Couchbase (BASE) 6 Dec 222023 Q3 Earnings call transcript

Hello and welcome to the Couchbase Third Quarter Fiscal Year 2023 Earnings Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to your host, Edward Parker, Head of Investor Relations. Please go ahead.

to quarter welcome earnings and morning Couchbase's XXXX third call. Good

Couchbase's announced be and size, open press our expected are will Matt contain discussing statements Today's will periods. market financial which financial as and future performance condition, future and Greg reflect these in and financial guidance our today. and views CFO, only relied These Cain; the our today me date at statements forward-looking market be any undertake We strategies, not call the statements. to upon views and any results do our representing business and of our Henry. and update CEO, before release for not subsequent With include business statements, should Chairman concerning we issued duty and as trends

that their expectations. to cause results to matters Forward-looking differ that statements, and address could from are by uncertainties actual subject materially nature, risks

For our with other a discussed press discussion of most filed that release quarterly the on XX-K report and XX-Q results, recent in or refer actual could Form on risks today's Form our SEC. and to factors important report please annual the the material risks affect

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full few another will on financial fiscal a On results. delivered XXXX good I and strong and Greg Couchbase start third results, as will highlights guidance. quarter our provide Edward, QX of morning, quarter today's with call, you, quarter. well as off Thank year details fourth our everyone. I our

go-to-market headlined serve that our constant improvements logo guidance I’m by us history, million, momentum future. our retention our or were well in new new largest results the highlighted across operationally continuous million, we also year-over-year. recurring across all metrics, product year-over-year including activity. beating progress metrics by QX large Revenue XX% with was addition and ARR in the the Total $XXX.X teams revenue into pleased growing company driving up and healthy deal company deal was will Capella, logos, with In up XX% to up XX% made ongoing our and annual $XX.X strong customer currency. in

best-in-class Our guidance loss the percentage driving of margin non-GAAP at from above our was XX range, $X.X gross remains margin last point improvement midpoint in operating operating XX XX%. QX of a points year. Non-GAAP million,

detail in a highlights on first, to moment. to their our our mix, let's with make Capella. rapid for we've want some cloud investments cloud the results we momentum efficient made to scale, Greg the with focus operational more the in with driving But and line strong discuss we our in on XXX we our operating will increase to top do will growth this gratifying tireless I grow continue an of see platform we quarter. to growth, our As We database our progress QX thank all and leverage XX more way what contribution exited year, begin, leverage. quarter customers, to in complement continue go-to-market a efficiency, Capella. and environment, a saw accelerate on It's challenging improve To starting our macroeconomic to from team we laid achieving our new logo are meaningful Despite dedicated efforts. fruit. drive more bear well from model. provide out And

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minimally In companies go-to-market committed this accelerate to improve broadened integrated quarter outcomes. during re:Invent. providers AWS. incentives sizable continues cloud We've target for been I activities, our this commercial AWS collaboration AWS, had all deepen. patient streamline software and transactions three have excited This co-sell fact, Capella with we announced that to engagement and AWS which alignment working multiyear with with customers AWS with to agreement, to and offering where ISV at the Couchbase customer close re:Invent, that powered we a we broadened on has a a by and invasive AWS also integrations. strategic culminated in Under is Arthrex, on Capella leader building global collaboration partnering we Couchbase technology to am recently applications And surgical collaboration, gold to migrations with AWS. AWS at in technology sponsor, announced were are

am experiencing I across customer to with I'll speaks that mobile, leader customer database in Capella, service was highlight some customers. pleased and as of This both the breadth we connectivity new be activity in database breadth NoSQL to trend customer Capella. This the performance performance interested especially and consolidation parts offer of Capella's applications financial like consolidating with to operational multimodal the in quarter. will on-premises three a logo server, Overall, the of our the customer a high needed best-in-class quarter and Capella. customer A all migrating this other They financial Capella secure market wins for cloud and the capabilities I'd cloud. price API our a and databases after Capella. its institutions. is to Next, of our portfolio, including key from start value

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its industry's and last has year, increased, as use with records, time top the all enhance airline best safety experience. one Couchbase tier customer the Over for customer travel further of this has on demand of grown the to

effective were we're strategic up as year portfolio customers, our and database a a ago, a next the transformed and up starting as long-term strategic partner balance we the into in the near-term that of was initiatives public buy portion channels We've from year and expanded more initiatives. to In towards meaningfully an giving which year how terms benefiting enhanced that years opening until company, with both our aspects come. greatly look to of its We've the stride. unavailable all in to we half a drivers year, and to new and go for sales we the partner efficacy I we reaching our our and just initiatives put As ecosystem, powering bolstering product Capella choice starting our and a sets remain leadership market sell growth from in into becoming while confident of to to improvements the large And result, enormous bear us. And recently This of hit quarters transformation operational crucial is of not of work just for and since growth. us enjoying us relevance These digital a efficiency. trends amount include both efficient for motions, are expanded the across market fruit. these and a business.

