Couchbase, Inc. (BASE) | Investment Case

1. Company Snapshot

1.a. Company Description

Couchbase, Inc.provides a database for enterprise applications worldwide.Its database works in multiple configurations, ranging from cloud to multi- or hybrid-cloud to on-premise environments to the edge.

The company offers Couchbase Server, a multi-service NoSQL database, which provides SQL-compatible query language and SQL++, that allows for a various array of data manipulation functions; and Couchbase Capella, an automated and secure Database-as-a-Service that helps in database management by deploying, managing, and operating Couchbase Server across cloud environments.It also provides Couchbase Mobile, an embedded NoSQL database for mobile and edge devices that enables an always-on experience with high data availability, even without internet connectivity, as well as synchronization gateway that allows for secure data sync between mobile devices and the backend data store.The company sells its platform through direct sales force and an ecosystem of partners.

It servs governments and organizations, as well as enterprises in various industries, including retail and e-commerce, travel and hospitality, financial services and insurance, software and technology, gaming, media and entertainment, and industrials.The company was formerly known as Membase, Inc.and changed its name to Couchbase, Inc.

in February 2011.Couchbase, Inc.was incorporated in 2008 and is headquartered in Santa Clara, California.

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1.b. Last Insights on BASE

Couchbase's recent performance was driven by a series of positive developments. The company's Q1 earnings report topped revenue estimates, with a quarterly loss of $0.06 per share versus the Zacks Consensus Estimate of a loss of $0.08. This marks an improvement from the year-ago loss of $0.10 per share. Additionally, the company's share price saw significant gains in recent trading sessions, with a 3.3% increase on June 4th and a 30% jump on June 20th following news of a buyout. Furthermore, Couchbase was upgraded to a Zacks Rank #2 (Buy) on June 10th, reflecting growing optimism about its earnings prospects.

1.c. Company Highlights

Last Price	24.51
Change Percentage	0.04%
Open	24.51
Previous Close	24.5
Market Cap ( Millions)	1354
Volume	4928075
Year High	25.16
Year Low	12.78
M A 50	24.35
M A 200	19.29

FCF Yield	-2.18%
Dividend Yield	0.00%
ROE	-59.64%
Debt / Equity	6.60%
Net Debt / EBIDTA	51.64%
Price To Book	10.81
Price Earnings Ratio	-17.82
Price To FCF	-45.98
Price To sales	6.14
EV / EBITDA	-18.95

2. Couchbase Delivers Strong Q1 2026 Results with Robust ARR Growth and Improved Profitability

Couchbase, Inc. reported a solid Q1 2026, exceeding guidance across key metrics and demonstrating strong momentum in its cloud-native database solutions. Total Annual Recurring Revenue (ARR) reached $252.1 million, up 21% year-over-year, with net new ARR surging 306% YoY to $14.2 million. Revenue for the quarter was $56.5 million, a 10% YoY increase, driven by growth in strategic accounts and robust adoption of Capella, which saw ARR growth of 84% YoY. The company also narrowed its non-GAAP operating loss to $4.2 million, an improvement from $6.7 million in Q1 2025. Gross margin remained strong at 88.7%, while operating expenses were well-managed, with sales and marketing and R&D expenses at $32.6 million and $13.9 million, respectively. On the profitability front, the company reported an EPS of -$0.06, beating estimates of -$0.08.

Publication Date: Jun -04

                                    📋 Highlights
                                    ARR Growth::
                                                Total ARR reached $252.1 million, up 21% YoY, with net new ARR at $14.2 million, a 306% YoY increase.
Revenue Performance::
                                                Revenue was $56.5 million, up 10% YoY, driven by growth in strategic accounts and robust Capella adoption, which saw 84% YoY ARR growth.
Operating Loss Improvement::
                                                The company posted a $4.2 million non-GAAP operating loss, improving from $6.7 million YoY.
Customer Wins::
                                                Key customer wins spanned industries like energy, defense, healthcare, and sports, with notable Capella wins in professional sports and industrial supply.
Future Guidance::
                                                Guidance for Q2 2026 includes revenue of $54.4-$55.2 million and ARR of $255.8-$258.8 million, with FY2026 revenue expected at $228.3-$232.3 million.

