on our 3rd quarter 2023 financial results. Thank you, Paul. During the quarter, we reduced our cost of sales and kept research and development and sales and marketing broadly flat, despite a 22% increase in revenue, highlighting our increased discipline on our path to profitability. My priorities continue to be increasing profitability and improving our balance sheet. As Paul mentioned, third quarter 2023 revenue was $13 million, up 22% year-over-year. Subscription revenue accounted for 88% of our third quarter revenue at $11.5 million, up 23% year-over-year, primarily as a result of increased adoption of our cloud-based solutions and expansion within our existing customer base. Services revenue consists primarily of consulting, training, remote database administration, and enterprise architect services, accounted for 12% of our third quarter revenue at $1.5 million, up 17% year-over-year, primarily due to the continued increase in delivery of consulting and remote database administration 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 $55 million, up 14% from $48.2 million in the year-ago quarter. The net retention rates for accounts greater than $100,000 was 109%. Additionally, we added 30 net new customers versus the third quarter of 2022, and remain committed to investing in our customer relationships and driving further growth in the future. Our gross profit was $9.4 million, representing a 72% margin, an improvement of broadly 700 basis points from the previous year, thanks to strong growth in subscription revenue and efficiencies realized in managing third-party hosting infrastructure costs. We are encouraged to have driven 22% revenue growth by holding the cost of sales roughly flat. We believe this positions us well for long-term profitability. Our loss from operations was $12.2 million versus a loss of $13.1 million in the third quarter of 2022, as a result of successful cost containment measures. Turning to operating expenses. Sales and marketing expenses for the third quarter were $6.3 million. After out of period adjustments, this is broadly flat versus the third quarter of 2022. Research and development expenses were $8.7 million, broadly in line with the year-ago quarter, as higher personnel and other costs were partially offset by a decrease in third-party hosting infrastructure costs. General and administrative expenses were $6.6 million, up from $3.9 million in the third quarter of 2022, driven largely by the addition of public company costs. As a result, the net loss for the third quarter was $9.7 million, or a net loss of $0.14 per share, as compared to a loss of $9.6 million, or a loss of $0.69 per share a year ago. Turning to the balance sheet and cash flow statement. We ended the quarter with $12.9 million in cash, an increase of $3.2 million, or 33% versus the prior quarter. We remain in discussions with a large commercial bank about a loan facility that includes both a term loan and a revolving credit facility. Additionally, 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. Also, as Paul mentioned, we are undergoing strategic, operational, and financial reviews to identify efficiencies and areas of focus, which has the potential to meaningfully improve our balance sheet strength going forward. We are keenly aware of the challenging market conditions affecting technology budgets and are closely monitoring any impact on sales cycles, pipeline conversion, deal sizes, and retention, among other things. Despite this, we remain confident in our ability to drive sustained growth and profitability over the long term. With our growing pipeline of opportunities, we expect our ARR to continue to increase and reach $100 million ARR over the medium term. We have a strong leadership team in place, with Paul as CEO and other recent additions, including a new CRO and CTO. The team is busy evaluating our options to strategically capitalize on our market opportunities. We are excited for what's ahead and remain committed to delivering value to our stakeholders in the years to come. Thank you, and now I'll turn it over to Paul for concluding comments. Before we close, I'd like to take a moment to express our appreciation to our valued customers and esteemed investors for their continued support. We have a new management team, increased discipline around costs, strong continued growth, and we remain committed, as always, to delivering excellence and driving value for all of our stakeholders. Thank you for being on this journey with us. We look forward to sharing our continued progress with you in the coming weeks and months.
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