Couchbase (BASE) 5 Jun 242025 Q1 Earnings call transcript

Greetings, and welcome to the Couchbase First Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Edward Parker, Head of Investor Relations. Thank you.

You may begin.

to quarter welcome earnings and afternoon, Couchbase's XXXX first call. Good

financial periods. Couchbase's for financial announced risks nature as duty be size, views closed any we guidance matters expected address press are will uncertainties CEO, contain as be discussing reflect of and statements Henry.Today's will market which financial today CFO, in performance These subject undertake their cause Cain; today. could that President business our future statements relied condition and to Matt future the me forward-looking to that are market our We strategies, call update and the only and actual our results at our our representing business and not product date, Greg expectations. results and and not views any and these subsequent capabilities, and after to release With from and include differ statements.Forward-looking statements, should do Chair, by concerning upon issued materially statements trends

on turn metrics let risks Relations annual discussion XX-K as call reconciliation as is accounting quarterly other the other Investor certain earnings accepted comparable today's A the with the report we generally that, also release financial in call, of Form non-GAAP Matt. risks will material these measures with most refer principles. affect the and most website.With results, discuss me are Form non-GAAP releases, a accordance which For our could define discussed important in metrics factors which to over our and how to XX-Q filed press report our actual not well on of in recent directly that to please available press on are financial these or prepared SEC.During our the GAAP measures, included financial we and measures the

press $XX.X that was definitional drove inclusive off in a momentum our ARR increased we've multiple the Edward, enacted outlook. inflection report where Couchbase or operating delivering exceeded initiatives growth, increased and historic Annual revenue to continued milestones, XXXX our we business.I'm that good the with growth, $XXX.X made XX.X% end noted will up range. in entered Capella negative innovation margin operating moment.Revenue XXXX of on achieved the the new coming everyone. XX% afternoon, our and of fiscal of loss the We efficiency high XX%, and net year-over-year, range, above in results pleased revenue, a net in XX% and progress a margin represents ARR. Capella of detail of million, QX our million of QX customer guidance also operating high in loss change our discuss $X.X logos, our million $X.X of was base and ahead ahead Non-GAAP of our of year-over-year, new of release more end X.X added now on of capabilities important and up platform of XX operating guidance with million, for XX% range.We QX, new which implied high that leverage across efficiency guidance Greg our the recurring cadence represented ARR, points a you, was midpoint and Thank strong end percentage our that and enhancements in accelerated

on further and fintech, rigor a and leverage are that including continues customer and building as as of variety efforts of retail, this This of quarter, we and and discussed next a in the front manufacturing, capabilities of been generation healthcare, improve grow, across Customer gaming. QX. our made newest applications.Last I feedback operational to industries, result saw the looking to quarter, in on Couchbase to enhancements customers to saw progress our efficiency, business positive uptake I wins across we and enable our adaptive has new Capella telco interest very

of performance last quarter these our December's continue XX by one we made quarter flow fiscal score was This of first QX all across and we pronounced Rule achievements timing on profitability was XXXX. Our on dynamics commitments remain of XX cash more Driving our fiscal first Analyst operations to than improved points efficiency of XX free over also in positivity, our for anticipated. deliver and our from Day. go-to-market, points the by will priorities XXXX.Despite our of be aspects and highest at quarter, R&D to ARR track we year-over-year impacted

large not timing. given sensitivities Capella that timing we've deal we reporting including and we the on uncertainties control we what discussed, of our always As a applications and control, nature mission-critical of our always migrations ourselves often enterprises, our important upsells quarterly our an for is of metrics, on support have of customer many can renewals, ARR, our the also the are element variety of business.Now, including focusing in on pride accounting that base while

pipeline, closed our to close since continue technology have this of are the ability business, macroeconomic an our broadly, in longer go-to-market at the balance any ARR is and impact our with the the our elevated business more objectives. year deal deals of efficiency across capabilities, growing especially our and change achieve quarter.More end several pushed deals our outsized expected I and motion the cycles headwinds, beyond new That of to However, quarter our aspects interest building momentum budget very or to encouraged demand confidence full progress we which many of on momentum be QX. ongoing in including Capella, slipped to several dynamics said, strengthening improvements. to our the with the to increasing these foundational these platform several see that the our combination including aforementioned strong and for due scrutiny, behind our Adding relevance architecture, had don't our in

momentum over in our in seeing As doesn't reflect that business such, we we've These ARR enable the past trajectory enhance AI an the building are forward.Now turning and on announced alongside going innovative I'm excited our evolving our to business results believe new fully landscape. the of we product. to share the quarters. to quarter applications further the customer feedback of ability our adaptive capabilities features few some new

hyper-personalized first and our apps these comparison operations Service, customers using platform AI-powered tightly using of help to development iQ been like availability workloads access administration Capella storing of positive and more inherent of for very real Customers are users market A analytic our feedback platform query entire the to iQ adaptive The Couchbase Columnar in integrated.In that bookings valuing it to are in Copilot the payments. been benefiting architectural in a contextualized They to interact on QX, the their on on Vector we website data query familiar insights allows these its features Capella edge and related multiple e-commerce within announced travel augmented and and leveraging automate reduce user migrated bring public analytics have is and as engage Capella GA, language. having generation and the to investment.Next, in data in engine to our retrieval to search Vector the the Initial Capella leading approach infrastructure. SQL++ both Capella data for which Search having the infrastructure sources, significantly which real-time power class delivered applications are techniques to our Copilot Capella and now RAG developers maintenance seeing booking with to beta. a their from preview in their and ability with a simplified results. simplicity platform. European Feedback analytic language has supports their and Search workloads capabilities iQ, and we for now center way. Vector converges single general who Customers operational architectural was has positive. feature time or capabilities, driving same of private in and businesses a cloud mobile to connect and their are across and Columnar not Search new operational separate using natural having component of appreciate and this

