Couchbase (BASE) 3 Dec 242025 Q3 Earnings call transcript

Greetings, and welcome to the Couchbase Third Quarter 2025 Earnings Conference Call. [Operator Instructions] It is now my pleasure to introduce your host, Edward Parker. Thank you.

You may begin.

Good afternoon, and welcome to Couchbase's Third Quarter 2025 Earnings Call.

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

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

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

how the is our press principles. as these well During as call in to that, accepted the comparable the financial also generally directly our financial over Relations non-GAAP these with accordance other not releases, certain accounting metrics Matt. which let define measures website. With and included which most discuss metrics Investor are we are on earnings in available reconciliation financial measures, measures me prepared turn of GAAP non-GAAP to we A call, will

mix the now progress in deliver in from bottom XX performance revenue, our million. our the XXXX. strong of government, and Capella using both or we in fiscal was customer strength in which new saw the up businesses results was across new our top Thanks, Non-GAAP objectives, QX ability including renewals, platform broad with gaming, customer enterprise quarter in constant now and technology, and We performance wide Capella growth a relevance Edward, Capella everyone. our saw by and of to logos, and that of to exceeded highlighted line $XX.X across us across Capella. In use Revenue fintech, total currency. XX% increasing exciting and quarter and up was XX year-over-year on and hospitality, new our third growth, operating needs core We million, up quarter, XX.X% with cases QX, loss continued good represents range million, insurance, our added and and year customers and X/X my wins pleased travel third ARR solid communications variety year-over-year. ARR are customer expansions in of lands. $X.X confidence XX% our in afternoon, full allowed in I'm continued our XX% meet application a e-commerce, industries. outlook. Annual reinforcing and $XXX.X the third industries, of recurring the ARR, of consumption

seeing which business. and a continued with momentum of solid Our migration, quarter for the of We're customer our in multimillion-dollar QX, the logos major Capella bodes largest a Capella durability this and by milestone and both consumption Notably, new migrations. we strong well long-term with history. uptake increasing growth our driven Capella, had in

of a and long-term last significant new strategic provider with a been This are quarter, work our performance and further progress to of large a where enable applications. underscores set our significant in QX. opportunities confidence The discussed QX I the ability represent critical of these we've generation expansions quarter, to close a in our wins As we as of making large accounts in emerging pipeline. our significant continued portion and strength platform continue key to

In QX, this We as the evidenced score bottom performance the our our of year-over-year. by improved line quarter business across leverage we excellent year. drive Rule points our also demonstrated by and commitment XX to X throughout

I improving has a all been know, rigor all and in aspects key priority, operations. of efficiency our R&D across you of the and proud driving our progress am and efficiency As go-to-market, operational we've made

customer across insurance These a quarter for Turning property price saw Couchbase wins. performance. which of leading internal our wins businesses notable power in insurance from a reinsurance due and We Community include leading transitioned to to the industries. Server Edition global to company, to its variety casualty applications and

platform high-performance in-flight content for a system its We and entertainment is enable also mobile capabilities leveraging global passengers. secured our airline, to which and custom power

and its for speed, we a a Additionally, search of superior is its AI-powered threat railway emerging technology support public support of planning multinational capabilities and selected development strong for to management Capella offerings. Further, agency's company detection because sector and leveraging our platform ease scalability real-time traffic won an content to which Couchbase cybersecurity vendor, remediation performance.

app, chose a online versatility Lastly, power Capella's leading demonstrating further retailer to its across Capella industries. mobile appeal and

scalability A times A application, By platform. expanding in its of customer Our where of use personalization a Server productivity. customer QX. cases. Capella during use XXX is customer this to media was Couchbase, customer and including and iQ online power continue its to expansion capabilities speed, technology lines use support Capella able management to expansions to also commitment expanding from our developer platform's which promotions, migrations peak features several demonstrate enhanced EMEA-based flexibility for An helps Fortune to tech growing multiple multiple a was on deliver fully to major its existing primary is benefiting due were company content consolidate use resiliency its enhanced XXX and stack, company. further across customers performance Capella its requirement. in managed to Customer This to QX leading cases, Capella improve of and strong its and like decided gaming relies teams airline the our across migrate cross-product business. global for and Couchbase and Couchbase Couchbase a

of low its of in of variety Additionally, given an expanding support is vendor TCO Capella a emerging communication initiatives. software use its cloud-first

