Couchbase Reports 13% Revenue Growth to $51.6 Million in Q3 Fiscal 2024

Couchbase, Inc. reported its financial results for the third quarter of fiscal 2024, revealing a total revenue of $51.6 million, a 13% increase from $45.8 million in the same period last year. Subscription revenue, which constitutes the majority of the company's income, rose to $49.3 million, up 12% year-over-year, driven primarily by growth from existing customers. For the nine months ending October 31, 2024, total revenue reached $154.5 million, reflecting a 19% increase compared to $129.9 million for the same period in 2023. Despite this revenue growth, Couchbase reported a net loss of $18.2 million for the quarter, slightly higher than the $16.3 million loss recorded in the prior year.

The company's financial performance showed notable changes compared to the previous fiscal period. The increase in revenue was attributed to a rise in customer count, which grew from 715 to 903 year-over-year. Additionally, annual recurring revenue (ARR) increased by 17% to $220.3 million, indicating a strong demand for Couchbase's database solutions. However, the company continues to face challenges in achieving profitability, as evidenced by its ongoing net losses, which totaled $59.0 million for the nine months ended October 31, 2024, compared to $58.8 million in the prior year.

Couchbase has also made strategic advancements, including the continued development of its fully-managed database-as-a-service (DBaaS) offering, Couchbase Capella. The company reported that as of October 31, 2024, it had 300 customers using Couchbase Capella, contributing to its overall growth strategy. The firm is focused on expanding its product offerings and enhancing customer engagement through its professional services, which accounted for 4% of total revenue in the latest quarter.

Operationally, Couchbase's headcount increased to 64 employees, reflecting its commitment to investing in growth and innovation. The company has also been proactive in managing its cash flow, ending the quarter with $33.0 million in cash and cash equivalents, down from $41.4 million at the beginning of the fiscal year. The decrease in cash is attributed to ongoing investments in research and development, which rose by 10% to $17.5 million for the quarter, as well as increased sales and marketing expenses.

Looking ahead, Couchbase remains optimistic about its growth trajectory, despite the macroeconomic challenges that may impact business spending. The company anticipates continued investment in its product development and market expansion efforts, particularly in the DBaaS segment. Couchbase's management believes that the demand for its cloud database solutions will persist, driven by the increasing need for modern applications and the integration of artificial intelligence in business operations. The firm expects to recognize $128.7 million of its remaining performance obligations over the next 12 months, indicating a solid revenue pipeline moving forward.