Couchbase (BASE) Reports 25% Revenue Growth

Couchbase, Inc. (NASDAQ: BASE) has announced its first quarter financial results for fiscal 2025, demonstrating significant growth across key financial metrics. The company reported total revenue of $51.3 million for the quarter, marking a substantial 25% increase compared to the same period in the previous year. Subscription revenue also surged, reaching $49.0 million, representing a notable 27% year-over-year increase.

The company's Annual Recurring Revenue (ARR) as of April 30, 2024, stood at $207.7 million, showcasing a robust 21% year-over-year growth, both as reported and on a constant currency basis. Couchbase's Gross Margin for the quarter was 88.9%, a marked improvement from 85.6% in the first quarter of fiscal 2024. Additionally, the non-GAAP Gross Margin for the quarter was reported at 89.9%, compared to 86.4% for the same period in the prior fiscal year.

Despite the growth in revenue, the company reported a loss from operations of $22.5 million for the quarter, remaining unchanged from the first quarter of fiscal 2024. However, the non-GAAP operating loss for the quarter improved significantly to $6.7 million, compared to $12.9 million in the first quarter of fiscal 2024.

Couchbase also demonstrated improved cash flow performance, with cash flow provided by operating activities totaling $1.6 million for the quarter, compared to cash flow used in operating activities of $7.2 million in the first quarter of fiscal 2024. Notably, the company achieved free cash flow positivity in the first quarter of fiscal 2025, amounting to $0.6 million, a substantial improvement from negative free cash flow of $8.5 million in the first quarter of fiscal 2024.

The company's Remaining Performance Obligations (RPO) as of April 30, 2024, reached $220.0 million, reflecting a remarkable 33% year-over-year increase.

In terms of recent business highlights, Couchbase announced several key developments, including the general availability of vector search as a feature in Couchbase Capella, the appointment of Julie Irish as the company's first Chief Information Officer, and participation in the Google Cloud Ready Distributed Cloud Program.

Looking ahead, for the second quarter and full year of fiscal 2025, Couchbase expects total revenue for the second quarter to range between $50.6 million and $51.4 million, and total ARR to range between $212.5 million and $215.5 million. The company also anticipates non-GAAP operating loss for the second quarter to be between $5.7 million and $4.7 million.

Couchbase's financial results and business highlights will be discussed in a live webcast scheduled for June 5, 2024, at 1:30 p.m. Pacific Time.

Couchbase, Inc. is a cloud database platform company that aims to simplify how developers and architects develop, deploy, and run modern applications across various environments. The company's cloud database platform, Couchbase Capella, is designed to enable organizations to build applications that deliver premium experiences to their customers.

These results demonstrate Couchbase's continued growth and strategic initiatives as it positions itself for further success in fiscal 2025. The market has reacted to these announcements by moving the company's shares 1.2% to a price of $21.53. For the full picture, make sure to review Couchbase's 8-K report.

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