create Google envisioning introduction and of applications combines significant social all of it and enhancing has at search capabilities rapidly and applications increase including release to include that new sign-on which once.We hybrid traditional search developers generation are developer for on of sign-ups. built engagement also remain adding their for make content a easier Bedrock search, on Capella with use Couchbase. The chatbot applications in the Recent cases, enhancements with growth to range Capella similarity and customers and into sign-on adding GitHub. documentation contributed hyper-personalized adding for AI-powered Our focused social AWS a

that such a systems in can cluster our will We've enable Couchbase use as and customers and alerts with ServiceNow to notification external per monitoring day their sign-ups social trial the mission-critical ability our the to since Capella fact, workloads integrating support and our introduction scale, businesses. they foundation extended continually than number features be of performance to run so SSO.Our leading applications the In of capabilities power services new the that receive more from alert add doubled always further we our enterprise.

introduced workloads. data traversals meaning unlocking keys can their charts recursive SQL++, workloads. mission-critical org capabilities security.These enable elevate hierarchies We common like control navigate using for over encryption also table graph new use in added to easily new simple within relationship expressions developers applications, Couchbase customers' to we customer-managed organizations And

is status Couchbase TCO. that Verizon's powers database consolidate to IoT database and IoT devices solutions. build visibility innovative into and multiple the needed performance Verizon availability ThingSpace, Verizon alone. platform real-time Couchbase Verizon superior helps planning to end-to-end and provide simplify originally reduce administration not further and an development databases is a deploy of customers IoT to to customers. with high example, For enterprise

costs confident just industries from discussed, also ownership expanding leader go-to-market features price for and While opportunities Rakuten to cost efficiencies. across customer sales apart advertising costs. exceptional qualify This and the our applications database business. will We're is allocating discipline in Broadjump, focused and offers. modern approach see total the customers' gaining This in features compelling itself vary leading was an to eliminate due IT the the technology use price can fiscal appointment our ability identify driving our position for customer IT trend sustained contribute overall helping of costs. reduce side, Couchbase's bringing Talentsky include businesses which all Chief lower largest in desire setting to delivering creating role, In Couchbase a easily power that its lower objectives. platform.On announced of XXXX, both dependability that selected platform. more and motions and on efforts our a lower about team efficiency. cost It's strategic account for performance.Rakuten and to but She's continuing and needs our Information generating driving business global we as which are IT in global scalable while delivering proven first this focus Customers performance our already consolidation applications to continued incremental and new we society. from how we extensive logos, key reduce alignment and like about to to new fully savings We placing database and its or that intentionality migrations sets believe empower through team.As and able isn't our achieve necessitate security individuals, supporting upsell dedicated Couchbase's it's to Best-in-class throughout quarter, onto objectives. organizations in Julie customers existing for services further includes events Couchbase's Leveraging new resources and that Julie's Couchbase are I've to in rest part Couchbase the Couchbase Officer. product can is TCO.Couchbase enhancements win while to strategy to consolidation. we also strategy XXXX, global by Irish and these we on prospects Julie Rakuten, and toward our XX% growth.Finally, Couchbase's company can effectiveness. programmatic success opportunities using common our strategy will how company, also this greater we fiscal of fresh operational future applications, new make with by order systems for enable make the with our of progress that We're focus efficiency ability our in have increase on the to teams improvements our thrilled our ability a world-class mission, systems, go-to-market more capitalize the we opportunity on motion I internal to as on and our security of look of existing for We're on infrastructure remain growth to communities, and

in strategic While I that one satisfied I we have full need of QX, with make priorities, progress the extent am believe another and exceptional everything made for year our results to not we we on our this Couchbase.

carefully edge foundation often platform, world. in Our enable applications built the that a architected mission-critical rests upon to are at being deployed AI-powered adaptive increasingly purpose

are same we will always and manner At and cannot do to trajectory. with ones, our focus enhance against and continue and to dynamics the Capella leadership, capabilities support services, on environment efficient new a that a in predictable. time, work we the control, tirelessly will our macroeconomic deliver more our maniacal so Rule adoption We and customers extend drive new things acquire and will technology the XX and not increased prepare manage timing

times, by call discuss customer As With I'll problems I've Greg? the hard over to detail. said attack that, driven more in we hand to our many Greg results at outcomes. now Couchbase,

Thanks, momentum, Matt, am line the and and performance for I and thanks, with We us. with top everyone, in entered our bottom pleased significant fiscal joining quarter. XXXX

in our not had to said, the as navigate our outperformance expected, close ARR several what the to customers dedication ability our was by quarter value environment on driving result very impacted challenging That delivering not we in Our did guidance. deals while our operating to time that planned. loss and strong

on-demand remain business. fiscal methodology. we the in use to I calculation, ability longer include achieve the based to financial quarter, adjusted can services cases, Under ARR our excluded bought portion on turn However, the and our we as well our confident XXXX.Before revenue. annual the to for derived share our Capella to model credit some arrangements momentum of results, given from to have to shifts or both this on-demand want on we demand. quarter These as previous update ARR Capella who see the some I temporary priorities our our In enterprise go customers of begun an our first be ARR in see calculation business, term. we Beginning revenue

completely X ARR under performing. oscillate not our prior However, between is models, if customers these our actually methodology how reflect business will