the to across headwinds business space. a of seen material increasing As technology a as the our macroeconomic we haven't results felt result impact being demonstrate, our

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of over the I my to call CEO reiterate team of to that the people. a have to great leading honor it's Greg, as of handing want Before privilege Couchbase

prepares attack of of and you and face my outcomes, confidence detail. One no what. core results hard strong. battle-tested am matter I values on than call future our in to macro adapt over more to us ability is and hand customer to problems Greg Greg? of the focus by headwinds the Nothing our customers being to driven our I'll walk for that, proud for remain through more in in our the innovate With delivering

the would impact, growth Matt, against been for financial currency guidance quarter guidance have Thanks, our negative quarter year-over-year representing additional currency and or despite and We incremental our our currency the XX% XX% Revenue quarter you third an many $XXX.X of growth on of guidance meaningful was year-over-year the million, above more and the of joining the Total pleased increased Like growth. midpoint challenging million everyone, across higher million ARR overall are in-quarter as We another QX. quarter had we range. now more at macro a impact FX or high-end foreign results revenue end our constant $X.X I'll providing beat year. with us. the thanks, our $X on Without saw above third all key and year-over-year had estimate we XX% walk metrics solutions year-over-year for and headwind headwinds in a increase and before execution. we of $XX.X of basis. for strong the an saw demand guidance in throughout a fourth our peers, well quarter range. through immaterial million, approximately our the was for full environment healthy third quarter ARR detail FX

an quarter. X anticipated strong the quarter an XXX for third year-over-year. down outperformance the strength of which increase $X.X over was nonrecurring an counts. and second addition highest last our million, is our appear net XX following benefited exited does customers, of strong in increase the revenue third decline from with remind $XX.X Subscription was a quarter services quarter, we year-over-year. revenue was for quarter in in number from subscription the revenue revenue services in sequential not million, quarter nor and of this new business Subscription the on-demand professional customer The customers ARR increase XX% was XX% In revenue continued to X% Professional We growth you years. sequentially.

of In addition XXXX strategy. Capella since number of had ARR from non-Capella we've the highest number continued one QX more spending expand last million demonstrating the and the of us the traction, in of strong quarter year land of with to additions than fiscal and was customers increased XX% to $X XX% our success

or up future revenue third was expect ARR ARR to grow $XXX,XXX Our the the per $XXX,XXX, in second in continue could customer the quarter in we moderate performance to quarter customer Capella growth decline contribution, per as from quarters. continues in

Our count exceed remained operations of share a In This XXX%. QX, [ph] a unless gross income and XX%. that statement, our discussing quarter. margin ago to results expenses, a on of all margin retention In non-GAAP are XX.X% basis. otherwise gross stated, best-in-class references continues year the net at rate of and our the note dollar-based remainder last compares to XX.X% to please

as As could moderate a increases, over gross expect mix time. Capella margin reminder, we

Turning expenses. to

generational invest efficiency to us, we in focused continue the to are We of growth. opportunity on the see front improving capture our but of

$XX results to Our and strong of XX% million expenses guidance, focus million revenue or year discipline compared for a attributable ago. a compared a stockholders on total XX% loss margin the operating expenses revenue QX revenue negative year of were XX% marketing operating XX% of incremental million operating an XX% from for million common resulting $XX.X Non-GAAP compared million Research above year to million revenue sales and per ago. revenue of or million administrative and QX operating for ago. million to $XX $X.X for well of or and The negative $X.X operating revenue ago. our of or to a loss Non-GAAP of year or was or revenue General QX $X.X or was high-end million share. XX% expenses margin or of a $XX.X were XX% net $XX.X loss or was increasing negative for and $X.XX efficiencies. compared QX both $X.X QX expense XX% to were our loss development

balance We strategy. the cash, million investments. long-term short-term execute Turning to capitalized flow statement. cash with growth ended in We $XXX sheet cash against and equivalents well QX remain our to and

$XXX.X year-over-year. Our remaining totaled of million an the XX% of or increase RPO QX, performance obligations end at

$XXX.X of next RPO which over total recognize months, revenue expect approximately or year-over-year XX% XX% million We as represents to the XX growth.

