Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, today announced financial results for its first quarter ended April 30, 2023.
“We delivered a solid start to the fiscal year and are pleased that our results exceeded our guidance on all metrics,” said Matt Cain, Chair, President and CEO of Couchbase. “I am proud of the progress our team is making on our commitment to drive continued growth, increase Capella adoption, improve sales and marketing efficiency, and accelerate the pace of leverage in our model as we innovate for an exciting future.”
First Quarter Fiscal 2024 Financial Highlights
Revenue: Total revenue for the quarter was $41.0 million, an increase of 18% year-over-year. Subscription revenue for the quarter was $38.5 million, an increase of 21% year-over-year.
Annual recurring revenue (ARR): Total ARR as of April 30, 2023 was $172.2 million, an increase of 23% year-over-year as reported and on a constant currency basis. See the section titled “Key Business Metrics” below for details.
Gross margin: Gross margin for the quarter was 85.6%, compared to 86.7% for the first quarter of fiscal 2023. Non-GAAP gross margin for the quarter was 86.4%, compared to 87.3% for the first quarter of fiscal 2023. See the section titled “Use of Non-GAAP Financial Measures” and the tables titled “Reconciliation of GAAP to Non-GAAP Results” below for details.
Loss from operations: Loss from operations for the quarter was $22.5 million, compared to $19.0 million for the first quarter of fiscal 2023. Non-GAAP operating loss for the quarter was $12.9 million, compared to $13.4 million for the first quarter of fiscal 2023.
Cash flow: Cash flow used in operating activities for the quarter was $7.2 million, compared to $8.6 million in the first quarter of fiscal 2023. Capital expenditures were $1.3 million during the quarter, leading to negative free cash flow of $8.5 million, compared to negative free cash flow of $9.4 million in the first quarter of fiscal 2023.
Remaining performance obligations (RPO): RPO as of April 30, 2023 was $165.6 million, a change of (2)% year-over-year.
Recent Business Highlights
Introduced an integration with Netlify and a new Visual Studio Code extension for Couchbase Capella. These ecosystem enhancements make it easier for developers and development teams to build modern applications on Capella, streamline their workflows and increase productivity.
Announced the broadening of Capella’s enterprise features and capabilities so customers can more easily migrate their applications. This includes support for time series data, extending deployability and enhanced management. The new features collectively position Capella as a single, comprehensive cloud database platform that offers broad multimodel support and in-memory performance, which is a powerful combination that lowers TCO for customers.
Introduced the Couchbase Independent Software Vendor (ISV) Starter Factory. This program supports ISVs with additional tools and resources required to build and monetize their applications with Capella on Amazon Web Services (AWS).
Announced the availability of Capella in the Microsoft Azure Marketplace, an online store providing applications and services for use on Azure. Couchbase customers can now take advantage of the productive and trusted Azure cloud platform with streamlined deployment and management.
For the second quarter and full year of fiscal 2024, Couchbase expects:
Q2 FY2024 Outlook
Non-GAAP Operating Loss
The guidance provided above is based on several assumptions that are subject to change and many of which are outside our control. If actual results vary from these assumptions, our expectations may change. There can be no assurance that we will achieve these results.
Couchbase is not able, at this time, to provide GAAP targets for operating loss for the second quarter or full year of fiscal 2024 because of the difficulty of estimating certain items excluded from non-GAAP operating loss that cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.
Conference Call Information
Couchbase will host a live webcast at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Tuesday, June 6, 2023, to discuss its financial results and business highlights. The conference call can be accessed by dialing 877-407-8029 from the United States, or +1 201-689-8029 from international locations. The live webcast and a webcast replay can be accessed from the investor relations page of Couchbase’s website at investors.couchbase.com.
Modern customer experiences need a flexible database platform that can power applications spanning from cloud to edge and everything in between. Couchbase’s mission is to simplify how developers and architects develop, deploy and consume modern applications wherever they are. We have reimagined the database with our fast, flexible and affordable cloud database platform Capella, allowing organizations to quickly build applications that deliver premium experiences to their customers – all with best-in-class price performance. More than 30% of the Fortune 100 trust Couchbase to power their modern applications. For more information, visit www.couchbase.com and follow us on Twitter @couchbase.
Couchbase has used, and intends to continue using, its investor relations website and the corporate blog at blog.couchbase.com to disclose material non-public information and to comply with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website and the corporate blog in addition to following our press releases, SEC filings and public conference calls and webcasts.