On December 6, 2023, Couchbase Inc (BASE, Financial) released its 8-K filing, detailing financial results for the third quarter of fiscal year 2024, which ended on October 31, 2023. The company, a leading cloud database platform, reported a 24% year-over-year growth in ARR, reaching $188.7 million, and a 19% increase in total revenue, which amounted to $45.8 million for the quarter.
Financial Performance Overview
Couchbase Inc (BASE, Financial) demonstrated a solid financial performance with subscription revenue growing by 23% year-over-year to $44.0 million. The company's gross margin improved to 88.8% from 87.4% in the same quarter of the previous fiscal year. Non-GAAP gross margin also saw an uptick, reaching 89.5% compared to 88.0% in Q3 FY2023.
While the company's operational efficiency has improved, as evidenced by the reduced non-GAAP operating loss from $9.6 million to $5.0 million year-over-year, Couchbase Inc (BASE, Financial) still reported a net loss of $16.3 million. This loss, however, is a slight improvement from the $16.7 million net loss reported in the third quarter of fiscal 2023.
Balance Sheet and Cash Flow
The balance sheet of Couchbase Inc (BASE, Financial) shows that as of October 31, 2023, the company had $46.9 million in cash and cash equivalents and $109.7 million in short-term investments. The total current assets stood at $207.4 million. On the liabilities side, the total current liabilities were reported at $90.2 million.
Cash flow from operations was negative at $12.7 million for the quarter, an improvement from the negative $14.7 million in the same quarter the previous year. Capital expenditures amounted to $1.1 million, leading to a negative free cash flow of $13.8 million, which is an improvement from the negative $16.3 million reported in Q3 FY2023.
Business Highlights and Outlook
During the quarter, Couchbase Inc (BASE, Financial) announced a new Capella columnar service on Amazon Web Services (AWS), enhancing its real-time analytics capabilities. The company was also recognized as a top place to work by Battery Ventures, ranking ninth out of 25 public companies.
Looking ahead, Couchbase Inc (BASE, Financial) provided guidance for the fourth quarter and full fiscal year 2024, projecting total revenue between $46.2 and $46.8 million for Q4, and $176.2 to $176.8 million for the full year. The company anticipates total ARR to be in the range of $198.0 to $202.0 million and a non-GAAP operating loss between $8.2 and $7.4 million for Q4, with a full-year non-GAAP operating loss projected between $35.4 and $34.6 million.
The company's inaugural Financial Analyst Day is scheduled for December 13, 2023, where it will share insights into its strategic initiatives, market opportunities, and financial outlook.
Investor and Analyst Communications
Couchbase Inc (BASE, Financial) will host a live webcast to discuss its financial results and business highlights. The company continues to use its investor relations website and corporate blog to disclose material non-public information and comply with its disclosure obligations.
While the company's financial performance shows promising trends in revenue growth and operational efficiency, the net loss indicates ongoing challenges in achieving profitability. Investors and analysts will likely be looking for signs of sustainable growth and profitability in the upcoming Financial Analyst Day presentations.
For a detailed look at Couchbase Inc (BASE, Financial)'s financial results, including reconciliations of GAAP to non-GAAP measures, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Couchbase Inc for further details.
