BASE - Earnings call transcript Q4 2025

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Operator

Greetings, and welcome to the Couchbase Fourth Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Edward Parker, Head of Investor Relations. Thank you.

You may begin.

Edward Parker

Good afternoon, and welcome to Couchbase's Fourth Quarter 2025 Earnings Call.

the market in closed discussing issued press be the after today. will results our announced release We With me forward-looking our condition are and future Cain; statements and business Couchbase's periods. financial guidance strategies, Chair, President Greg concerning performance capabilities, call for and market Henry. Today's and size, future will our business financial and contain and statements, product include CFO, which trends CEO, expected Matt financial and as should reflect our our of not update to views any be date, views representing and subsequent not upon statements at These undertake do today relied these as we statements. only duty and any

statements, and address uncertainties Forward-looking to matters risks cause could subject actual results to expectations. nature, their that from differ that by materially are

factors to our results, or Form our Form For with a discussion quarterly risks of the most on the on SEC. the press important could please recent actual that material release refer XX-K in report other risks today's discussed report and filed annual affect XX-Q and

we included metrics Investor During releases, Matt. define prepared as other metrics in that, and also let is the website. With comparable not A generally most accounting Relations accepted well as financial to which with are reconciliation available the discuss measures call financial the in to over how press earnings principles. measures, our our these which financial on me turn measures call, directly certain these accordance are non-GAAP non-GAAP GAAP we of will

Matthew Cain

renewals include our Capella continued consumption operating note strong which ARR adoption expansions quarterly ended delivered ARR. of a in-quarter for in We Edward, our loss FX, end XXXX Thanks, and the great everyone. ahead afternoon, guidance high and ever non-GAAP pleased adjusted new resulted ranges. quarter that growth, and net and Highlights highest of good with robust high and revenue, fourth fiscal report I'm on a to we QX.

I'm XXXX. pleased momentum year-over-year recorded teams X% quarter positive from performance Total with the flow $XX.X and cash income. fiscal all we XX% non-GAAP $XXX.X and headed sequentially. the was of into million, ARR up across up quarter our ARR company of Net addition, new was million, in our first up net operational the year-over-year. In second XX% business the and positive free

in-quarter XX fluctuations, was million, ARR non-GAAP Capella $XXX,XXX our loss QX, total strength our in up customer. and Edition we fiscal XXXX. and net currency across XX% continued QX. impact in base. In new had the Momentum Excluding We in renewals of and in ARR quarter fourth QX year-over-year. $XX.X Revenue million, a with XX of Capella Community the exceptional conversion $XX.X broad including up We migrations, and new of from from logos XX% XX.X% represents was logos, added year-over-year. up XX% now a customer driven X-figure by performance of strong expansions. new Capella, saw both our core with enterprise operating businesses

the customers, the emerging customers pleased to number enterprises is in year, our strong to demonstrating expansions for developer QX, growing flexibility our platform. To as with platform banking, our XX $XX across power due to delivered increasing which global up leading for have net uptake over firm multimodal as multiple which the share are reduce telecommunications travel growth applications. is we Couchbase platform. database commitment Couchbase the to operations quarter, we is that conglomerate, initiative and expanded consolidation customer growing significant global ARR of $X its largest programmatic critical Couchbase data our to power and with grow of been legacy ARR includes teams advertising as to their than making capabilities we've competitive will a million in is of global and In both large the set some and its the above well we've to and where provider continue highlights Couchbase well of bodes use NoSQL its accounts strategic customer replacing I'm capabilities year-over-year, We over come fruition customer's strong use of a greater quarter, and to now second a mark, from contributed performance. technology, ARR of of much continuing major hospitality, with including e-commerce, progress of gaming technology new among across in discussed vendor with include which our relational a supporting million XX% part an that to Capella, applications, million migrations expansions financial our a the flight We $X unify durability and With across solid long-term consumption business. Throughout Couchbase see making the media. the and of saw which edge applications. Other set systems. delays their and a progress global data expanding a that we long-term broader history which of expansion, a report this leveraging our company, this to airline, platforms

Turning for gamer a which reduce popular cruise application its games. to latency to power a game mobile mobile using Capella. store to scalability, using one and leading its leading its guest throughput most data, We which improve won is and of is improve Capella developer, wallet a significant line, ID and expansion with Capella

the use We used management variety for of access European access also support Capella telecommunications suite and digital media to a won managing its significant across our company, and identities, platform solutions wide a identity will customers and which migration the authentication, by major control our gratifying platform of see growing of it's Couchbase, a relevance largest use increasing as of the our industries. with meet needs range application we and across digital honored the to services. We're are with and cases commitment making

entertainment, we the across and industries, represent significant variety consulting, growing to and AI. base. We pipeline new time, in a set installed the power edge opportunities strategic kiosks to storage. its which industrial, large enterprise same year a of Edition of cybersecurity, over major capabilities continue and Community portion these the of to mobile of streaming and including cost-effective because technology. its chain These our hospitality inclusive X,XXX with platform, APAC-based an selected high-performance, its a gas fiscal of in-store notable travel grow from Importantly, Capella and include our station of beyond, wins saw transitioned which locations, influence because opportunity At

for sync for alerts We with in that business mobile a in and technology, its also disrupt a will its order mobile leader could app personnel and information required ongoing be issues that serve to for capabilities maintenance, operations. used offline information real-time global automation which won industrial database peer-to-peer operations and by first any repair up-to-date

