Accessibility StatementSkip Navigation SAN JOSE, Calif., Sept. 29. 2025 /PRNewswire/ -- Couchbase, Inc. ("Couchbase"), the developer data platform for critical applications in our AI world, today announced that it has appointed BJ Schaknowski as the company's new Chief Executive Officer and Amir Jafari as Chief Financial Officer, effective immediately. Mr. Schaknowski succeeds Matt Cain who is stepping down as Chair, President, and Chief Executive Officer. Mr. Schaknowski is a seasoned software industry ...

Core Viewpoint - Couchbase, Inc. has announced that its shareholders approved the acquisition by Haveli Investments in an all-cash transaction valued at $1.5 billion, marking Couchbase's transition to a privately held company [1][2]. Company Overview - Couchbase is a developer data platform designed for critical applications in the AI sector, offering a solution that integrates transactional, analytical, mobile, and AI workloads [5]. - The company aims to empower developers and enterprises to build and scale applications efficiently, enhancing performance, scalability, and cost-effectiveness [5]. Acquisition Details - The acquisition was initially announced on June 20, 2025, and shareholders will receive $24.50 per share of Couchbase common stock prior to the closing [2]. - Following the acquisition, Couchbase's common stock will cease trading and will be delisted from the Nasdaq Stock Market [2][3]. - The completion of the transaction is contingent upon receiving necessary regulatory approvals and meeting customary closing conditions [3]. Advisory Information - Morgan Stanley & Co. LLC acted as the exclusive financial advisor for Couchbase, while Wilson Sonsini Goodrich & Rosati provided legal counsel [4]. - Haveli Investments was advised by Latham & Watkins LLP and Jefferies LLC served as the lead financial advisor [4]. About Haveli Investments - Haveli Investments is a private equity firm based in Austin, focusing on high-quality technology sector investments, including software and data [6]. - The firm aims to partner with innovative companies and management teams, providing operational and strategic support to enhance growth and operating margins [6].

Core Insights - Strategic Education (STRA), an EdTech company, reported disappointing Q2 results that did not meet Wall Street expectations [1] Company Overview - Strategic Education operates several educational brands including Strayer, Capella, Sophia Learning, and WorkForce Edge [1] Financial Performance - The Q2 results released by Strategic Education have not pleased investors, indicating potential challenges in financial performance [1]

Core Insights - The survey reveals that 70% of enterprises admit to having an "incomplete" understanding of AI data requirements, while 21% report having "insufficient" or "zero" control over AI usage, leading to potential revenue losses of 8.6% per month, equating to nearly $87 million annually per company [1][3] - A significant 78% of IT leaders believe that early adopters of AI will emerge as industry leaders, with 73% noting that AI is already transforming their technology environments [1][3] - Investment in AI technologies is projected to surge by 51% from 2025 to 2026, indicating a strong focus on AI as a critical component of digital modernization [1][3] Group 1: AI Understanding and Control - 99% of enterprises have faced disruptions in AI projects due to issues like data access and management, leading to a 17% loss in AI investment and delaying strategic goals by an average of six months [3] - 70% of enterprises acknowledge their incomplete understanding of the data necessary for AI, contributing to 62% not fully grasping their risks associated with AI [3] - Enterprises with a better understanding of their data are 33% more likely to be prepared for agentic AI [3] Group 2: Data Architecture and Management - The average lifespan of current data architecture is only 18 months before it becomes inadequate for supporting in-house AI applications [3] - 75% of enterprises operate with a multi-database architecture, complicating the accuracy and consistency of AI outputs [3] - 84% of enterprises lack the capability to manage high-dimensional vector data, which is essential for efficient AI utilization [3] Group 3: Corporate Attitudes and Experimentation - Companies that promote AI experimentation see 10% more AI projects entering production and incur 13% less wasted AI expenditure compared to those with restrictive policies [3] - The distribution of AI spending is nearly equal among agentic AI (30%), GenAI (35%), and other forms of AI (35%), indicating a balanced investment approach [3] Group 4: Competitive Landscape and Future Outlook - 59% of IT leaders express concern that their organizations may be replaced by smaller, more agile competitors who better understand AI [3] - Despite these concerns, 79% of leaders believe they can displace larger competitors through effective AI utilization [3] - The emphasis on mastering data and having robust controls is seen as crucial for enterprises to capitalize on AI opportunities and gain a competitive edge [4]