                                

Key Drivers of Growth and Innovation

The quarter was marked by strong execution and innovation, with Couchbase securing key customer wins across diverse industries such as energy, defense, healthcare, and sports. Capella, the company's cloud-native database-as-a-service, was a standout performer, with notable wins in professional sports and industrial supply. Management highlighted Couchbase Edge Server and AI capabilities as strategic innovations, positioning the company to capitalize on emerging trends in application development and AI-driven solutions. These advancements underscore Couchbase's ability to differentiate itself from competitors like Postgres, particularly through its architecture and features such as vector search.

Financial Outlook and Strategic Confidence

Couchbase raised its FY2026 guidance, reflecting confidence in its growth trajectory. Revenue for the full year is now expected to range between $228.3 million and $232.3 million, with ARR projected to reach $279.3 million to $284.3 million. For Q2 2026, the company expects revenue of $54.4 million to $55.2 million and ARR of $255.8 million to $258.8 million. Management reaffirmed its target to achieve operating income positivity in FY2027, signaling improving profitability trends. Despite macroeconomic headwinds, the company noted healthy pipeline activity, supported by strategic positioning in AI and application development.

Valuation and Strategic Initiatives

From a valuation perspective, Couchbase trades at a price-to-sales (P/S) ratio of 4.93, reflective of its growth potential. However, the negative free cash flow yield of -1.83% and EV/EBITDA of -14.27 highlight the company's current investment phase. Management emphasized strategic initiatives such as the new free Capella tier, which has significantly increased developer engagement and trials. While revenue growth slowed in Q2 due to migration dynamics, the company remains optimistic about its ability to convert proof of concept to production, as evidenced by seven customers generating over $100,000 in ARR from starter packs.

3. NewsRoom

Couchbase Achieves AWS Travel and Hospitality Competency Status

Nov -17

Source: prnewswire.com

Couchbase Announces Appointment of BJ Schaknowski as CEO and Amir Jafari as CFO

Sep -29

Source: prnewswire.com

All You Need to Know About Couchbase (BASE) Rating Upgrade to Buy

Sep -22

Source: zacks.com

Couchbase Shareholders Approve Acquisition by Haveli Investments

Sep -10

Source: prnewswire.com

Is Couchbase (BASE) Stock Outpacing Its Computer and Technology Peers This Year?

Sep -09

Source: zacks.com

Couchbase (BASE) Reports Q2 Earnings: What Key Metrics Have to Say

Sep -03

Source: zacks.com

Couchbase, Inc. (BASE) Reports Q2 Loss, Beats Revenue Estimates

Sep -03

Source: zacks.com

Couchbase Announces Second Quarter Fiscal 2026 Financial Results

Sep -03

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.81%)

6. Segments

Support and Other

Expected Growth: 14.07%

Couchbase's Support and Other segment growth of 14.07% is driven by increasing adoption of its NoSQL database solutions, expansion of existing customer relationships, and growing demand for subscription-based services. Additionally, the company's investments in customer success and support initiatives have led to higher attach rates and upselling opportunities, contributing to the segment's growth.

License

Expected Growth: 12.53%

Couchbase's 12.53% growth driven by increasing adoption of NoSQL databases, rising demand for real-time data processing, and expanding use cases in cloud-native applications, IoT, and AI/ML. Additionally, strategic partnerships, innovative product offerings, and growing enterprise customer base contribute to the company's rapid expansion.

Services

Expected Growth: 12.53%

Couchbase's 12.53% growth driven by increasing adoption of NoSQL databases, rising demand for real-time data processing, and growing need for scalable and flexible cloud-based solutions. Additionally, Couchbase's innovative products, such as Couchbase Cloud and Couchbase Server, are gaining traction among enterprises, contributing to the company's rapid growth.

