Part I [Item 1. Financial Statements (unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20%28unaudited%29) This section presents Couchbase, Inc.'s unaudited condensed consolidated financial statements for the quarter ended October 31, 2024, along with detailed accounting notes [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of October 31, 2024, shows a decrease in total assets to $222.5 million from $247.8 million at January 31, 2024, primarily driven by a reduction in cash, short-term investments, and accounts receivable Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Oct 31, 2024 | Jan 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $194,301 | $224,286 | | **Total assets** | $222,459 | $247,752 | | **Total current liabilities** | $91,174 | $112,506 | | **Total liabilities** | $95,681 | $117,331 | | **Total Stockholders' Equity** | $126,778 | $130,421 | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended October 31, 2024, total revenue increased to $51.6 million from $45.8 million year-over-year, but a rise in operating expenses led to a higher net loss of $(18.2) million Statement of Operations Summary (in thousands, except per share data) | Metric | Q3 FY2025 (ended Oct 31, 2024) | Q3 FY2024 (ended Oct 31, 2023) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $51,628 | $45,813 | +12.7% | | **Gross Profit** | $45,072 | $40,702 | +10.7% | | **Loss from Operations** | $(19,234) | $(17,542) | +9.6% | | **Net Loss** | $(18,152) | $(16,255) | +11.7% | | **Net Loss Per Share** | $(0.35) | $(0.34) | +2.9% | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended October 31, 2024, net cash used in operating activities slightly improved to $(20.2) million, while net cash provided by investing activities significantly decreased Cash Flow Summary for the Nine Months Ended October 31 (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(20,186) | $(20,443) | | **Net cash provided by investing activities** | $2,885 | $18,093 | | **Net cash provided by financing activities** | $8,766 | $9,353 | | **Net (decrease) increase in cash** | $(8,863) | $6,461 | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide crucial details supporting the financial statements, including changes in accounting estimates, new credit facilities, and revenue breakdown by geography - The company increased the expected period of benefit for deferred sales commissions from three to four years, effective February 1, 2024, applied prospectively[49](index=49&type=chunk) - As of October 31, 2024, the company's Remaining Performance Obligations (RPOs) were **$211.3 million**, with **$128.7 million** expected to be recognized as revenue over the next 12 months[70](index=70&type=chunk) - On February 7, 2024, the company entered into a new three-year, **$25.0 million** senior secured revolving loan facility, with no debt outstanding as of October 31, 2024[71](index=71&type=chunk)[72](index=72&type=chunk) Revenue by Geographic Area (in thousands) | Region | Nine Months Ended Oct 31, 2024 | Nine Months Ended Oct 31, 2023 | YoY Growth | | :--- | :--- | :--- | :--- | | United States | $103,438 | $82,848 | 24.9% | | International | $51,106 | $47,100 | 8.5% | | **Total** | **$154,544** | **$129,948** | **18.9%** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting 19% revenue growth and 17% ARR growth, while continuing to invest in its DBaaS offering amidst macroeconomic headwinds [Overview and Business Model](index=26&type=section&id=Overview%20and%20Business%20Model) Couchbase provides a cloud database platform with a primarily subscription-based business model, employing a dual go-to-market strategy for enterprises and developers - The company's mission is to simplify modern application development and deployment across cloud and edge environments, powering core applications with high performance and reliability[102](index=102&type=chunk) - The substantial majority of revenue (**96%** for the nine months ended Oct 31, 2024) comes from subscriptions, with a smaller portion from professional services[106](index=106&type=chunk) - The go-to-market strategy focuses on a direct sales force for large enterprises and a developer-focused approach with free trials and the Couchbase Capella DBaaS offering to drive adoption[108](index=108&type=chunk) [Key Business Metrics](index=29&type=section&id=Key%20Business%20Metrics) The company's key performance indicators showed strong growth, with Annual Recurring Revenue (ARR) increasing by 17% year-over-year and total customer count growing by 26% Annual Recurring Revenue (ARR) | Date | ARR (in millions) | YoY Growth | | :--- | :--- | :--- | | Oct 31, 2024 | $220.3 | 17% | | Oct 31, 2023 | $188.7 | - | Customer Count | Date | Total Customers | | :--- | :--- | | Oct 31, 2024 | 903 | | Oct 31, 2023 | 715 | - As of October 31, 2024, ARR for the Couchbase Capella DBaaS product was approximately **$33.2 million**[114](index=114&type=chunk) [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Total revenue for Q3 FY2025 grew 13% year-over-year to $51.6 million, driven by subscription revenue, while operating expenses increased across all categories, widening the operating loss - For the three months ended Oct 31, 2024, subscription revenue growth was primarily driven by existing customers, who accounted for approximately **92%** of the increase[148](index=148&type=chunk) - Cost of subscription revenue increased by **37%** in Q3 YoY, mainly due to higher computing infrastructure costs for the growing Couchbase Capella service[149](index=149&type=chunk) - Operating expenses for the nine-month period increased by **13.5%** YoY, primarily due to higher personnel-related costs, including stock-based compensation, across R&D, Sales & Marketing, and G&A departments due to headcount growth[152](index=152&type=chunk)[155](index=155&type=chunk)[158](index=158&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) As of October 31, 2024, Couchbase had $141.9 