experiences, with selected Couchbase largest multimillion-dollar date release ARR to global company, improve modernize its to to to to and our loyalty XXX with apps decided central cloud-first as we legacy personalized digital hospitality further earlier, migrate This and originally It reservation As member a infrastructure order spend customer are migration they and its to initiative. its customer their Capella enterprise replace online tripling us. with where power create its align a system program. infrastructure we in reliability to faster. result, mission-critical Fortune I Capella new mentioned saw transformation And committed

intentionally architected to combine one deployment is performant platforms. deployment scalable, all with you on-premise significant our these was delivering cloud to In data with As where be on not our the developers only it's This customers the being Couchbase and and our speed we built world's as centers. for saw mobile everything platform from use foundation improves of more most modern move offering distant of critical performance data ground We've in applications, applications, compute know, used. empowers for edge the case of usage capability, component from our and cloud mobile mobile model and the recognize flexibility up to mobile closer and cases. uncompromising built the use edge types models traction QX, database of the key Couchbase to the and eliminates only flexible as of also native data dependencies to resilience between. A to which but flexible

to highly catering makes reason a a such retail, the Couchbase growing We demonstrate solution Our applications across range wide believe to continue health industrial and of as embeddable programmable our approach and customers edge, Couchbase that our platform. why the at to care, the platform industries IoTs. commitment mobile is

the core proposition As value demand are relevant. accelerates, for tenets applications of AI becoming hyper-personalized more only real-time our

alternative I've of evaluating, our clear architecting road It's their meet phase base and are long-term the next-generation number increasingly of of and scale increasing application for looking organizations data to are to evolving infrastructure enterprises the year, As an failing many mentioned seeing their needs of building we to applications. rapidly the the throughout becoming projects where maps. their infrastructure demands solutions approaches strategic across meet AI and customer are their that next

proprietary of applications, urgent. ever-growing next of only will a coming intensify is that latency to the and the in the to build or more low high look need whether This is data extremely years. As data, generation Internet-based trend enterprise performance enterprises volumes structured, becoming unstructured, adaptive combine with

just me introduce let Now yesterday. Enterprises developing streamlining Capella we the facing agentic AI announced to are and challenges you with both which creation secure, Services, scale. AI our and latest offering, with applications at of AI deploying

the on enterprises and address AI both Services to to head vectorization, challenges automated high include the into in services. throughout privacy encountered these preprocessing development allow with security cycle by Our organization, teams of issues developers. By latency application LLMs organizations costs, and bring unstructured new which running to production model services and to safe control These are developers avoid comprehensive manner. data we agent and applications hosting, empower giving agent-based data catalog over are outside issues reliable enable and operation AI mitigating and designed life a frequently

services, extending next-generation designed to with and new platform in continuously all applications. features developers purposely are building We empower our

development, developers fully AI analytic, a platform the mobile transactional, that functionality reshapes AI As and integrates into the Couchbase landscape managed of unified equips service. software with data developer

costs architects of application Our premium how or compromising on capabilities innovation that mission boundaries is leverage to without push and these operational the performance, developers simplify create experiences to connectivity. functionality,

incredible I want momentum a moment been to seeing product call on highlight the Greg, Before front. we've turning to the over the take to

palpable. the quarter, and will the team impact and excitement the are confidently what spending Over I've our we're time past within say engineering with leadership, building I have on energy business. privilege our inspired and of can had significant by that the deeply They're the significant it

are organization and moving are the ever, remarkable. passion the truly across and teams product Our than commitment faster

with about our you same of excited to progress come. In as and model. growth, rapid drive high-priority the progress We and third and our forward on make a delivered top priorities, strategic Capella conclusion, emerging delivered have accounts are continue the where we time, Looking across the long-term more continue to the we strong company we I'm our provider. progress in increased in the a initiatives pipeline operational efficiency look I'm sharing across quarter. new the with strong to mix made customer results, line ahead, platform key number pleased made with strategic the meaningfully and At we quarters that bottom incredibly in to

for their enterprises world. building our adds confidence addressing increasingly on my while generation QX AI an are wins most further strategic substantial and This critical our for in And partner opportunity long-term the as we platform, expansion growing customers positioning prospects focused of a AI-powered Our and drive strong years delivering the into innovation of continue our and leading in finally, world. to applications a to drive come. adaptive data us ability applications to next challenges to even and set

will outcomes. With problems customer we through hand the Greg in to call hard always, driven walk attack I'll As over Greg? results more by detail. to now you that, our

