SANTA
CLARA, Calif., Sept. 6,
2023 /PRNewswire/ -- Couchbase, Inc. (NASDAQ: BASE),
the cloud database platform company, today announced financial
results for its second quarter ended July 31, 2023.
"We delivered revenue and profitability that exceeded the high
end of our guidance range, highlighted by 24% ARR growth, strong
retention, and increasing momentum with Capella," said Matt Cain, Chair, President and CEO of
Couchbase. "As we look to the second half of the fiscal year, we
are poised to continue to make strong progress on our strategic
initiatives, including investing in our cloud database platform for
what we believe will be a very exciting future underpinned by
AI-powered applications."
Second Quarter Fiscal 2024 Financial Highlights
- Revenue: Total revenue for the quarter was $43.1 million, an increase of 8% year-over-year.
Subscription revenue for the quarter was $41.0 million, an increase of 11%
year-over-year.
- Annual recurring revenue (ARR): Total ARR as of
July 31, 2023 was $180.7
million, an increase of 24% year-over-year, or 23% on a
constant currency basis. See the section titled "Key Business
Metrics" below for details.
- Gross margin: Gross margin for the quarter was 86.3%,
compared to 88.0% for the second quarter of fiscal 2023. Non-GAAP
gross margin for the quarter was 87.2%, compared to 88.7% for the
second quarter of fiscal 2023. See the section titled "Use of
Non-GAAP Financial Measures" and the tables titled "Reconciliation
of GAAP to Non-GAAP Results" below for details.
- Loss from operations: Loss from operations for the
quarter was $21.9 million, compared
to $15.2 million for the second
quarter of fiscal 2023. Non-GAAP operating loss for the quarter was
$9.2 million, compared to
$8.4 million for the second quarter
of fiscal 2023.
- Cash flow: Cash flow used in operating activities for
the quarter was $0.5 million,
compared to $7.7 million in the
second quarter of fiscal 2023. Capital expenditures were
$1.1 million during the quarter,
leading to negative free cash flow of $1.6
million, compared to negative free cash flow of $9.3 million in the second quarter of fiscal
2023.
- Remaining performance obligations (RPO): RPO as of
July 31, 2023 was $170.6
million, an increase of 2% year-over-year.
Recent Business Highlights
- Announced that Couchbase is introducing generative AI into its
Database-as-a-Service Couchbase Capella™ to
significantly enhance developer productivity and accelerate time to
market for modern applications. This new capability, called Capella
iQ, is designed to enable developers to write SQL++ and
application-level code more quickly by delivering recommended
sample code.
- Announced the Couchbase AI Accelerate Partner Program designed
to make it easier for customers to build AI-powered applications
with Couchbase Capella and support integrations with the broader AI
and data ecosystem. The goal of the program is to provide
organizations with resources to quickly integrate their platforms
and tools with Couchbase Capella, thereby reducing friction for
customers who are building and deploying models for AI-driven
applications.
- Granted two additional U.S. patents, demonstrating the
company's continued high velocity of product innovation and
differentiation. One is Couchbase's fourth patent, which was
granted for executing transactions on distributed databases. The
other is Couchbase's fifth patent, which was for cost-based query
optimization for array fields in database systems.
- Announced additional enhancements to Couchbase Capella that
further improve the developer experience, increase efficiency and
make it easier to operate a cloud database platform. This includes
new integrations with popular developer tools Vercel and the
IntelliJ family of integrated development environments (IDEs),
dynamic disk input/output operations per second (IOPS), on/off
provisioned database capability to better align with developer
usage patterns and the achievement of independent validation for
Payment Card Industry Data Security Standard (PCI DSS) and Cloud
Security Alliance Security Trust Assurance and Risk (CSA STAR) compliance.
Financial Outlook
For the third quarter and full year of fiscal 2024, Couchbase
expects:
|
|
Q3 FY2024 Outlook
|
|
FY2024 Outlook
|
Total
Revenue
|
|
$42.7-43.3
million
|
|
$171.7-174.7
million
|
Total ARR
|
|
$185.0-188.0
million
|
|
$195.5-199.5
million
|
Non-GAAP Operating
Loss
|
|
$9.9-9.1
million
|
|
$42.5-38.5
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 loss for the third quarter or full year of fiscal 2024
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.
