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Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, par value $0.00001 per share BASE Nasdaq Global Select Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________ FORM 10-Q __________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECT ...

Couchbase, Inc. (NASDAQ:BASE) Q1 2025 Earnings Call Transcript June 5, 2024 4:30 PM ET Company Participants Edward Parker - Investor Relations Matthew Cain - Chair, President and Chief Executive Officer Gregory Henry - Chief Financial Officer Conference Call Participants Matt Hedberg - RBC Capital Markets Howard Ma - Guggenheim Securities Austin Dietz - UBS Raimo Lenschow - Barclays Sanjit Singh - Morgan Stanley Ittai Kidron - Oppenheimer Andrew Nowinski - Wells Fargo Rudy Kessinger - D.A. Davidson Imtiaz K ...

For the quarter ended April 2024, Couchbase, Inc. (BASE) reported revenue of $51.33 million, up 25.2% over the same period last year. EPS came in at -$0.10, compared to -$0.27 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $48.52 million, representing a surprise of +5.78%. The company delivered an EPS surprise of +28.57%, with the consensus EPS estimate being -$0.14.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- a ...

Couchbase, Inc. (BASE) came out with a quarterly loss of $0.10 per share versus the Zacks Consensus Estimate of a loss of $0.14. This compares to loss of $0.27 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 28.57%. A quarter ago, it was expected that this company would post a loss of $0.14 per share when it actually produced a loss of $0.06, delivering a surprise of 57.14%.Over the last four quarters, the company has surpasse ...

Financial Performance Overview [Q1 FY2025 Financial Highlights](index=1&type=section&id=Q1%20FY2025%20Financial%20Highlights) Couchbase exceeded Q1 FY2025 outlooks with 25% revenue growth to $51.3 million and achieved its first positive free cash flow - The company exceeded its revenue and operating loss outlook and delivered its first quarter of free cash flow positivity[1](index=1&type=chunk) Q1 FY2025 Key Financial Metrics (YoY) | Metric | Q1 FY2025 | Q1 FY2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $51.3 million | $41.0 million | +25% | | **Subscription Revenue** | $49.0 million | $38.5 million | +27% | | **Total ARR** | $207.7 million | $172.2 million | +21% | | **GAAP Gross Margin** | 88.9% | 85.6% | +3.3 p.p. | | **Non-GAAP Gross Margin** | 89.9% | 86.4% | +3.5 p.p. | | **GAAP Operating Loss** | $22.5 million | $22.5 million | Unchanged | | **Non-GAAP Operating Loss** | $6.7 million | $12.9 million | Improved by 48% | | **Free Cash Flow** | $0.6 million | ($8.5 million) | +$9.1 million | | **RPO** | $220.0 million | $165.4 million (approx.) | +33% | [Financial Outlook](index=2&type=section&id=Financial%20Outlook) Couchbase projects continued Q2 and full FY2025 revenue and ARR growth, anticipating reduced non-GAAP operating losses Fiscal 2025 Financial Outlook | Metric | Q2 FY2025 Outlook | Full FY2025 Outlook | | :--- | :--- | :--- | | **Total Revenue** | $50.6 - $51.4 million | $204.5 - $208.5 million | | **Total ARR** | $212.5 - $215.5 million | $235.5 - $240.5 million | | **Non-GAAP Operating Loss** | $5.7 - $4.7 million | $26.5 - $21.5 million | - The company is unable to provide GAAP targets for operating loss due to the difficulty of estimating certain excluded items like stock-based compensation expense[10](index=10&type=chunk) Business and Operational Review [Recent Business Highlights](index=1&type=section&id=Recent%20Business%20Highlights) Couchbase advanced AI with vector search for RAG, appointed a CIO, and expanded its ecosystem via Google Cloud and AWS partnerships - Delivered the general availability of vector search in Couchbase Capella and Couchbase Server to enable AI-powered adaptive applications using RAG techniques[4](index=4&type=chunk) - Appointed Julie Irish as the company's first Chief Information Officer to lead the global IT and security team[5](index=5&type=chunk) - Announced plans to join the Google Cloud Ready Distributed Cloud program and introduced a Google Cloud Couchbase connector to facilitate direct integration with services like Vertex AI[6](index=6&type=chunk)[7](index=7&type=chunk) - Launched the Couchbase Docs chatbot, built on AWS and powered by Amazon Bedrock, to enhance user experience with AI[7](index=7&type=chunk) Financial Statements [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 FY2025 