product. to Turning

relevant in all was As critical today's our the be world. for you never born AI-driven than applications, know, and have Couchbase to platform developer advantages been more architectural data

innovate enterprises in AWS. latest Cloud This fully into our applications, This can race services beyond high of cloud means expansion build enterprises and advancements. unifies announced managed all availability to scale the workloads we extending to select mind, platform our let's optimize dive transactional, to uniquely performance Google a seamless, As and week, while from costs, its that solution. of analytical, effortlessly regions, some edge. With intelligent mobile into faster, AI ensuring our analytics

analytics developers semi-structured architects purpose-built native complex JSON to of insights from real-time and it unlock rigid solution help without first ETL the its data schemas. As kind, is or

with tech key powering analyze the faster, further decisions. AI at workloads. By integration applications GCP, of to to stack of we are scale, enterprises for a our is analytics JSON pillar empowering JSON smarter future, data the intelligent real-time app across seamless expanding Our operational driving vision

and enterprises teams Capella's powering deploy NVIDIA NVIDIA to performance. developers a These announced to fundamental tier, empowering models. in and Couchbase world. and that possible data Gen Vector and product to delivery the we AI with over organizations enterprises Model Capella are commend that Services, future Services iQ while GPU are a with provides AI production agentic the for advancements Capella AI are customers in to I Inference JSON our AI closer give what's enterprise-grade data, for operate will solution Mobile utilization delivering free combines control perpetual breakthrough minimizing across Capella resource working provide cost-effective solution AI Capella our we privately are The NIM Analytics, LLMs yesterday, redefining innovations bring Search, This accelerates cloud and build AI to their collaboration and capabilities, engineering Capella with and powerful enhancing applications. workloads. Capella from on the freedom ideation that AI-powered at performance deploy our now to Just maximizing and NIM, or with of Microservices with AI and latency AI-driven developers scale edge. security we accelerated With running to their agent Model RAG Services. agents

boundaries and the application costs to or I'm quarter, compromising harness on year performance, laser-focused how ahead, proud of delivering Looking effort operational capabilities, developers to connectivity. while agenda is functionality, it's what's QX our the enabling experiences fiscal these them conclusion, In our push simplifying innovation results. especially made premium manifest in teams possible without all on progress gratifying see and how in of our the executed

at milestones engineering And and pace. improve continue rapid earlier. the product I in rigor, and Our innovating mentioned teams a to we our profitability are efficiency company-wide, resulting operational

to further intelligence of for Capella driving and look accelerating artificial on enhancing XXXX, in and uptake, support we to fiscal our our As cases. pace continue growth, model sustained will I the leverage agentic focus use

of intelligent customers our becomes the applications. are unified application do need this, focused stack. world tech generation on a building future the To integrates As platform next AI-driven, data the more seamlessly with that they

operational, single scale, their sets strategic platform the strengths, challenges core and their This ability positions our as long-term mobility unify Couchbase apart. on ideal and to powering helping that critical analytics While tackle and management most crucial, performance, enterprises partner, data caching, are mobile affordability truly a applications. data it's us flexibility, our AI,

attack will by As we customer outcomes. hard continue to driven problems always,

company. been been leverage may to day has to business, building the our official team our last our consumption of May I Chief overseeing successor, a when journey all and be look business. we've world-class ensure search process. Bill a joined our We've forward and XXXX, a identified today's every Greg's a We're years, is behalf you adviser for thank the in next will key to Greg will markets, as ongoing CFO friend. seamless with you, the as our Greg the evolution the have dear Couchbase and Couchbase around of scaling leaving of to results to Henry Carey, since CFO. serve that, for On who right now today, chapter. With see interim filing, colleague to dedication time the part walk as I leadership X-plus driving has the on XX he'll I a our trusted what XXXX to of excited guiding next Couchbase, you more to our been transition Couchbase your you has financial and and opportunity. initiated I'll Greg's updating you at detail. want in to everyone did been Greg? stay but a to our in Accounting since in as through public step Greg, over been your accomplish hand an He's new Greg Officer financial company through same call organization, instrumental and at Finally, after X-K side to seen way my starting pursue tomorrow. has

Gregory Henry

from the based future incredible forward at thanks rewarding I brings. and Thanks the we've proud leave the public for hard on team a incredibly to my work, continue accomplished Couchbase of sentiment management knowing supported barely to as all way. coming My and team. will time I'm to Board is My an employees, everything me Matt, in of build years Couchbase our and most and has company the that look what kind value Directors to have that been I known that career, partners, of the start-up. We've customers, come mutual. along Thanks, a built words.