Conference Call Information
Couchbase will host a live webcast at 2:00 p.m. Pacific Time (or 5:00 p.m. Eastern Time) on Wednesday,
September 6, 2023, to discuss its financial results and
business highlights. The conference call can be accessed by dialing
877-407-8029 from the United
States, or +1 201-689-8029 from international locations. The
live webcast and a webcast replay can be accessed from the investor
relations page of Couchbase's website at
investors.couchbase.com.
About Couchbase
Modern customer experiences need a flexible database platform
that can power applications spanning from cloud to edge and
everything in between. Couchbase's mission is to simplify how
developers and architects develop, deploy and run modern
applications wherever they are. We have reimagined the database
with our fast, flexible and affordable cloud database platform
Couchbase Capella, allowing organizations to quickly build
applications that deliver premium experiences to their customers –
all with best-in-class price performance. More than 30% of the
Fortune 100 trust Couchbase to power their modern applications. For
more information, visit www.couchbase.com and follow us on X
(formerly Twitter) @couchbase.
Couchbase has used, and intends to continue using, its investor
relations website and the corporate blog at
blog.couchbase.com to disclose material non-public information
and to comply with its disclosure obligations under Regulation FD.
Accordingly, you should monitor our investor relations website and
the corporate blog in addition to following our press releases, SEC
filings and public conference calls and webcasts.
Use of Non-GAAP Financial Measures
In addition to our financial information presented in accordance
with GAAP, we believe certain non-GAAP financial measures are
useful to investors in evaluating our operating performance. We use
certain non-GAAP financial measures, collectively, to evaluate our
ongoing operations and for internal planning and forecasting
purposes. We believe that non-GAAP financial measures, when taken
together with the corresponding GAAP financial measures, may be
helpful to investors because they provide consistency and
comparability with past financial performance and meaningful
supplemental information regarding our performance by excluding
certain items that may not be indicative of our business, results
of operations or outlook. Non-GAAP financial measures are presented
for supplemental informational purposes only, have limitations as
analytical tools and should not be considered in isolation or as a
substitute for financial information presented in accordance with
GAAP, and may be different from similarly-titled non-GAAP financial
measures used by other companies. In addition, other companies,
including companies in our industry, may calculate similarly-titled
non-GAAP financial measures differently or may use other measures
to evaluate their performance, all of which could reduce the
usefulness of our non-GAAP financial measures as tools for
comparison. Investors are encouraged to review the related GAAP
financial measures and the reconciliation of these non-GAAP
financial measures to their most directly comparable GAAP financial
measures (provided in the financial statement tables included in
this press release), and not to rely on any single financial
measure to evaluate our business.
Non-GAAP gross profit, non-GAAP gross margin, non-GAAP
operating loss, non-GAAP operating margin, non-GAAP net loss and
non-GAAP net loss per share: We define these non-GAAP
financial measures as their respective GAAP measures, excluding
expenses related to stock-based compensation expense, employer
payroll taxes on employee stock transactions and restructuring
charges. We use these non-GAAP financial measures in conjunction
with GAAP measures to assess our performance, including in the
preparation of our annual operating budget and quarterly forecasts,
to evaluate the effectiveness of our business strategies and to
communicate with our board of directors concerning our financial
performance.
Free cash flow: We define free cash flow as cash
used in operating activities less additions to property and
equipment, which includes capitalized internal-use software costs.
We believe free cash flow is a useful indicator of liquidity that
provides our management, board of directors and investors with
information about our future ability to generate or use cash to
enhance the strength of our balance sheet and further invest in our
business and pursue potential strategic initiatives.
Please see the reconciliation tables at the end of this press
release for the reconciliation of GAAP and non-GAAP results.
Key Business Metrics
We review a number of operating and financial metrics, including
ARR, to evaluate our business, measure our performance, identify
trends affecting our business, formulate business plans and make
strategic decisions.