Core Viewpoint - Couchbase, Inc. has entered into a definitive agreement to be acquired by Haveli Investments in an all-cash transaction valued at approximately $1.5 billion, marking a significant milestone for the company and its stockholders [1][2][3] Company Overview - Couchbase is a developer data platform that focuses on critical applications in the AI sector, providing high-performance database solutions that empower developers and enterprises [3][7] - The company aims to lead in modern database technology by uniting various workloads into a seamless, fully managed solution, enhancing performance, scalability, and cost-efficiency [7][8] Transaction Details - Under the terms of the agreement, Couchbase stockholders will receive $24.50 per share in cash, representing a 67% premium to the closing stock price on March 27, 2025, and a 29% premium to the closing stock price on June 18, 2025 [2] - The transaction is expected to close in the second half of 2025, subject to customary closing conditions, including stockholder approval and regulatory approvals [5] - Couchbase will enter a "go-shop" period until June 23, 2025, allowing it to solicit alternative acquisition proposals [4] Strategic Implications - Haveli Investments views Couchbase's innovative data platform as well-positioned to meet the demands of large global enterprises, particularly in the context of next-gen AI applications [3][10] - The partnership aims to combine Haveli's operational expertise with Couchbase's product leadership to enhance database solutions for a global customer base [3][10]

Financial Data and Key Metrics Changes - Total ARR was $252.1 million, up 21% year over year and 6% sequentially [6][19] - Net new ARR was $14.2 million, up more than 300% year over year [7][19] - Revenue in Q1 was $56.5 million, up 10% year over year and 3% sequentially [7][20] - Non-GAAP operating loss in Q1 was $4.2 million, improving from a loss of $6.7 million a year ago [8][23] - Gross margin was 88.7%, compared to 89.9% a year ago [22] Business Line Data and Key Metrics Changes - Capella ARR was $44 million, an increase of 84% year over year [19] - Capella now represents 17.4% of total ARR, up from 11.5% in Q1 of fiscal 2025 [19] - Professional service revenue was $1.7 million, down 27% year over year [20] Market Data and Key Metrics Changes - The company exited Q1 with 937 customers, a decrease of 10 net new customers from the last quarter [21] - The dollar-based net retention rate (NRR) was greater than 114% [20] Company Strategy and Development Direction - The company aims to be the database for critical applications, focusing on large strategic accounts and Capella adoption [5][9] - Enhancements to the go-to-market strategy include dedicated strategic account teams and a Capella free tier to lower entry barriers for developers [8][14] - The company is focused on innovation, including the launch of Couchbase Edge Server and AI-driven solutions [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic uncertainty did not impact the company's ability to deliver strong results [6] - The pipeline of large strategic opportunities continues to grow, reinforcing confidence in the company's strategy [9][17] - Management expects total revenue for Q2 to be in the range of $54.4 million to $55.2 million, representing a year-over-year growth rate of 6% at the midpoint [26] Other Important Information - The company ended Q1 with $141.8 million in cash and short-term investments, remaining well-capitalized for long-term growth [24] - The remaining performance obligations (RPO) totaled $239.6 million, an increase of 9% year over year [25] Q&A Session Summary Question: Impact of macroeconomic conditions on customer conversations - Management acknowledged longer sales cycles and higher deal scrutiny but emphasized a healthy pipeline and execution [29][30] Question: Go-to-market improvements and Capella free tier - Management highlighted enhancements to offerings for developers, including the Capella free tier, which has increased trial volumes significantly [31][33] Question: Revenue performance versus ARR growth - Management explained that the difference in revenue and ARR growth is due to migration patterns and the timing of revenue recognition [38][41] Question: Competition from Postgres databases - Management expressed confidence in Couchbase's differentiation and its ability to support critical applications better than competitors [46][49] Question: Workloads added from strategic accounts - Management indicated that strategic accounts are adopting multiple applications, leading to significant growth potential [64][66] Question: Adjustments to guidance and early renewals - Management clarified that there were no early renewals impacting guidance, but they remain optimistic about the pipeline and execution [68][70]

