Couchbase Announces Third Quarter Fiscal 2022 Financial Results
SANTA CLARA, Calif., Dec. 8, 2021 — Couchbase, Inc., provider of a leading modern database for enterprise applications, today announced financial results for its third quarter ended October 31, 2021.
“Our strong third quarter performance was driven by ongoing large deal momentum, including some significant expansions, as well as acceleration of our cloud business. We also delivered solid top line growth with ARR up 21% and revenue up 20% year over year,” said Matt Cain, President and CEO of Couchbase. “We continue to see demand for our modern database as digital transformation remains a priority across industries, and are excited about the market opportunity for Capella which makes it faster and easier to consume Couchbase in the cloud.”
Third Quarter Fiscal 2022 Financial Highlights:
- Revenue: Total revenue for the quarter was $30.8 million, an increase of 20% year-over-year. Subscription revenue was $29.0 million, an increase of 20% year-over-year.
- Annual recurring revenue (ARR): Total ARR for the quarter was $122.3 million, an increase of 21% year-over-year. See the section titled “Key Business Metrics” below for details.
- Gross margin: Gross margin for the quarter was 87.9%, compared to 87.8% for the third quarter of fiscal 2021. Non-GAAP gross margin for the quarter was 88.3%, compared to 87.9% for the third quarter of fiscal 2021. See the section titled “Use of Non-GAAP Financial Measures” and the tables entitled “Reconciliation of GAAP to Non-GAAP Results” below for details.
- Loss from operations: Loss from operations for the quarter was $15.5 million, compared to $9.1 million for the third quarter of fiscal 2021. Non-GAAP operating loss for the quarter was $12.1 million, compared to $7.9 million for the third quarter of fiscal 2021.
- Cash flow: Cash flows used in operating activities for the quarter were $19.7 million, compared to $13.1 million in the third quarter of fiscal 2021. Capital expenditures were $0.6 million during the quarter, leading to negative free cash flow of $20.3 million, compared to negative free cash flow of $13.3 million in the third quarter of fiscal 2021.
- Remaining performance obligations (RPO): RPO as of October 31, 2021 was $124.3 million, up 41% year-over-year.
Recent Business Highlights:
- Launched Couchbase Capella hosted Database-as-a-Service (DBaaS) offering on Amazon Web Services (AWS). Capella delivers database flexibility for developers and performance at scale for enterprise applications. Because Capella is fully managed and automated, customers can focus on development, improving their applications and reducing time to market, instead of worrying about operational database management efforts.
- Achieved SOC 2 Type 1 Compliance Certification for Capella, thereby extending its security credentials.
- Hosted annual user conference Couchbase ConnectONLINE, consisting of more than 100 sessions that brought together over 5,200 developer, architect, business user and community member registrants to learn more about Couchbase’s modern database for enterprise applications.
- Announced the winners of the annual Couchbase Community Awards, honoring customers Amadeus, Citigroup, Emirates, Northwestern University, BroadJump, Cvent and Molo17 and partners AWS, Red Hat, Infosys and DigitalRoute for accelerating modernization initiatives and enabling innovation for enterprise-critical applications.
- Named to Inc. Magazine’s Top 250 Best-Led Mid-Market Companies in America list and earned Great Place to Work Certification.
- Appointed Alvina Antar, Chief Information Officer of Okta, to Couchbase’s Board of Directors.
For the fourth quarter of fiscal 2022, Couchbase expects:
- Total revenue between $33.9 million and $34.1 million
- Total ARR between $129 million and $130 million
- Non-GAAP operating loss between $10.6 million and $10.2 million
For the full fiscal year 2022, Couchbase expects:
- Total revenue between $122.4 million and $122.6 million
- Total ARR between $129 million and $130 million
- Non-GAAP operating loss between $47.0 million and $46.6 million
The guidance provided above is based on several assumptions that are subject to change and many of which are outside our control. If actual results vary from these assumptions, our expectations may change. There can be no assurance that we will achieve these results.
Couchbase is not able, at this time, to provide GAAP targets for operating income for the fourth quarter or full year of fiscal 2022 because of the difficulty of estimating certain items excluded from non-GAAP operating loss that cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.
Upcoming Conference Participation
Couchbase management will participate in the following investor conferences during the fourth quarter of fiscal 2022. Webcasts of company presentations can be found on Couchbase’s Investor Relations website atinvestors.couchbase.com.
- Barclays Global Technology, Media and Telecommunications Conference on December 8, 2021 at 9:40 a.m. PT (12:40 p.m. ET)
- 24th Annual Needham Virtual Growth Conference on January 12, 2022 at 11:45 a.m. PT (2:45 p.m. ET)
At Couchbase, we believe data is at the heart of the enterprise. We empower developers and architects to build, deploy, and run their most mission-critical applications. Couchbase delivers a high-performance, flexible and scalable modern database that runs across the data center and any cloud. Many of the world’s largest enterprises rely on Couchbase to power the core applications their businesses depend on. For more information, visit www.couchbase.com.