chbase(US:BASE)2022-06-09 16:00Financial Performance - For the three months ended April 30, 2022, revenue was $34.9 million, representing a 25% increase from $28.0 million in the same period of 2021[120]. - Annual Recurring Revenue (ARR) as of April 30, 2022, was $139.7 million, up 27% from $109.5 million in the prior year[120]. - Total revenue for the three months ended April 30, 2022, was $34.853 million, a 24.5% increase from $27.955 million in the same period of 2021[137]. - The total number of customers increased to 614 as of April 30, 2022, compared to 549 in the previous year, indicating a growth of about 11.8%[133]. - Subscription revenue accounted for 92% of total revenue for the three months ended April 30, 2022, compared to 95% in the same period of 2021[121]. - Revenue from services represented 8% of total revenue for the three months ended April 30, 2022, up from 5% in the same period of 2021[121]. Profitability and Loss - Non-GAAP gross profit for the same period was $30.420 million, compared to $24.612 million in the prior year, reflecting a growth of 23.5%[137]. - The company reported a net loss attributable to common stockholders of $19.834 million for the three months ended April 30, 2022, compared to a net loss of $16.078 million in the same period of 2021[142]. - Free cash flow for the three months ended April 30, 2022, was $(9.406) million, compared to $(3.419) million in the same period of 2021, indicating a decline in cash flow[144]. - Non-GAAP operating loss for the three months ended April 30, 2022, was $(13.405) million, compared to $(12.280) million in the same period of 2021[139]. - Loss before income taxes increased by 37% to $(19.6) million compared to $(14.3) million in the prior year[173]. Expenses - Research and development expenses increased by $1.9 million, or 15%, representing 41% of total revenue, compared to 45% in the previous year[167]. - Sales and marketing expenses rose by $6.2 million, or 30%, accounting for 77% of total revenue, up from 74% in the prior year[168]. - General and administrative expenses increased by $2.4 million, or 44%, primarily due to higher personnel-related costs and professional fees[170]. - Total cost of revenue increased by $1.3 million, or 37%, with subscription costs rising by 17% and services costs by 68%[166]. Cash Flow and Financial Position - As of April 30, 2022, the company had $201.1 million in cash, cash equivalents, and short-term investments, with an accumulated deficit of $361.8 million[176]. - Cash used in operating activities for the three months ended April 30, 2022, was $(8.6) million, compared to $(3.2) million in the same period last year[179]. - Cash used in investing activities for the three months ended April 30, 2022, was $(44.8) million, primarily for purchases of short-term investments[181]. - Cash provided by financing activities for the three months ended April 30, 2022, was $6.1 million, mainly from stock issuance under the employee stock purchase plan[182]. - Remaining performance obligations, including deferred revenue, were $169.0 million as of April 30, 2022, with expected revenue recognition of $100.7 million over the next 12 months[176]. Strategic Initiatives - Couchbase Capella, the fully-managed DBaaS, is expected to gain popularity due to its compelling pricing model and flexibility[125]. - The company plans to continue investing in research and development to enhance its platform and expand deployment models[128]. - The ongoing COVID-19 pandemic has accelerated the trend of enterprises seeking to modernize their applications, potentially benefiting Couchbase[124]. - The company employs a land-and-expand model to drive customer adoption and maximize the value of its platform[123]. - Couchbase's go-to-market strategy focuses on large enterprises with complex data requirements, leveraging a direct sales force and a partner ecosystem[121]. Market and Economic Factors - The company does not expect a 10% increase or decrease in interest rates to materially affect its results of operations and cash flows[190]. - The functional currency of the company's foreign subsidiaries is the U.S. Dollar, and fluctuations in foreign currency exchange rates may impact results of operations and cash flows[191]. - A hypothetical 10% change in the relative value of the U.S. Dollar to other currencies would not have a material impact on the company's results of operations and cash flows[191]. - The company has not engaged in hedging of foreign currency transactions to date, although it may consider doing so in the future[191]. Management and Governance - Management believes that the disclosure controls and procedures are effective at the reasonable assurance level[193]. - There were no changes in internal control over financial reporting that materially affected the company's internal control during the reporting period[194]. - The company is not currently a party to any legal proceedings that would have a material adverse effect on its business or financial condition[197]. - Future litigation may be necessary to defend the company and could have adverse impacts due to costs and diversion of management attention[197]. - Management acknowledges inherent limitations in the effectiveness of controls and procedures, which may not prevent all errors or fraud[195].