Financial Data and Key Metrics Changes - Total ARR was $252.1 million, up 21% year over year and 6% sequentially, exceeding guidance by $7.7 million [5][15][24] - Net new ARR was $14.2 million, up more than 300% year over year, marking the highest net new ARR performance for the first quarter in company history [5][16] - Revenue in Q1 was $56.5 million, up 10% year over year and 3% sequentially [5][17] - Non-GAAP operating loss was $4.2 million, an improvement from a loss of $6.7 million year over year [6][20] - Gross margin was 88.7%, down from 89.9% a year ago [19] Business Line Data and Key Metrics Changes - Capella ARR was $44 million, representing 17.4% of total ARR, up from 11.5% in Q1 of fiscal 2025 [6][16] - Capella saw an increase of over 80% in consumption year over year, driven by new applications and migrations [7][8] - Professional service revenue was $1.7 million, down 27% year over year [17] Market Data and Key Metrics Changes - The company exited Q1 with 937 customers, a decrease of 10 net new customers from the previous quarter, primarily due to churn in starter pack customers [18] - The dollar-based net retention rate (NRR) was greater than 114%, with expectations to return to historical levels in the second half of the fiscal year [17][18] Company Strategy and Development Direction - The company aims to be the database for critical applications, focusing on large strategic accounts and enhancing Capella adoption [4][6] - The introduction of a free tier for Capella is intended to lower barriers for developers and drive long-term expansion [6][11] - The company is committed to maintaining a rapid pace of innovation, particularly in AI and mobile use cases [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic uncertainty did not impact performance, with a healthy pipeline and strong execution [5][28] - The company expects continued growth in Capella and strategic opportunities, with guidance for Q2 revenue between $54.4 million and $55.2 million [23][24] - Management remains confident in achieving full-year objectives, including driving growth and Capella adoption [14][24] Other Important Information - The company launched Couchbase Edge Server, aimed at providing low-latency data access in resource-constrained environments [11][12] - The remaining performance obligations (RPO) totaled $239.6 million, with an expected 66% to be recognized as revenue over the next twelve months [21][22] Q&A Session Summary Question: Impact of macroeconomic conditions on customer conversations - Management acknowledged longer sales cycles and increased deal scrutiny but emphasized a healthy pipeline and strategic positioning in the market [26][28] Question: Go-to-market improvements and the new free Capella tier - Management highlighted enhancements to offerings for developers, including the Capella free tier, which has significantly increased trial volumes [29][30] Question: Revenue performance versus ARR growth - Management explained that differences in revenue recognition patterns, particularly due to migrations to Capella, impacted revenue growth [35][40] Question: Competition from Postgres databases - Management expressed confidence in Couchbase's differentiation and its ability to support critical applications, despite competition from Postgres [46][49] Question: Workloads being added by strategic accounts - Management indicated that strategic accounts are deploying multiple applications, leading to significant growth in ARR [65][67] Question: Changes to starter packs and customer churn - Management noted that churn in starter pack customers was expected, but highlighted success in converting some to higher ARR levels [73][75] Question: Future growth and efficiency in sales and marketing - Management is focused on improving efficiency while expanding growth, aiming to reduce sales and marketing expenses as a percentage of revenue [76][77]