Enterprise. Capella XX% Capella overall across XX% of highest industries up new of and to performance. I'll underpinning expansions, net ARR, and year-over-year. full our Now contribution large million, We from key fiscal and of our financial strong the and $XXX.X increase end finish of and XX% more million, I'm ARR operating throughout net of This Like from up and quarter with was and last ARR impact ARR to through and Capella the fiscal represents our walk from had quarter the pleased fourth now At a peers, progress in a in results. million turning quarter guidance. and detail. in growth $XX.X year-over-year. $XX.X of metrics X% full delivered our quarter. Relative up strategic year and we continued with free quarter, with end to representing This sequentially. Capella represents momentum up Net revenue, fourth at now quarter renewals rates XX% the many above last year-over-year XX.X% year, execution the margin to and new or year-over-year reflects of XX.X% XX% execution, growth XXXX, our million, We ARR fluctuations $XX.X and flow with of ended both the million, discussed end you new all with great Capella high we've annual the total QX cash fiscal X% results was recurring guidance, our and above we currency ARR, that XXXX. delivering total number the quarter total up an year-over-year. year XX% ARR, strong geographies sequentially in outlook. XX.X% experienced equates foreign and of our the ever $XXX.X XXXX currency our of deals our

Turning fourth quarter $XX.X to for XX% year-over-year sequentially. Total revenue revenue. was million, increase the and X% an of

$XX.X Software X% growing million, year-over-year year-over-year and and up was Professional services revenue sequentially. revenue X% million, X% $X.X XX% sequentially. down was

year, Capella, $X.X year-over-year. QX an revenue, million year $XXX.X For million ARR software of services We and XX% increase by with was the $XXX,XXX, in from the large QX. changes increasing the $XXX,XXX total professional delivered the renewals year in up XXXX offset $XXX,XXX accounts per we third in Full The from year-over-year. quarter. and mix reflect of from of fiscal the X% finished and full year-over-year revenue, million, customer $XXX.X revenue up significant expansions up in XX% XXXX. QX in strategic down was sequential

NRR, or greater greater compared rate, retention since over years XXX% X public we've typically to was the XXX% net dollar-based going than Our ago. delivered than

the NRR downsell of fiscal to experienced given be increase XX return with second quarter. trailing our XXXX. We anniversary historical the we year, we last new earlier nature metric, discussed we believe from expect could in in fiscal NRR XXX until this of below anomalous and levels this XXX% an half XX-month year the loss exited the net While and to of customers, we customers

and of in by a XX.X%, the please year count share customer count references basis. statement, Capella are to discussing otherwise the expenses, last ago XX and our operations gross Our compares In income grew XX.X% of note a quarter. on In stated, non-GAAP unless all this remainder that to was the XX.X% results QX, margin quarter.

XX.X% gross Our XXXX. full year margin fiscal was compared to XX.X% in

million Fourth to $XX.X expenses. quarter revenue. or of Turning expenses sales XX% marketing and were

sales full $XXX.X the For year, expenses marketing were and million.

operating million $XX.X operating income or margin QX $XXX,XXX negative fiscal were Net loss or for million expenses We in million common $X.XX are of $XX.X and revenue. share. to $XX.X revenue. loss X% prior in and efficiency, expenses was compared Full $X.X for XX% administrative development fiscal ago. to operating quarter loss in were year or margin and general research fiscal of $XX.X expenses the or focused fiscal compared year. sales operating Fourth were negative million, reduced XX% for also of was margin $X.X revenue. progress of our revenue. Operating XX% and was general in XXXX on were further $XX.X from negative operating an administrative operating or XXXX. QX loss expenses driving full and XX% or or marketing development the margin improving QX of research Operating the fiscal XX% revenue $XX,XXX year in million of a million Full per We year of making we've or X% a pleased stockholders spend XX% to XXXX. year been to an negative improvements remain million with having XX% attributable X.X%

the net or For $X.XX full negative fiscal $XX.X per year, loss share. million was

We Turning growth our million ended to remain strategy. investments. the cash in and with execute balance sheet long-term and capitalized statement. short-term equivalents against cash flow $XXX.X We well QX cash, to

million increase $XXX.X totaled RPO, year-over-year. X% or QX, the obligations, of end performance remaining Our of at an

next approximately million or We recognize representing expect revenue of year-over-year. total RPOs growth $XXX X% to XX over of XX% months, the

our flow we QX was changes for free due was a balances free free experienced as history in full quarterly free RPO in reminder, as towards achieving Free flow. for fluctuations year, $XX.X positive second or flow duration. XXXX. year cash flow factors, cash XXXX as contract flow cash to this renewal was host negative million up flow free as flow in million a margin of As the XX.X% of indicative XX.X% the well of X% from for million. well in timing positive cash cash $XX.X and average fiscal including cash representing $X Operating $X.X strong for we've company and the cash the cash progress our fiscal our Free negative flow negative year million, full This is a negative QX was in quarterly margin, made X.X%. negative highest a

Now will year our fiscal XXXX. provide and full guidance the QX for I

strong As XXXX strategic entering growing momentum and a Matt we opportunities. are with of discussed, fiscal large pipeline

In addition, partner migrations fiscal the in consumption ecosystem. growth in to our along the and we pleased strengthening drivers continue product capabilities with well expect with as of and year, growing ongoing to us Capella investments as to coming be be for significant continue

continue ARR renewal and visibility reminder, timing we including been dynamics this to in pool and discussed have year, fiscal that relative out QX. As of of to the to these several expect a and we play the contributing our outlook, composition our strength dynamics

our reminder, of evenly distributed an first half year. larger the between XXXX both to more XXXX, and and second the compared additional fiscal is As renewal pool

million revenue X% total at factors We year-over-year the in XXXX, at to midpoint. $XX.X of of the in million $XXX.X midpoint. for range mind, $XXX.X expect in represents ARR the the these year-over-year million, range quarter or which of $XX.X XX% growth anticipate of million the With fiscal to we growth first

negative We expect range non-GAAP negative loss $X.X the million. operating of million to a in $X.X

year For fiscal at range to midpoint. $XXX total million XXXX, or the growth year-over-year the revenue expect we in XX% the full of million $XXX of

of year-over-year million operating negative $XX.X in of in range range of million. million non-GAAP $XXX.X ARR or midpoint. negative finally, expect growth $X.X XX% the loss And $XXX.X the to We a expect million the to we at

leverage committed we efficiency driving Lastly, our remain our improving continued model. and to in

as have fiscal loaded that full certain While XXXX we December our believe given elements, fiscal flow breakeven the flow could during back-end deliver Day, the free cash continue more we to well year, free first discussed positive ARR performance in opportunity XXXX. we as cash to XXXX Analyst our timing this year fiscal of be as