We despite are RPO macro pleased some sales aggressively. seen multiyear that uncertainty plans the as with fact performance to we've our elect and our shorter-term because incentivize contracts no longer customers contracts due

due As such, was cash QX terms. negative timing $XX.X free cash slight a negative million. to million, while in billing is $XX.X free low expenses. flow Operating we quarter a and contraction was a combination cash saw flow flow for QX of collections of seasonally

and call, conclude guidance Now provide full XXXX. to the year will of I for fiscal the QX

discussed, remains pipeline macroeconomic volatility, despite ongoing the strong. our As Matt

momentum said, digital That monitoring based continue solid environment we are transformation of impacting and are headwinds IT industry the initiatives. We the support our broad spending to closely. see across in mindful macro of

foreign continue We exchange to see headwinds also from exposure.

this of guidance. our are the such, portion opposed to prudently is like outlook. as Accordingly, to into portion ARR. in everyone not on-demand these I'd business, currently we factors emerging credit in that remind Lastly, are our annual factoring considering dynamic we cutted as our Capella the And

year fiscal million unchanged the of year foreign fourth our quarter at we quarter of in XX% expect from represents impact in midpoint. revenue fluctuations. we note XXXX, full growth X% which ARR midpoint, and We $XX.X full rate that fourth million anticipate million, million midpoint the ARR to to the negative currency anticipate We X% growth $XXX.X a $XX.X the year-over-year range at $XXX.X range of year-over-year guidance. it's growth of previous the to a the approximately for of total our For to and due

loss expect negative million. in of negative non-GAAP to the range a operating $XX We $XX.X million

full our to year revised guidance. Now turning

to $XXX.X are be call We million of XX% provided on midpoint. of revenue or our a guidance $XXX.X now growth in year expect the full the million range year-over-year at to revenue raising and our QX

our As historically a business. of to We, reminder, strength the deals, the therefore, timing revenue that indicator than we've impacts a believe respect certain visibility. enterprise of variability with revenue our ARR seen is better which implementation of

growth range negative are As revenue to and be our to to Due operating above, negative raising million. guidance a to discipline, of million XX% midpoint. noted $XX.X we the we at continued continue now and expect expense outperformance $XX.X loss our ARR non-GAAP expect

Finally, initial XXXX, business to yet are on we how want heading we're next viewing not our year. thoughts a on I share providing while few fiscal guidance into

line four Capella priorities elements: Our growth; first, delivering will key increasing the mix top second, of all focused be metrics. on across

improve QX providing earnings efficiency; outlook in the driving and Third, marketing fiscal continue take your details our call. during to I happy leverage overall forward We to further and XXXX sales on our fourth, and questions. our further look to fiscal XXXX Matt are Operator? model. that, With

[Operator William Instructions] today Jason Our Blair. coming first question Ader from is from

now is line live. Your

Hey, guys. you. Yes. Thank

On ARR, relative some softness the you on that kind in and periods? of historical have in -- actually number did fourth quarter you to macro the baked

metrics. factoring Good all macroeconomic across our hey, obviously currently into It's from the of a Jason. we're are we Yes, in what morning. Yes, seeing guidance perspective Greg.

seeing absolutely everything we're are trying there consideration we to into take out So today.

executed just talked the that lot summarize here. Okay. that everyone last it about the maybe -- over contributed Matt, for I on so but you you just year maybe you summarize, And then, guys guys script, you know to have go-to-market or a the changes can have the performance

Jason. Sure,

pipeline, we what out we we First, also remind rigor had the side entirety have to start inspect of allows our aspect that very the go-to-market we an that partnerships driving approach AWS rhythm we big organization. big of a cloud new drive by in types are level and every and in would us that's at coverage are activity. I additional the activity methodology, sales things. or take across a from leadership sophisticated to buy that Build we've then highly business and we across with very the seeing drive most had in a as into If sell-to relationship excited enterprise our the strategic historically, accounts, segments sales more business. motion evidenced enterprise the complement And operational open go-to-market are Capella, global reach that providers I opportunity point very with to and amount throughout deals, call on driving buy haven't incremental but with material logos geographies balanced and With particular I a all that area. that rigor sales you up new attack of a that how with the would much that's manage leverage existing we're with we we we to able the with of increased and our as importantly, partner from motion in way.

