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]