Couchbase (BASE) UBS Global Technology and AI Conference summary

Market opportunity and positioning

• Database market estimated at $140-150 billion, split between analytical and operational segments.

• Shift from relational to non-relational databases is ongoing, with significant opportunity remaining in both.

• Platform is architected for scalability, performance, and cloud-to-edge capabilities, enabling broad market reach.

• Differentiation from competitors includes memory-first architecture, shared-nothing design, and native mobile technology.

• No vendor lock-in and multi-cloud flexibility are key advantages over hyperscaler cloud-native databases.

Capella growth and migration strategy

• Capella now represents 15% of ARR, with a target of 30-50% over the coming years.

• Growth driven by incentivized field teams, focus on migrations from existing enterprise customers, and a dedicated operations team.

• Largest migration in company history recently completed, with significant ARR uplift expected as more customers migrate.

• Migrations are motivated by total cost of ownership benefits and reduced management burden for customers.

• ARR growth is expected to outpace revenue due to the consumption-based model of Capella.

Financial outlook and deal pipeline

• Medium-term target is 20%+ ARR and revenue growth, heavily dependent on Capella adoption.

• 3Q reported 16% ARR growth; 4Q guidance is 17%, with expectations to return to 20%+ as renewal pool increases next year.

• Large pool of strategic deals in Q4, with confidence in pipeline conversion due to compelling events and customer budget cycles.

• Hunter-farmer sales model introduced this fiscal year, focusing on renewals, upsells, and migrations for top customers.

• Free tier and partner ecosystem are expanding the pipeline and driving new logo acquisition.