can So facilitate them, as do to how and them help trials they're into for Capella engage learn into start before we them initial and what developers do in well about production. move a get phases evaluating the Couchbase relationship really they databases, of

One additional customers we put Capella. things of as the to we together those our is community you things are installed as migrate those Jason, two seeing, that addition base leveraging

that we we macroeconomic execution. factors help very overall So while that conditions, of us things that bring would feel. a believe do And pressure any together focus lot will we mitigate an with of are on these we mindful

It phenomenon marketplaces. software software across through seems in partnerships you seeing model greater going over a third-party now, through transacting cloud. that the on Are leverage And through the cloud right with companies we are channel? what's marketplaces. one lot like guys cloud opportunity a And of then quick drive the to time those just independent Great. the follow-up

to are, we and Yes. area going for of significant be that a us. improvement that's Jason, believe we

in we reviewed much the those to we ability throughout will the logo new customer history them up company our providers script strategic in able significant with came we work think that that's into our and to we at bigger at tell right have a account largest marketplace offerings, internal I go-to-market collaborate grown. because the the and more were different teams our move become of do through to how across actually our and teams teams. a with to engage with execution the the time and use I then you joint leadership cloud a quickly sales the level consumption model analytics

So help sales us going and logos we that not increased the drive to move the as cycles, in down "pyramid" we fact this are the the all believe and the are but clouds be largest we of new sell-to doing one companies only I way from that how an up is motion buy that think, and us. indicator to India leveraging it to -- of in can for powerful

luck. Thanks, Good guys.

Thank you.

Thanks.

next Raimo Your question today from from coming Barclays. is Lenschow

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Hey, Raimo.

mid-market that down say today the Capella commercial as hoping That's through our So, land largest new business. is enterprise I logos. more across would companies first dominating is we're to our look, customers conversations customer thing

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we been and engage to going allow our with more part seeing funnel. it's open meaningful starting of a the wanting a demand more Undoubtedly, are business. We've So and talking us lot to that, we the across our about companies. [indiscernible] think aperture to becoming and we see it's are

Thank you. Perfect.

you. Thank

is Baird. today from Oliver from Next question Rob coming

live. Your line is now

will with start you. Appreciate one for Thanks, Matt, it. I Great. guys.

you there. Capella nice It driver a like new improvement Just for is on sounds guys. logos, the obviously, sequential

we motion connectivity talk strike terms expand we really you free can logo new so consolidation about terms because think new could that expectations as consolidation what have -- a trial in As how land land, was about new database of us it existing think would It of acceleration, would pretty sounds really expect that there, but but gave off DB lot the kind Thanks. which you also that It's a of me do and the guide, to example, a in a struck low opportunity then base. the to you to model you me obviously wanted that steady with of a your API potentially nice still a you like guys played -- seems should company with customers. thematic see and asking for improving you well. customers state? that's nicely, maybe ask not it And and the about I

Yes.

me second Look, let is So big database think start Bob, our a part first. I piece of the with value proposition consolidation.

scale, you If a manage but architecture from time, in us highest everything multimodal analytics things applications It transactions we're and allows true we real-time that back run operational core database us allows performance cloud to to to not and and between. go runs at to the just like the and do at the edge have, that edge. applications

platform. that those all of Capella, able couch put broad the the much If allow capabilities been development focus just to from about different it with into perspective, giving be application we to the power them we've vendors that you that database a applications developers could to in require the based flexibility full think make easier And on and consume where, and while very our fact, platform.

headed and better And that we scale tell we economic that Look, in will are be as is make a we I particular, that that's that addition the in we faster. much that and with barrier really we as customers driving consolidation performance of through things my that these you believe it you, the pertains the the that of believe lot we think then that further are direction go room which results lowered doing to function are And across Capella seeing is Rob, application new of trials, on game I of the TCO we improvement and that forward. can with are So Capella thing for what there, scenario with we've we of expect, a of know to set allow frankly, logos, of and what's expect across But of we And I'd the leading sort Capella and one. the and for the delivered, study that improvement, a payback we enable TCO quite indicators would a to there's always to us. being we proposition to resonates fact We're which pleased but or go we get improvement. can extremely of in is value important, is hard what to as more. seeing rewriting frankly, times, better. thinking and logo a is entry feel customers we're lot building think going certainly product. consolidation well. We an new UI go-to-market solution quite work changer tell we a proud do new the that in up

but we think place believe also the for a that's we on as execute we have lever So investments go forward. in that that to us, we big

And you. Greg, Great. Appreciate for Thanks, the just all Matt. one detail.

