Archives: Press Releases

Santa Clara, Calif., – June 6, 2023– 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.

Financial Outlook

For the second quarter and full year of fiscal 2024, Couchbase expects:

			Q2 FY2024 Outlook			FY2024 Outlook
Total Revenue			$41.2-41.8 million			$171.7-174.7 million
Total ARR			$176.0-179.0 million			$191.5-195.5 million
Non-GAAP Operating Loss			$10.9-10.1 million			$43.0-39.0 million

 

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.

Use of Non-GAAP Financial Measures

In addition to our financial information presented in accordance with GAAP, we believe certain non-GAAP financial measures are useful to investors in evaluating our operating performance. We use certain non-GAAP financial measures, collectively, to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, may be helpful to investors because they provide consistency and comparability with past financial performance and meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business, results of operations or outlook. Non-GAAP financial measures are presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP financial measures used by other companies. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures (provided in the financial statement tables included in this press release), and not to rely on any single financial measure to evaluate our business.

Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss attributable to common stockholders and non-GAAP net loss per share attributable to common stockholders: We define these non-GAAP financial measures as their respective GAAP measures, excluding expenses related to stock-based compensation expense, employer payroll taxes on employee stock transactions and restructuring charges. We use these non-GAAP financial measures in conjunction with GAAP measures to assess our performance, including in the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance.

Free cash flow: We define free cash flow as cash used in operating activities less additions to property and equipment, which includes capitalized internal-use software costs. We believe free cash flow is a useful indicator of liquidity that provides our management, board of directors and investors with information about our future ability to generate or use cash to enhance the strength of our balance sheet and further invest in our business and pursue potential strategic initiatives.

Please see the reconciliation tables at the end of this press release for the reconciliation of GAAP and non-GAAP results.

Key Business Metrics

We review a number of operating and financial metrics, including ARR, to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions.

We define ARR as of a given date as the annualized recurring revenue that we would contractually receive from our customers in the month ending 12 months following such date. Based on historical experience with customers, we assume all contracts will be automatically renewed at the same levels unless we receive notification of non-renewal and are no longer in negotiations prior to the measurement date. ARR also includes revenue from consumption-based cloud credits of Couchbase Capella products. ARR for Couchbase Capella products in a customer’s initial year is calculated as described above; after a customer’s initial year it is calculated by annualizing the prior 90 days of actual consumption, assuming no increases or reductions in usage. ARR excludes revenue derived from the use of cloud products only based on on-demand arrangements and services revenue. ARR should be viewed independently of revenue, and does not represent our revenue under GAAP on an annualized basis, as it is an operating metric that can be impacted by contract start and end dates and renewal dates. ARR is not intended to be a replacement for forecasts of revenue. Although we seek to increase ARR as part of our strategy of targeting large enterprise customers, this metric may fluctuate from period to period based on our ability to acquire new customers and expand within our existing customers. We believe that our ARR is an important indicator of the growth and performance of our business. We updated our definition of ARR beginning in the third quarter of fiscal 2023 to clarify that the 90-day actual consumption methodology is only used after a customer’s initial year. The reason for this change is to better reflect the ARR for Couchbase Capella products following the launch of Couchbase Capella in fiscal 2022. ARR for prior periods have not been adjusted to reflect these changes as they are not material to any period previously presented.

We also attempt to represent the changes in the underlying business operations by eliminating fluctuations caused by changes in foreign currency exchange rates within the current period. We calculate constant currency growth rates by applying the applicable prior period exchange rates to current period results.

Forward-Looking Statements

This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include, but are not limited to, quotations of management, the section titled “Financial Outlook” above and statements about Couchbase’s market position, strategies and potential market opportunities. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements include all statements that are not historical facts and, in some cases, can be identified by terms such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “continue,” “could,” “potential,” “remain,” “may,” “might,” “will,” “would” or similar expressions and the negatives of those terms. However, not all forward-looking statements contain these identifying words. Forward-looking statements involve known and unknown risks, uncertainties and other factors, including factors beyond our control, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to: our history of net losses and ability to achieve or maintain profitability in the future; our ability to continue to grow on pace with historical rates; our ability to manage our growth effectively; intense competition and our ability to compete effectively; cost-effectively acquiring new customers or obtaining renewals, upgrades or expansions from our existing customers; the market for our products and services being relatively new and evolving, and our future success depending on the growth and expansion of this market; our ability to innovate in response to changing customer needs, new technologies or other market requirements; our limited operating history, which makes it difficult to predict our future results of operations; the significant fluctuation of our future results of operations and ability to meet the expectations of analysts or investors; our significant reliance on revenue from subscriptions, which may decline and, the recognition of a significant portion of revenue from subscriptions over the term of the relevant subscription period, which means downturns or upturns in sales are not immediately reflected in full in our results of operations; and the impact of geopolitical and macroeconomic factors. Further information on risks that could cause actual results to differ materially from forecasted results are included in our filings with the Securities and Exchange Commission that we may file from time to time, including those more fully described in our Annual Report on Form 10-K for the fiscal year ended January 31, 2023. Additional information will be made available in our Quarterly Report on Form 10-Q for the quarter ended April 30, 2023 that will be filed with the Securities and Exchange Commission, which should be read in conjunction with this press release and the financial results included herein. Any forward-looking statements contained in this press release are based on assumptions that we believe to be reasonable as of this date. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

Investor Contact:
Edward Parker
ICR for Couchbase
IR@couchbase.com

Media Contact:
Michelle Lazzar
Couchbase Communications
CouchbasePR@couchbase.com

 

Couchbase, Inc.

Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)

	Three Months Ended April 30,
	2023	2022
Revenue:
License	$4,943	$5,007
Support and other	33,599	26,974
Total subscription revenue	38,542	31,981
Services	2,454	2,872
Total revenue	40,996	34,853
Cost of revenue:
Subscription(1)	3,673	2,396
Services(1)	2,249	2,255
Total cost of revenue	5,922	4,651
Gross profit	35,074	30,202
Operating expenses:
Research and development(1)	15,383	14,421
Sales and marketing(1)	32,553	26,843
General and administrative(1)	9,625	7,926
Restructuring(1)	46	—
Total operating expenses	57,607	49,190
Loss from operations	(22,533)	(18,988)
Interest expense	(25)	(25)
Other income (expense), net	1,433	(556)
Loss before income taxes	(21,125)	(19,569)
Provision for income taxes	750	265
Net loss	$(21,875)	$(19,834)
Net loss per share, basic and diluted	$(0.48)	$(0.45)
Weighted-average shares used in computing net loss per share, basic and diluted	45,843	44,265
(1)Includes stock-based compensation expense as follows:
	Three Months Ended April 30,
	2023	2022
Cost of revenue—subscription	$ 193	$122
Cost of revenue—services	145	94
Research and development	2,768	1,899
Sales and marketing	3,241	1,987
General and administrative	2,928	1,348
Restructuring	1	—
Total stock-based compensation expense	$9,276	$5,450

 

Couchbase, Inc.

Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)

	As of April 30, 2023	As of January 31, 2023
Assets
Current assets
Cash and cash equivalents	$46,240	$40,446
Short-term investments	117,403	127,856
Accounts receivable, net	42,212	39,847
Deferred commissions	12,814	13,096
Prepaid expenses and other current assets	6,839	8,234
Total current assets	225,508	229,479
Property and equipment, net	8,032	7,430
Operating lease right-of-use assets	6,233	6,940
Deferred commissions, noncurrent	8,089	7,524
Other assets	1,608	1,666
Total assets	$249,470	$253,039
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$6,865	$1,407
Accrued compensation and benefits	8,495	12,641
Other accrued expenses	4,813	6,076
Operating lease liabilities	3,060	3,117
Deferred revenue	78,540	71,716
Total current liabilities	101,773	94,957
Operating lease liabilities, noncurrent	3,873	4,543
Deferred revenue, noncurrent	2,874	3,275
Total liabilities	108,520	102,775
Stockholders’ equity
Preferred stock	—	—
Common stock	—	—
Additional paid-in capital	573,791	561,547
Accumulated other comprehensive loss	(490)	(807)
Accumulated deficit	(432,351)	(410,476)
Total stockholders’ equity	140,950	150,264
Total liabilities and stockholders’ equity	$249,470	$253,039

 

Couchbase, Inc.

Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

 

	Three Months Ended April 30,
	2023	2022
Cash flows from operating activities
Net loss	$(21,875)	$(19,834)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	890	739
Stock-based compensation, net of amounts capitalized	9,276	5,450
Amortization of deferred commissions	4,540	4,009
Non-cash lease expense	772	648
Foreign currency transaction (gains) losses	(84)	974
Other	(746)	198
Changes in operating assets and liabilities
Accounts receivable	(2,274)	11,781
Deferred commissions	(4,824)	(3,798)
Prepaid expenses and other assets	1,405	312
Accounts payable	5,458	731
Accrued compensation and benefits	(4,060)	(8,112)
Accrued expenses and other liabilities	(1,256)	(71)
Operating lease liabilities	(826)	(666)
Deferred revenue	6,423	(968)
Net cash used in operating activities	(7,181)	(8,607)
Cash flows from investing activities
Purchases of short-term investments	(7,821)	(53,630)
Maturities of short-term investments	19,423	9,600
Additions to property and equipment	(1,288)	(799)
Net cash provided by (used in) investing activities	10,314	(44,829)
Cash flows from financing activities
Proceeds from exercise of stock options	1,917	2,614
Proceeds from issuance of common stock under ESPP	847	3,525
Net cash provided by financing activities	2,764	6,139
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(103)	(719)
Net increase (decrease) in cash, cash equivalents and restricted cash	5,794	(48,016)
Cash, cash equivalents, and restricted cash at beginning of period	40,989	96,231
Cash, cash equivalents, and restricted cash at end of period	$46,783	$48,215
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown above:
Cash and cash equivalents	$46,240	$47,672
Restricted cash included in other assets	543	543
Total cash, cash equivalents and restricted cash	$46,783	$48,215

 

Couchbase, Inc.

Reconciliation of GAAP to Non-GAAP Results
(in thousands, except per share data)
(unaudited)

 

	Three Months Ended April 30,
	2023	2022
Reconciliation of GAAP gross profit to non-GAAP gross profit:
Total revenue	$40,996	$34,853
Gross profit	$35,074	$30,202
Add: Stock-based compensation expense	338	216
Add: Employer taxes on employee stock transactions	10	2
Non-GAAP gross profit	$35,422	$30,420
Gross margin	85.6%	86.7%
Non-GAAP gross margin	86.4%	87.3%

 
 

	Three Months Ended April 30,
	2023	2022
Reconciliation of GAAP operating expenses to non-GAAP operating expenses:
GAAP research and development	$15,383	$14,421
Less: Stock-based compensation expense	(2,768)	(1,899)
Less: Employer taxes on employee stock transactions	(108)	(24)
Non-GAAP research and development	$12,507	$12,498
GAAP sales and marketing	$32,553	$26,843
Less: Stock-based compensation expense	(3,241)	(1,987)
Less: Employer taxes on employee stock transactions	(120)	(36)
Non-GAAP sales and marketing	$29,192	$24,820
GAAP general and administrative	$9,625	$7,926
Less: Stock-based compensation expense	(2,928)	(1,348)
Less: Employer taxes on employee stock transactions	(29)	(71)
Non-GAAP general and administrative	$6,668	$6,507
GAAP restructuring expense	$46	$—
Less: Restructuring (2)	(46)	—
Non-GAAP restructuring	$—	$—

 
 

	Three Months Ended April 30,
	2023	2022
Reconciliation of GAAP operating loss to non-GAAP operating loss:
Total revenue	$40,996	$34,853
Loss from operations	$(22,533)	$(18,988)
Add: Stock-based compensation expense	9,275	5,450
Add: Employer taxes on employee stock transactions	267	133
Add: Restructuring (2)	46	—
Non-GAAP operating loss	$(12,945)	$(13,405)
Operating margin	(55)%	(54)%
Non-GAAP operating margin	(32)%	(38)%

 
 

	Three Months Ended April 30,
	2023	2022
Reconciliation of GAAP net loss to non-GAAP net loss:
Net loss	$(21,875)	$(19,834)
Add: Stock-based compensation expense	9,275	5,450
Add: Employer taxes on employee stock transactions	267	133
Add: Restructuring (2)	46	—
Non-GAAP net loss	$(12,287)	$(14,251)
GAAP net loss per share	$(0.48)	$(0.45)
Non-GAAP net loss per share	$(0.27)	$(0.32)
Weighted average shares outstanding, basic and diluted	45,843	44,265
(2)For the three months ended April 30, 2023, stock-based compensation expense related to restructuring charges were included in the restructuring expense line.

The following table presents a reconciliation of free cash flow to net cash used in operating activities, the most directly comparable GAAP measure, for each of the periods indicated (in thousands, unaudited):

 
 

	Three Months Ended April 30,
	2023	2022
Net cash used in operating activities	$(7,181)	$(8,607)
Less: Additions to property and equipment	(1,288)	(799)
Free cash flow	$(8,469)	$(9,406)
Net cash provided by (used in) investing activities	$10,314	$(44,829)
Net cash provided by financing activities	$2,764	$6,139

 
 

Couchbase, Inc.

Key Business Metrics
(in millions)
(unaudited)

 

	Jan. 31,	April 30,	July 31,	Oct. 31,	Jan. 31,	April 30,
	2022	2022	2022	2022	2023	2023
Annual Recurring Revenue	$132.9	$139.7	$145.2	$151.7	$163.7	$172.2

 

 

• ​​Netlify Integration and VS Code Extension to Simplify Modern Application Development with Capella
• Native Support for Time Series Data in Couchbase JSON, Enhanced Data Compression and More Efficient SQL++ Analytics to Address More Use Cases
• New Enterprise Features Broaden Application Workloads and Extend Enterprise Deployability, Lowering Total Cost of Ownership (TCO)

SANTA CLARA, Calif., June 1, 2023 — Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, today announced a broad range of enhancements to its industry-leading Database-as-a-Service Couchbase Capella™. The newest release of Capella will be accessible by popular developer platform Netlify and features a new Visual Studio Code (VS Code) extension, making it easier for developers and development teams to build modern applications on Capella, streamline their workflows and increase productivity. Coinciding with National Cloud Database Day, Couchbase is also extending its enterprise deployability and introducing new features, allowing customers to move more applications to Capella with a lower TCO. 

“The reality is that developers don’t want to spend their time operating and integrating separate primitives. Capella’s new developer platform integrations aim to address this widespread issue, minimizing the developer experience gap and allowing teams to focus on what they do best — writing code and solving problems,” said Rachel Stephens, senior analyst at RedMonk.

Simplifying the Developer Experience With Netlify, VS Code and Capella 

Findings from Couchbase’s recent developer survey reveal that the majority of developers (94.9%) are currently at or over their work capacity and are on the brink of or already feeling overwhelmed. To reduce this friction and help developers lower their number of operational tasks, Couchbase is extending Capella to more of the developer platform ecosystem that is highly favored by frontend and full stack developers. 

The new integration for Capella makes it easy for developers to connect to Netlify for more simplified and agile web application development. In addition, the new VS Code extension is designed to provide a seamless experience for Capella users who want to work within the popular source-code editor. These ecosystem enhancements are now available and reduce friction so that developers can focus on building innovative modern apps. 

“Netlify’s platform unites an extensive ecosystem of technologies, services and APIs into one workflow to empower developers to build composable web experiences with the tools that best suit their needs. In this way, Netlify meets their users where they are, allowing them to embrace the composable web in a manner that respects their existing businesses, while also balancing flexibility and enterprise-grade reliability. I’m a strong believer that when the ecosystem wins, we all win. That’s why we’re so excited to deepen our ties with Couchbase to strengthen and diversify the ecosystem of tools developers are using to build the modern web,” said Chris Bach, co-founder and chief strategy and creative officer at Netlify.

Broader Enterprise Deployability and New Enterprise Features

Couchbase is also broadening Capella’s enterprise features and deployability so customers can move more applications to the cloud database platform. The new Capella enhancements deliver the following benefits:

• Support for time series data. A new time series array function in Couchbase’s support for JSON will enable a broader set of use cases, such as IoT or finance apps. By using time series arrays, Couchbase is able to utilize all of its data access, processing and storage features including its patented array indexing and high-density storage engine. This approach will enable development teams to quickly and easily extend new features to their applications without adding complexity to their architecture or infrastructure, allowing them to be more agile and productive while driving cost efficiency. 
• Extending deployability of Capella. Couchbase has added over 10 new supported regions across the three major cloud service providers and larger instance sizes. Capella is also available directly in each of their marketplaces. Capella adds support for memory-only buckets (ephemeral databases) for caching and transient data use cases. Security and compliance capabilities are enhanced through Google Cloud HIPAA compliance and with private endpoints for Azure.
• Enhanced management. Managing Capella is even easier now with the introduction of dynamic disk scaling, hibernation of clusters and the enabling of downloadable buckets. Also new is change data capture, which recognizes and automates change history on documents. This is then streamable via Kafka to other applications. 

These enhancements collectively position Capella as a single, comprehensive cloud database platform that offers broad multimodel support and in-memory performance — a powerful combination that lowers TCO for customers. 

“We continue to broaden the Capella capabilities and make it easier for new developers to come on board and take advantage of our industry-leading cloud database platform,” said Scott Anderson, SVP of product management and business operations at Couchbase. “Development teams can get started with Capella more quickly and do more with our cloud database platform, improving efficiency and productivity. And for operations teams, Capella becomes even easier to deploy and manage while broadened enterprise capabilities handle more workloads at a fraction of the cost compared to other document-based DBaaS offerings.” 

The new release of Capella will be generally available in the second quarter. Couchbase will host a webcast on June 7 and 8 to discuss what’s new in Capella and how customers can benefit from the latest enhancements. Register here.

Additional Resources

• Read more about what’s new in Capella in this blog post here.
• See how fast and easy it is to get started with Capella by clicking here to start a free trial.

Find out how Capella compares to the competition and how it can bring great performance to a variety of workloads here.

 

Santa Clara, Calif., May 18, 2023 – Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, today announced that Company management will participate in upcoming investor conferences. 

Chair, President and CEO Matt Cain will present at the William Blair 43rd Annual Growth Stock Conference in Chicago, Illinois. The presentation will take place on Thursday, June 8, 2023 at 10:00 a.m. CT / 11:00 a.m. ET. Couchbase management will also participate in investor meetings. 

Additionally, Chief Financial Officer Greg Henry will participate in the Baird 2023 Global Consumer, Technology & Services Conference in New York, New York. The presentation will take place on Thursday, June 8, 2023 at 6:05 a.m. PT / 9:05 a.m. ET. Couchbase management will also participate in investor meetings.

Live webcasts and replays for both presentations will be available on the Company’s investor relations website.

Investor Contact:
Edward Parker
ICR, Inc.
IR@couchbase.com

Santa Clara, Calif., May 17, 2023 – Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, today announced that it will report financial results for its first fiscal quarter ended April 30, 2023 on Tuesday, June 6, 2023 after market close.

Couchbase will host a conference call and webcast at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on the same day to discuss its financial results. The conference call can be accessed by dialing 877-407-8029 from the United States, or +1 201-689-8029 from international locations. The webcast and a webcast replay can be accessed from the investor relations page of Couchbase’s website at investors.couchbase.com.

Investor Contact:
Edward Parker
ICR, Inc.
IR@couchbase.com

SANTA CLARA, Calif., – May 11, 2023 – Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, today announced findings from new industry research commissioned by Couchbase examining the trends, challenges and opportunities developers who build with databases are experiencing in their roles. The April 2023 survey of 533 U.S.-based software developers – composed of professionals ranging from individual contributors to C-levels – revealed that 9 out of 10 developers are at or over their work capacity and calling for automation and SQL-based database query tools to help them boost productivity. Additionally, a majority of respondents (86%) with roles at manager-level and above indicated they are currently facing challenges hiring developers with the right skill set.

With so many developers at or over their work capacity, only 5.1% responded they have the ability to take on more projects. As developers’ overall workload increases, more developers are also taking on tasks outside of their normal purview. Specifically, when developers were asked if their responsibilities have been affected in the past 12 months, 3 out of 4 shared they sometimes or consistently take on responsibilities outside of their job description. Of the developers whose roles have seen an increase in workload, more than half (54.1%) are experiencing increased stress, 43.8% are overwhelmed, 40.2% are feeling burned out and 31.3% express a lack of work-life balance. To address the challenges developers are experiencing in their roles, the survey findings reveal many are pointing to automation along with SQL-based database tools as the top two ways to increase their productivity.

“As the pace of digital innovation continues to accelerate, it’s no surprise that developers want more automation and familiar, easy-to-learn tools to help them keep up with their day-to-day workflows,” said Perry Krug, head of developer experience at Couchbase. “Automating repetitive, lower-value tasks frees up developers’ availability to redirect their time and talent to higher-value projects like creating business-critical applications. At Couchbase, we also see firsthand the immense benefit of providing developers with tools that leverage the SQL++ query language – developers are able to ramp up quickly and build applications without a ‘speed bump’ or steep learning curve.”

Additional key findings from the survey include:

• A majority of respondents (87.2%) still use legacy relational databases as their primary database to build applications, and they are actively looking for more flexibility and agility. The factors developers say would influence them to explore non-relational databases (e.g., NoSQL) include speed, flexibility, security, scalability and cost savings.
• In the coming year, developers aim to prioritize increasing scalability, reducing costs and maintaining data governance compliance for their database infrastructure.
• The top internal challenges faced by developer teams include talent shortages, the need to ask for access to data or other systems and meeting ever-growing compliance requirements.
• Hiring managers say the top three technical skills required to build modern applications are cloud-based technologies, SQL and experience working with teammates throughout the data lifecycle. However, as the employment landscape continues to evolve, 86% of managers and above report that hiring developers with the right skill set remains a significant challenge.
• Companies are addressing the developer experience gap by offering mentorship and training programs, with 71.6% of respondents stating their companies provide such opportunities. When looking for a new job, developers consider these top three factors as priorities: work-life balance, compensation and company culture.

To download the survey infographic, click here.

Additional Resources

• Developers can learn more about how easy it is to build modern apps with the Couchbase Capella™ database-as-a-service here.
• Learn more about Couchbase Academy, including role-specific training courses for developers, architects and database administrators, as well as certification here.
• For more information about Capella and to start a free trial, visit this page.

SANTA CLARA, Calif. – May 4, 2023 – Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, today announced the availability of Couchbase Capella™ Database-as-a-Service (DBaaS) 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.

Capella is a fully managed JSON document and key-value database with SQL access and built-in full-text search, eventing and analytics. It easily supports a broad range of modern application use cases with multi-model and mobile synchronization capabilities and allows customers to use the programming language of their choice. Furthermore, Capella’s memory-first architecture drives blazingly fast millisecond data responses at scale, resulting in best-in-class price performance of any fully managed document database. With Capella on Azure, customers can improve alignment with modern applications and support hybrid and multicloud strategies from a single platform.

“We continue to invest in our industry-leading Capella DBaaS, including making it more accessible for customers, improving the developer experience and supporting enterprises,” said Scott Anderson, senior vice president of product management and business operations at Couchbase. “Debuting Capella in the Microsoft Azure Marketplace means we can streamline and simplify the process for customers to adopt our cloud database platform and deploy applications on their cloud of choice. We believe offering Capella in the Microsoft Azure Marketplace will accelerate adoption and bring the power of Couchbase to more organizations.”

Jake Zborowski, General Manager, Microsoft Azure Platform at Microsoft Corp. said, “We’re pleased to welcome Couchbase to the Microsoft Azure Marketplace, which gives our partners great exposure to cloud customers around the globe. Azure Marketplace offers world-class quality experiences from global trusted partners with solutions tested to work seamlessly with Azure.”

The Azure Marketplace is an online market for buying and selling cloud solutions certified to run on Azure. The Azure Marketplace helps connect companies seeking innovative, cloud-based solutions with partners who have developed solutions that are ready to use.

Capella is now generally available in the Azure Marketplace here. Please visit this page for more information about the benefits of Capella on Azure.

Additional Resources

• Start a free trial of Capella today by clicking here. 
• Read more about how customers are modernizing with Couchbase here. 
• Developers can learn more about building modern applications with Capella here.

SANTA CLARA, Calif., May 4, 2023 – Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, today announced the Couchbase Independent Software Vendor (ISV) Starter Factory. The new program supports ISVs with additional tools and resources required to build and monetize their applications with Couchbase Capella™ Database-as-a-Service (DBaaS) on Amazon Web Services (AWS). Couchbase and AWS have invested resources into the ISV Starter Factory including technical proof-of-value workshops, proofs of concept (PoCs), training, certifications, best practices and aligning System Integrators (SIs) that are part of the AWS Partner Network program.

The unique combination of a cloud database vendor, cloud services provider and select SIs provides an end-to-end program for ISVs that streamlines ISV migration efforts to Capella on AWS. The ISV Starter Factory builds on the momentum from Couchbase’s recently enhanced ISV Partner Program in conjunction with Couchbase’s expanded relationship with AWS, which offers customers integrated go-to-market activities, commercial incentives and technology integrations including support for migrating workloads to the Capella offering on AWS. 

“With Capella on AWS, we benefit from lower total cost of ownership and increased efficiency for our development team. The cost savings, ease of use and scalability of Capella on AWS allows us to perform frequent software releases so we can stay ahead of competitors while exceeding our customer expectations,” said Mike Orlando, CEO at Yapstone. “With the launch of the ISV Starter Factory, app builders will now be able to leverage benefits such as custom PoCs and specialized training and certifications in a programmatic manner to give their application a fast start to monetization. This will help developers to locate the resources needed to quickly and easily build applications that deliver immense value to their customers.”

According to a McKinsey study, companies with high developer velocity grew revenue four to five times faster than those with low velocity. For ISVs, developing market-leading apps that need to evolve rapidly can be difficult. Adding features and increasing differentiation can be at the expense of developer agility when the database does not perform or scale to meet their needs. Additionally, some vendors provide limited services for ISVs, which are typically disaggregated and can end up creating more roadblocks for their development teams.

Couchbase’s ISV Starter Factory reduces this complexity, making it easier to modernize and migrate apps. It is a single place for organizations looking for a developer-friendly solution to build applications. Capella also addresses challenges around cloud infrastructure and migration services. Couchbase’s flexible and cost-efficient cloud database Capella, paired with AWS’s scale and compute power, allows ISVs to establish and expand their business at a compellingly low total cost of ownership. Customers’ development speed and agility are also enhanced as Capella enables teams to consolidate their solutions — saving time and budget.

Carol Potts, Head of North America Independent Software Vendor and Digital Native Business Segments at AWS, said, “In today’s digital economy, applications are the modern framework for all commerce. We are delighted to be working with Couchbase to help customers build modern applications that are always on and can extend anywhere — from cloud to edge to mobile and IoT devices and anywhere in between.”

Couchbase ISV partners can take advantage of the capabilities of Capella and Capella App Services on AWS, including:

• SQL-like experience for modern applications: With a familiar foundation, developers aren’t required to learn new coding languages and processes, which helps close the skills gap. 
• Securely sync data from any cloud to the edge: Capella App Services allows developers to store, query, search and analyze data in the cloud, at the edge or on IoT devices regardless of internet connectivity and speed. This enables applications that are always fast and always on. 
• Multi-data models: Capella makes development faster and easier by providing multiple services within one platform including document, key-value, full-text search and eventing.

“As part of our growing momentum with AWS, we’re excited to equip our ISV partners with industry-leading resources to help propel their application development journeys forward, turning theory into action,” said Matt McDonough, senior vice president of business development and strategy at Couchbase. “Support from AWS and participating SIs enables our ISV Starter Factory to provide ISVs with programmatic support to productionize and monetize their applications with faster time to market.”

To enroll in Couchbase’s ISV Starter Factory with AWS, interested parties can reach out here. 

Additional Resources

• To find out about all the ways customers can modernize with Capella and AWS, visit this page.
• Read more about Couchbase’s enhanced ISV Partner Program on this page.
• Developers can learn more about how to build modern applications with Capella here.

Manchester, UK – 3 April 2023 – Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, today underlined its continued support for organisations across Europe by announcing Robert Ekstrom as Vice President, Europe. In this role, Ekstrom will be responsible for sales growth and revenue generation across the region.

Ekstrom brings more than 20 years of global experience to the role and will closely support customers as they innovate their modern applications. He specialises in driving commercial success across the key sales-supporting areas of businesses and heading up key regional divisions. Ekstrom joins from integration service provider Workato and previously held senior roles at ServiceNow and Dell EMC.

Couchbase is also expanding its commitment in the region by growing its Manchester-based facility to provide more support for global customers. The Manchester workspace now totals over 10,000 square feet. And over the last year, Couchbase has grown headcount in the UK by more than 30%, with over 50% based at the Manchester office including core teams across engineering, support, business development, product management and more.

“The pressure on organisations throughout Europe to continuously innovate with modern applications and support digital transformation journeys for their customers will not subside any time soon,” comments Huw Owen, Chief Revenue Officer at Couchbase, who is based in the UK. “I’m thrilled that with our new vice president for the region, Robert, and a deeper investment in Manchester, Couchbase is primed to provide even more innovation and support for customers.”

“Robert’s vision for the European market, alongside his expertise and regional knowledge, makes him an ideal fit for Couchbase,” adds Owen.

“I’m excited to join Couchbase and support some of the world’s leading companies with our Couchbase Capella™ Database-as-a-Service,” comments Ekstrom. “The requirement for powerful and cost-efficient databases has never been more prominent. As more organisations look for cloud-based, managed services, Couchbase is well positioned to deliver this next phase of implementation.”

The expanded Manchester base also benefits from recently recruited roles across research and development, as well as technical support. “We’ve been lucky enough to be closely linked with Manchester for almost 10 years, and I’m delighted that we will continue to build on this by expanding office space in the city,” adds Owen.

Couchbase is hiring. To join the company’s world-class team, please check out available positions here.

Additional Resources

• Read more about how customers are modernising with Couchbase here.
• For more information about Couchbase Capella DBaaS and to start a free trial, please visit this page.
• Developers can learn more about how to build modern applications with Capella here.

SANTA CLARA, Calif. – March 29, 2023 – Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, today announced that Quantic, a cloud-based point of sale (POS) platform company, selected Couchbase Capella™ Database-as-a-Service (DBaaS) on AWS to help manage and scale the company’s growing workloads. With Capella powering its modern applications, Quantic is prepared for future business growth to deliver seamless, reliable experiences to customers.

“As our customer portfolio expanded, we quickly realized that the database we had in place before Couchbase wasn’t getting the job done. It couldn’t scale at the enterprise level and managing all of our clusters placed a huge strain on developers,” said Vigyan Kaushik, co-founder and CEO of Quantic. “Building a database in-house to support our needs was out of the question because of the required costs, time and talent. After spending time with Capella, it was easy to nail it down as our primary solution. With Capella’s impressive price performance and unique edge capabilities, our customers’ applications are able to remain synced, even during internet outages, while also providing developer teams with greater agility.”

Quantic offers a POS Platform-as-a-Service (PaaS) and a variety of processor-agnostic software solutions for white-label partnerships across many industries including hospitality, retail, financial services and more. Customers receive an omnichannel experience, connecting front and back ends, without binding contracts or hidden fees. Quantic’s applications are built into multiple clusters and servers based on customer locations, ensuring a high level of reliability and availability.

Quantic’s applications began to scale faster than its previous NoSQL database was capable of handling, leading to a siloed platform and making it difficult to innovate. Plus, it encountered challenges that led to uptime issues, which hindered the user experience for its customers and their end users. Quantic needed a new cloud database platform that was capable of keeping up with its growing customer base and incremental product enhancements.

After a competitive evaluation, Quantic selected Capella on AWS for increased performance, superior scalability, developer familiarity and ease of use. With Capella as the database powering its modern applications, Quantic’s development team has benefited from increased productivity and greater agility to keep innovating for its customers, while also experiencing an immediate, significant impact on indexing and developer workloads.

“Quantic is modernizing the POS industry. This requires evolving smart devices to be capable of doing far more than current aging POS systems and connecting that to a backend, which provides real-time data for an engaging customer experience,” said Ravi Mayuram, CTO, Couchbase. “Capella provides the performance, scale and flexibility of a modern database to develop services quickly in the cloud. Coupling that with the offline sync and our embedded edge database in POS smart devices, Quantic can now deliver new solutions customized to the verticals they serve.”

Most of Quantic’s customers rely on real-time data, and with Capella at its core, Quantic’s platform is able to reliably run applications to provide instant updates and a seamless end-user experience. Capella also helps Quantic achieve its mission to empower developers with a tool set that allows them to innovate quickly through its ability to scale and manage the company’s growing workloads.

Start a free trial of Capella today by visiting couchbase.com/products/capella/.

Additional Resources

• Read more about how customers are modernizing with Couchbase here.
• Learn more about Couchbase’s enhanced ISV Partner Program here.
• For more information about Capella for developers, please visit this page.

About Quantic

Quantic is a cloud-based point of sale platform company that brings custom and intelligent data-driven solutions to help business owners streamline their sales operations. The platform provides options to sell in brick-and-mortar, e-commerce, self-ordering, or kiosk environments for restaurant and retail verticals. Headquartered in West Chester, PA, Quantic has international offices in the United Kingdom and Canada.

 

San Francisco, Calif. – March 20, 2023 – Today at the Game Developers Conference, Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, announced that Lotum, one of the world’s leading providers of mobile gaming applications, has selected Couchbase Capella™ Database-as-a-Service (DBaaS) on Google Cloud to power its most popular mobile game, 4 Pics 1 Word. Capella delivers a consistent and always-on experience for Lotum game users, regardless of network connectivity. Since moving to Capella, Lotum has benefitted from increased performance and scale for its games, as well as meeting customer demand for a synchronized gaming experience across devices.

“We’re continuing to grow at a rapid pace, with 800 million downloads worldwide. We need to ensure the gaming experience is seamless, especially when traffic is unpredictable. This needs to happen regardless of the device gamers decide to use,” said Lars Schmeller, team lead at Lotum. “With Couchbase and Capella, millions of players are able to use the devices of their choice without losing profile data, and they’re able to have a consistent experience without any disruptions, even when network connectivity is unreliable. Since gamers have a low tolerance for delays or lag, these capabilities are critical for us. We have a small but mighty team and Couchbase provides us with a flexible, highly functional and low maintenance database that empowers us to do more with less.”

At the heart of any successful game is a database that maintains reliable uptime, scales in real time to handle millions of users and provides a responsive and personalized experience across all devices. In order to provide players with a great experience, Lotum selected Capella for increased application speed and scalability for its most popular game. With Capella App Services, Lotum is able to provide offline-first capabilities, meaning the gaming experience isn’t interrupted by network delays. Multiplayer games are able to synchronize data between mobile and web apps to ensure they reflect accurate stats and scores. Capella’s unique App Services automatically synchronizes data in a secure, stable and scalable way, and its embeddable database ensures apps are always available and fast, with or without internet connectivity.

Capella is uniquely suited to handle game virality and scale with user demand. Capella is a fully managed DBaaS that delivers database flexibility and offloads database management for developers while the price-performance ROI keeps improving as users scale. Millisecond responses for highly interactive and personalized applications are ensured through Couchbase’s real-time, memory-first architecture.

“The mobile gaming market continues to expand, with consumers spending $41.2B during the first half of 2022 alone. Given the hyper growth and the fierce competition in this market, it has become paramount for game developers to offer an experience that captures the attention of gamers,” said Ravi Mayuram, CTO of Couchbase. “Our differentiated architecture both on the cloud and specifically at the edge is what enables customers like Lotum to deliver a snappy gaming experience at extreme scale. We’re excited to partner with Lotum to ensure their active users around the world have an unfailing and reliable experience across all of their devices.”

To learn more about Lotum and why gaming companies choose Couchbase and Capella for their applications, please stop by Couchbase booth #S1548 at the Game Developers Conference at the Moscone Center in San Francisco on March 20-24, 2023.

Additional Resources

• Learn how Couchbase supports the virality and scale of games here.
• Learn more about Capella and get started with a free trial here.
• For more on Capella App Services, a fully managed and hosted service for synchronizing data between mobile, web and IoT apps that can ensure multiplayer games reflect accurate stats and scores, read this blog post.
• Read more about how customers are modernizing with Couchbase here.

About Lotum

Founded in 2006, Lotum is one of the world’s leading providers of mobile games and apps for iOS, Android, and the Facebook Messenger platform. Lotum prides itself on being a small but mighty team of just 48 people whose creations bring joy to millions of users around the world every day.

 

Santa Clara, Calif., – March 7, 2023 – Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, today announced financial results for its fourth quarter and fiscal year ended January 31, 2023.

“We delivered another strong quarter of sustained growth along with substantial operational progress in fiscal 2023,” said Matt Cain, Chair, President and CEO of Couchbase. “This is a direct result of great execution across the company, which we are particularly pleased with despite this more challenging macro environment. As we begin fiscal 2024, we remain sharply focused on delivering top-line growth, increasing Capella adoption, driving further sales and marketing efficiency and improving profitability.”

Fourth Quarter Fiscal 2023 Financial Highlights

• Revenue: Total revenue for the quarter was $41.6 million, an increase of 19% year-over-year. Subscription revenue for the quarter was $38.1 million, an increase of 16% year-over-year.
• Annual recurring revenue (ARR): Total ARR as of January 31, 2023 was $163.7 million, an increase of 23% year-over-year, or 24% on a constant currency basis. See the section titled “Key Business Metrics” below for details.
• Gross margin: Gross margin for the quarter was 85.7%, compared to 88.2% for the fourth quarter of fiscal 2022. Non-GAAP gross margin for the quarter was 86.3%, compared to 88.7% for the fourth quarter of fiscal 2022. 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 $18.5 million, compared to $12.7 million for the fourth quarter of fiscal 2022. Non-GAAP operating loss for the quarter was $9.9 million, compared to $9.1 million for the fourth quarter of fiscal 2022.
• Cash flow: Cash flow used in operating activities for the quarter was $10.2 million, compared to $2.7 million in the fourth quarter of fiscal 2022. Capital expenditures were $1.6 million during the quarter, leading to negative free cash flow of $11.8 million, compared to negative free cash flow of $2.7 million in the fourth quarter of fiscal 2022.
• Remaining performance obligations (RPO): RPO as of January 31, 2023 was $165.9 million, an increase of 3% year-over-year.

Full Year Fiscal 2023 Financial Highlights

• Revenue: Total revenue for the year was $154.8 million, an increase of 25% year-over-year. Subscription revenue for the year was $142.9 million, an increase of 23% year-over-year.
• Gross margin: Gross margin for the year was 86.9%, compared to 88.0% for fiscal 2022. Non-GAAP gross margin for the year was 87.6%, compared to 88.4% for fiscal 2022.
• Loss from operations: Loss from operations for the year was $69.3 million, compared to $56.3 million for fiscal 2022. Non-GAAP operating loss for the year was $41.3 million, compared to $45.5 million for fiscal 2022.
• Cash flow: Cash flows used in operating activities for the year were $41.2 million, compared to $41.6 million in fiscal 2022. Capital expenditures were $5.6 million during the year, leading to negative free cash flow of $46.8 million, compared to negative free cash flow of $42.4 million in fiscal 2022.

Recent Business Highlights

• Announced the Couchbase Capella Database-as-a-Service (DBaaS) offering on Azure, allowing customers to improve alignment with applications and support hybrid and multi-cloud strategies from a single platform. Microsoft Azure customers worldwide gain access to Capella to take advantage of the scalability, reliability and agility of Capella on Azure to drive application development and shape business strategies.
• Announced a newly enhanced Independent Software Vendor (ISV) partner program that provides training, certifications, migration support and resources to cost-efficiently help ISVs modernize applications.
• Recognized in the Gartner® Magic Quadrant™ for Cloud Database Management Systems, December 2022.
• Appointed Fidelma Butler as Chief People Officer to lead the people function. Butler brings a wealth of experience and leadership, with a focus on scaling SaaS teams and building award-winning company culture, and was previously a vice president at Zendesk.

Financial Outlook

For the first quarter and full year of fiscal 2024, Couchbase expects:

	Q1 FY2024 Outlook	FY2024 Outlook
Total Revenue	$39.5-40.1 million	$171.7-174.7 million
Total ARR	$169.2-172.2 million	$190.0-194.0 million
Non-GAAP Operating Loss	$14.9-14.1 million	$44.0-40.0 million

 

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 first 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, March 7, 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.

Gartner, Magic Quadrant for Cloud Database Management Systems, December 2022

GARTNER and Magic Quadrant are registered trademarks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s Research & Advisory organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Use of Non-GAAP Financial Measures

In addition to our financial information presented in accordance with GAAP, we believe certain non-GAAP financial measures are useful to investors in evaluating our operating performance. We use certain non-GAAP financial measures, collectively, to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, may be helpful to investors because they provide consistency and comparability with past financial performance and meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business, results of operations or outlook. Non-GAAP financial measures are presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP and may be different from similarly-titled non-GAAP financial measures used by other companies. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures (provided in the financial statement tables included in this press release), and not to rely on any single financial measure to evaluate our business.

Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss attributable to common stockholders and non-GAAP net loss per share attributable to common stockholders: We define these non-GAAP financial measures as their respective GAAP measures, excluding expenses related to stock-based compensation expense, employer taxes on employee stock transactions and restructuring charges. We use these non-GAAP financial measures in conjunction with GAAP measures to assess our performance, including in the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance.

Beginning with the first quarter of fiscal 2023, we have excluded employer payroll taxes on employee stock transactions, which is a cash expense, from our non-GAAP results. These payroll taxes have been excluded from our non-GAAP results because they are tied to the timing and size of the exercise or vesting of the underlying equity awards, and the price of our common stock at the time of vesting or exercise may vary from period to period independent of the operating performance of our business. Prior period non-GAAP financial measures have not been adjusted to reflect this change, and the effect of this change is not material for any period previously presented.

Free cash flow: We define free cash flow as cash used in operating activities less additions of property and equipment, which includes capitalized internal-use software costs. We believe free cash flow is a useful indicator of liquidity that provides our management, board of directors and investors with information about our future ability to generate or use cash to enhance the strength of our balance sheet and further invest in our business and pursue potential strategic initiatives.

Please see the reconciliation tables at the end of this press release for the reconciliation of GAAP and non-GAAP results.

Key Business Metrics

We review a number of operating and financial metrics, including ARR, to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions.

We define ARR as of a given date as the annualized recurring revenue that we would contractually receive from our customers in the month ending 12 months following such date. Based on historical experience with customers, we assume all contracts will be automatically renewed at the same levels unless we receive notification of non-renewal and are no longer in negotiations prior to the measurement date. ARR also includes revenue from consumption-based cloud credits of Couchbase Capella products. ARR for Couchbase Capella products in a customer’s initial year is calculated as described above; after a customer’s initial year it is calculated by annualizing the prior 90 days of actual consumption, assuming no increases or reductions in usage. ARR excludes revenue derived from the use of cloud products only based on on-demand arrangements and services revenue. ARR should be viewed independently of revenue, and does not represent our revenue under GAAP on an annualized basis, as it is an operating metric that can be impacted by contract start and end dates and renewal dates. ARR is not intended to be a replacement for forecasts of revenue. Although we seek to increase ARR as part of our strategy of targeting large enterprise customers, this metric may fluctuate from period to period based on our ability to acquire new customers and expand within our existing customers. We believe that our ARR is an important indicator of the growth and performance of our business. We updated our definition of ARR beginning in the first quarter of fiscal 2023 to include revenue from consumption-based cloud credits of Couchbase Capella products by annualizing the prior 90 days of actual consumption, assuming no increases or reductions in usage, and updated in the third quarter of fiscal 2023 to clarify that the 90-day actual consumption methodology is only used after a customer’s initial year. The reason for these changes is to better reflect the ARR for Couchbase Capella products following the launch of Couchbase Capella in fiscal 2022. ARR for prior periods have not been adjusted to reflect these changes as they are not material to any period previously presented.

We also attempt to represent the changes in the underlying business operations by eliminating fluctuations caused by changes in foreign currency exchange rates within the current period. We calculate constant currency growth rates by applying the applicable prior period exchange rates to current period results.

Forward-Looking Statements

This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include, but are not limited to, quotations of management, the section titled “Financial Outlook” above and statements about Couchbase’s market position, strategies and potential market opportunities. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements include all statements that are not historical facts and, in some cases, can be identified by terms such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “continue,” “could,” “potential,” “remain,” “may,” “might,” “will,” “would” or similar expressions and the negatives of those terms. However, not all forward-looking statements contain these identifying words. Forward-looking statements involve known and unknown risks, uncertainties and other factors, including factors beyond our control, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to: our history of net losses and ability to achieve or maintain profitability in the future; our ability to continue to grow on pace with historical rates; our ability to manage our growth effectively; intense competition and our ability to compete effectively; cost-effectively acquiring new customers or obtaining renewals, upgrades or expansions from our existing customers; the market for our products and services being relatively new and evolving, and our future success depending on the growth and expansion of this market; our ability to innovate in response to changing customer needs, new technologies or other market requirements; our limited operating history, which makes it difficult to predict our future results of operations; the significant fluctuation of our future results of operations and ability to meet the expectations of analysts or investors; our significant reliance on revenue from subscriptions, which may decline and, the recognition of a significant portion of revenue from subscriptions over the term of the relevant subscription period, which means downturns or upturns in sales are not immediately reflected in full in our results of operations; and the impact of geopolitical and macroeconomic factors and the ongoing COVID-19 pandemic. Further information on risks that could cause actual results to differ materially from forecasted results are included in our filings with the Securities and Exchange Commission that we may file from time to time, including those more fully described in our Quarterly Report on Form 10-Q for the quarter ended October 31, 2022. Additional information will be made available in our Annual Report on Form 10-K for the year ended January 31, 2023 that will be filed with the Securities and Exchange Commission, which should be read in conjunction with this press release and the financial results included herein. Any forward-looking statements contained in this press release are based on assumptions that we believe to be reasonable as of this date. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

Investor Contact:
Edward Parker
ICR for Couchbase
IR@couchbase.com

 

Media Contact:
Michelle Lazzar
Couchbase Communications
CouchbasePR@couchbase.com

Couchbase, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

	Three Months Ended January 31,		Year Ended January 31,
	2023	2022	2023	2022
Revenue:
License	$4,977	$6,540	$19,885	$19,008
Support and other	33,158	26,245	123,010	97,279
Total subscription revenue	38,135	32,785	142,895	116,287
Services	3,488	2,279	11,929	7,255
Total revenue	41,623	35,064	154,824	123,542
Cost of revenue:
Subscription(1)	3,214	2,311	10,762	8,529
Services(1)	2,738	1,817	9,497	6,252
Total cost of revenue	5,952	4,128	20,259	14,781
Gross profit	35,671	30,936	134,565	108,761
Operating expenses:
Research and development(1)	15,000	13,372	57,760	51,639
Sales and marketing(1)	29,303	23,658	111,067	89,372
General and administrative(1)	8,207	6,574	33,390	24,008
Restructuring(1)	1,663	—	1,663	—
Total operating expenses	54,173	43,604	203,880	165,019
Loss from operations	(18,502)	(12,668)	(69,315)	(56,258)
Interest expense	(25)	(26)	(101)	(656)
Other income (expense), net	1,938	(256)	1,960	(300)
Loss before income taxes	(16,589)	(12,950)	(67,456)	(57,214)
Provision for income taxes	25	286	1,038	1,015
Net loss	$(16,614)	$(13,236)	$(68,494)	$(58,229)
Cumulative dividends on Series G redeemable convertible preferred stock	—	—	—	(2,917)
Net loss attributable to common stockholders	$(16,614)	$(13,236)	$(68,494)	$(61,146)
Net loss per share attributable to common stockholders, basic and diluted	$(0.37)	$(0.30)	$(1.53)	$(2.37)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted	45,281	43,688	44,787	25,777

_______________________________

• Includes stock-based compensation expense as follows:

	Three Months Ended January 31,		Year Ended January 31,
	2023	2022	2023	2022
Cost of revenue—subscription	$144	$73	$535	$196
Cost of revenue—services	116	80	433	196
Research and development	2,046	1,119	7,937	3,343
Sales and marketing	2,563	1,447	9,426	3,968
General and administrative	1,922	868	7,390	3,047
Restructuring	65	—	65	—
Total stock-based compensation expense	$6,856	$3,587	$25,786	$10,750

 

 

Couchbase, Inc.

Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)

	As of January 31, 2023	As of January 31, 2022
Assets
Current assets
Cash and cash equivalents	$40,446	$95,688
Short-term investments	127,856	110,266
Accounts receivable, net	39,847	36,696
Deferred commissions	13,096	11,783
Prepaid expenses and other current assets	8,234	8,559
Total current assets	229,479	262,992
Property and equipment, net	7,430	4,288
Operating lease right-of-use assets(2)	6,940	—
Deferred commissions, noncurrent	7,524	8,243
Other assets	1,666	1,219
Total assets	$253,039	$276,742
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$1,407	$1,923
Accrued compensation and benefits	12,641	16,143
Other accrued expenses	6,076	3,231
Operating lease liabilities(2)	3,117	—
Deferred revenue	71,716	69,010
Total current liabilities	94,957	90,307
Operating lease liabilities, noncurrent(2)	4,543	—
Deferred revenue, noncurrent	3,275	2,713
Other liabilities	—	507
Total liabilities	102,775	93,527
Stockholders’ equity
Preferred stock	—	—
Common stock	—	—
Additional paid-in capital	561,547	525,392
Accumulated other comprehensive loss	(807)	(195)
Accumulated deficit	(410,476)	(341,982)
Total stockholders’ equity	150,264	183,215
Total liabilities and stockholders’ equity	$253,039	$276,742

_______________________________

• The Company adopted ASU 2016-02, “Leases” (Topic 842) using the modified retrospective method as of February 1, 2022 and elected the transition option that allows the Company not to restate the comparative periods in its financial statements in the year of adoption.

 

Couchbase, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

	Three Months Ended January 31,		Year Ended January 31,
	2023	2022	2023	2022
Cash flows from operating activities
Net loss	$(16,614)	$(13,236)	$(68,494)	$(58,229)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	867	710	3,171	2,824
Amortization of debt issuance costs	—	—	—	52
Stock-based compensation, net of amounts capitalized	6,856	3,587	25,786	10,750
Amortization of deferred commissions	4,447	3,940	16,996	13,763
Non-cash lease expense	757	—	2,909	—
Foreign currency transaction (gains) losses	(774)	377	524	382
Other	(593)	164	(416)	267
Changes in operating assets and liabilities
Accounts receivable	(16,941)	(14,289)	(3,537)	(730)
Deferred commissions	(5,321)	(8,867)	(17,590)	(20,495)
Prepaid expenses and other assets	(850)	(333)	(159)	(6,217)
Accounts payable	(1,971)	(1,604)	(495)	(491)
Accrued compensation and benefits	3,579	6,213	(3,497)	7,030
Accrued expenses and other liabilities	2,803	(86)	3,103	(493)
Operating lease liabilities	(824)	—	(2,754)	—
Deferred revenue	14,376	20,772	3,268	10,013
Net cash used in operating activities	(10,203)	(2,652)	(41,185)	(41,574)
Cash flows from investing activities
Purchases of short-term investments	(33,976)	(46,200)	(144,613)	(112,479)
Maturities and sales of short-term investments	45,750	1,800	126,893	21,268
Additions to property and equipment	(1,553)	(5)	(5,646)	(819)
Net cash provided by (used in) investing activities	10,221	(44,405)	(23,366)	(92,030)
Cash flows from financing activities
Payments of debt	—	—	—	(25,000)
Proceeds from exercise of stock options	1,189	1,562	5,222	7,495
Proceeds from issuance of common stock under ESPP	—	—	4,484	—
Proceeds from initial public offering, net of underwriting discounts and commissions	—	—	—	214,854
Payment for fractional shares in reverse stock split	—	—	—	(9)
Payments of deferred offering costs	—	—	—	(4,930)
Net cash provided by financing activities	1,189	1,562	9,706	192,410
Effect of exchange rate changes on cash, cash equivalents and restricted cash	458	(257)	(397)	(415)
Net increase (decrease) in cash, cash equivalents and restricted cash	1,665	(45,752)	(55,242)	58,391
Cash, cash equivalents, and restricted cash at beginning of period	39,324	141,983	96,231	37,840
Cash, cash equivalents, and restricted cash at end of period	$40,989	$96,231	$40,989	$96,231
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown above:
Cash and cash equivalents	$40,446	$95,688	$40,446	$95,688
Restricted cash included in other assets	543	543	543	543
Total cash, cash equivalents and restricted cash	$40,989	$96,231	$40,989	$96,231

 

 

Couchbase, Inc.

Reconciliation of GAAP to Non-GAAP Results

(in thousands, except per share data)

(unaudited)

	Three Months Ended January 31,		Year Ended January 31,
	2023	2022	2023	2022
Reconciliation of GAAP gross profit to non-GAAP gross profit:
Total revenue	$41,623	$35,064	$154,824	$123,542
Gross profit	$35,671	$30,936	$134,565	$108,761
Add: Stock-based compensation expense	260	153	968	392
Add: Employer taxes on employee stock transactions	5	—	41	—
Non-GAAP gross profit	$35,936	$31,089	$135,574	$109,153
Gross margin	85.7 %	88.2 %	86.9 %	88.0 %
Non-GAAP gross margin	86.3 %	88.7 %	87.6 %	88.4 %
	Three Months Ended January 31,		Year Ended January 31,
	2023	2022	2023	2022
Reconciliation of GAAP operating expenses to non-GAAP operating expenses:
GAAP research and development	$15,000	$13,372	$57,760	$51,639
Less: Stock-based compensation expense	(2,046)	(1,119)	(7,937)	(3,343)
Less: Employer taxes on employee stock transactions	(27)	—	(165)	—
Non-GAAP research and development	$12,927	$12,253	$49,658	$48,296
GAAP sales and marketing	$29,303	$23,658	$111,067	$89,372
Less: Stock-based compensation expense	(2,563)	(1,447)	(9,426)	(3,968)
Less: Employer taxes on employee stock transactions	(76)	—	(294)	—
Non-GAAP sales and marketing	$26,664	$22,211	$101,347	$85,404
GAAP general and administrative	$8,207	$6,574	$33,390	$24,008
Less: Stock-based compensation expense	(1,922)	(868)	(7,390)	(3,047)
Less: Employer taxes on employee stock transactions	(8)	—	(106)	—
Non-GAAP general and administrative	$6,277	$5,706	$25,894	$20,961
GAAP restructuring expense	$1,663	$—	$1,663	$—
Less: Restructuring(3)	(1,663)	—	(1,663)	—
Non-GAAP restructuring	$—	$—	$—	$—
	Three Months Ended January 31,		Year Ended January 31,
	2023	2022	2023	2022
Reconciliation of GAAP operating loss to non-GAAP operating loss:
Total revenue	$41,623	$35,064	$154,824	$123,542
Loss from operations	$(18,502)	$(12,668)	$(69,315)	$(56,258)
Add: Stock-based compensation expense	6,791	3,587	25,721	10,750
Add: Employer taxes on employee stock transactions	116	—	606	—
Add: Restructuring(3)	1,663	—	1,663	—
Non-GAAP operating loss	$(9,932)	$(9,081)	$(41,325)	$(45,508)
Operating margin	(44) %	(36) %	(45) %	(46) %
Non-GAAP operating margin	(24) %	(26) %	(27) %	(37) %
	Three Months Ended January 31,		Year Ended January 31,
	2023	2022	2023	2022
Reconciliation of GAAP net loss attributable to common stockholders to non-GAAP net loss attributable to common stockholders:
Net loss attributable to common stockholders	$(16,614)	$(13,236)	$(68,494)	$(61,146)
Add: Stock-based compensation expense	6,791	3,587	25,721	10,750
Add: Employer taxes on employee stock transactions	116	—	606	—
Add: Restructuring(3)	1,663	—	1,663	—
Non-GAAP net loss attributable to common stockholders	$(8,044)	$(9,649)	$(40,504)	$(50,396)
GAAP net loss per share attributable to common stockholders	$(0.37)	$(0.30)	$(1.53)	$(2.37)
Non-GAAP net loss per share attributable to common stockholders	$(0.18)	$(0.22)	$(0.90)	$(1.96)
Weighted average shares outstanding, basic and diluted	45,281	43,688	44,787	25,777

_______________________________

• For the three months and year ended January 31, 2023, stock-based compensation expense related to restructuring charges were included in the restructuring expense line.

The following table presents a reconciliation of free cash flow to net cash used in operating activities, the most directly comparable GAAP measure, for each of the periods indicated (in thousands, unaudited):

	Three Months Ended January 31,		Year Ended January 31,
	2023	2022	2023	2022
Net cash used in operating activities	$(10,203)	$(2,652)	$(41,185)	$(41,574)
Less: Additions to property and equipment	(1,553)	(5)	(5,646)	(819)
Free cash flow	$(11,756)	$(2,657)	$(46,831)	$(42,393)
Net cash provided by (used in) investing activities	$10,221	$(44,405)	$(23,366)	$(92,030)
Net cash provided by financing activities	$1,189	$1,562	$9,706	$192,410

 

 

Couchbase, Inc.

Key Business Metrics

(in millions)

(unaudited)

As of	Oct. 31,	Jan. 31,	April 30,	July 31,	Oct. 31,	Jan. 31,
	2021	2022	2022	2022	2022	2023
Annual Recurring Revenue	$122.3	$132.9	$139.7	$145.2	$151.7	$163.7

SANTA CLARA, Calif., Feb. 28, 2023 – Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, today announced an expanded ISV (Independent Software Vendor) Partner Program. The program will provide ISVs with a new Success Package that includes enhanced training, certifications and additional resources necessary to build and monetize their modern applications with ease. Complementing the Success Package is the introduction of a new ISV Program Guide with more information and resources to make it easier for ISV customers to get started with Couchbase.

“After searching the market for a cloud database platform that addresses the complexity of our customers’ broad portfolio of data, Couchbase Capella was the perfect fit,” said Simba Mupfunya, software architect at Netropolix. “Capella helped centralize and consolidate our data lake and database ecosystem, allowing us to modernize our tech stack in the cloud to better serve our customers’ diverse needs. With Capella, we’re able to seamlessly deploy apps and monitor logs, all while handling a plethora of requests to ensure everything is running smoothly.”

Developing market-leading applications that must evolve rapidly can be difficult for organizations due to complexities like database sprawl, vendor lock-in or lack of resources. ISV partners often leverage multiple disparate resources to obtain the necessary requirements for application development so they can innovate to meet demand. At the same time, staying ahead of the competition and protecting profitability are critical for these organizations.

The Couchbase Capella cloud data platform solves these problems by helping ISV partners gain the flexibility to consolidate their architecture and accelerate application development while delivering broad capabilities and a highly scalable architecture that drives down total cost of ownership (TCO). Couchbase works with ISV partners to embed or bundle its cloud database platform with the applications or other solutions offered by ISV partners to their customers. By standardizing on Couchbase, ISV partners can establish and expand their business, and improve revenue, margins and application time to market.

The Couchbase ISV Partner Program is a single resource for organizations looking for a developer-friendly solution to build modern applications with a fast, flexible, familiar and affordable cloud database platform. With these new ISV partner investments, Couchbase is making it easier for ISV partners to add modern features to their apps and increase differentiation. Couchbase ISV partners can take advantage of the capabilities in Capella and benefit from:

• Faster release cycles and less data duplication: Capella is a JSON document and key-value database, with built-in cache, full-text search, eventing and analytics to support many use cases.
• Familiarity for faster ramp-up: Capella uses SQL as its query language for JSON documents; teams aren’t required to learn a new query language, reducing the skills gap.
• Always on mobile and IoT apps: Regardless of web connectivity, Capella App Services delivers offline-first data so users can query, search and analyze at the edge.
• High availability and automation: Setup, backups, upgrades and ongoing management are automated to deliver an “always-on” service, reducing organizations’ operational efforts.

“We’re dedicated to broadening our ISV partner ecosystem to deliver unmatched speed, scalability and resilience,” said Matt McDonough, senior vice president of business development and strategy at Couchbase. “With new resources for ISVs to learn about Capella, teams can be empowered to get started on their application development journey knowing they’re backed by easy-to-use, high-performing technology that eliminates the need for ongoing database management efforts.”

To learn more about Couchbase’s enhanced ISV Partner Program, visit this ISV partner page.

Additional Resources

• Get in touch with the Couchbase ISV team here.
• For more information about Couchbase partners, please visit this partner page.
• To learn more about Capella, Couchbase’s DBaaS, check out this page.

Santa Clara, Calif., February 23, 2022 – Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, today announced that Company management will participate in upcoming investor conferences.

Chair and CEO Matt Cain and CFO Greg Henry will present at the Morgan Stanley Global Technology, Media and Telecom Conference in San Francisco, California. The presentation will take place on Thursday, March 9, 2023 at 1:05 p.m. PT / 4:05 p.m. ET. Couchbase management will also participate in investor meetings. A live webcast and replay will be available on the Company’s investor relations website.

Additionally, Chief Financial Officer Greg Henry will participate in the 7th Annual William Blair Tech Innovators Conference, a virtual event, on Tuesday, March 14, 2023.

SANTA CLARA, Calif., Feb. 6, 2023 – Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, today announced Fidelma Butler has joined the company as chief people officer. Butler will lead the people function, aligned with the company’s values and operating objectives.

Butler brings a wealth of experience and leadership to Couchbase, with a focus on scaling SaaS teams and building award-winning company culture. She comes to Couchbase from Zendesk and was most recently vice president of the talent and organizational development team, where she led its global organization development, engagement, acquisition and learning teams. Butler began her career with Accenture’s talent management consulting practice, specializing in large-scale technology and business model transformations, and later led the people function for fintech company Realex Payments.

“We are thrilled to welcome Fidelma as Couchbase’s chief people officer,” said Matt Cain, chairperson and CEO of Couchbase. “She is an exceptional leader and has valuable experience scaling high-growth software companies as well as driving transformation across larger organizations. At Couchbase, the foundation of what we do is our world class team. We foster an environment that enables employees to do the best and most fulfilling work, within a culture we believe in and care about deeply. We are excited to have Fidelma come in and take this to new heights as we enter our next phase of growth.”

Butler will lead a global team including business partnering and operations, talent acquisition, employee experience and engagement, total rewards, workplace, and executing the talent strategy for the organization’s future. She will play a pivotal role in strengthening Couchbase’s culture for its distributed teams made up of exceptional people.

“I am excited to be joining Couchbase as I strongly believe in the company’s values and mission,” said Butler. “The database market is undergoing a once-in-a-generation shift and Couchbase has a unique opportunity to transform how organizations easily build modern applications. I look forward to supporting Couchbase’s employees and working with the executive team to further cultivate Couchbase’s fantastic, inclusive culture and impressive talent.”