total revenue grew 25% to $51.3 million, driven by subscription, with GAAP operating loss flat and improved net loss per share Q1 FY2025 Statement of Operations Highlights (in thousands, YoY) | Line Item | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | **Total Revenue** | $51,327 | $40,996 | | Subscription Revenue | $49,038 | $38,542 | | **Gross Profit** | $45,645 | $35,074 | | **Total Operating Expenses** | $68,185 | $57,607 | | **Loss from Operations** | ($22,540) | ($22,533) | | **Net Loss** | ($20,995) | ($21,875) | | **Net Loss Per Share** | ($0.42) | ($0.48) | - Total stock-based compensation expense increased to **$14.6 million** from **$9.3 million** in the prior-year quarter, contributing significantly to operating expenses[29](index=29&type=chunk) [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of April 30, 2024, Couchbase reported total assets of $242.6 million, liabilities of $113.5 million, and $160.2 million in cash and investments Balance Sheet Highlights (in thousands) | Account | April 30, 2024 | January 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $51,975 | $41,351 | | **Short-term investments** | $108,220 | $112,281 | | **Total Assets** | $242,571 | $247,752 | | **Total Liabilities** | $113,509 | $117,331 | | **Total Stockholders' Equity** | $129,062 | $130,421 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 FY2025 saw Couchbase generate $1.6 million cash from operations, a turnaround from prior year, achieving its first positive free cash flow Cash Flow Summary (in thousands, YoY) | Cash Flow Activity | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | **Net cash from operating activities** | $1,559 | ($7,181) | | **Net cash from investing activities** | $3,695 | $10,314 | | **Net cash from financing activities** | $5,089 | $2,764 | - The company achieved positive free cash flow of **$0.6 million**, a substantial improvement from a negative free cash flow of **$8.5 million** in the prior-year quarter[3](index=3&type=chunk)[41](index=41&type=chunk) Supplementary Information [Key Business Metrics (ARR)](index=5&type=section&id=Key%20Business%20Metrics%20(ARR)) ARR, annualized recurring revenue, reached $207.7 million as of April 30, 2024, with Capella calculation updated for FY2025 consumption models - ARR is defined as the annualized recurring revenue contractually receivable from customers, assuming all contracts will be renewed[21](index=21&type=chunk) - Beginning in fiscal 2025, the ARR calculation for Capella products was updated to incorporate consumption data (annualized prior 90 days) to better reflect usage, a change not applied to prior periods[21](index=21&type=chunk)[22](index=22&type=chunk) Total ARR Trend (in millions) | Date | Total ARR | | :--- | :--- | | Jan 31, 2023 | $163.7 | | Apr 30, 2023 | $172.2 | | Jul 31, 2023 | $180.7 | | Oct 31, 2023 | $188.7 | | Jan 31, 2024 | $204.2 | | Apr 30, 2024 | $207.7 | [Reconciliation of GAAP to Non-GAAP Results](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Results) Couchbase provides non-GAAP metrics, excluding stock-based compensation, showing Q1 FY2025 non-GAAP operating loss of $6.7 million and non-GAAP net loss per share of ($0.10) - Non-GAAP financial measures exclude expenses related to stock-based compensation, employer payroll taxes on employee stock transactions, and restructuring charges to provide consistency and comparability with past performance[15](index=15&type=chunk)[16](index=16&type=chunk) GAAP vs. Non-GAAP Operating Loss (in thousands, YoY) | Metric | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | **GAAP Operating Loss** | ($22,540) | ($22,533) | | Stock-based compensation | $14,627 | $9,275 | | Other adjustments | $1,216 | $313 | | **Non-GAAP Operating Loss** | ($6,697) | ($12,945) | GAAP vs. Non-GAAP Net Loss Per Share (YoY) | Metric | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | **GAAP Net Loss Per Share** | ($0.42) | ($0.48) | | **Non-GAAP Net Loss Per Share** | ($0.10) | ($0.27) |

SANTA CLARA, Calif., June 5, 2024 /PRNewswire/ -- Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, today announced financial results for its first quarter ended April 30, 2024."We grew ARR by 21% year-over-year, continued to increase our Capella mix, and made meaningful progress in our efforts to improve our operational rigor and efficiency," said Matt Cain, Chair, President and CEO of Couchbase. "I'm particularly pleased that we delivered revenue and operating loss results that exceeded ...