loss are does on you. out? operating walk in line elements margin like the was the expenses I could bit imply [indiscernible] an just QX if there anything bigger. you a you'd wondering that to in else to Just call Thank or that guidance, it through QX seasonal

looking gotten Rob. comfortable Sure, Yes. that we for a timing. some never deliver of at skis working that minimum the we there are we to yet guidance hiring. is need always Yes, do to QX and feel how sense over terms particular, disciplined we start time. fiscal beat in seasonality up in our need being and over capacity hiring, very provide so ramping there to But still can and we in have to try to again, going in we there. at are terms we And as We've are certainly of we here 'XX are some what going meet sales is there

guys. Great. Thanks again,

Thank you.

from coming Reback today from Brad Next question Stifel. is

live. now is line Your

decline to XQ. subscription that? with Great. Thanks. think revenue Can Thanks much. you in the very in do had you bit of who and into some little deeper was maybe Greg, up some it I picked a sequential that on-demand dig mentioned you

deal renewal beginning so expansion. the on question. of pleased said, have the then Matt nature becomes at to That get which we drives the the with would such that had in get and of from Capella is revenue the XXX, than don't subscription more is point. we Look, the activity. because on renewal we marketplace. And as Capella. as in would and little to logo accounting a the good regions. other meaningful, a momentum, see thing QX do upsell on-demand, we business had overall across the sequential about We we're tend Yes. decline some is, ASC Look, base the talked which a QX We that we're we get good balance the license -- less lower large Brad, we did the upfront --

are some of the those going you're to sequential So that drivers see on change.

XQ you and guys I about know efficiency last the demonstrated talked Matt, quarters here then, several regardless over the have And operational guide. Great. of

next you'll As the of year, think magnitude takes deliver? about the and the you around efficiency puts are what operational that

that Brad, dynamic of a spent it's on. time Hey, a amount look, we tremendous

time, As the our providing same while about talked focused for long-term we of very we're which think a quarters increasing Capella objectives, at our our we've is company for we now, improving efficiency leverage mix, about the model. couple growth, believe a driver which and on in significant go-to-market increasing

things, are we We we do advantage balancing will said, this us point, investments on now, with I that as to particularly in both right think constantly ourselves What take delivering opportunity good how balance and beyond and continue the as generational we our evidenced prudent so of product we're in the believe are up we to we at the those investments and the execution same understanding believe making. front do by so. and we about being And macroeconomic of have is our with go-to-market. environment a time, as truck not get Greg

is driving are place, ever we're With on and of the it's better we team we find. and efficient been, there innovation to have more more that in efficiencies amount believe than side the the product

As efficiency to this going Brad investing the go-to-market that big we from some benefit see and we things more in from is going we've of we're believe on partners, be are Capella increased that time, return. driver that returns drive been A which we for and of starting higher get operational our all payoff as efficiency, see to well. to

But forward. we our I as the over about mid So to balance set massive to opportunity strike that long-term. go excited think the advantage equally we're take up ability and of

if in I Brad, Yes, just could here. jump

this benefit some that to not and software capitalization FX be year, thinking the we you as foreign and -- just this exchanges not We are well benefits doing operating there thinking of just of all the of 'XX start should year, we're efficiency next a that cap that, people fiscal you we here, we is. for year As the margins change true stated, besides drove the guidance flattish of there were as start things operating couple what we as But but about year as that haven't we software about next a going thinking repeat. obviously, next yet, doing we those here. FX saw about started seeing -- saw kind aren't year some in had

Great. much. Thanks very

you. Thank

Goldman Sachs. Kash is from question Next from Rangan today coming

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Thank to are development at product we've tipping a perspective product. very delivery of crossed development the continued point Capella, more perspective, point the dedicating going most would development, development as a will how and see of dedicated your research sales get maybe consistently perspective. becomes have the sell of Capella you be do strategy At the you very the go-to-market much, company, into the we Matt Capella research Capella. point, of on have functionality towards goes the company Matt, the have to assume, and some out, and really you recent going I Greg. database with Capella, what We are because only mode also curious from Congratulations pointing on reached pivoting you the I'm and mixed quarter. that XXX% a to been

so that. once again. Thank to get thoughts much on you your curious So

inflection excited beyond is Hey, comments, the in excited results, the And aligned my Kash, underneath point. we both your I'd And about say about the on opening are about being questions. that more operational even questions, but of improvements. directly to both talked I

most the hesitate them We what you product one you go-to-market have wouldn't to asked thing on if and side have mindset at first up any of the our side. to on employees say important pivoted it's the Capella is, a tell that's and company. woke they like that the Capella both I'd

new that single able from can across we specialists and and that what Capella. go Capella help with to plans on focused to We expect come be who our nuances have maniacal existing beyond a business to measure of logos. was to driving offsetting may all accounts every course, both there our everything everyone and would go-to-market improvement things, one in compensation of resources in We're, to with on cover. calls, enablement on the But focus forecast how we details

is cloud [indiscernible] to And drive we on a that transformation are priority. the As in we [indiscernible] -- #X brought several the ago products. quarters reminder,

we Capella about Capella So those product teams, first, before meaning And everything our what we not both and Capella. something base teams allow anything can on if if think time that. invest will have are is tell they installed existing you migrate customers valid I is and serve that investments, businesses, more to beyond Capella in focused our the eventually those will

can cloud of it is is memory And to fact industry, company very platform technology that the an want very how that we edge. decisions think the But best we it's running that well being switch. underlying clouds that architecture the go we data made. The to and of a product we optimization. that the early that run we've transition as platform and the fact the from we core service from great some manage in our mean with how now to with run one service balance movement can we I storage and some so on, between architectural to I underlying thing how is have made like made Capella we've resources, the serves we a

see both sides I'd say the of to beyond of the benefits are we're starting investments on So we house. and it,

for that world. so the respect Thank much. with company, term XXX% Great. a I How longer XXX% model on-premises versus for you, and And the if operating one kind can world operating the you Capella expenses Greg, leverage they to change in of Capella does get could.

Yes.

we the beginning for line that. As it's Matt margin will see going are we starting time, of to dilutive. and going growth, growth to -- same of we and it's become to, look, the the the that, it At kind excited top drive alluded company are the believe of to of about future

we be gross are of the but nature from offering, service. margin, with time the of Now an XX% will dilutive the strength pass-through a it obviously starting of including position over and by infrastructure

plan more model. comes to bring getting a That it's dilution having So terms margin drive earlier rate. we that we we some efficiency, going through dollars, but still of moderated think the rate as efficiency at to in talked about bottom despite said, line

you. Thank

is next Our from question coming Kidron Ittai from Oppenheimer.

Your line is now live.

into for a I Nice top also margin the you look Greg, should Does your as line, wanted top that and 'XX significant that one? quarter. take Should necessarily dig is to guys. balance the not we improvement trying line get I Hey, first we to guess, what between I'm on fiscal moderated mean and And into priority. in [indiscernible] priorities, your of you mentioned. margin a put them order improvement importance.

marketing help will and Matt and across efficiency quite which and the driving a sales in right, Ittai, #X, we thing just we're honestly, good Capella, top if And reiterate we the driving question. help sales cover Yes, all them. which towards balance of talk the And get marketing about to It is again, efficiency line going mix, leveraging growth, will Capella is that Look, leverage. that model. to that what detail, have ultimately just and we're look, is and growth.

three So the across it's four. is, focus all are all -- really where that's but

than one of believe focused per not be driver Capella any the more them we se all future. the the in on will other other than are We of

year-end Capella comp what type your that changes this to And in in make of behavior? drive have you you'll anticipate drive of that effort to Okay. to at to forward, kind do plan order

going change, further to going obviously, evolve from to through it. that is still and consumption we're model, around moving subscription be focused comp first. the which Yes. plan I have a away a we're mean plan, we But comp discussing our and will on Capella

team in want field to And money be the driving making focused Capella. so we

only drive logos, base, Capella through the incentivize them will And customers to existing landing obviously, so going and our working the get possible. fast not Capella with converting we consumption comp installed to as but as plan the

Got it. last And … then

made Capella compensation the just would I significant focused pretty add, plan. this year we with progress Yes,

I as that properly and year. So teams on to to matter, incented field the Capella. it's for have next company, based and the drive changes assured, think level we take But sell incremental are we rest that our that this learnings

of Greg, the it. Capella us what on don't I part Got too have done is roughly on you here, you itself. activity experience tell but last business and that one the Maybe know the roughly main on mentioned percent demand? much capital is just of

certainly material is we this to where on-demand the one we that. Again, But Capella we're the we point to what disclose do when if exactly business where model to the the disclosing said today. Ittai, not thing metrics, the the the It's anything, Again, Yes. today. customer buy we're large customer. land a about not ready specifics like get Matt and we from about is what

to an and that would access Now that trials about and ability customers that seen we potential But that we from using have and into before. is and it insights of thinking fact never insight are have go gives how before, wasn't them. are a even Capella on-demand sell us not can so into the are us basis on customers We we se. ours Capella that giving that had customer the today see can that we activity get customers using per customers Capella have

Thank you.

Capital from RBC is from question Next Hedberg Matt Markets. coming

is line now Your live.

Matt, about Great, about sense talk that the talk a a of obviously, bit they guys. talk historical lot hear of averages? you you here, Capella I improved, there. little momentum rates maybe probably about there Thanks for the magnitude more rates but the Could a versus win great have to win some question. it's and can there. your

Yes, Matt.

we think early. still are I So

-- aligned a relatively the would So are we it's wanted hesitate behind top on that frankly, candid. model to opening the consumption draw you quite to be we’ve absolute to distinctions. has funnel, tell our opportunities, that that been market we But I more hypothesis of having

other cycles, with solution is we giving faster value like a and I we're our and we proposition is solutions developer get what we seeing and agility performance wanted and deal competitive productivity. chances Capella think beat can and offs. and scale to, when really that bake is resonating, us we into

as I expectations So would mind, the them. expected, in metrics for we think high proceeding keep we pretty had are but

thing able forward. able I the is, wouldn't we again, otherwise have to us -- think customers for go think really the we we that that after get are been big to meaningful as we and that's

cases use As after get the large customers. in to existing is ability enterprise new

big a industry-leading engage the we opportunities. performance us opportunity active after have to with in cost scale a to excited and be of new about And an go for we total lot ownership and So opportunity. when

curious, that said have starting noted or Makes Got Greg, macros fourth your an things in you to actually before that the approval. you're delayed assume sense. quarter it. And kind extra just of some of quarter? worse believe philosophy better, your guide get to on see you And then, decisions start signs do kind I get better, I guess, there? you impact of I'm did get

was in where because to out last did customers long to of It sales the see for and opting cycles to rather multiyears. quarter, elongated even time call didn't called that. out the but layers we shorter material have impact term a we want than are it what deals we Yes. we continue approval, see And Matt, starting there's

but we that our year into absolutely are for And we're and and we so on to call seeing guidance have that because what full fourth quarter want considered out based we just that. And factor that for and to seeing you se, earnings that we are factored of I'm going predict the everything try future guide period heading aware given today. Obviously, today. into the this not we've in to per we

ability minimum So with going a know again, the try exceed out set the to meet, at we we're it. based certainly to what we and guidance to on

pretty business. Matt, a on what pile I is have would diversified we

customers, move to we down you calling so we're out, and said, coverage some want. faster some we're and are ability deal that Capella, serve this with customer. about verticals Greg people but a geographic specific of it's sign the as cases, In we off and our form the our seeing and being addition have not factor from market, If enterprise easier that process we now because think every

where articulating we to have customers of a that it's our So the that think And that focus, we're balance. ensure are economic solution. job I value it's seeing the

the application manage the We and helping appropriately with rigor, sizing those better them can cycles are deployment and effectiveness accordingly. for have with we go-to-market they sales

So dynamic. think a portfolio I it's

over very mindful the are on. going we daily of what's aspect every obsessing it the a we of across make on quite our And can. best we're sure on environment business read basis We frankly, that to demand have possibly that

guys. Makes ton a sense. of Thanks,

Thank you.

Next question from Singh Morgan coming is Stanley. Sanjit from

live. Your line now is

Excellent. for Thank Sanjit. is you. This [indiscernible]

in quarter. So see the to strong the encouraging first, very customer I mean, adds

up and little I sort anything And super then just maybe expansions I shaping from of we your sort So you expansion it expectations? on environment? you. with outlook two, haven't can mentioned your be because in That separately, what bit seeing are here? so are strong want touched in this mean a dig expansion Thank you particularly And free-to-paid would with what then how airlines share into on of those your you're you yet, the to side. on contemplating deal, a helpful. conversion

Great.