million in cash, cash equivalents, and short-term investments, believing its existing capital is sufficient for at least the next 12 months - The company's primary sources of liquidity are cash from operations, proceeds from its July 2021 IPO, and a new credit facility[162](index=162&type=chunk)[164](index=164&type=chunk) - A substantial source of cash is from customer prepayments for subscriptions, which are recorded as deferred revenue, with remaining performance obligations of **$211.3 million** as of October 31, 2024[164](index=164&type=chunk) Cash Flow Summary for Nine Months Ended Oct 31 (in thousands) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(20,186) | $(20,443) | | Free Cash Flow | $(22,831) | $(23,868) | [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies interest rate and foreign currency exchange rate risks, but expects no material impact from a hypothetical 10% change due to its short-term investments and U.S. Dollar functional currency - The company's investments are exposed to interest rate fluctuations, but due to their short-term nature, a **10%** change in rates is not expected to have a material effect[178](index=178&type=chunk) - Foreign currency risk exists, but a hypothetical **10%** change in the U.S. Dollar's value relative to other currencies is not expected to materially impact results of operations[179](index=179&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of October 31, 2024, with no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of the end of the period[182](index=182&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[183](index=183&type=chunk) Part II. Other Information [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business or financial results - Couchbase is not currently involved in any legal proceedings that are considered material to its business[187](index=187&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) This section details significant risks including a history of net losses, intense competition, challenges in customer acquisition, reliance on innovation, security breaches, evolving data privacy regulations, and intellectual property protection [Risks Related to Business and Operations](index=44&type=section&id=Risks%20Related%20to%20Business%20and%20Operations) The company faces operational risks including a history of net losses, intense competition from established players and cloud providers, and challenges in customer acquisition and expansion due to macroeconomic pressures - The company has a history of net losses, incurring **$59.0 million** in the nine months ended October 31, 2024, and may not achieve or maintain profitability in the future[190](index=190&type=chunk) - Competition is intense from legacy database providers (Oracle, IBM), NoSQL providers (MongoDB), and major cloud infrastructure providers (Amazon, Microsoft, Google), many of whom have greater resources and brand recognition[194](index=194&type=chunk) - Failure to cost-effectively acquire new customers or secure renewals and expansions from existing ones, especially in the current macroeconomic environment causing longer sales cycles and budget scrutiny, could adversely affect business[196](index=196&type=chunk)[207](index=207&type=chunk) [Risks Related to Technology, Security, and Data Privacy](index=51&type=section&id=Risks%20Related%20to%20Technology%2C%20Security%2C%20and%20Data%20Privacy) Risks include product errors, reliance on third-party infrastructure, potential security breaches leading to liability and reputational damage, and non-compliance with evolving global data privacy laws - Real or perceived errors, failures, or bugs in the company's complex products could result in negative publicity, data loss, and harm to the brand, potentially leading to customer loss[211](index=211&type=chunk) - Security breaches or unauthorized access to customer data could lead to significant liability, regulatory investigations, and reputational damage, potentially causing customers to reduce or terminate their use of the products[257](index=257&type=chunk) - The company is subject to numerous evolving U.S. and international data privacy laws like GDPR and CCPA, and failure to comply could result in significant fines and harm to the business[260](index=260&type=chunk)[262](index=262&type=chunk) [Risks Related to Intellectual Property and Open Source](index=59&type=section&id=Risks%20Related%20to%20Intellectual%20Property%20and%20Open%20Source) The company's open-source model and reliance on third-party software present risks including impact on sales, litigation exposure, competitor access to technology, and costly intellectual property disputes - The use of open-source software and making its own source code available could negatively impact the ability to sell products, lead to litigation, and allow competitors to access its technology[241](index=241&type=chunk) - The availability of its source code may lower barriers to entry for competitors, who could develop similar products with less investment, potentially leading to price reductions and loss of market share[245](index=245&type=chunk) - The company may become subject to costly intellectual property disputes and infringement claims, which could result in significant liability, damage payments, and limitations on its ability to use certain technologies[249](index=249&type=chunk) [Other Information](index=75&type=section&id=Item%205.%20Other%20Information) This section discloses that several executive officers and a director adopted Rule 10b5-1 trading plans for the pre-arranged sale of company stock during the last fiscal quarter - Several key executives and a director have adopted Rule 10b5-1 trading arrangements for the future sale of company stock, including: - **Matt Cain** (CEO) - **Greg Henry** (CFO) - **Margaret Chow** (SVP, Chief Legal Officer) - **Huw Owen** (SVP, Chief Revenue Officer) - **Lynn Christensen** (Director)[306](index=306&type=chunk)