As how is that ARR on look retroactively on-demand our at reflected of given such, more reflects our calculation our ARR our results business, in on we results, future an closely reported million. aligned ARR in to QX $X.X impact reporting quarter with our believe but addition was immaterial change including more our is we its accurately internally.The and along This impact. guidance adjusted will not relatively previously be first

This count quarter updated this not representing was ARR methodology.I'll are Additionally, continue count prospective more in XX% X% also walk an in and include we will ARR adjustment our we XX our customer through in additional in customer to onetime first and you included customers services be financial now all on-demand retrospectively to Similarly, or count. of Total QX. detail. adjusted.Lastly, count. in our customer results will reflective include million, will now but not customers will otherwise stated, results our was of customer $XXX.X to Unless references year-over-year ARR growth sequentially. our be

QX, year-over-year of was million of $XX.X X% to sequentially. a for a year-over-year, sequentially. $X.X representing Professional Foreign first XX.X% $XXX,XXX ARR. March with ARR, million, growth. an $XX.X Capella revenue We continues quarter Capella increase resulted currency total an guidance approximately was revenue Revenue XX% and the tailwind of fluctuations headwind. ended services decline in million consumption increase for provided be of we in our since first of XX% our X% the quarter QX an in

we at in reminder, fourth remain year continue normalized down per flat services current the XXXX.Our in throughout ARR a XXXX expect was roughly quarter. first following declines to levels quarter in professional XXXX from performance fiscal fiscal fiscal $XXX,XXX in to and this strength As the $XXX,XXX, and from customer QX outsized

growth Capella customer per continues in to grow ARR as moderate reminder, decline or a As contribution. could mix our

new retention represented continues an in last to added Our Under we the XX again, from customers, exceed net Once Capella prior customer customers QX net XX increase We majority logos. of the our NRR, count exited methodology, XXX of new customers rate, new dollar-based net XXX%. quarter. or with QX.

customer under we count an the from of methodology, increase XX% quarter. prior This our logo quarter, our customer XX, count grew by fourth

the expand are count to Our steady give strong and of pipeline non-GAAP new the a results our remainder to us please income our new otherwise retention basis. metrics of statement, stated, Capella all to growth discussing references ARR operations consistently confidence and note continues ability share on that expenses, unless in logo and logos.In

XX.X%, margin in strength revenue XX.X% Our profit which and offset quarter. by lower XX.X% enterprise year QX margin. compares a was inherently This last carries gross lower to mix, and margin from of sustained mix, QX Capella gross gross benefiting services growing last

As a Capella pleased capture reminder, opportunity initiatives, remain as and I'm we massive savings leverage resulting our business help in areas loss once us balancing will with again on in decline the this margin to discipline expect that investing mix gross in against expenses. increases.We outlook.Turning expense outperformance while across focused cost operating our our space.

a of in sales As compared Matt our marketing to and or $XX.X revenue revenue of million million an to million sales in with revenue QX share.Turning million to ended $XX.X negative discussed, of area marketing XX% increasing year million of to were QX, of focus million attributable of $XXX.X revenue negative of and year margin per or loss administrative were expenses XX% loss operating ago. of QX Research a our million $XX.X loss was efficiency were to compares $X.X a a or million This was or We negative XX% and revenue million first or quarter operating and and XX% XX% for in the compared balance or million year equivalents Net investments. expenses sheet. development or expenses or compared margin. $XX.X stockholders the General revenue to of common cash, ago.Operating or cash year. with $X.X $X.XX XX% short-term XX% ago. $X.X a $X.X $XX.X XX% last

We continue well our remain strategy. to against executing capitalized long-term for

obligations RPO XX% up end performance of remaining QX, $XXX at was year-over-year. million Our or the

XX% approximately year, this year-over-year. XX% recognize of total million to revenue RPO expect fiscal We over $XXX representing of growth as or

changes renewal quarter factors, as cash timing experienced a we flow or flow reminder, a was cash balances for host first As cash in RPO the approximately to positive our Free free well contract was $X.X million. due X% including a as duration.Operating fluctuations of $XXX,XXX flow margin. in

this also our milestone our of As XXXX.Now being cash towards for achieving the free guidance Matt noted, fiscal quarter free positivity was I of QX provide year our first a and for positive commitment XXXX. cash full flow flow significant will and fiscal

discussed, continue As our with in we complement will strong Matt go-to-market momentum aspects QX entered will driver be motion our across remains and will Furthermore, of our business, enhancing to our continue invest an that our we our ecosystem momentum.We continue to business anticipate partner and capabilities, Capella investments product while of all to important ARR strong. pipeline priorities. in strategic

front and achieve However, to ability our increasing our we for driving drive across We business. growing and efficiency, we massive as the Rule confident opportunity free are remain flow operating year. remain to our of leverage increasing us dedicated in of progress the XX highly our on the financial in in continuing focused margin our and to cash rapid metric objectives

our highly of to macroeconomic monitor carefully deal are such in and in-quarter focused our outlook mindful continue business. their the visibility factors to into we our execution, headwinds we and as remain on linearity addition, In timing.Finally, control, not

growth second million $XXX.X may the account consumption XX% the factors $XX.X of the consistent or representing revenue We million as to in midpoint. XX% of as of a and these midpoint. variables outlook as the fiscal the for quarter to environment growth anticipate offering.With the for year-over-year in our a a into timing well for upsell such, lack expect $XX.X of at well million, XXXX, we range As million impact of at as of to emerging in macroeconomic ARR trends year-over-year total migration conservatism maintains $XXX.X range visibility how service mind, as degree these