had all could and and free product developers take and addition purposes. that a community offering me had with our a our We're parts. was we've an let and up on-demand in company, before That for portfolio. enterprises trial download set intents So on open that for software two we source free

up having platform very on often move seeing have and companies a better a set that edition Capella version, dynamic where companies imagine, have better development. need going understand for TCO the form service evaluation had that's compliance then that of of because we As dynamics better rich so in they to the But acceleration been into the Capella we decide to for people you operational the focus that the or to where basis. what power free has a factor of is can enterprise arsenal come reasons. they making the global can the deployments feeder an would as infrastructure they enterprise into an we're of time, And spend, better application on our database database support found can with manage can some are the CE for underlying even of optimize and

go healthy expansion think the think Capella. we continue had our as to that seeing historically, think get model. overall as we a play and accelerate because so very will it after we've the And seen of success land expand about Look, transition business I continue business forward. of And we're to we've where able that and we're applications with dynamic out we even

planes to of totally another digital you and to aligned world's transformation. We had that other into tech provider off the about companies we they're best international experience, can one talked So et to we expand about have logistics starting their cetera, that Couchbase have their delivery largest And significant country digitizing returns think was ground transforming the and can into of Couchbase find. they're one When a seamlessly That Couchbase and continue that because the airlines. another. capabilities with passenger get for just because leaning think don't. expansion how because it we expansion port does package what for applications on mobile platform the they retailers, to application now the about performance they're they doing deployment in

seeing and think their of they a of go go-to-market leverage application how forward. the support will development big a as part be our and -- lot can we we customers growth in what So do we of have examples what of we

Excellent. Thank you.

you. Thank

from Davidson. is D.A. coming Kessinger Next Rudy from question today

live. now is line Your

logo Any color of metrics great? a part it there the still disclosing how majority just TCV completely terms or of much in record. was you new the I'm is material share deal there largest it's you was in last Thank of Great. secondly, or largest wins. would my not understand said deal, company larger ACV in curious be new much you And taking the can the business for in questions. it history, then customer quarter, on yet. anything prior But you're not

share case ARR the again for? bookings this quarter? new of percentage could is you what that net Or So new or accounted

basis, deal Yes. size new over logo. on an Hey, million we and it logo ACV new Xx it's on Yes, Greg. our largest the it was $X of did, Rudy, the about large previous was probably

pleased some marketplace. that. So the about about And through we gave with very Matt went color how acquiring them

So customers again, great win for Capella over Capella, this, the but time. not we same yet, at Capella we're, logos. think the new On the activity company quarter and logo very migrating opportunity we're talked of breaking happy to number good base continue we're also to out I that about our had drove look, obviously also happy. very that don't but We're a grow. a with installed very with we

driving will new improvement. it's it both the of be this in things those think Capella well I a driver are quarter. logos was as the future the what's to certainly But as So

come yet, I'm at Got it. revenge to tied well, in is to and some have go I travel, then certainly, has spending to those macro sales And down think verticals I or usage still are you guess and back some other on that the growth impact come start COVID, the hospitality your environment? cycles. those travel impacted, curious more did areas. verticals long-dated you retail alive if of material some not are macro, of you all down certainly kind consumer in But moderate although seen

what perspective. about we macro a from mentioned are we seeing Again,

impact. this date, starting we of could through sort opportunity are of it we have still calling some impact. But look has there, and those pockets our peers sales closely. watch within We moving but the we're And macro some elongated some pockets based seeing impacts, things the we see it levels with of Matt said, it some are this of of we see are diverse a we're approval And but there just cycles, that continue our those the out we growth hasn't that become and to more to a of of COVID working to at financials away to think, entertainment dynamics. Again, macro as business again, be again, travel impact from is strong. while on pockets broad

the I And is mission add Rudy, applications would critical. what are

economic that the really, whether if a feeling engine do And if product XXX matters. we we typically would application off applications the Customer even are that of or some stuff booking these a that pressure. back or it's a do really people think So you about they're catalog

the application is I the they on return focused think economic business ensuring so would that that are expect. the overall providing value, they

maybe for we've deal, next, to think applications over on. they're XX in customers anything, opting are of call it, seen I with XX these X-year bit substantial a what's going some in important if shorter, but months, to one just and instead going a how growth knowing the of growth cases, little committing light

can So I specifically a mission intangible think spend where go we as far benefits example of But applications, think we that forward. sit we I think of as that's navigate that's the these it's as critical, I smart specific on are the us. and we about one more that be moderating fact and hitting how we

session. end the reached back our of to President ahead. go We've floor Please you. to and over CEO, Thank turn question-and-answer like I'd Cain. Matt

big To opportunity operator. about had cloud with innovation of very digital we and due acceleration transformation, strong in the excited at to some remain trends and our favor Capella like quarter, edge. I Thanks, recap, a

of cognizant during joining times. sharply these environment macro and are you on the execution us. We for focused Thank are

Thank does That teleconference today's and webcast. you. conclude

We time, you line your at disconnect wonderful day. may You thank a participation this have your and for today.