rapid our I'm Thanks, Matt, and generation, momentum. the our Analyst in for including through Day. I'll now strong challenging quarter, remain thanks, and achieve Despite see we laid to bottom our XXXX ongoing us. out third pleased everyone, logo objectives line ability the made guidance in fourth million, the representing continue and and confident above million ended the we new for is a walk XX.X% X over progress demand ARR we representing Total and our you environment, last year-over-year ARR, to the performance, ARR, XX% retention trajectory results for was platform joining third past goals Capella our growth top our strong years. quarter. providing $XX.X XX% from our in and with fiscal Capella of the nearly grew and our $XXX.X quarter total up X% our fiscal with more Capella ARR midpoint and of and up financial XX.X% We guidance detail Xx sequentially the quarter sequentially range. third year. of at before quarter of

revenue. Turning to

revenue total XX% of million, the end our Third outlook, was sequentially. $XX.X year-over-year high exceeding and flat up quarter

down XX% ARR Software from and QX $XXX,XXX and per down up $XX.X was in was quarter revenue Professional last QX X% sequentially. sequentially. year-over-year XXXX. from customer $XXX,XXX million, $X.X flat year-over-year was up and $XXX,XXX, XX% million, services revenue

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

customers, retention Our from or an XX XXX with new net dollar-based NRR, customers We XXX%. rate, quarter. to increase continues exceed exited last of net the quarter

are remainder in income and unless discussing stated, of otherwise Our Capella non-GAAP quarter. In the basis. count results XX on by the to grew expenses, of references note all please count customer that a statement, share operations the

We and QX, our continue to again outperformed we loss focus in operating on growing outlook. efficiently

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

to Turning expenses.

X% or was $X negative million, or This operating and above implied negative our $X.X expenses to $XX.X million points revenue. operating stockholders marketing loss were of pleased million a for were Net development a administrative and priority, expenses of progress General the year. last front. Operating million or guidance on midpoint million Research share. our range. percentage or revenue. the expenses $X.XX a per attributable XX% revenue. of and million sales QX and loss margin $XX.X remains to quarter discipline expense I'm operating were XX% margin, or XX% of third common Third XX% X.X of negative margin of loss $X.X $X.X was quarter Exercising in with this compares

equivalents the well cash and executing our against ended with We Turning long-term million strategy. cash, for third capitalized investments. quarter to balance in remain short-term $XXX.X We the sheet.

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

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

negative well reminder, XX.X% changes a to fiscal being for remain was free due Operating in negative Free host duration. our average We million. fluctuations timing to including cash as flow for was XXXX. we flow cash as the As experienced margin. positive $XX.X negative of flow a RPO or flow $XX.X balances cash factors, renewal quarter contract third cash million committed free in

XXXX. QX will full for I the provide Now year guidance our and fiscal

with by across a business, long-term number key Couchbase encouraged a Matt is being strategic built As our are strong large of particularly component initiatives. mentioned, where we growing evaluated as opportunities of momentum we their the

expanding strengthening our remain strategy. product ecosystem role we Additionally, as confident supported our growth a in in refining driver, ongoing our Capella's partner major capabilities, investments and by go-to-market

QX. relative we of quarter out remains include the closely and aforementioned towards opportunities dynamics the As and remain These on a play the a strength significantly These to and large monitor our are pool, last and which ARR the add our amount timing reminder, of macroeconomic heavily precontracted as ARR. full of in said, objectives. That visibility continue of expected to year pipeline discussed weighted confidence contributing impact for business. their we several renewal our our and composition mindful to that headwinds outlook QX, our higher-than-usual continue of achieving factors to potential

uncertainties emerging conservatism Given prudent migration into incorporates conditions for visibility QX account the the as lack this, and to as offerings. as our well as a macroeconomic how trends of outlook may of level upsell for well for as-a-service these affect time lines consumption

in the million, With anticipate expect X% million or of $XXX.X ARR growth growth the at fiscal range these the million for $XX.X midpoint. the fourth quarter $XX.X We factors of $XXX.X range of mind, year-over-year year-over-year to million revenue total in of representing XXXX, to XX% at in we the midpoint.

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

year Now our guidance. full to revised turning

and or outlook total growth our in expect the loss that, $XXX.X $XX are of year-over-year Operator? And revenue million million of of expect range a Matt operating the we finally, the XX% negative and to non-GAAP midpoint operating range $XX I in revenue a are We midpoint. to at the our guidance $XXX million. With negative are and happy million take now to year of your questions. raising decreasing loss full

line the first of question Barclays. Raimo [Operator comes from Instructions] with Our Lenschow

to bit. on focus on Perfect. guys. QX solid Congrats I the little QX wanted a

we in you of little How -- well, interesting then in into is excitement contract about for Or disconnect in signed think that's about that then for a kind moment and the then I of we of it see how revenue -- bit. year? how Because eventually should like and numbers next fourth relationships QX, then kind with a that of should the the we talking get kind translate the more translates the the now the opportunity You terms ARR numbers? into -- second the in your think at keep that like quarter quarter of should does evolving. kind like