7. Detailed Products

Couchbase Server

A NoSQL document-oriented database that allows developers to build scalable and high-performance applications

Couchbase Mobile

A mobile-first NoSQL database that enables offline-first, real-time, and secure data synchronization

Couchbase Cloud

A fully managed NoSQL database-as-a-service that provides scalability, high availability, and security

Couchbase Capella

A fully managed cloud database service that provides automated database management and scaling

Couchbase Sync Gateway

A secure and scalable data synchronization platform that enables real-time data synchronization

8. Couchbase, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Couchbase, Inc. has a medium threat of substitutes due to the presence of alternative NoSQL databases such as MongoDB, Cassandra, and Amazon DynamoDB. However, Couchbase's unique features, such as its memory-first architecture and SQL-based query language, differentiate it from competitors and reduce the threat of substitution.

Bargaining Power Of Customers

Couchbase, Inc. has a low bargaining power of customers due to its strong brand reputation and the complexity of its products, which makes it difficult for customers to switch to alternative solutions.

Bargaining Power Of Suppliers

Couchbase, Inc. has a low bargaining power of suppliers due to its ability to develop and maintain its own technology stack, reducing its dependence on external suppliers.

Threat Of New Entrants

Couchbase, Inc. has a high threat of new entrants due to the growing demand for NoSQL databases and the relatively low barriers to entry in the software industry. New entrants can potentially disrupt the market with innovative solutions.

Intensity Of Rivalry

Couchbase, Inc. operates in a highly competitive market with intense rivalry among established players such as MongoDB, Cassandra, and Amazon DynamoDB. The company must continuously innovate and differentiate its products to maintain its market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	3.90%
Debt Cost	3.95%
Equity Weight	96.10%
Equity Cost	7.54%
WACC	7.40%
Leverage	4.05%

11. Quality Control: Couchbase, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

CSG Systems

A-Score: 5.9/10

Value: 4.1

Growth: 5.1

Quality: 6.0

Yield: 4.0

Momentum: 8.5

Volatility: 7.7

1-Year Total Return ->

A10 Networks

A-Score: 5.4/10

Value: 2.5

Growth: 6.3

Quality: 7.3

Yield: 2.0

Momentum: 7.5

Volatility: 6.7

1-Year Total Return ->

Evertec

A-Score: 5.3/10

Value: 5.4

Growth: 6.3

Quality: 6.5

Yield: 1.0

Momentum: 5.0

Volatility: 7.3

1-Year Total Return ->

Couchbase

A-Score: 4.9/10

Value: 6.2

Growth: 5.1

Quality: 5.5

Yield: 0.0

Momentum: 9.0

Volatility: 3.3

1-Year Total Return ->

Int'l Money Express

A-Score: 4.3/10

Value: 7.4

Growth: 7.7

Quality: 6.8

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

Sterling Check

A-Score: 3.4/10

Value: 3.2

Growth: 7.1

Quality: 2.7

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

39.21%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.40%

Couchbase, Inc. - US22207T1016

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BASE

1.c. Company Highlights

Average Growth

Stable Momentum

Average Yield

Earnings Beats

Revenues Beats

Fairly Valued

Medium Volatility

Weak Momentum

Revenues Miss

Earnings Miss

Strong Momentum

2. Couchbase Delivers Strong Q1 2026 Results with Robust ARR Growth and Improved Profitability

Key Drivers of Growth and Innovation

Financial Outlook and Strategic Confidence

Valuation and Strategic Initiatives

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.81%)

6. Segments

Support and Other

Expected Growth: 14.07%

License

Expected Growth: 12.53%

Services

Expected Growth: 12.53%

7. Detailed Products

Couchbase Server

Couchbase Mobile

Couchbase Cloud

Couchbase Capella

Couchbase Sync Gateway

8. Couchbase, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Couchbase, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.51$

Current Price

24.51$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA