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Couchbase (BASE)
NASDAQ:BASE
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Couchbase
(NASDAQ:BASE)
55Neutral
Positive Factors
Cloud Services
The rising contribution of Capella, Couchbase's managed cloud offering, significantly contributed to the company's Q4 outperformance.
Earnings
Couchbase delivered its best quarter of the year in Q4 with strong growth driven by large strategic migrations and expansion opportunities.
Negative Factors
Leadership Changes
FY26 ARR and revenue guidance were slightly below expectations and CFO Greg Henry is departing the company.
Revenue Guidance
FY26 ARR/revenue guidance were below consensus expectations while the FCF breakeven point was pushed out to FY27.
Couchbase (BASE) vs. S&P 500 (SPY)
Market Cap
$832.08M
Dividend YieldN/A
Average Volume (3M)951.28K
Price to Earnings (P/E)―
Beta (1Y)1.58
Revenue Growth16.35%
EPS Growth14.27%
CountryUS
Employees792
SectorTechnology
Sector Strength44
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-1.46
Shares Outstanding53,100,014
10 Day Avg. Volume1,292,824
30 Day Avg. Volume951,278
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.70
Price to Cash Flow (P/CF)-11.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.75Price Target Upside38.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
Couchbase Business Overview & Revenue Model
Company DescriptionCouchbase, Inc. provides a database for enterprise applications worldwide. Its database works in multiple configurations, ranging from cloud to multi- or hybrid-cloud to on-premise environments to the edge. The company offers Couchbase Server, a multi-service NoSQL database, which provides SQL-compatible query language and SQL++, that allows for a various array of data manipulation functions; and Couchbase Capella, an automated and secure Database-as-a-Service that helps in database management by deploying, managing, and operating Couchbase Server across cloud environments. It also provides Couchbase Mobile, an embedded NoSQL database for mobile and edge devices that enables an always-on experience with high data availability, even without internet connectivity, as well as synchronization gateway that allows for secure data sync between mobile devices and the backend data store. The company sells its platform through direct sales force and an ecosystem of partners. It servs governments and organizations, as well as enterprises in various industries, including retail and e-commerce, travel and hospitality, financial services and insurance, software and technology, gaming, media and entertainment, and industrials. The company was formerly known as Membase, Inc. and changed its name to Couchbase, Inc. in February 2011. Couchbase, Inc. was incorporated in 2008 and is headquartered in Santa Clara, California.
How the Company Makes MoneyCouchbase generates revenue primarily through the sale of subscriptions to its database management platform, Couchbase Server, which includes software licenses, support, and maintenance services. Customers typically pay for subscriptions on a recurring basis, providing a stable and predictable revenue stream. Additionally, Couchbase offers professional services, such as consulting and training, to help organizations implement and optimize their database solutions. The company also benefits from strategic partnerships with cloud service providers, which expand the reach and integration of its platform, further driving adoption and revenue growth.
Couchbase Financial Statement Overview
Summary
Couchbase demonstrates commendable revenue growth and a strong gross profit margin, yet grapples with persistent losses and negative cash flows. The balance sheet is stable with low debt, but ongoing losses pose a risk to financial health. Continued focus on improving profitability and cash flow will be crucial for future stability.Income Statement
The income statement shows a positive trend in revenue growth, with a TTM (Trailing-Twelve-Months) revenue increase of 16.3% compared to the previous year. However, the company is struggling with profitability, as evidenced by negative net profit margins and EBIT margins. Gross profit margins remain relatively strong at 88.1%, but significant operating losses are a concern.55
Neutral
Balance Sheet
The balance sheet indicates a moderate level of financial stability. The debt-to-equity ratio is low at 0.03, suggesting minimal reliance on debt. The equity ratio is 49.0%, reflecting a balanced financial structure. However, the company is still at risk due to ongoing net losses impacting equity.62
Positive
Cash Flow
Cash flow analysis reveals challenges with negative free cash flow, but there has been an improvement with a 40.3% reduction in the negative free cash flow year-on-year. The operating cash flow to net income ratio is -0.21, indicating cash flow management issues.48
Neutral
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 209.47M | 180.04M | 154.82M | 123.54M | 103.28M | Gross Profit |
| 184.51M | 157.96M | 134.56M | 108.76M | 91.67M | EBIT |
| -78.66M | -84.54M | -67.65M | -56.26M | -33.08M | EBITDA |
| -70.51M | -76.36M | -64.18M | -53.73M | -29.96M | Net Income Common Stockholders |
| -74.65M | -80.18M | -68.49M | -58.23M | -39.98M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 147.17M | 153.63M | 168.30M | 205.95M | 56.84M | Total Assets |
| 260.60M | 247.75M | 253.04M | 276.74M | 117.19M | Total Debt |
| 4.32M | 5.29M | 7.66M | 0.00 | 24.95M | Net Debt |
| -26.22M | -36.06M | -32.79M | -95.69M | -12.35M | Total Liabilities |
| 132.98M | 117.33M | 102.78M | 93.53M | 103.71M | Stockholders Equity |
| 127.62M | 130.42M | 150.26M | 183.22M | 13.48M |
| Cash Flow | Free Cash Flow | |||
| -18.85M | -31.60M | -46.83M | -42.39M | -42.00M | Operating Cash Flow |
| -15.83M | -26.89M | -41.19M | -41.57M | -39.18M | Investing Cash Flow |
| -4.85M | 15.43M | -23.37M | -92.03M | -22.41M | Financing Cash Flow |
| 9.94M | 12.93M | 9.71M | 192.41M | 80.50M |
Couchbase Technical Analysis
Neutral
15.67
Price Trends
16.71
Negative
17.02
Negative
17.04
Negative
Market Momentum
-0.62
Negative
52.22
Neutral
88.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BASE, the sentiment is Neutral. The current price of 15.67 is above the 20-day moving average (MA) of 15.04, below the 50-day MA of 16.71, and below the 200-day MA of 17.04, indicating a neutral trend. The MACD of -0.62 indicates Negative momentum. The RSI at 52.22 is Neutral, neither overbought nor oversold. The STOCH value of 88.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BASE.