timing non-GAAP our we in we expect material note decreasing raising the outlook our operating We fiscal loss our negative XXXX, change QX, ARR full guidance overall business range maintaining $X.X there of momentum. operating that to dynamics no of experienced are loss. while the and opportunities We year $X.X pipeline in million.For and to our is despite million negative revenue the

our As We full range at million such, growth $XXX.X of we guidance. remain XX% now year midpoint. to the total of or expect confident the in year-over-year our $XXX.X ability achieve ARR million in revenue to

the We happy at the $XX.X and in growth million, continue to finally, non-GAAP range a your negative I the XX% take loss expect million to operating negative million.With And range of questions. $XXX.X are expect ARR we million $XXX.X to of to midpoint. representing that, Operator? $XX.X Matt in

you. Thank

now will And line with a be We Instructions] of first Hedberg Matt the question will our question-and-answer conducting [Operator RBC. session. come from

start Matt. I'll with maybe So

there you may didn't? QX. guess, the a have it commonality congrats like I of focus cash mean, roughly was that's your little deals Based speaking, the of huge value any guys. way closed, sort all, dollar flow in deals that macro bit deteriorated know from that is thought the but has for you to any pushed. quantify seems I First a I to the And on there just commentary, generation QX. on been

the Matt, flow. cash Look, hear about some throughout certain good levels deciding comment And the back cycles, In macro talked longer deal we've to And customers that's some continued appreciate headwinds, or terms. persist for to from we've I'm about shorter higher been for we time. I smaller start call. cases, how deal that be of approval. sure to to you. come talking on something time will

not exact same evaluate the industries affected and and Now business, we verticals are our way. geographies all as in

done. budgets leadership think the do we what determine what be against typically Macro and able quite pipeline factor. going my for But approval focus of there we to dynamics slight to those any and And so get fall we a is there uptick continues short a was at overall look And Is team exactly we've to happened underreact. the at business extremely how We've know, job specific looked the evaluate is not by what and job of you is migrations. and then not overreact renewals And and studied our really things. and that's and as understand boundary, and frankly, and we're cycles? quarter closely be expectations, on driven with deals to expansions, the on over Capella things went us. time my like new large logos business more that Probably. the more there

got expansions have As in out we gates with of QX, with we the level same the of did we big previous really have not as renewals QX.

more So collection the big that always not a good had And them many deal, to was factor. was QX from QX we've subsequently, but really studied And was one and we've of of opportunities. those it push closed. a

to more of fact, that strategic increased and of from Matt, over in view a really are we level, in. go the benefit some different boundary, went had Some quarter and a They them good them, to bring in size. up looking

macro a factor. is So

Our job is to understand that overcome it. and

moving to continue value business in We forward. proposition the our have in confidence and believe

on the momentum.In I you'd... change of impact, terms overall know no don't our Greg, if So dollar

of mean, I Matt have which deals several was as it that closed. Yes. said, again, several

year. So us. impact timing baked as dynamic being go all it into we just for we the again, on forward, it's don't a guidance an see the It's and

full is QX to way think it of assume just And on-demand Maybe looks choose impact the you, on bit kind customers it. kind Is pricing? like of to about more just little closing of that a Greg. million that It are it's to year? impact a fair great follow-up $X million a why for there quick Got it? right the a are Maybe already. given lot them $X.X that

that. appreciate I Yes.

Let $X me grow but onetime with and not from there, annualize it's pickup, ARR where the the It's end It's it. the a a can million item. type not revenue a $X.X could thing on-demand it you balance question. a business No, start is of impact. million onetime

it I've or the you We was of you with for less that it's beginning accounts. percent all. look, honest not the community the $X include past than million, would million time, at be It's To in at mean, it's look year. of ARR. right time, on-demand. $X.X felt the in the more talked X% folks million the about the a So it about with we at of It investor at if you, when time. of as the year materiality, think customer $X we've was the right I met

we demand would were quarter on-demand based customer fluctuation ARR. count on be for period back thus I ARR that then credits the on-demand makes look, the point at And credits. time our So the of be about in question mean, definition, of time. doing se. come we it impact, for more any per can point, the and on out and customers number. impacting They sense also and in the and can go over annual they your customer rebuy annual a the be think than to on then account the But Customers if happens run to

of to or have whether consistent quarter include in have they're be point out to with timing. dynamic those wanted So really we others this to a and not going at to be

we're of the flexibility to Yes, Matt, is have thing customers I to add working how make the business. market, And sure really consumption we other we down just the they consume. to hard build go would as side want our up of want

to enable to starter this the into with fullest think we the pack sales on-demand on-demand to It credit. them want going teams some actually from extent or that I getting to additive see We friction from so our on Capella. and removes And a possible, business. is healthy movement

and natural for and on more it's So good the go-forward and driving it customer we're relationships think we it's a basis. time of indicative how a business

Our comes Howard Guggenheim next line of Securities. Ma from the with question

I Matt's want question to dovetail before. on

deals, the increased Couchbase it you Matt, said year? reasons, start Or I now. just something were to when slipped analysis, more relative the talking top budget own like on competition? constraints would benign, based so you're respect of X and tighter your rank mean, mean, decision-makers the capabilities of And you to is the with offering more is kind to order the say, if is I it's it to maybe you

and So of a part you're broader more being as require that decision can strategic evaluated approvals.