Next-generation database software provider Couchbase (BASE -22.20%) delivered a solid earnings report after the close of trading Tuesday, but offered somewhat disappointing guidance. In response, traders punished the stock. Shares plunged by as much as 24.2% during Wednesday morning trading, and were still down by 21.6% as of 1:22 p.m. ET.Couchbase's third-quarter results and guidanceCouchbase's results for its fiscal 2025 third quarter exceeded expectations. For the period, which ended Oct. 31, revenues ro ...

U.S. stock futures were higher this morning, with the Dow futures gaining around 200 points on Wednesday.Shares of Foot Locker, Inc. FL fell sharply in today's pre-market trading following third-quarter results.Foot Locker reported quarterly earnings of 33 cents per share which missed the analyst consensus estimate of 41 cents per share. The company reported quarterly sales of $1.96 billion which missed the analyst consensus estimate of $2.01 billion.Foot Locker shares dipped 14% to $20.80 in the pre-market ...

Financial Data and Key Metrics Changes - Annual recurring revenue (ARR) was $220.3 million, up 17% year-over-year and 16% in constant currency [7][32] - Revenue in Q3 was $51.6 million, up 13% year-over-year [7][33] - Non-GAAP operating loss in Q3 was $3.5 million, an improvement from a loss of $5 million in Q3 of the previous year [8][37] - Gross margin for Q3 was 88.2%, compared to 89.5% in Q3 of last year [35] - Dollar-based net retention rate (NRR) continues to exceed 115% [34] Business Line Data and Key Metrics Changes - Capella now represents 15.1% of total ARR, up from 13.5% last quarter [8][32] - Capella ARR grew 15% sequentially and is up nearly five times over the past two years [32] - The company added 34 new logos in Q3, up from 24 in the same quarter last year [8] Market Data and Key Metrics Changes - The company saw strong customer wins across various industries, including government, gaming, fintech, e-commerce, and technology [9][13] - A major milestone was achieved with a multi-million dollar Capella migration, the largest in the company's history [10] Company Strategy and Development Direction - The company is focused on driving efficiency across operations and improving operational rigor [12][28] - Capella AI Services were announced to empower enterprises in developing and deploying AI applications [23][25] - The company aims to be a long-term strategic partner for enterprises, particularly in the context of AI and next-generation applications [22][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2025 goals despite macroeconomic headwinds [31][42] - The company anticipates a strong Q4 driven by a robust pipeline of strategic opportunities and a significant amount of pre-contracted ARR [42][44] - Management noted that the demand environment appears to be stabilizing, with aspirations to return to 20% plus growth in the future [84] Other Important Information - The company ended Q3 with $141.9 million in cash and short-term investments, remaining well-capitalized for long-term strategy execution [38] - Remaining performance obligations (RPO) were $211.3 million, up 29% year-over-year [39] Q&A Session Summary Question: Insights on Q4 opportunities and ARR translation - Management highlighted that Q4 is expected to be the largest quarter of the year, with several million in pre-contracted ARR contributing to confidence in revenue growth [50][54] Question: Customer conversations regarding AI and Capella - Management noted that discussions with customers increasingly revolve around AI implications, with Capella positioned as a strategic platform for AI applications [57][58] Question: Visibility on closing large deals - Management indicated that while timing for large opportunities is variable, the strength of the pipeline provides confidence for Q4 [66][68] Question: Pre-contracted ARR significance - Management confirmed that the current quarter has the highest amount of pre-contracted ARR in company history, providing additional confidence for Q4 [70] Question: Capella's customer usage and future growth - Management expressed optimism about Capella's adoption, noting that many customers are evaluating the migration of multiple applications to Capella [78][81] Question: Churn and down-sell initiatives - Management reported normal loss and down-sell rates in Q3, indicating that Q2 was an anomaly and that they do not expect elevated loss in Q4 [111][114] Question: Conservatism in ARR guidance - Management clarified that their guidance approach remains consistent, with Q4 expected to be a strong quarter due to pre-contracted revenue and a large renewal pool [120][122]

