Couchbase’s Strong Performance and Positive Outlook: A Buy Recommendation by Jason Ader

William Blair analyst Jason Ader has maintained their bullish stance on BASE stock, giving a Buy rating today.

Jason Ader has given his Buy rating due to a combination of factors that highlight Couchbase’s strong performance and positive outlook. The company’s first-quarter results exceeded expectations, with both ARR and revenue surpassing consensus estimates. This was marked by a significant increase in net new ARR, which saw a 306% year-over-year growth, indicating robust large deal execution and increased adoption of Capella.
Furthermore, Couchbase’s management has raised its ARR guidance for the upcoming quarter and the full year, driven by strong Capella consumption trends and expansion within strategic accounts. Despite some short-term revenue recognition challenges due to Capella migrations, the overall growth trajectory remains positive. The company’s improved non-GAAP operating margin and better-than-expected loss per share further support the confidence in its path to profitability, making it a compelling investment opportunity.

Ader covers the Technology sector, focusing on stocks such as Box, Confluent, and Pure Storage. According to TipRanks, Ader has an average return of 4.8% and a 56.50% success rate on recommended stocks.

In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $20.00 price target.