Couchbase (BASE) Q1 2025 earnings summary

Executive summary

• Achieved 25% year-over-year revenue growth to $51.3M in Q1 FY2025, with ARR reaching $207.7M, up 21% year-over-year, and Capella ARR at $23.9M.

• Subscription revenue grew 27% year-over-year, accounting for over 90% of total revenue, with services revenue declining 7%.

• Customer base reached 807, with 301 customers generating over $100K ARR and 44 over $1M ARR; Capella now represents 29% of customer base and 11.5% of ARR.

• Achieved first quarter of positive free cash flow ($0.6M), marking progress toward profitability commitments.

• Introduced new AI and cloud features, including Capella iQ Copilot, vector search, and Google Cloud integrations, and appointed first Chief Information Officer.

Financial highlights

• Q1 revenue was $51.3M, up 25% year-over-year and 2% sequentially, exceeding guidance by $2.4M.

• Non-GAAP operating loss improved to $6.7M (-13% margin) from $12.9M (-32%) a year ago; net loss was $21.0M ($0.42 per share), non-GAAP net loss $5.2M ($0.10 per share).

• Gross margin was 89.9% (non-GAAP), up from 86.4% last year; GAAP gross margin was 88.9%.

• Free cash flow was $0.6M (+1% margin); operating cash flow was $1.6M.

• Ended Q1 with $160.2M in cash, cash equivalents, and short-term investments.

Outlook and guidance

• Q2 revenue expected at $50.6M–$51.4M; ARR guidance $212.5M–$215.5M; non-GAAP operating loss $5.7M–$4.7M.

• Full-year revenue outlook raised to $204.5M–$208.5M; ARR guidance $235.5M–$240.5M; non-GAAP operating loss $26.5M–$21.5M.

• Management targets 20%+ growth in ARR and revenue in the medium term and expects positive free cash flow in FY26.

• Existing cash and credit expected to cover operating needs for at least 12 months.