SANTA CLARA, Calif., May 15, 2024 /PRNewswire/ -- Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, today announced that it will report financial results for its first quarter ended April 30, 2024 on Wednesday, June 5, 2024 after market close. Couchbase will host a conference call and webcast at 1:30 p.m. Pacific Time (or 4:30 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 +1 201-6 ...

Global Research Shows More Than Half of Enterprises Need Significant Data Management Investment, and Over a Quarter Are Diverting IT Budgets to Meet GenAI Goals SANTA CLARA, Calif., May 6, 2024 /PRNewswire/ -- Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, today released the findings from its seventh annual survey of global IT leaders. The study of 500 senior IT decision makers1 found that investment in IT modernization is set to increase by 27% in 2024, as enterprises look to take adv ...

Part I [Business Overview](index=8&type=section&id=Item%201.%20Business) Couchbase provides a cloud database platform fusing relational and NoSQL strengths for modern applications, serving 749 customers - Couchbase offers a cloud database platform combining relational and NoSQL flexibility for modern, AI-powered enterprise applications[21](index=21&type=chunk) - Core products include **Couchbase Capella** (DBaaS), **Couchbase Server**, and **Couchbase Mobile** for edge devices[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) - The go-to-market strategy combines direct enterprise sales with a developer-focused product-led growth approach[56](index=56&type=chunk) - As of January 31, 2024, the company served **749 customers** and employed **796 individuals** worldwide[54](index=54&type=chunk)[64](index=64&type=chunk) - Key competitive strengths include high performance, JSON data model flexibility, SQL++ familiarity, affordability, and multi-cloud to edge deployment versatility[24](index=24&type=chunk) - Primary competitors include legacy providers (Oracle, IBM), NoSQL providers (MongoDB), and major cloud providers (Amazon, Microsoft, Google)[80](index=80&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from net losses, intense competition, operational challenges, cybersecurity, and complex regulatory compliance - The company has a history of net losses, incurring **$80.2 million** in fiscal 2024, with no guarantee of future profitability[86](index=86&type=chunk) - Intense competition comes from legacy (Oracle, IBM), NoSQL (MongoDB), and major cloud providers (Amazon, Microsoft, Google) with greater resources[90](index=90&type=chunk)[91](index=91&type=chunk) - Risks from third-party open source software include negative sales impact, litigation, and easier competitor access to technology[146](index=146&type=chunk)[153](index=153&type=chunk) - Security breaches or unauthorized data access could result in loss of confidence, litigation, and significant financial liability for mission-critical applications[168](index=168&type=chunk)[169](index=169&type=chunk) - Compliance with evolving data protection laws (GDPR, CCPA) is complex and costly, with non-compliance risking significant fines and business harm[171](index=171&type=chunk)[173](index=173&type=chunk) - Macroeconomic conditions like inflation and recession fears may cause customers to delay purchases, reduce spending, and lengthen sales cycles[131](index=131&type=chunk)[132](index=132&type=chunk) - As of January 31, 2024, the use of **$335.6 million** federal and **$193.2 million** state NOLs may be limited by ownership changes and regulations[192](index=192&type=chunk)[193](index=193&type=chunk) [Cybersecurity](index=51&type=section&id=Item%201C.%20Cybersecurity) Couchbase's cybersecurity program, based on industry standards like SOC 2, is overseen by the Audit Committee and CISO - The cybersecurity program is based on industry frameworks and validated by third-party audits like **SOC 2, Type II**, and **PCI DSS**[222](index=222&type=chunk) - Oversight is provided by the Audit Committee of the Board, receiving regular updates from management and the CISO[229](index=229&type=chunk) - The CISO-led cybersecurity team assesses and manages threats, employing technical safeguards like firewalls and penetration testing[223](index=223&type=chunk)[224](index=224&type=chunk)[229](index=229&type=chunk) [Properties](index=52&type=section&id=Item%202.%20Properties) Couchbase's headquarters is a 46,000 sq. ft. leased facility in Santa Clara, with additional global offices, owning no real property - The company's headquarters is a **46,000 sq. ft.** leased facility in Santa Clara, CA, with the lease expiring March 2025[230](index=230&type=chunk) - Additional offices are leased in the US, UK, Israel, and India; the company owns no real property[230](index=230&type=chunk) Part II [Management's Discussion and Analysis (MD&A)](index=55&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal 2024 revenue grew 16% to **$180.0 million**, with ARR at **$204.2 million**, despite a **$80.2 million** net loss [Overview and Business Model](index=56&type=section&id=MD%26A%20Overview%20and%20Business%20Model) Couchbase primarily generates revenue from subscriptions (95% in FY2024) via a land-and-expand model, including DBaaS Revenue Comparison (in thousands USD) | Fiscal Year | Total Revenue | Subscription Revenue % | Services Revenue % | | :--- | :--- | :--- | :--- | | 2024 | $180,037 | 95% | 5% | | 2023 | $154,824 | 92% | 8% | | 2022 | $123,542 | 94% | 6% | - The business model relies on subscriptions for **Couchbase Server** and **Couchbase Capella**, focusing on expanding existing customer use cases[249](index=249&type=chunk) - Macroeconomic conditions are causing longer deal cycles, increased customer scrutiny, and smaller initial purchase increments[251](index=251&type=chunk) [Key Business Metrics](index=58&type=section&id=Key%20Business%20Metrics) Key metrics include ARR, growing 25% to **$204.2 million**, and **749** customers, with net retention over 115% Key Business Metrics | Metric | As of Jan 31, 2024 (Millions USD) | As of Jan 31, 2023 (Millions USD) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | ARR | $204.2 | $163.7 | 25% | | Customers | 749 | 675 | 11% | - **Couchbase Capella** ARR was approximately **$21.8 million** as of January 31, 2024[256](index=256&type=chunk) - The dollar-based net retention rate has exceeded **115%** for nine quarters, indicating strong existing customer expansion[253](index=253&type=chunk) [Results of Operations (Fiscal 2024 vs. 2023)](index=65&type=section&id=Results%20of%20Operations%20(Fiscal%202024%20vs.%202023)) FY2024 total revenue grew 16% to **$180.0 million**, with operating loss at **$84.5 million** and net loss at **$80.2 million** Revenue Comparison (in thousands USD) | Revenue Type | FY 2024 | FY 2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Subscription | $171,554 | $142,895 | $28,659 | 20% | | Services | $8,483 | $11,929 | ($3,446) | (29)% | | **Total Revenue** | **$180,037** | **$154,824** | **$25,213** | **16%** | - The **20%** subscription revenue growth was driven by both existing customers (contributing ~**88%** of the increase) and new customers[291](index=291&type=chunk) Operating Loss and Net Loss Comparison (in thousands USD) | Metric | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Gross Profit | $157,955 | $134,565 | | Total Operating Expenses | $242,492 | $203,880 | | Loss from Operations | ($84,537) | ($69,315) | | Net Loss | ($80,183) | ($68,494) | - Sales and marketing expenses increased by **$19.5 million** (**18%**) due to higher personnel costs and travel[297](index=297&type=chunk) - Research and development expenses grew by **$6.3 million** (**11%**) due to increased stock-based compensation and personnel costs[295](index=295&type=chunk) - The company recorded a **$5.2 million** impairment charge for capitalized internal-use software no longer in service[281](index=281&type=chunk)[411](index=411&type=chunk) [Liquidity and Capital Resources](index=69&type=section&id=Liquidity%20and%20Capital%20Resources) As of Jan 31, 2024, Couchbase had **$153.6 million** in cash, with operating cash outflow of **$26.9 million** Cash and Liquidity (in millions USD) | Metric | As of Jan 31, 2024 | | :--- | :--- | | Cash, cash equivalents, and short-term investments | $153.6 | | Accumulated Deficit | ($490.7) | | Deferred Revenue | $84.5 | Cash Flow Summary (in millions USD) | Cash Flow | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($26.9) | ($41.2) | | Net cash provided by (used in) investing activities | $15.4 | ($23.4) | | Net cash provided by financing activities | $12.9 | $9.7 | - As of January 31, 2024, RPOs totaled **$241.8 million**, with **$147.6 million** expected to be recognized in the next 12 months[419](index=419&type=chunk) - Subsequent to fiscal year-end, on February 7, 2024, the company secured a new three-year, **$25.0 million** revolving credit facility with MUFG Bank[475](index=475&type=chunk) [Consolidated Financial Statements](index=74&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements for FY2022-2024, reflecting revenue growth and net losses [Consolidated Balance Sheets](index=76&type=section&id=Consolidated%20Balance%20Sheets) As of Jan 31, 2024, total assets were **$247.8 million**, liabilities **$117.3 million**, and equity **$130.4 million** Key Balance Sheet Items (in thousands USD) | Account | Jan 31, 2024 | Jan 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash, cash equivalents & short-term investments | $153,632 | $168,302 | | Total Current Assets | $224,286 | $229,479 | | Total Assets | $247,752 | $253,039 | | **Liabilities & Equity** | | | | Deferred Revenue (Current) | $81,736 | $71,716 | | Total Current Liabilities | $112,506 | $94,957 | | Total Liabilities | $117,331 | $102,775 | | Total Stockholders' Equity | $130,421 | $150,264 | [Consolidated Statements of Operations](index=77&type=section&id=Consolidated%20Statements%20of%20Operations) FY2024 total revenue was **$180.0 million**, with gross profit of **$158.0 million** and net loss of **$80.2 million** Statement of Operations Highlights (in thousands USD) | Metric | FY 2024 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | | Total Revenue | $180,037 | $154,824 | $123,542 | | Gross Profit | $157,955 | $134,565 | $108,761 | | Loss from Operations | ($84,537) | ($69,315) | ($56,258) | | Net Loss | ($80,183) | ($68,494) | ($58,229) | | Net Loss Per Share | ($1.70) | ($1.53) | ($2.37) | [Consolidated Statements of Cash Flows](index=80&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) FY2024 net cash used in operations was **$26.9 million**, with **$15.4 million** from investing activities Cash Flow Summary (in thousands USD) | Cash Flow Activity | FY 2024 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | ($26,893) | ($41,185) | ($41,574) | | Net cash provided by (used in) investing activities | $15,426 | ($23,366) | ($92,030) | | Net cash provided by financing activities | $12,933 | $9,706 | $192,410 | | Net increase (decrease) in cash | $905 | ($55,242) | $58,391 | [Notes to Consolidated Financial Statements](index=81&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, balance sheet items, debt, stock compensation, tax assets, and a completed restructuring plan - Revenue recognition treats term-based software licenses (upfront) and post-contract support (ratably) as separate performance obligations[357](index=357&type=chunk) - A **$5.2 million** impairment charge was recorded in FY2024 for capitalized internal-use software no longer in service[411](index=411&type=chunk) - As of Jan 31, 2024, RPOs totaled **$241.8 million**, with **$147.6 million** expected as revenue in the next 12 months[419](index=419&type=chunk) - In March 2023, the Board modified **1,060,000** executive Market-based RSUs, converting **840,000** to performance-based vesting[444](index=444&type=chunk) - A full valuation allowance of **$137.1 million** is maintained against U.S. federal and state net deferred tax assets[459](index=459&type=chunk) - A restructuring plan initiated in Q4 FY2023 is complete, with total charges of **$1.7 million** incurred across FY2023 and FY2024[465](index=465&type=chunk)[466](index=466&type=chunk) [Controls and Procedures](index=105&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective as of January 31, 2024 - Management concluded both disclosure controls and internal control over financial reporting were effective as of January 31, 2024[479](index=479&type=chunk)[480](index=480&type=chunk) - No material changes to internal control over financial reporting occurred during Q4 fiscal 2024[481](index=481&type=chunk)