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Couchbase Announces Second Quarter Fiscal 2024 Financial Results

Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, has announced financial results for its second quarter ended July 31, 2023.

“We delivered revenue and profitability that exceeded the high end of our guidance range, highlighted by 24% ARR growth, strong retention, and increasing momentum with Capella,” said Matt Cain, Chair, President and CEO of Couchbase. “As we look to the second half of the fiscal year, we are poised to continue to make strong progress on our strategic initiatives, including investing in our cloud database platform for what we believe will be a very exciting future underpinned by AI-powered applications.”

Second Quarter Fiscal 2024 Financial Highlights

Revenue: Total revenue for the quarter was $43.1 million, an increase of 8% year-over-year. Subscription revenue for the quarter was $41.0 million, an increase of 11% year-over-year.

Annual recurring revenue (ARR): Total ARR as of July 31, 2023 was $180.7 million, an increase of 24% year-over-year, or 23% on a constant currency basis. See the section titled “Key Business Metrics” below for details.

Gross margin: Gross margin for the quarter was 86.3%, compared to 88.0% for the second quarter of fiscal 2023. Non-GAAP gross margin for the quarter was 87.2%, compared to 88.7% for the second 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 $21.9 million, compared to $15.2 million for the second quarter of fiscal 2023. Non-GAAP operating loss for the quarter was $9.2 million, compared to $8.4 million for the second quarter of fiscal 2023.

Cash flow: Cash flow used in operating activities for the quarter was $0.5 million, compared to $7.7 million in the second quarter of fiscal 2023. Capital expenditures were $1.1 million during the quarter, leading to negative free cash flow of $1.6 million, compared to negative free cash flow of $9.3 million in the second quarter of fiscal 2023.

Remaining performance obligations (RPO): RPO as of July 31, 2023 was $170.6 million, an increase of 2% year-over-year.
Recent Business Highlights

Announced that Couchbase is introducing generative AI into its Database-as-a-Service Couchbase Capella™ to significantly enhance developer productivity and accelerate time to market for modern applications. This new capability, called Capella iQ, is designed to enable developers to write SQL++ and application-level code more quickly by delivering recommended sample code.

Announced the Couchbase AI Accelerate Partner Program designed to make it easier for customers to build AI-powered applications with Couchbase Capella and support integrations with the broader AI and data ecosystem. The goal of the program is to provide organizations with resources to quickly integrate their platforms and tools with Couchbase Capella, thereby reducing friction for customers who are building and deploying models for AI-driven applications.

Granted two additional U.S. patents, demonstrating the company’s continued high velocity of product innovation and differentiation. One is Couchbase’s fourth patent, which was granted for executing transactions on distributed databases. The other is Couchbase’s fifth patent, which was for cost-based query optimization for array fields in database systems.

Announced additional enhancements to Couchbase Capella that further improve the developer experience, increase efficiency and make it easier to operate a cloud database platform. This includes new integrations with popular developer tools Vercel and the IntelliJ family of integrated development environments (IDEs), dynamic disk input/output operations per second (IOPS), on/off provisioned database capability to better align with developer usage patterns and the achievement of independent validation for Payment Card Industry Data Security Standard (PCI DSS) and Cloud Security Alliance Security Trust Assurance and Risk (CSA STAR) compliance.

http://www.couchbase.com