chbase(BASE) - 2025 Q1 - Quarterly Results

Financial Performance Overview Q1 FY2025 Financial Highlights 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] 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 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] Business and Operational Review Recent Business Highlights 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] - Appointed Julie Irish as the company's first Chief Information Officer to lead the global IT and security team[5] - 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][7] - Launched the Couchbase Docs chatbot, built on AWS and powered by Amazon Bedrock, to enhance user experience with AI[7] Financial Statements Condensed Consolidated Statements of Operations 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] Condensed Consolidated Balance Sheets 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 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][41] Supplementary Information Key Business Metrics (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] - 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][22] 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 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][16] 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) |