XXXX However, fiscal operating to XXXX. cash by driving free committed we income positive improvement in and remain flow being fiscal

past this with call on moment as I've all listening earnings to and thank enjoyed of several years. today. call you with Finally, want the over appreciate is I these Couchbase, to my support the last take a working you

about to While your up will great I leave all. With and miss take come. Thank are in Couchbase, company years the hands everything knowing to you for and questions. success happy is that Operator? that, continued for I I set Matt is

Operator

question first Singh from comes Morgan Our the Instructions] [Operator Stanley. line of Sanjit with

Sanjit Singh

QX. have a better guys the a strength of strategic of you strength Just QX, Was career. calling in could improving? I of really just was see on the function Was executing sort about basis. in with and on been sort -- the Matt, for the performance what you for next to excited currency your year? wondering if chapter a Greg, Was most I color just macro out And it's you of constant it QX. deals with thinking guess been little that us really a awesome pleasure execution? on unpack working it your that, of these

Matthew Cain

as execution delivered of about these Look, $X part emerge the big to We're hear large We I customers million those you Certainly, is to we appreciate we're the it if second $XX the threshold accounts about with we've get able great. some started was and great mark those. with a just that A me not where ARR a strategic provider, the talk company. crossed the think other the and of in talked in both be the of confidence which that. from Capella acknowledgment. We new to of really lot But put, certainly result platform Sanjit, as to you're viewed $X have had truly Capella. opportunity customer executing balance lands over wasn't against winner. the across customer. Simply proud of talking is very been What gives Capella. don't those saw a itself the strength migrations, strategic excellent logo about We've number expansions, you a We community excited the in healthy results. was with ARR. quarter we the some levels million platform to enterprise already as of of true over million that several addition now out it. one a and pipeline particular

think towards and it one talking I think quite knew building it, was do this we've been to so And great been really is had And balanced what the frankly. up, put to I pipeline execution. have we it's this about we've and

Sanjit Singh

revenue then revenue And growth. and a between impact guess the follow-up Is the on times side year, subscription a for Greg, a consumption we guidance color the migration of outlook? of topic the every house? Greg. activity of and for migration the spread I sort couple ARR outlook ARR more of outlook Just of revisit function just spread side that and the delta, revenue the your the the on a your that timing any between on the It's Awesome. versus I think

Gregory Henry

Yes. the happening. thanks hit Yes, right Thanks, it obviously, your you head. Sanjit. that comments. things on And There's X are for

part the migrations. an number. in as-a-service obviously, that's we'll year. the our contract, the in this again ARR coming the business number, is starting move that Capella, because As biggest Capella, we offering, revenue see not to continue and to is obviously, into to further But services the that is And transition

some think is this 'XX, the increase step-up We in divergence. 'XX. did We see are we -- Capella fiscal of we'll migration driving in which in in an a year see

start However, converging. rates that revenue on that and seeing I you'll as once see of made in tremendous to growth we think progress that, also the bottom ARR through get the seen. line, when we'll XX. Rule we you've fiscal itself the And of get manifest 'XX will We've start

that haven't be fiscal We line, pickup in that top coming got 'XX. should quite same on the

Operator

line question comes from next the of Oliver Baird. Rob Our with

Robert Oliver

appreciate asked I lot first macro fiscal comments. currents in wish to working it. guys kudos seems for year. Greg, relative in about Sanjit's enjoyed Sanjit and there's all you to best. out you guess about a with the is it new I the of I It just the question like really you QX. cross I'll market. ask there this

would of on factored kind opportunity as pipeline this some of those be at renewal into guidance? you renewal the you specifically obviously, to cohorts just how that you look to you cohorts, hear that of from year, cross-sell. the your So have, guys opportunities And curious an

the Capella in You talked migrations. about uptick

that be you're expect or you specifically see color a And break more down what would specific seeing you what around those could follow-up. quick had to helpful. cohorts, some in If I then

Matthew Cain

that this build level of differentiated Rob, a a still with important never on Matt. right executing that several large we're go And more And which are we've the with think relevant. that we've that, to the has we've There continuing platform, it's working dynamic I think and earned next of note been accounts expansion. really we that's pipeline dynamic the been done I that accounts Look, through is I'll to large as strategic is those. articulating a big forward. start. work

So very I'd say healthy. that's

of into is large fiscal a frankly, articulated, that balanced we we've years, excited different it, about the case certain year. As size the into when one year. than can we're renewal and the look more the and is walking have base go quite we're this to The shape it, last pretty was

shy an are move hurry to to And ability the we for their better as the workloads to advantages that walking drive talking time, at we've a And the right for either never migrations. Capella them think that's that against of we do a moment of execute business forward. come going offering. I things out subset that had customer for a or would that's growth the that our about is Capella that customers about pipeline every and look set you another and unnatural not tell up I to them not customers important us. figuring through their factor the with to entirety go into drive our estate same Capella. for And in of factor incremental TCO So we're

we pride it buying environment, we are I factors. to working about pertains value making, that As decisions maintain prudence we big enterprises our at the very offering. These think as the all are think and of take in hard articulating

unlock in at paid And phase performance the of love is I we same with we're there on a But of how levels. AI. going in the applications, enterprises being have scale applications positioned platform. in think next time, lot and of to large attention the agentic-based particularly in spend our customers to invest world the of platforms are that

we lay factors are future year. the So balanced for all out when I'd that the those numbers say we consider

Robert Oliver

one And helpful. follow-up. Super quick just it. Got then

second some sort that to of should the you motion a of are the of we in a compelling articulate you your community expect the guys? kind generative in And driver at guys? of market? this are that? or to community migration. a to moving the of think few and continue What last have guys drivers able the from function nature something to Is least be to is AI it out about you being of for quarter guys where get quarters that I And where meaningful in you for, a row is a I just called sense wanted

Matthew Cain

I be Rob, Look, Yes. think can factors. of all those

support in has getting I has what set think on investment are people fundamentally, technology neither of never more the security next been and important, that. are Data as companies building and reliability applications. are return evaluating they

in think the for we the of us, continue their where ROI that, on avenues much comes source Capella platform other be from a growth kind accelerate have utility many -- may business and reliable as dramatic on movement Community offering. There that to along unlock going to we we customers with but started factors of the a the I other build do that to so that's pretty mind, with developers' that think to applications evaluating running been and with paid with Edition to faster see forth. can edge cloud somebody technology Capella, decision-making new in so a get we are ability

Gregory Henry

we and support. hey, the coming in the when really, am DBA that in willing have I they're And that the Rob, didn't Yes. to to have on worked, willing of just that, hear further I the customers and I as-a-service have that pay teams the for. when to big again, particularly That's the what Capella, to particular, over for say you're offload ability those are don't can other paying group. been database. thing the But community look, about And jump things, smaller where Edition that's would management I'd talking just and I we product and was other monetize in from need Community, who are Community

Operator

of William Our next with question Blair. Ader comes Jason line from the

Jason Ader

Matt, you. guess, with I start

growing been steadily have showing leverage. in nice You the guys mid-teens,

do don't to going the people ARR a believe you new think of you I that did. lot net were

to a history about right of it, now company kind you're you if next break few until, to growth? think what that So needs take growth you think years, in something congrats to to happen happen of from needs the revenue for you the top out with that. the But don't do line the want for the really call terms X front to I let's in of and guys it? the accelerate in Like of away were to on anything range what trajectory here.

Matthew Cain

the appreciate funnel the have Jason, extremely the a place, on we execution. to refine even focus on the the to indicators to continue people do are dynamics that we to are future, the all as position yes. And and free us are platform we perpetual in the that data world-class AI-native we've continue side next about how all work And tier think we've quarter Look, company. articulate I the quite make and made. open commitments going answer come differentiated the is value platform. comments for I out? frankly. there they're where proposition applications with the it's things down our to up If like leading deliver sit, rapid convicted our Capella fundamentally building map on in road for articulating we largely of on the we differentiated, us Look, on pace rely we and to and And value think to I ingredients and data all have go-to-market the emerge of are a as continuing we at that innovate developers to of the aspects set going more extremely and that attract we of to winning strategic done ahead The the migrations, upon

AI, of health the and indicators, leading the So look up the to go-forward us I to am again, of very execute buildup customers future, if that. the the at, on convicted are of against need But pipeline, who we it's commitments. and developers been our value the with differently never up on for better understanding proposition future think we've the to application set stack about to Capella execute fundamentally the

we're happen. rest our to are in assured, going these them to So everything control. And make things possible do largely

Gregory Henry

and 'XX, Jason, reported of 'XX was teens. sort downsell back to Otherwise, looking seen growth the renewal goes XX% our that year. could base XX%. quite ARR we loss have growth Yes, probably a I way could And and think as was big. rate this a I QX year wasn't we lot in having I of that If was saw Fiscal was unexpected rate to just our this it A if back high XX%. go to add. at fiscal

the next the said, bigger Capella and more rebuy renewal Matt of As year, gets opportunity.

And I that's XX% think grower. confidence so a return being that us what to we gives can

Jason Ader

and right. the landscape? Matt, follow-up for on competitive the All terms the IBM means today. quick today industry a what DataStax it observations the just news deal acquire on And database then, Any in to of

Matthew Cain

serve Yes. world, the of speaks over world. combination today. yesterday acquisitions in in we look we've applications the the AI of can about, Mongo's if that been we've what companies X analytical of the importance Look, days, I the and databases from data and data And last think IBM's X validation to and talking important operational platforms acquisition seen it an

very needing data on where us. and to a are So again, think company of immense are strategic strategy how again, we our stand-alone think execute enterprises as to value about front it And strategically reinforces excited platforms. there's positioning think our we unlock to in

Jason Ader

great with paths Hopefully, All just you. working again. of final Greg, It cross best right. note, a then And was luck.

Gregory Henry

Absolutely, Jason.

Operator

Mike of line the from comes with & question Cikos Company. next Needham Our

Michael Cikos

good your by together Greg, time and off you, for start on endeavor future here. I'll thanking the luck

know kick maybe or handful taking into probably this customers But off, pilots then early And of stage ran have could Matt, a AI Services follow-up. talk preview the are this just it findings? you initial is I we're days customer imagine here. feedback? And had private today. What their customers For you? you I can in to before what in select I we telling if a even are Capella

Matthew Cain

AI and strengths than of as I some edge yes, Mike, developers, been relevant to what AI a and first, for of talk on and very facing customer scale, that you and that performance, cloud we've Mike, evaluate reliability, we you layer doing to in bringing is more sets I with advantages are fundamental efficient Quite input, tooling talk data extend road customers partners our services out about over the obsess when that the of strategy, against architecture, those never coming map. problem today. And our we're some can as have that enabled Couchbase, they our are tools of partners would other the about our and we frankly, a think members ecosystem what's we that as platform strategic the of bringing performing some the appreciate they're that we're can powerful edge, as lot map road a world, for to which can and long-term they're that's a be we're available the the AI you enterprises And when and with of developers with and cloud not even really developers we're platform. validation. They're that used at partner data to of the today. in getting probably company platform engaging more offering important, to way just technology an be to starting from that Capella largest technology the in the in to as-a-service best-of-breed future investing multi-year buying data highest the services. we offer, realize the strategic And discussions doing ease imagine,

that map of we can that not we us And road just have services preview, next quarters. other many when over but ahead the talk so the are early AI items some of in about

result up is huge that we QX think a strategic go-forward the a put in on positioning our of I validation basis.

love the feedback that we getting. So we're

Our next are enterprises teams really work a excited on about them. engineering for And role time. the path than set seen play I are ever we long I've to flying every to the of a as excited more office that the forward and think into platform features for the we're provider data day, going

Michael Cikos

additional But the a seen follow-up pool, guys implementing instill about that in you benefit rest additional Is that's great hear. size early place? for Just [ renewal the aware this on of into I better rigorous ] of that step-up all have gives confidence you just Can a coming to migrations that opportunity. Are fiscal based anything scrubbing in here license the guys this processes? That's year. those to QX 'XX. to year we're here, migrations? Capella of you confidence gone have last more in provide in the talking there And help renewal What to Capella pipeline the think we're the with of the QX detail? confidence you anticipated in sense, you get wanted

Matthew Cain

on and from out planned they've perspective, to in on. a subset if he their started have keen if where to of customer understanding mean, one one Greg coming comment they of anything they we from done if mapped then have single every today, and all whether they've Mike, up, I'll has I Capella add Capella if a refer look, they're have to migration, a a a estate. sit end

put, teams we're cases, done pipeline opportunities in surprised are simply told that more Mike, over some think obsess that move I progressing things so and to what job have customers an ready amazing of previously And being have just going migration. And than that, to pleasantly when would the to us. we faster we by closer have field

set a of the beginning We customer X-figures the for a hadn't with deployments to we're solving that new over about and year. have had quite Couchbase And year. serving problems, Capella. frankly, in planned course that previously of them a we travel of that the the kind why different of reasons few talked quarters, of dynamics were and emerge they're traditional articulated And the continue we account an space articulate Capella that, major over at

think we I fast how of that's along so that with things know can about. And go one example ones

are are cycle than opportunity them previously So accounts the Mike, just estate, further talked their of And up dynamic next-generation has customers, there's that of growth been of on that with balanced. their separate with compelling progressed had one working a last on life of most this events year. lot it's more that's the that from simply year often understanding dynamic we renewal specifics that that's we they We uptick the and work development agreements understanding a with case. what where for our simply last where much in more And an applications. than renegotiating that get renewal to where we're go-forward bigger basis. a is year base And about important because presents

from. both where those are say the I'd hearing So combined come factors conviction you're

Gregory Henry

Yes. -- you on echo year. things more will, we're Mike, next the going I'd if have just shots that, add same We're to further look, progressed. goal,

of dollar And also had embraced -- multimillion at have have is customers. migrated They're other we've customers moving advocates our we also have that customers, a certain several helpful. also few reference as Capella have organizations. who now We which to

but bringing hey, some bring Couchbase's. they're they may Couchbase had And into experience organizations in new a I Capella, that Sometimes and and are to cases, the, that want of in already Couchbase, I organization. with customers those to be great

all So of that. it's

Operator

line the with Our next question of comes Lenschow Raimo from Barclays.

Raimo Lenschow

notion. Congrats Perfect. and the to I Greg, on all as stay from me well the wanted best. Capella

enable for year? like kind opportunity. be are Where accelerate. that going new we a the to existing to front? cloud to lot are a customer we multi Capella, kind that's multi-year over And and Where really as of -- what So there's at customers nice obviously, a are of Capella the new initiatives of converting next on add logo there? Because growth should solution moment,

Gregory Henry

Yes, kind to for We to Thanks logos. very good words feel Greg. progress make the it's Raimo, add we're new of there. terms continuing look, there. it in words, continuing about

Capella we know may with and But to had overall, from I enabled logo seeing good again, a be I momentum pipeline logo way, teams the it opportunity activity in of think there there, is we're we fluctuate and logos. and quarter-to-quarter, packs that where for think saw it packs some new is the that. That -- transition of but And obviously the had I new but going just new to XX out this particularly isn't an and and good, us. engine of feel the continues about very will net there's we company. said, had you things -- year. we going. the quarter get how starter like a them we've lightweight out the strong for kind And customers a of dominant sort are lot still easy, Capella,

And rhythm we're to of like into a logo that get starting new of having so feel higher we amount regular adds.

Raimo Lenschow

and to but that about you now almost you with Yes. a like between it's if Perfect. -- the if think ask think you balance growth about nice Greg, then and retiring, like profitability. And it's question,

gave You -- kind versus think of to showed But in the next margin is do QX how Obviously, breakeven, you when recovering balance? you that how do went year, you like achievable. growth about you guidance. market that's if

Gregory Henry

retiring. we're do competitive growth we towards is far just side Look, efficient. that's And put growth where Couchbase, that AI become that I going still both as going retirement. in knew I more on but again thing. I'm and free need But we've Raimo. And Thanks, particularly line start to from. And correct measure. we're that line. amount said, sure I profitability tremendous to market investments the still I'm of the loss come, from non-GAAP actually very year. remain to trying There's think seeing for that well for demonstrated think R&D that we're had not the I on one too to because flow a as moving to as I cash And we opportunity dollars the I'm we the we op balance good on young front. energy on -- to come think making next to but been make think the years Yes.

to were is Rule growth revenue both years a Jason can the the from ARR. things with us going we was of on with growth converge talking of last year the going be low-XXs. good And really XX% is there. prior revenue -- to XX. being And some think rate going and converge and downsell the before, I see I we're precluded that to As loss back X We a the grower, this had but little we think

Matthew Cain

spans job, Look, and going balancing with at Raimo, of the new growth the we're the the Capella quite that that expanding but we strategic you we've a frankly, it I including to Greg go-to-market to perpetual lot think how going done CMO think work year R&D, and talking in specific right And on cases I a efficiency in We the about we're we're think taking and areas. with to which been joined about about think acquiring our model, for had we're find building basis. about in parts then the more updated on in all of pride continue it's efficient thinking of the excitement much leverage that. positioning. a here. to we're go-forward accounts That's that with that to customers out talked services, AI other if we've call free we've go-to-market. And our tier, And be for demonstrating iQ, way. developers the long-term and transformational seeing in is the a organization,

great And we're grow wisely. So and that to to companies, leverage get around use out most like that balance think going how is here. right word figure a we big I investing while

Operator

the Ma question from line Guggenheim. of comes Howard with next Our

Howard Ma

in wish about the the consolidated question I is, databases you this number ask your is you two Greg, And enterprise one there both opportunity. was services a to did customer and are common I one it's firm. next -- more how how long pipeline? like to databases. and is remarks, wanted wanted to I you Number built like how I more the your it start global deals on guess, on And Matt, financial an or ask consolidation is, apps the mentioned from about relational so I competing expansion. And in what NoSQL is seems that this pleasure so the that prepared been best -- take finish? this? believe

Matthew Cain

that's a you up continue the calling The approach front truly we edge, Look, that aren't position platform so. to are to combination we emerging we've to to do how in when analytical, things our talk about Capella do stand frankly, other architected statement. that, enterprise no quite platform, we'll and certainly small transactional, solutions talk of for. a I platform, have a out. utility about database of we Couchbase strategic Howard, appreciate cloud built When operational, customers of taken and our I and as in multimodal

part our value big of has been a this proposition. So

world become the consolidation of AI. comprehensive is of I to as and from winners strategy imperative in data think more the need more, to we're and drive a hearing enterprises pick fewer kind going so

and as a And unstructured able be go think forward is were when others. carve to our have a the on yes, common a of of which I that with very dependent do of To applications get making types I of and But well. hundreds so we with companies on on so to platform once we basis, say our serves semi-structured now the is bet to of the large would future, part multi-year probably is into workloads us this Howard, as and relative this differentiation data it discussion, expense these accounts, our that differentiation. increasing amount off a strategic a are big relational, of this level is arrangements, expansion, at

hard earn continue basis. to is to are go-forward there I But and out question. there, a fighting grow question way for. think to a going worth And without execute well this part material a more your in this big how spot is that to is a and so of on on we're And

Howard Ma

follow-up question to contracts Capella And side, -- right, I'm Greg, we bookings the be usually a be consumption. sorry Capella really But about to you for a as grows or I should and private earlier, shrink bigger, is cloud, it if I cut the a encouraging. X it's and that really take That's the a around on a lot smaller. right, deal, on-prem over you you not into migrating if start marketplace could then could it turns unchanged be large that that have about to on-prem time. going little deal size deal think and And versus deal, With Greg, but forms. and a kind how should migration versus contracts me believe off believe of wrong, correct can

the just about -- help is the is way bookings right you us for consumption about So what can think to think versus what Capella? like

Gregory Henry

Yes.

both who's any shrinking. is So those going I don't customers Capella of think Anybody see enterprise actually to similar. I are from where to they're grow. going

growth dislocation happening -- of to rec, will seeing the XX the value what's it, together. will up after will why is turn tried and which perspective, articulate going rate, ARR it consumption gate much So is the which because you, grow. And reason by creating the all people when the and again, we think come from the ARR revenue it immediately, for is that most which ARR, Howard? consumption. those it fiscal that on gets it's booked, metric ARR it's XX The and months, closer we, in tried right? see up pure you'll the because behind you then to come of the into have have growth So way an we 'XX, defined of take sort business for first however, why ARR the out to the which the of is it is show in and keep part near-term start of Does the will this pure booking the why of closer is rates that best part show for rev months answer right revenue on I up we focused ARR