So if say what kind rank you to that? to were you would it, order of

think Yes, it. you Howard, I nailed

are there think big X I factors.

elevated. One And at to levels do. that exactly required, think And need, I not we have true, it gets everything sometimes work. I of approvals we've news proposition they understand the And to of higher do the even And may able to and down they the they is what that's it just we're seen. work the have and good end, approval. just so that going bit value may gets holds more them biggest think a organizations are and little is think be dynamic

those so The TCO? does going every there. we of are other this unique I think out. has product or Capella fit spend? levels those. we're our But we the asking of higher factors that thing that How their drive Where it again, that dynamics. kind to the investments is leaning a and those one there What's and we're bigger value increasing into complexity market operational that combine migrations, the software efficiency ARR provider? of in cloud we And comfort particularly Capella continue rationalizing What's to go you and of factor And the case with up calculations approval we're we is on. they which that is would that And and capabilities for are through and the say is manage is showing to complexity what are those bit that that version savings? in proposition is dynamic with I'd running? as the is organization deployed? a cloud But act deal. learning inflection a I'd gives me better with are how application? with ensure they we're that's in are different that touched as to indicative each What of driver Capella path and into What have developer say to able productivity business. the into we're to those the they the people How The of of a consideration that for little And continues this questions, fact relevant than that and the enterprise are big are us. play on, you the dynamic be managing that a learn, me overall and percentage adds big with be

X I'd that out played factors say are quarter. the those So in

want IT Matt, optimization. good on that's color. follow-up ask And just a I to really

unchanged, Is the more that, choosing then of And the commitments so they're or your that therefore, Capella commitments? their moving it Or their they're just understand renew So not customers choosing that size of just consume completely but keeping to are they're consuming they're in consuming, light want are on-demand on-demand? dynamic Capella? better PayGo? to how to customers is your how to more I over

Yes.

studying healthy and making not a getting that with and have quite would of a significant credit to frankly, going they're say, a And So Howard, I'll they're with then I'm Greg of and fluctuation more deployments, customers that speaking, lot When strategic we providing Capella smaller value sure generally customers managing more ahead as see of and vendor. into I of look and credits buying to sizing consumption, continue larger initial let on. that We pile we a on-demand, providing their it, relationship, take between customers growth and that for then applications. positive. applications the we that's themselves, we're the the them at or with and have credits smaller customers and those metrics applications their with get very and we're adding. pace they're understanding rebuys time that Capella crack spent

a smaller we're that overall different into time. about seeing the pack, of the we're the application. they pyramid gets customer that well on-demand is. right of on-demand, to out part as ARR shift choose bulk in Capella, the them the they're than that an the may consumption And say the starter excited we move it's again, really building and fiber a very move But where as back may We going, customers. sell to So Howard, XX-K I'd Capella at example,

for have even want have my see a what, large or not not on there And back agree But customer have But I'll do you dynamics everything demand the that to rebuy." a the "I'll our come We what on said. again, reason, to windows. say, of larger for on-demand able say, weeks, is as to and time. ARR. credits. you be customers couple some buy scale at go report timing these quarter be place happen I'm And "Hey, with I these going more potentially a all of across Capella they Matt customer to a to them will see window based extended point Yes, we And will for any going could know can where don't definition, there's period element." and and

Got sounds like it you're really it. It well. managing

Our from UBS. the comes Austin with Dietz question of next line

Service. this this Can Matt, the to a further unpack mind from pick you you going unpacking let us. Is Do opportunity just opportunity today? wallet share take analytics for me potentially applications about existing further? [Technical more Columnar on just applications? just more your this Obviously, exciting. Is Difficulty] latest that analytical net thoughts new little up

think are lot additional And personalized, more mission-critical enterprises we And enterprises very to repositories ingest but the from. to operational have unlock insights data And for sources us application is data the performed access that data allows side, and being the drive makes job data much role bringing focused at build performance data that the database of a with very and our we those platform that that addition time applications. deploying lot them. better. that enabling When on into help rich a more to from we while our of platform make multiple that play more we're is then truly applications much Couchbase, that clearly, other is that the of much insights much to real applications about then enhance sophisticated, real-time Columnar application that the for the a capabilities that on perform application the the can

not ingesting, into about the much what do sources to think that we more but call the particularly moving enhance. about is edge this applications more unstructured itself. a we more can bring that much make capabilities the So the for analytical data, it's alongside understanding going we operationally we world data performing sophisticated, at data nonreal more think data, business-critical to for it's of the be that cloud, that brought hold really big that bear adaptive sets application time then advancement to and critical, and as how that's data with AI AI applications, and And applications, are multiple Columnar in store operational applications and is data capabilities complete.Now we manipulating, on that analytics structured data

terms strategic of think a this, the it we major monetize platform. our I of In enhances extension. value will It's how really

architectural unique and And to for them it's have a and more really powerful to, more allow developers a advantages build approach again, we're We JSON other capabilities. addition applications. and how managing sophisticated that

leverage them go-forward other and down So show been think far they we and can sit initiatives how so services this along on their the mapping on I basis the value strategic out are when the they as feedback really, with platform, and a has go-forward positive, see customers really can basis. it really they a in with capability

with comes Lenschow from of next line Raimo Barclays. Our question the

back time. and maybe I to just beginning one more clarify to Can very at go Matt's question the

tough did if for that's while. everyone. shortfall like when Or big kind quite the been worse? of you the Because at just that asking it get sales deal think afterwards? whole for incrementally was about get the environment it like that we because the macro Did worse in working not the of you, a So you ARR little caused looked bit, it execution like sector, we've kind are a question all

Or more from I it deal changing actually it is had specific? is, follow-up. like question was here? one the And So

think right? again, TCO. a And part about to the despite that time. We've X interrelated, is are Raimo. of that our and some And with spoken articulate been macro many macro proposition about talking I times. you we've for job Look, big is our value

transformation relevant world, an of our deploy I the drive and is AI-powered applications in And to people platforms think has that unlock business need are environment we're sustain invest and that to going to none in. and changed. built digital that are and

and the line? Yes. questions of value? the the are Are Should As business, closed, related? articulated. subsequently and right executed one I of there gotten that every each some go of of Yes. I've the across mentioned, things macro amount and we If we and questions we more extracting those, we spec business on, have that is had there, are delayed it as them

it so get have go-forward going next we types to lot the then time, are those those has with where those that's line? with macro the the if going different level we of confidence coming different and and of there's worse do well, with questions a is impact Or get we more little of And approvers, study we gotten say, we the to are clouds. business? of we and and that to And we're migrations particularly a Capella and the And we over time sit. believe ahead have spending where further learning,

it. macro say We're I'd very aware of persists. So certainly

well enterprise we can aligned better. we know do and value and is proposition with Our Capella,

Yes.

know flow I That's cash follow-up you you, quarter. on positive forward like the annual very you're clear. and for well rest do but for flow, the one Perfect. think Okay. year of cash outcome guiding for how And done this cash flows Greg, an then, about perspective? the from not going

coming very cash Yes, to obviously, QX, large helps in proud, positive we're getting particularly of off QX, which the that. flow

have to significant end of did cash we the the versus what you'll I think of last I we for progress year. by again, see we again think, get we time But will the year, probably flow the made will negative the remain rest year.

remainder So, still the cash remarks, of seen being see flow historically. And still to should you've my the flow I'd cash but 'XX, year say, in you as fiscal we're free seasonality for I in year. same said next committed negative positive general

Singh question Our Sanjit the of next from line Stanley. with comes Morgan

I sort that a cohort little trend migration just like wondering, on congrats sort Matt, the usage look about at that their quarter wanted of how this you have seems color in positive businesses what customers of sort the opportunities of from X lines a can and of of I after the migration And free if customers those migrated basis. year of improvement I was much of migration My general opportunity. a on And year in on pipeline last give that to opportunity. some flow in pipeline you're that year bit playable And it cash seeing in ramp. year-over-year quarter. fiscal of that migrated of talk if growth? operation terms 'XX, the a

run for I both the look, group applications large equally the database. building important, They entire I've on that in migrations, have its quite good, I pretty for feel one to my XX as And number that the over would thought where compelling opportunities dynamic we're a can monetization, working advanced having to year, that do able focus our and Sanjit, get Capella whole they're we a Sanjit, with understand stand frankly, databases been to the never TCO. run quite but database We I we customer feedback create the well the as career, have in and just is value understand own. that we and say, up lined level right migrations, euphoria and hit on of the a would and had time of of about that point them event. the on front I've ones with them proposition we the move of Capella. on up go largest migrated the discussions and Customers frankly, when of of when

enterprise, because a with us to our with they've some platform always a Couchbase the be but offering, stuck with the as-a-service early so our of critical. us, and had is starting very that's perfect of is it hasn't this long customer been of Now frank, versions power very journey

them over gotten and using word migrated the we've euphoria. Now they're

to world-class, feedback. experience we is worked have the and get amazing ensure We continue to relentlessly that customer

the with to pace the there customers projects version line? equation. over, need with they their it side so Are And moved the is event. are do ready to get of have other of compelling things on just going when in that they to software Do business depend

that has never factors many healthier. there's pipeline the we're So leaning into, been but

the able but them moment for variables at going with which we better get Capella healthy the ways. of things important at that.Now the for up that understanding lot to be that control address to the go, I'm way, in we've never address Our line been at not a a and to us over we're running and are they to get to look in always comfortable different fact and of

the than count look going the happen. to quarter are migrations gone customer percentage, those up number, ARR that's faster you function If at and of just this that's a when

a migrations of I'm the list. the is lot but So forward, Capella the of go about things again, there's that at to excited top pertains as it

That's super interesting to hear, Matt.

a have I transformation. wondering, mission lot driving of it kind and context question, in of other side. Difficulty] follow-up market just to macro,but also a for on about AI it's mentioned we had Gen being the stuff The on was of we supporting of [Technical brought applications that, put times, around, I'm digital have this the critical you couple a

You released guys Vector just quarter. Search [indiscernible]

net there's And view? digest of proof your is then ability perspective, of transformation the or innovation restart wondering a the So I'm customer mission the initiative clinical lot that of that in [indiscernible], side. the about build new new to digital to in of sort this concept that data infrastructure slowing all application ability

higher. about And of point point. is the sophisticated customer is Yes. Sanjit, spending amount future in on I we're inclusive to think which that our world's a AI of it's mind the time compared share, the base, think if we any

if a not certainly a transformation, expense focus but transformation distraction need that the about I simple AI, versus digital initiatives. do of our customers talking digital been cycles is so some is. topic we that more the certain there's their at factor app factor And to always AI, into of allocation the is the into everyone on need and to sales it's think been larger, there's

and still important to you sets. an data and, operational into you or, really I think stores, when high-performing still to capabilities. applications, ingest need get be need have it's other data an that edge the you you not mission-critical It's going

