Couchbase sinks 15% on 'conservative' guidance; analysts disagree with market reaction By Investing.com

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Couchbase sinks 15% on 'conservative' guidance; analysts disagree with market reaction

Published Jun 07, 2023 09:18AM ET

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Couchbase (NASDAQ:BASE) shares dropped 15% as the company's guidance trailed analyst estimates. However, analysts at Barclays believe the guidance offered is conservative.

While EPS of ($0.27) and revenue of $41 million (up 18% year-over-year) came in above the consensus estimates of ($0.32) and $39.77M, respectively, guidance missed the expectations.

Subscription revenue grew 21% year-over-year to $38.5M in Q1. Total ARR as of April 30, 2023, was $172.2M, representing an increase of 23% year-over-year.

"We delivered a solid start to the fiscal year and are pleased that our results exceeded our guidance on all metrics," said Matt Cain, Chair, President, and CEO of Couchbase.

For Q2/24, the company expects revenue in the range of $41.2M-41.8M, missing the consensus estimate of $43.34M.

For the full year, the company expects revenue in the range of $171.7M-174.7M, compared to the consensus of $173.3M. BASE hiked its total annual recurring revenue forecast to $193.5M from the prior $192M forecast.

Stifel analysts hiked the price target on BASE shares to $22 on "solid Capella activity."

"The ongoing shift in database spend towards next-generation NoSQL technologies and Capella momentum, should allow Couchbase to sustain mid-teens ARR growth, while posting increasing levels of profitability," the analysts said.

Guggenheim analysts also hiked the price target, raising it by $3 to $23 per share on the Buy-rated BASE stock.

"We don’t believe investors will find many companies with this business momentum in this environment at this recurring rev multiple," the analysts said.

Additional reporting by Senad Karaahmetovic

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