We define ARR as of a given date as the annualized recurring
revenue that we would contractually receive from our customers in
the month ending 12 months following such date. Based on historical
experience with customers, we assume all contracts will be
automatically renewed at the same levels unless we receive
notification of non-renewal and are no longer in negotiations prior
to the measurement date. ARR also includes revenue from
consumption-based cloud credits of Couchbase Capella products. ARR
for Couchbase Capella products in a customer's initial year is
calculated as described above; after a customer's initial year it
is calculated by annualizing the prior 90 days of actual
consumption, assuming no increases or reductions in usage. ARR
excludes revenue derived from the use of cloud products only based
on on-demand arrangements and services revenue. ARR should be
viewed independently of revenue, and does not represent our revenue
under GAAP on an annualized basis, as it is an operating metric
that can be impacted by contract start and end dates and renewal
dates. ARR is not intended to be a replacement for forecasts of
revenue. Although we seek to increase ARR as part of our strategy
of targeting large enterprise customers, this metric may fluctuate
from period to period based on our ability to acquire new customers
and expand within our existing customers. We believe that our ARR
is an important indicator of the growth and performance of our
business. We updated our definition of ARR in the third quarter of
fiscal 2023 to clarify that the 90-day actual consumption
methodology is only used after a customer's initial year. The
reason for this change is to better reflect the ARR for Couchbase
Capella products following the launch of Couchbase Capella in
fiscal 2022. ARR for prior periods have not been adjusted to
reflect this change as it is not material to any period previously
presented.
We also attempt to represent the changes in the underlying
business operations by eliminating fluctuations caused by changes
in foreign currency exchange rates within the current period. We
calculate constant currency growth rates by applying the applicable
prior period exchange rates to current period results.
Forward-Looking Statements
This press release contains
"forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995 that are based on
management's beliefs and assumptions and on information currently
available to management. Forward-looking statements include, but
are not limited to, quotations of management, the section titled
"Financial Outlook" above and statements about Couchbase's market
position, strategies and potential market opportunities.
Forward-looking statements generally relate to future events or our
future financial or operating performance. Forward-looking
statements include all statements that are not historical facts
and, in some cases, can be identified by terms such as
"anticipate," "expect," "intend," "plan," "believe," "continue,"
"could," "potential," "remain," "may," "might," "will," "would" or
similar expressions and the negatives of those terms. However, not
all forward-looking statements contain these identifying words.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors, including factors beyond our
control, which may cause our actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. These risks include, but are not
limited to: our history of net losses and ability to achieve or
maintain profitability in the future; our ability to continue to
grow on pace with historical rates; our ability to manage our
growth effectively; intense competition and our ability to compete
effectively; cost-effectively acquiring new customers or obtaining
renewals, upgrades or expansions from our existing customers; the
market for our products and services being relatively new and
evolving, and our future success depending on the growth and
expansion of this market; our ability to innovate in response to
changing customer needs, new technologies or other market
requirements, including new capabilities, programs and partnerships
and their impact on our customers and our business; our limited
operating history, which makes it difficult to predict our future
results of operations; the significant fluctuation of our future
results of operations and ability to meet the expectations of
analysts or investors; our significant reliance on revenue from
subscriptions, which may decline and, the recognition of a
significant portion of revenue from subscriptions over the term of
the relevant subscription period, which means downturns or upturns
in sales are not immediately reflected in full in our results of
operations; and the impact of geopolitical and macroeconomic
factors. Further information on risks that could cause actual
results to differ materially from forecasted results are included
in our filings with the Securities and Exchange Commission that we
may file from time to time, including those more fully described in
our Annual Report on Form 10-K for the fiscal year ended
January 31, 2023. Additional
information will be made available in our Quarterly Report on Form
10-Q for the quarter ended July 31, 2023 that will be filed
with the Securities and Exchange Commission, which should be read
in conjunction with this press release and the financial results
included herein. Any forward-looking statements contained in this
press release are based on assumptions that we believe to be
reasonable as of this date. Except as required by law, we assume no
obligation to update these forward-looking statements, or to update
the reasons if actual results differ materially from those
anticipated in the forward-looking statements.
Couchbase,
Inc.
|
Condensed
Consolidated Statements of Operations
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue:
|
|
|
|
|
|
|
|
License
|
$
4,798
|
|
$
6,382
|
|
$
9,741
|
|
$
11,389
|
Support and
other
|
36,156
|
|
30,677
|
|
69,755
|
|
57,651
|
Total subscription
revenue
|
40,954
|
|
37,059
|
|
79,496
|
|
69,040
|
Services
|
2,185
|
|
2,732
|
|
4,639
|
|
5,604
|
Total
revenue
|
43,139
|
|
39,791
|
|
84,135
|
|
74,644
|
Cost of revenue:
|
|
|
|
|
|
|
|
Subscription(1)
|
3,845
|
|
2,521
|
|
7,518
|
|
4,917
|
Services(1)
|
2,064
|
|
2,260
|
|
4,313
|
|
4,515
|
Total cost of
revenue
|
5,909
|
|
4,781
|
|
11,831
|
|
9,432
|
Gross
profit
|
37,230
|
|
35,010
|
|
72,304
|
|
65,212
|
Operating expenses:
|
|
|
|
|
|
|
|
Research and
development(1)
|
16,292
|
|
14,341
|
|
31,675
|
|
28,762
|
Sales and
marketing(1)
|
32,348
|
|
27,473
|
|
64,901
|
|
54,316
|
General and
administrative(1)
|
10,459
|
|
8,429
|
|
20,084
|
|
16,355
|
Restructuring(1)
|
—
|
|
—
|
|
46
|
|
—
|
Total operating
expenses
|
59,099
|
|
50,243
|
|
116,706
|
|
99,433
|
Loss from
operations
|
(21,869)
|
|
(15,233)
|
|
(44,402)
|
|
(34,221)
|
Interest
expense
|
(18)
|
|
(25)
|
|
(43)
|
|
(50)
|
Other income (expense),
net
|
1,255
|
|
261
|
|
2,688
|
|
(295)
|
Loss before income
taxes
|
(20,632)
|
|
(14,997)
|
|
(41,757)
|
|
(34,566)
|
Provision for income
taxes
|
19
|
|
372
|
|
769
|
|
637
|
Net loss
|
$
(20,651)
|
|
$
(15,369)
|
|
$
(42,526)
|
|
$
(35,203)
|
Net loss per share,
basic and diluted
|
$
(0.44)
|
|
$
(0.34)
|
|
$
(0.92)
|
|
$
(0.79)
|
Weighted-average shares
used in computing net loss per share, basic and diluted
|
46,714
|
|
44,648
|
|
46,285
|
|
44,459
|
|
|
|
(1)
|
Includes stock-based
compensation expense as follows:
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cost of
revenue—subscription
|
$
236
|
|
$
141
|
|
$
429
|
|
$
263
|
Cost of
revenue—services
|
149
|
|
117
|
|
294
|
|
211
|
Research and
development
|
3,614
|
|
2,087
|
|
6,382
|
|
3,986
|
Sales and
marketing
|
4,032
|
|
2,463
|
|
7,273
|
|
4,450
|
General and
administrative
|
4,086
|
|
1,919
|
|
7,014
|
|
3,267
|
Restructuring
|
—
|
|
—
|
|
1
|
|
—
|
Total stock-based
compensation expense
|
$
12,117
|
|
$
6,727
|
|
$
21,393
|
|
$
12,177
|
Couchbase,
Inc.