Couchbase Risk Analysis
Couchbase disclosed 60 risk factors in its most recent earnings report. Couchbase reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Couchbase Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.04T | 34.90 | 24.29% | ― | 10.99% | 91.61% | |
68 Neutral | $8.01B | 18.94 | -60.11% | ― | 1.86% | 6.21% | |
67 Neutral | $395.03B | 33.10 | 108.79% | 1.14% | 6.23% | 12.37% | |
60 Neutral | $14.45B | ― | -6.70% | ― | 19.22% | 28.46% | |
58 Neutral | $21.03B | 10.58 | -16.29% | 2.47% | 4.38% | -23.63% | |
57 Neutral | $50.33B | ― | -31.43% | ― | 29.21% | -51.47% | |
55 Neutral | $832.08M | ― | -57.86% | ― | 16.35% | 14.27% |
* Technology Sector Average
Performance Comparison
BASE
Couchbase
15.67
-10.49
-40.10%
AMZN
Amazon
192.72
11.75
6.49%
ORCL
Oracle
140.87
16.73
13.48%
MDB
MongoDB
178.03
-178.06
-50.00%
DBX
Dropbox
26.56
2.25
9.26%
SNOW
Snowflake
150.63
-9.89
-6.16%
Couchbase Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -3.57% | Next Earnings Date: Jun 4, 2025
Earnings Call Sentiment Positive
Couchbase delivered a strong Q4 with record net new ARR, positive financial milestones, and remarkable growth in Capella adoption. The company continues to expand its customer base and innovate in AI and analytics. However, challenges remain with a decrease in ARR per customer and expectations of continued operating losses.Highlights
Record Net New ARR
Couchbase reported its highest ever quarterly net new ARR of $19.5 million, up 26% year-over-year, showcasing strong growth and execution.
Positive Financial Milestones
The company recorded its second quarter of positive free cash flow and its first quarter of positive non-GAAP net income, indicating improved financial health and operational efficiency.
Capella Growth
Capella ARR increased by 76% year-over-year, now representing 16.2% of total ARR, highlighting significant adoption and consumption growth.
Strong Customer Expansions
Couchbase added 44 new logos in Q4 and continued to expand with strategic accounts, including a second customer above the $10 million ARR mark.
Product Innovation and AI Integration
Couchbase announced collaboration with NVIDIA for AI model services and expanded analytics services to Google Cloud, enhancing the platform's capabilities in AI and analytics.
Lowlights
Decreased Q4 ARR per Customer
ARR per customer was $251,000 in Q4, down from $273,000 in Q4 2024, due to the increasing mix of Capella and the impact of large strategic expansions.
NRR Slightly Below Historical Levels
Dollar-based net retention rate was greater than 114%, slightly below the typical greater than 115% due to an anomalous loss and down sell in fiscal 2025.
Guidance for Continued Operating Losses
Couchbase expects a non-GAAP operating loss in the range of negative $13.4 million to negative $8.4 million for fiscal 2026, indicating ongoing challenges in achieving profitability.
Company Guidance
During the Couchbase fourth quarter 2025 earnings call, the company announced several key performance metrics that exceeded expectations. Total annual recurring revenue (ARR) for the quarter reached $237.9 million, reflecting a 17% year-over-year increase and an 8% sequential increase. The company also achieved its highest-ever quarterly net new ARR of $17.6 million, up 14% year-over-year. Excluding currency fluctuations, net new ARR was $19.5 million, representing a 26% year-over-year growth. Revenue for the quarter was reported at $54.9 million, marking a 10% increase compared to the previous year. Additionally, Couchbase recorded its first quarter of positive non-GAAP net income and its second quarter of positive free cash flow. Capella, Couchbase's cloud offering, now accounts for 16.2% of total ARR and 33% of the customer base. The company also added 44 new logos, up from 34 in the same quarter of the previous fiscal year, and now has 50 customers with over $1 million in ARR, including two customers exceeding the $10 million ARR mark. Looking ahead to fiscal 2026, Couchbase anticipates total revenue between $228 million and $232 million, and ARR between $273.6 million and $278.6 million, reflecting a 16% year-over-year growth at the midpoint.Couchbase Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Couchbase CFO Resignation and Strong Financial Results
Positive
Feb 25, 2025
On February 25, 2025, Couchbase announced the resignation of Greg Henry as Chief Financial Officer, effective the same day, with William Carey appointed as interim principal financial officer. The company also reported strong financial results for the fourth quarter and fiscal year 2025, with significant increases in revenue and annual recurring revenue, alongside a reduction in operating losses, highlighting robust business expansions and strategic advancements in AI services.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.