discussion articulating thinking oh, we're that's a and we're as tools. so it's when this And other or AI natural pretty an some about Couchbase not, it's world, in

isn't and So good We're migrations to as able I and things we we're having think slowing to quite AI, have still capabilities done, with includes of as respect Copilot. an teams really we that factor. multipronged with feel an the just that's arm a customers, it's approach only can articulate things platform, but because developers iQ about logos.When with which time do which frankly, well our what have those our spend unlocking new and the improvements get we sales conversations, not area we is down but and accelerant, for our to all

message, factors say into weighing position, that think things to of that our I'd and those we So we but considered to we're how I use our are all strategic because go how we advantage. can market

with Our next Kidron question Oppenheimer. comes from of the Ittai line

especially a which there rolling is this going up, in on you're I didn't Why you wanted I allocated ultimately of Greg, million the forward? more that But I'm expect your bit fact is those a not buffer into spend bandwidth easy again that quarter you think to means little the effect you kind clearly And $X.X dig that a to That's it, catch what confidence the need you deals. have things means do do there. not pushed like still complicated, understand when can ultimately, since isn't highlighting out, on-demand. to ARR the backdrop? of time for of get around sales very wondering deals another you target why of year. a

reality deals those see QX in I've set the Look, how now this enterprise have the is talked well performing of larger terms close half those the the of side second all closed year activity ability the and and deal tracking. the And what to still approximately as we're we we of still year. are about business, also May had in having as from feel is. pipeline of on confident the in the to way XX% going a our have the is is business guidance. renewals was The which the amount of up

deals are one mentioned, doorstep, cases. of away most as on in Matt signature So particularly we most the the

don't rest quarter we of QX, dictating why and small going as feel only really that's So you what is a still the about year how is full to really we're able deliver good which typically, QX for for perform. the to not know, the year see but

starting could sales if new A there into when go-to-market it's motions. of around some focus going our on When for expect getting experience. things analyze then and Ittai, provide more as back-end more loaded. we're of We're contribution, mentioned, the levers more I leverage the little certainly the and side, align beyond We're see strategic we accounts that half. were that developer QX. that, migrations, talked we efficiency back and felt new we really Capella to doing in how in on moved see additional tools to above and with see really And driving good we a impact dedicated but about teams and QX, we've reality capabilities the we out year, opportunities as investment. That's out of the about, the X And to our we lot bit gate not context. to the happen capabilities, investments. is and going of understanding qualify that our in probably

the for be. we plan them that so operational I to have expect we we go feel see indicators the and leading improvements can as driven really to year We those impact an as the good And there. about we've through

renewal confidence So I our that, to addition how to we've out. in on base, the leads think laid things

a on then a the I'm versus is Matt. make investment I difficult, become as now on just trying between your business it from the sure macro, negative? on your picture informing follow-up your year the end? more quarter the bit Maybe Okay. is a slightly pace want And more get to this macro little and Or this, more perspective if ago? how big has unchanged did the get it perspective difficult, of to in

a say bit. hasn't it's to on the hard margin, softened argue Look, it I'd that Yes.

being been a the and Rule is That's that's the not inflection, our part us better very of how the be factors, remain Now, We're in It's for model, about, of talking that And we these Capella. things the about said, of of we've there, thought we've certainly things to about and foundation the the them to for how go to smaller. starting talked product, with QX. say But those we there's I about we're last doing factors some year leveraging probably, wouldn't multiple less. this we develop proud market, of we've place a migrations and the again, we've that I've how deals, cycles, which been of execute. in X. pipeline improvement driving in approval the support business a And better. on about just Capella the that that allowing and over built talking impact year. committed again, approvals. about to last one every size was factor as spending and monetization time. the is now in again, very good XX we customers, take All And

outside remain how the like about, and we then and proud articulated we're And as control we've our very put and we results are So going efficiency things to being very that convicted inside leverage factors our and delivered our out. control continue control, Day. confident directly ones are macro I'm Analyst of on is there talked there the about delivering on the team we smart what and and to in of do factors of at

The next the Andrew question from of with Wells comes Nowinski line Fargo.

on start broadly I perhaps has question inference with the impact and a any ask slower Okay. of AI. logos growth phase the had And new or on focus Gen either the the training your phase migrations? AI of on just Gen Can

think I don't so.

and of Capella as slow dynamic it's evaluation that general, but as evaluate we're an going the AI think, the the part in part data down I not again, Couchbase discussion of of and important to customers platform. having

to larger Some also on making. accounts. your focused consumption about go-to-market I you're having those Okay. wanted presumably vendors larger team targeting changes And are like you're they have more of accounts? sounds the predictable other also workloads those the the are sales and strategic then But same patterns. strategic competitive? are ask It larger more I'd assume

and go unlock start with sizes, they dedicated idea that pack into an to those few get very not them business, we some net us than to the and and an of getting And unlocked of build understanding really that makeup platform. that true our look you have about starter that more the so Look, enterprises. strategic a on application some I you different it's is really this for large at market is on a massive investing developer how opportunities teams that or. engaging some Couchbase unlocked and new think our of as true, customers potential a and, is certain of to for a in understanding, And very standardize a these their applications. can X-K selling company. of The are deal significant We've with Couchbase massive we in if motion

ensuring replacement use the working or proof concept talking versus and in what and be talking those And and areas, how of who more And that database, we're on to we're that to efficient legacy we're we're so expanding if size that with the specialization it's focus trial a certain about doing, and a at unlock can of they're kind be opportunities. of going much different. case

loaded, accounts, their but for resources about to be advance so buying of renewal either going mind.So some back-end mentioned, right talking bringing is the we go-to-market base far. is more they what up, the building leading cycle to to or see and in customers look, built pretty to it's just need that the the aligning But giving those see as what in to motions, just who about way we're So Greg them excited through activity we're we indicators. bear