commentary opportunity question. fiscal appreciate financials. defer on and remain a and Greg off the start excited I'll and dynamics delivering I why Raimo, confident year, set great some to And it about with on of the some in on I'll the the we then

the this remain renewal the of of confident talked execute delivery about has more is case. we out the play in back As And needed a things half, last half we year, pool, we quarter, certainly, to that. did dynamic than been QX the and well way to on second typically

we in all opportunities These And large of Solid strategic not the exciting very we opportunities that decisions a performance and largest that half. built we've on enterprises a of getting some to we're strategic And are choice. back the around speaks of about progressing they're a basis. you strategic world simple decisions new making appreciate those what migrations the of from are while across platform platform database that logos. they're with that because and are long-term can these that making a the customers trust said, renewals, pipeline or view and for that this did processes go-forward partner as very as their it upsells, us are us navigating. That

a so be QX in go-forward results reiterating and our to And we basis. progression confidence sharing that, on expect of the of are the those based on

and differences why pertains there? it Greg, As dynamics, revenue don't there But with from ARR respect you and to are enterprise it to Capella. some take

gave Yes. which given usual, quarter little of slightly delivered up going we of the talked built confidence. us We look, start year. about from of -- several get QX, earnings fiscal period about things into given budgets last is what lot at as largest done having that will And one we're which in there. a where to of Hey, majority get we what talked their year, or that had January customers the revenue and then we've But QX bit us a a more as released always, precontracted so the our was our discussions. gives can there's balance in in Raimo, January of ARR, QX. XX, million We through will certainly new translate be, are into they their that confidence

about guidance So into forward ARR, deals the from not come of here. we are there feel get things and QX good but some laid that all out our be where revenue. But could factored we that how

AI on blueprint the Matt, conversations, that fits thinking what like terms about in Okay. AI into Couchbase that kind on customer how of hearing call, the you Perfect. made people are that like forward? And you comments in then, of going Capella are or of as whole a fits kind

for Raimo, we of the build AI-based they a with for that about probably a importantly, team their isn't their database AI aren't thinking and single or us, and that for as having customer applications. means a choice of platform technical conversation what implications a data developer or business more

take Services of way to when is bringing into them for Capella I AI, advantage And secure while a our landing these developers. everything inside allowing for appropriate platform. same a developers Capella at of it of one through, even of strategic announcement customers we're in to on the that and experience come customers the to the an think logos do data combine platform, thing strategic is but world. We trusted structured through amount into the tremendous information, Couchbase in simplify new can takes vectorizing platform really how the models unstructured even that and a add platform, and continues yesterday's further, data hard AI services through very simplifying worked that time, the these view to discussions AI

some that promising very think the for platform capabilities we these articulating time. further we've architected is and reinforce that platform lines, of differentiators So been we've our along those into some the future

world release So the and the base. the customer we are with certainly about that discussions excited about excited having we're our around

Needham line & Our from of Cikos Company. next Mike question with comes the

question for progress accounts. maybe the hear To large of but good on with start, about Raimo's set first there, that circle Matt up made to to key

or as is the deals? time get QX? trying Just there we understanding, And have as line wanted to not closing a get cut always you with in sense, better better get should I'm granularity to visibility some dry these if it's see that to a deals guys -- Or expected and of to greater be for fiscal as what could of is deals. that some as those could were Just some wanted we more 'XX expect those maybe push a event? far that just

Look, about at soon move is as for we it finding a carefully. a it's it's they're Mike, a time, Yes, finding customers outcome forward the for and very study that to outcome us as good getting when large And need great pertains a timing to opportunities, and same variable possible. to started and when good prepared question.

stems Our the of confidence would pipeline, the from say. I QX in strength

win far So very ever in like having set, customer. And application a steps particular technical schedule of decision-making quarter event accounts that at strategic it broad a probably or given set process this a and into a studying deployment their an the we broadest had sales the be whether any compelling X,XXX we knowing all those as understanding into which in examine process, and are as think move pipeline, expect the of about multiple have execute variables don't certain a to some great percentage is of we on opportunities what QX, next to would bat that all year, have a a we happen. fiscal on lot those could those to them we've paths we across

the XX broad to have. which are we process, confidence over us based work that put that the we and together, of gives Couchbase. these understanding the it's got that about last days, visibility with articulate And the level you lot their we're the I all and story a decision-making projects set, the smarter those their that on strategic dependent done So we about accounts with on think they have and are intimacy where

a maybe follow-up good. And Greg Very as for well.