Howard Ma

another growth those I'm ask are but the follow-up, rate both Capella bookings and I ask way, can this to sorry accelerating? just in bookings, consumption, are

Gregory Henry

it XXX% the what growth the revenue consumption I consumption on honestly, much. from as we're going rest quarter-over-quarter of I perspective. continues to bookings come of on accelerating. in Again, and quite is assured rate what that the ARR on grow behind But is don't, a focus growth to focus Capella. consumption delivering year-over-year,

Operator

Our next with Davidson. the question D.A. line of comes Kessinger from Rudy

Rudy Kessinger

think ARR working rates, guidance went as to different? around quarter. more like luck -- ARR guide, assumptions et what's on the that and we compared or similar guide, philosophy Congrats on the about hitting initial into your used with last conservative you cetera. a year just it just the 'XX roughly expansions, this of guidance on start new of initial And Is pleasure for philosophy it renewals, to ARR it logos, certainly or the next. Greg, just conversion should I'd the curious 'XX anything been maybe fiscal pipeline as to best

Gregory Henry

there's I conversions. known things. And think when at renewal ability don't relatively of sort the we how We it, about full philosophy do same migration to talking our guidance the materially we we're Rudy. specific alter upsell, unless year, our pool, a as it's look

continuing think I I years journey. we're last I to in anything, as earlier, step-up migrations of we've the seen through move Capella as if think couple mentioned a our

would happen, just for come how that expect higher next But up guidance year. we thing with we to of sort conversion of changed terms one year. philosophy, that that's with think a in overall has nothing slightly I migration the

Rudy Kessinger

of like ARR whatnot? about Okay. as by we you X a the as to versus linearity going kind and ARR that you could obviously, it have QX kind guide, QX, maybe messaged evident just balanced year. on a be But or it's half talk certainly to the and And then QX this prior about seems expect more of QX guys should and more bit half sequentials second

Gregory Henry

Yes.

from an 'XX were like we if we ARR. more as year, like go half to XX% back knew 'XX, it second kind be more first and XX% past half, fiscal were loaded, first XX%, back-end you So was we This XX% second going of to XX% half. half,

but That's balanced the I to will but XX% it, that year. probably be much it's somewhere did think how not like more for you're think going about last find half in within the what we to range, second year.

Operator

with And our from Miller last of the Jump question comes Securities. Truist line

William Miller Jump

with Greg, next best your chapter. of luck

recent side, I expanding farmer about moving program. the strategic about type think more just a maybe calls you've of made just comments some on today made the you've model. comments some go-to-market account hunter -- Obviously, on potentially to

of scale that can talk you maybe about Just expect this maybe kind potential on to go-to-market we evolution the year would any see of the and in hiring that? implications

Matthew Cain

appreciate, supporting of one world we've of dealing about in hand, on the kind them how the talked and of learning broader think quarter environment, and can the differently because value on largest than data new dynamics resources to noted more we're about is in Look, couple how starter to we're of of that and constantly as thousand an if where enterprises tier I allocation we're logo of a invest leverage doing what those the opportunity smart different What And from seeing starting being million best able we're of diversity different ARR. couple dollar free of of cases, are that motions. $XX articulate with funnel we're the very that selling in the doing, platform think as part drive is we the over their Matt. journey. And journey. maybe smart customers the a The perspective. And pack we're in net as across about organization that you on of about those those a way how to some Capella and quite with accounts a perpetual getting that buy motion in business, is complement kind is kind of we of we're in from we're our that to this sell-to of able bringing in technology we're a frankly, the learning buying big the strategic market. represents the Miller, on their investing

we're doing Let's forget the not around that world. business

that So spend seeing. the proposition in fundamentally, we demand the have we're regional account. how we're we're excited marketing digital it's an take driving transition efficient even differences with we market in people into what more to the solution as exciting really an model understand that is and and And well I aligned how value and way our think about

pride results reviewing we better. to and And how so take constantly in out get figuring

we the in often that we we to forward. the feel great with As fiscal have great we've and ] we into running that functions, to everything quota to about SEs serve [ as we've go and path forward. various the modifications the feel year are We year, carriers new made that about think us made capacity across changes we investments. are But going cloud from fiscal specialists the move

William Miller Jump

activity versus churn I expectations If just an one in that one the you going Greg. implied saw quick in anything guidance? Greg, were color. great in in update your in That's squeeze for just quarter could on

Gregory Henry

very Miller. is of what only and on that this is Again, year, talked all about the we loss line as anything which rest we I would anomalous, in previously view Right call downsell, these was QX in we'll out to think us. up with QX keep hopefully putting anomalous I -- do renew further demonstrating quarters And highly is we tends have a customer line. and that strong is that base because

So here quarter. nothing unusual this

Operator

for the would And Matt remarks. to closing And to session. Thank have the I turn the floor you. end reached question-and-answer like of CEO, Cain, back we

Matthew Cain

us you today. to in joining performance QX for thrilled front our with opportunities thanks to speaking We're the We and next us with operator, and in everyone Thanks, with again excited of look fiscal XXXX. forward quarter.

Operator

participation. conference, and time. lines thank this at And ladies We today's you this concludes gentlemen, disconnect your for you your may and

Couchbase (BASE) 25 Feb 252025 Q4 Earnings call transcript