Our next with Davidson. question comes from the of Kessinger Rudy line D.A.

sort guess that if $X.X And have the been I candor in instead of your exclude the of again to we the way just at here one look came dig this ARR appreciate macro. on pointing million $X.X low to guidance you and would million, more yourself the just end that playing of I reclassification into range. of ARR because finger your it, below from I want could

now switched $X.X credits much versus came how ARR a including million that been that now? And in so have who from of much customers QX how intra-quarter on-demand was for you're from on-demand customers from who to while

the Look, was Rudy, this, ARR it didn't because it's perspective impact from do in of count. customer say, quarter. The on count customer would Greg. more again, as perspective, I we I an that you a stated, movement did we immaterial about generally the probably the talked from significant

headwinds. our point We caught have of we remove customer had have if then So point. just would And seen was don't right want Yes, clarification this. that there year, did of it that we us later it's time we And seen thing, want do out for at don't put what I that because out the mention to or on-demand, road sort thought your big the but just driving it's on be of we this clean of out have reclass that this here of you not would some for definition beginning $XXX,XXX down the of but we a year a ARR. FX to the the was because where to that. get

end, not you it. guidance landed noted, as would albeit the range, low have we the So outside on but of within

helpful. kind And slowing out I'm That's there of some called out competitors consumption other curious, then Okay. growth trends. have

commitment curious downsizing once they're you that point see risk to on customers commitments? seen. And of maybe guys in some where consumption. towards you those quite and tracking do their any Just commitments, customers what they're they their have of on particular, some growth get consumption to up later throughout on in level are year renewal not how the with maybe your And

Yes.

what call We not have we all. credits not seen using any material at they're breakage where their

are early. using most fact, In them

in still even consumption seen of May, QX. So now throughout we see in still having And trends the very May. consumption with another increase benefit we've positive even

of that lot So have sort of mature more this still because phase We're companies been of the longer. model this to some other as for of phase and this doing in we're early in this a still consumption are early adoption. compared

are trends. seeing consumption positive we So still

have We multi-million it's healthy that they're customers of. months optimization in being the not seen at growth, talked bought the spoken about they still this consuming QX, we're now a account, we which is We're is dollar into. like seeing level and that seeing X in, one

them taking level. to So full a us it's not to up even full get year consumption the

about pretty at we're So current good we seeing the trends feel consumption time.

Our Koujalgi of next Taz Wedbush question line from comes with the Securities.

a just I a follow-up the had again, question, on meant, Greg. just $X.X I million

I assuming portion us full not give a for you're year when last the ARR guess ARR. for in on-demand to guide include the you So year, the

the now So the was got to we I an uplift initial million full guess, I that that be not passed it piece. adding are shouldn't QX. of uplift that that as you is because year $X.X guide by the you're $X.X well on lowering Or guess in on-demand guide factored effectively, guide? million? But into

Yes.

in the methodology this and will guidance So it in introduced now, there going that reiterated yes, not Taz, we've in it contemplated It change the year. in forward. be now we But guidance. is previously QX. was contemplated It is for the

good my half guide, the to for is question then given second ARR, is know think Got the guide year $X new But it. QX. for guide the base. I I midpoint on I about guys secondly, at of the expecting, renewal look about the you're the net the And ARR the you million. When feel implied about

you $X.X line QX to You add almost guess that aggressive, typically, about in you in big now, jump guide net here. in ARR a And you million QX. the net QX a added implying ARR, to is add they compare I your in with your mean, I bit [indiscernible] ARR which supposed when net are is little right? QX. look the

is else getting QX, So are in out terms that ] How you you year [ just closing I guidance, that QX? that assuming about feel guide you picked conservative is being, or I QX? out what guess, framework, do did financial versus guess, nothing from aggressive of in guys pushed in whatever

the we factors, changes with in all that comfortable what both QX up, Matt the the And that taking about saw. we've terms the talked guidance. always and macro year we we're in full of said, Yes, including as set

as all at and both beat guidance. if minimum, before, it. that's into it, So we a we And factored full not obviously, year QX meet we said always to, attempt

of As We've benefit closed had have QX. of we QX now the several from to alluded those deals May. of in seeing sort

the the we our feel execute full and that. So on year of with terms in QX very to ability guidance and comfortable deliver both

I one, may, last One it. if guys. Got

new it on Just new logos, new very quarter. of like mix between the strong business upsell and this are looks logos

majority of whatever renewals that pushout and seems fair saw logo to quarter? in weakness new the was momentum and it you and is So healthy upsells assume this pretty

it focus I logos went terms mix and boundary. the the And continues we've for to think quarter has area of as was said, an what been Taz, in over us. of new be

indicative we that's that So can We what of And think last off with start logos. do a to performance. we're with net year, to pleased are nice respect basis. if we a go-forward relatively look very on we back

the end Matt back of like would comments. that, Cain reached to over floor have any I for session. closing We to with turn our the question-and-answer And

look confident and Thank for us. front year and I across We historic forward to the with with our business in leverage next Thanks, continued drive ability generational this started capture progress you opportunity remain our of quarter. our all speaking following in XXXX. operator. joining to we us, you

concludes This today's teleconference.

disconnect participation. for You this at your may lines Thank you your time.