Couchbase, Inc. (BASE) reported $51.63 million in revenue for the quarter ended October 2024, representing a year-over-year increase of 12.7%. EPS of -$0.05 for the same period compares to -$0.08 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $50.63 million, representing a surprise of +1.98%. The company delivered an EPS surprise of +37.50%, with the consensus EPS estimate being -$0.08.While investors scrutinize revenue and earnings changes year-over-year and how they compare wi ...

Couchbase, Inc. (BASE) came out with a quarterly loss of $0.05 per share versus the Zacks Consensus Estimate of a loss of $0.08. This compares to loss of $0.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 37.50%. A quarter ago, it was expected that this company would post a loss of $0.08 per share when it actually produced a loss of $0.06, delivering a surprise of 25%.Over the last four quarters, the company has surpassed c ...

Exhibit 99.1 Couchbase Announces Third Quarter Fiscal 2025 Financial Results Santa Clara, Calif., - December 3, 2024 – Couchbase, Inc. (NASDAQ: BASE), the developer data platform for critical applications in our AI world, today announced financial results for its third quarter ended October 31, 2024. "I'm pleased with the continued operational progress of the entire Couchbase team," said Matt Cain, Chair, President and CEO of Couchbase. "We delivered top- and bottom-line results that exceeded our outlook, a ...

SANTA CLARA, Calif., Dec. 3, 2024 /PRNewswire/ -- Couchbase, Inc. (NASDAQ: BASE), the developer data platform for critical applications in our AI world, today announced financial results for its third quarter ended October 31, 2024."I'm pleased with the continued operational progress of the entire Couchbase team," said Matt Cain, Chair, President and CEO of Couchbase. "We delivered top- and bottom-line results that exceeded our outlook, and we achieved another significant milestone with Capella, which now r ...

New Capella Offerings Empower Developers to Build Agentic Applications With Confidence by Giving Them Control Over Data, Simplified Workflows and AI Models Available in One Unified PlatformSANTA CLARA, Calif., Dec. 2, 2024 /PRNewswire/ -- Couchbase, Inc. (NASDAQ: BASE), the developer data platform for critical applications in our AI world, today unveiled Capella AI Services to help enterprises address the growing data challenges of AI development and deployment and streamline how they build secure agentic A ...

Couchbase Customers Honored for Developing Cutting-Edge Enterprise Applications and Delivering Exceptional User ExperiencesSANTA CLARA, Calif., Nov. 21, 2024 /PRNewswire/ -- Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, today announced the winners of the 2024 Couchbase Impact Awards. The awards program recognizes customers who are modernizing operational infrastructure to develop modern, real-time and mission-critical applications."The AI era has sparked a new pace of innovation, chal ...