Core Insights - Couchbase, Inc. reported strong financial results for the first quarter of fiscal 2026, achieving the highest net new Annual Recurring Revenue (ARR) in company history [2][5] - The company continues to experience growth in its strategic accounts and Capella consumption, with a positive outlook for the full year [2][4] Financial Highlights - Total revenue for the quarter was $56.5 million, representing a 10% year-over-year increase [5] - Subscription revenue was $54.8 million, up 12% year-over-year [5] - Total ARR as of April 30, 2025, was $252.1 million, a 21% increase year-over-year [5] - Gross margin for the quarter was 87.9%, slightly down from 88.9% in the same quarter of the previous year [5] - Non-GAAP operating loss for the quarter was $4.2 million, an improvement from $6.7 million in the first quarter of fiscal 2025 [5] Business Developments - Launched Couchbase Edge Server, designed for low-latency data access in resource-constrained environments [5] - Continued investment in AI capabilities, enhancing the integration of advanced AI workflows [5] - Received industry recognition, including placements on CRN's lists of hottest AI data companies and being named Data Management Platform of the Year [5] Financial Outlook - For Q2 FY2026, Couchbase expects total revenue between $54.4 million and $55.2 million [4] - The full-year revenue outlook is projected to be between $228.3 million and $232.3 million [4] - Total ARR for FY2026 is expected to be between $279.3 million and $284.3 million [4] - Non-GAAP operating loss for FY2026 is anticipated to be between $10.5 million and $15.5 million [4]

Financial Data and Key Metrics Changes - Total Annual Recurring Revenue (ARR) reached $237.9 million, up 17% year-over-year and 8% sequentially [9][32] - Net new ARR was $17.6 million, up 14% year-over-year; excluding currency fluctuations, it was $19.5 million, up 26% year-over-year [9][33] - Revenue for Q4 was $54.9 million, an increase of 10% year-over-year [9][35] - Non-GAAP operating loss for Q4 was $144,000, significantly improved from a loss of $4.1 million in Q4 2024 [10][41] - Free cash flow for Q4 was $4 million, marking the highest quarterly free cash flow in company history [43][44] Business Line Data and Key Metrics Changes - Capella ARR was $38.5 million, up 76% year-over-year and now represents 16.2% of total ARR [34] - The company added 44 new logos in Q4, up from 34 in the same quarter last year [10][38] - Software revenue for Q4 was $52.8 million, up 10% year-over-year [35] Market Data and Key Metrics Changes - The company experienced broad strength across both core enterprise and Capella businesses, with strong renewals and expansions [11] - Significant expansions were noted in various sectors including travel, banking, e-commerce, and gaming [13][16] Company Strategy and Development Direction - The company aims to focus on sustained growth, driving Capella uptake, and enhancing support for AI use cases [24][25] - The strategic positioning as a long-term partner for enterprises is emphasized, particularly in the context of AI-driven applications [25][92] - The company is committed to improving operational efficiency while investing in R&D, especially in AI [121][124] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the healthy pipeline of large strategic accounts and the balance of execution in Q4 [54][66] - The renewal pool for fiscal 2026 is larger and more evenly distributed, which is expected to drive growth [45][68] - Management anticipates a return to historical net retention rates in the second half of fiscal 2026 [37] Other Important Information - CFO Greg Henry announced his departure after eight years, with Bill Carey stepping in as interim CFO [26][27] - The company is focused on leveraging its unique platform capabilities to meet the growing needs of enterprises [25][100] Q&A Session Summary Question: Strength in Q4 performance - Management attributed the strong performance to executing strategic deals, strong renewals, and Capella migrations [52][54] Question: Delta between revenue outlook and ARR guidance - The difference is due to increased migration activity and the transition to Capella, which affects revenue recognition [56][59] Question: Market conditions and renewal cohorts - Management noted a healthy pipeline and balanced renewal base, which is expected to drive growth [64][66] Question: Community migration drivers - Factors include data security, reliability, and the ROI of moving to Capella, which is expected to continue driving new business [72][75] Question: Capella AI Services customer feedback - Initial feedback indicates strong relevance of Couchbase's platform and its capabilities in AI services [98][100] Question: Confidence in Capella migrations - Management has a clear understanding of customer readiness for migration and is optimistic about the upcoming renewal base [103][108] Question: Balance between growth and profitability - The company aims to balance growth with profitability while continuing to invest in R&D, particularly in AI [120][124]