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
(unaudited)
|
|
|
As of July 31,
2023
|
|
As of January
31, 2023
|
|
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
41,437
|
|
$
40,446
|
Short-term
investments
|
124,361
|
|
127,856
|
Accounts receivable,
net
|
32,453
|
|
39,847
|
Deferred
commissions
|
12,787
|
|
13,096
|
Prepaid expenses and
other current assets
|
8,034
|
|
8,234
|
Total current
assets
|
219,072
|
|
229,479
|
Property and equipment,
net
|
8,581
|
|
7,430
|
Operating lease
right-of-use assets
|
5,620
|
|
6,940
|
Deferred commissions,
noncurrent
|
7,736
|
|
7,524
|
Other assets
|
2,645
|
|
1,666
|
Total
assets
|
$
243,654
|
|
$
253,039
|
Liabilities and Stockholders'
Equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
3,156
|
|
$
1,407
|
Accrued compensation
and benefits
|
10,887
|
|
12,641
|
Other accrued
expenses
|
4,874
|
|
6,076
|
Operating lease
liabilities
|
2,984
|
|
3,117
|
Deferred
revenue
|
79,721
|
|
71,716
|
Total current
liabilities
|
101,622
|
|
94,957
|
Operating lease
liabilities, noncurrent
|
3,271
|
|
4,543
|
Deferred revenue,
noncurrent
|
3,219
|
|
3,275
|
Total
liabilities
|
108,112
|
|
102,775
|
Stockholders'
equity
|
|
|
|
Preferred
stock
|
—
|
|
—
|
Common
stock
|
—
|
|
—
|
Additional paid-in capital
|
588,845
|
|
561,547
|
Accumulated other
comprehensive loss
|
(301)
|
|
(807)
|
Accumulated
deficit
|
(453,002)
|
|
(410,476)
|
Total stockholders'
equity
|
135,542
|
|
150,264
|
Total liabilities and
stockholders' equity
|
$
243,654
|
|
$
253,039
|
Couchbase,
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
(unaudited)
|
|
|
Three Months Ended July 31,
|
|
Six Months Ended January 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cash flows from operating
activities
|
|
|
|
|
|
|
|
Net loss
|
$
(20,651)
|
|
$
(15,369)
|
|
$
(42,526)
|
|
$
(35,203)
|
Adjustments to
reconcile net loss to net cash used in operating
activities
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
745
|
|
727
|
|
1,635
|
|
1,466
|
Stock-based
compensation, net of amounts capitalized
|
12,117
|
|
6,727
|
|
21,393
|
|
12,177
|
Amortization of
deferred commissions
|
4,702
|
|
4,401
|
|
9,242
|
|
8,410
|
Non-cash lease
expense
|
776
|
|
752
|
|
1,548
|
|
1,400
|
Foreign currency
transaction losses
|
249
|
|
62
|
|
165
|
|
1,036
|
Other
|
(1,030)
|
|
103
|
|
(1,776)
|
|
301
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
Accounts
receivable
|
9,811
|
|
(4,452)
|
|
7,537
|
|
7,329
|
Deferred
commissions
|
(4,322)
|
|
(3,908)
|
|
(9,146)
|
|
(7,706)
|
Prepaid expenses and
other assets
|
(1,523)
|
|
(1,526)
|
|
(118)
|
|
(1,214)
|
Accounts
payable
|
(3,713)
|
|
2,812
|
|
1,745
|
|
3,543
|
Accrued compensation
and benefits
|
2,306
|
|
2,504
|
|
(1,754)
|
|
(5,608)
|
Accrued expenses and
other liabilities
|
(615)
|
|
1,106
|
|
(1,871)
|
|
1,035
|
Operating lease
liabilities
|
(897)
|
|
(445)
|
|
(1,723)
|
|
(1,111)
|
Deferred
revenue
|
1,526
|
|
(1,149)
|
|
7,949
|
|
(2,117)
|
Net cash used in
operating activities
|
(519)
|
|
(7,655)
|
|
(7,700)
|
|
(16,262)
|
Cash flows from investing
activities
|
|
|
|
|
|
|
|
Purchases of short-term
investments
|
(56,494)
|
|
(15,838)
|
|
(64,315)
|
|
(69,468)
|
Maturities of
short-term investments
|
50,697
|
|
23,202
|
|
70,120
|
|
32,802
|
Additions to property
and equipment
|
(1,071)
|
|
(1,677)
|
|
(2,359)
|
|
(2,476)
|
Net cash provided by
(used in) investing activities
|
(6,868)
|
|
5,687
|
|
3,446
|
|
(39,142)
|
Cash flows from financing
activities
|
|
|
|
|
|
|
|
Proceeds from exercise
of stock options
|
2,733
|
|
753
|
|
4,650
|
|
3,367
|
Proceeds from issuance
of common stock under ESPP
|
—
|
|
—
|
|
847
|
|
3,525
|
Net cash provided by
financing activities
|
2,733
|
|
753
|
|
5,497
|
|
6,892
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(149)
|
|
(119)
|
|
(252)
|
|
(838)
|
Net increase (decrease)
in cash, cash equivalents and restricted cash
|
(4,803)
|
|
(1,334)
|
|
991
|
|
(49,350)
|
Cash, cash equivalents,
and restricted cash at beginning of period
|
46,783
|
|
48,215
|
|
40,989
|
|
96,231
|
Cash, cash equivalents,
and restricted cash at end of period
|
$
41,980
|
|
$
46,881
|
|
$
41,980
|
|
$
46,881
|
Reconciliation of cash, cash equivalents, and
restricted cash within the consolidated balance sheets to the
amounts shown above:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
41,437
|
|
$
46,338
|
|
$
41,437
|
|
$
46,338
|
Restricted cash
included in other assets
|
543
|
|
543
|
|
543
|
|
543
|
Total cash, cash
equivalents and restricted cash
|
$
41,980
|
|
$
46,881
|
|
$
41,980
|
|
$
46,881
|
Couchbase,
Inc.
|
Reconciliation of
GAAP to Non-GAAP Results
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Reconciliation of GAAP gross profit to non-GAAP gross
profit:
|
|
|
|
|
|
|
|
Total
revenue
|
$
43,139
|
|
$
39,791
|
|
$
84,135
|
|
$
74,644
|
Gross profit
|
$
37,230
|
|
$
35,010
|
|
$
72,304
|
|
$
65,212
|
Add: Stock-based
compensation expense
|
385
|
|
258
|
|
723
|
|
474
|
Add: Employer taxes on
employee stock transactions
|
21
|
|
22
|
|
31
|
|
24
|
Non-GAAP gross
profit
|
$
37,636
|
|
$
35,290
|
|
$
73,058
|
|
$
65,710
|
Gross margin
|
86.3 %
|
|
88.0 %
|
|
85.9 %
|
|
87.4 %
|
Non-GAAP gross
margin
|
87.2 %
|
|
88.7 %
|
|
86.8 %
|
|
88.0 %
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Reconciliation of GAAP operating expenses to non-GAAP
operating expenses:
|
|
|
|
|
|
|
|
GAAP research and development
|
$
16,292
|
|
$
14,341
|
|
$
31,675
|
|
$
28,762
|
Less: Stock-based
compensation expense
|
(3,614)
|
|
(2,087)
|
|
(6,382)
|
|
(3,986)
|
Less: Employer taxes on
employee stock transactions
|
(123)
|
|
(45)
|
|
(231)
|
|
(69)
|
Non-GAAP research and
development
|
$
12,555
|
|
$
12,209
|
|
$
25,062
|
|
$
24,707
|
|
|
|
|
|
|
|
|
GAAP sales and marketing
|
$
32,348
|
|
$
27,473
|
|
$
64,901
|
|
$
54,316
|
Less: Stock-based
compensation expense
|
(4,032)
|
|
(2,463)
|
|
(7,273)
|
|
(4,450)
|
Less: Employer taxes on
employee stock transactions
|
(330)
|
|
(67)
|
|
(450)
|
|
(103)
|
Non-GAAP sales and marketing
|
$
27,986
|
|
$
24,943
|
|
$
57,178
|
|
$
49,763
|
|
|
|
|
|
|
|
|
GAAP general and administrative
|
$
10,459
|
|
$
8,429
|
|
$
20,084
|
|
$
16,355
|
Less: Stock-based
compensation expense
|
(4,086)
|
|
(1,919)
|
|
(7,014)
|
|
(3,267)
|
Less: Employer taxes on
employee stock transactions
|
(59)
|
|
(13)
|
|
(88)
|
|
(84)
|
Non-GAAP general and
administrative
|
$
6,314
|
|
$
6,497
|
|
$
12,982
|
|
$
13,004
|
|
|
|
|
|
|
|
|
GAAP restructuring expense
|
$
—
|
|
$
—
|
|
$
46
|
|
$
—
|
Less:
Restructuring(2)
|
—
|
|
—
|
|
(46)
|
|
—
|
Non-GAAP restructuring
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Reconciliation of GAAP operating loss to non-GAAP
operating loss:
|
|
|
|
|
|
|
|
Total
revenue
|
$
43,139
|
|
$
39,791
|
|
$
84,135
|
|
$
74,644
|
Loss from
operations
|
$
(21,869)
|
|
$
(15,233)
|
|
$
(44,402)
|
|
$
(34,221)
|
Add: Stock-based
compensation expense
|
12,117
|
|
6,727
|
|
21,392
|
|
12,177
|
Add: Employer taxes on
employee stock transactions
|
533
|
|
147
|
|
800
|
|
280
|
Add:
Restructuring(2)
|
—
|
|
—
|
|
46
|
|
—
|
Non-GAAP operating
loss
|
$
(9,219)
|
|
$
(8,359)
|
|
$
(22,164)
|
|
$
(21,764)
|
Operating
margin
|
(51) %
|
|
(38) %
|
|
(53) %
|
|
(46) %
|
Non-GAAP operating
margin
|
(21) %
|
|
(21) %
|
|
(26) %
|
|
(29) %
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Reconciliation of GAAP net loss to non-GAAP net
loss:
|
|
|
|
|
|
|
|
Net loss
|
$
(20,651)
|
|
$
(15,369)
|
|
$
(42,526)
|
|
$
(35,203)
|
Add: Stock-based
compensation expense
|
12,117
|
|
6,727
|
|
21,392
|
|
12,177
|
Add: Employer taxes on
employee stock transactions
|
533
|
|
147
|
|
800
|
|
280
|
Add:
Restructuring(2)
|
—
|
|
—
|
|
46
|
|
—
|
Non-GAAP net
loss
|
$
(8,001)
|
|
$
(8,495)
|
|
$
(20,288)
|
|
$
(22,746)
|
GAAP net loss per
share
|
$
(0.44)
|
|
$
(0.34)
|
|
$
(0.92)
|
|
$
(0.79)
|
Non-GAAP net loss per
share
|
$
(0.17)
|
|
$
(0.19)
|
|
$
(0.44)
|
|
$
(0.51)
|
Weighted average shares
outstanding, basic and diluted
|
46,714
|
|
44,648
|
|
46,285
|
|
44,459
|
|
|
|
|
|
(1)
|
For the six months
ended July 31, 2023, an immaterial amount of stock-based
compensation expense related to restructuring charges was included
in the restructuring expense line.
|
The following table presents a reconciliation of free cash flow
to net cash used in operating activities, the most directly
comparable GAAP measure, for each of the periods indicated (in
thousands, unaudited):
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net cash used in
operating activities
|
$
(519)
|
|
$
(7,655)
|
|
$
(7,700)
|
|
$
(16,262)
|
Less: Additions to
property and equipment
|
(1,071)
|
|
(1,677)
|
|
(2,359)
|
|
(2,476)
|
Free cash
flow
|
$
(1,590)
|
|
$
(9,332)
|
|
$
(10,059)
|
|
$
(18,738)
|
Net cash provided by
(used in) investing activities
|
$
(6,868)
|
|
$
5,687
|
|
$
3,446
|
|
$
(39,142)
|
Net cash provided by
financing activities
|
$
2,733
|
|
$
753
|
|
$
5,497
|
|
$
6,892
|
Couchbase,
Inc.
|
Key Business
Metrics
|
(in
millions)
|
(unaudited)
|
|
|
As of
|
|
|
April 30,
|
|
July 31,
|
|
Oct. 31,
|
|
Jan. 31,
|
|
April 30,
|
|
July 31,
|
|
|
2022
|
|
2022
|
|
2022
|
|
2023
|
|
2023
|
|
2023
|
Annual Recurring
Revenue
|
|
$
139.7
|
|
$
145.2
|
|
$
151.7
|
|
$
163.7
|
|
$
172.2
|
|
$
180.7
|
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SOURCE Couchbase, Inc.