to be this how greater provide qualitative quantify as some today. that I think is significant commentary amount in cited of it had historical versus here possible to that the or ARR you precedent? Would we comments, have prepared maybe precontracted

always there's opportunity look, Mike, Hey, sure. the for this. Yes,

precontracted we And so and some we quarters, have some some don't. ARR

happens in where quarter would you This higher stated see a history. it's normally and several it's be it's that quarter company million we've Xx-ish the the a to we probably before, was most in quarter dollars, had we -- probably on And have by QX we is Capella the particular, they also the did some driven of is contracted last migration in deals in period. This fiscal side. for QX and plus 'XX migrate for some large ARR did this providing additional through as QX even we

So on that's that at the outcome. and again, a see of amount is quarter sizable this. us little bit gives qualitative a to in quantitative it's what left a But how within looking very have we manageable that do confidence the we

question the next Brent with of Our from Piper Sandler. Bracelin comes line

maybe it's activity here, building start new customers talk XX% have are but some of we'll about ARR of using be accelerate with only do coming mix. think you really part here. X/X Capella, from that Capella? At Capella I just point, how bigger Capella net momentum year-to-date. a start of will XX% through you But to the Capella kind ARR. you of customers see you Can ARR Matt, using of it and

to using adoption point walk be think accelerate? X/X there of When seeing? customers, where of they you an starts really them of are it. What even inflection through Just do kind now kind us could

And the as even influenced step particularly and it's numbers customers tens think it's a different when we or I'm when by number of we with Good see we pleased go-forward tell application. with a would Look, engage many basis. on put are Yes. what of think probably that cases, back not I much we're that you point, about by customer, Capella. inflection what hundreds single a applications. question. using feeling up we In I is the

a what if to want really interest, quite best think started have so with been we on it's historically And offering them we customer single the the moves start we has their in model as the is the customer that because a Capella frankly, into get direction. our It's for not quite drive ease they quickly. out to developer more percentage with optimized ARR count. future that going If in as application, deployment enterprise,

the to having our on migrate going Now eventually. know with is customers what that that we we're are discussions ones

that drive And it the where a them that opportunity of to XX% of into applications migration. evaluating time is makes and determining move are frame so for whole Capella sense customers between and built-up for when to even ARR more bunch them XX%

ARR the said on the point go-forward the pipeline. we've basis. proposition, with just, utility discussion that the combining QX, business percentage of we've to and on think in time We would I opportunities a ever be level migrate. to a I feedback at this of biggest what we several stacked up our they're customer the big with long the in the proof-of-concept uplift call, wins driven healthy and expect So by going seeing have value the some for a for happened be is and really one long which had customers we that had more of biggest But

Greg, plus got pretty And Helpful consistent XX% color there. then, ARR growth. you years of X

of growth You quarters reasons kind moderated the couple flagged of of why few a the last here.

for Do kind the environment ARR think think, year? second right growth. guiding You're of XX% you thinking consecutive of now? kind of stabilizing is kind the into demand to, is ARR growth profile you about next the we that going the quarter I of should XX%, And be

guide, Matt to demand us And as QX, we'll Yes, we Yes. go feel Brent. back about, is comfortable look, in I but only environment a Investor just our Day pipeline. of ago. good, the not for Thanks, our but building is, quite year very honestly, talked think for the

We a and be to have XX-plus plans aspirations percent grower.

company. an for we And and as see the on ultimately that so land objective we aren't year, got to but through QX where up giving here we for get the

grower So percent and we Capella, get to we'll say months from the I'd guidance, XX-plus we be years. our can fiscal a believe like now. for 'XX X several just with next guidance But is

question from comes of with RBC. the Our Matt Hedberg next line

think same the could early as renewal topic, was it year next the business, too way perspective, this be from But guess to this new appreciate hear opportunity terms half the about and year? multiple there And on And renewal that weighted year for to second XQ also as to talk in Is be Sticking it renewals those there. about opportunities? 'XX. times set I from opportunity half next the linearity year assume weighted. second right relative it's is Greg, to big of being I great confidence or on bigger a some will

shaping. Yes. lower. Good is 'XX fiscal little This We a to on will weighted. was how obviously are back the pool It half you bit yet. Matt. I guiding as give things color some question, aren't of year, renewal

believe we renewal pool more balanced totality the second year, higher next year. half much and will be half and Next first between evenly in

we QX some get but now. and in there's that's again, how if 'XX fiscal get QX, to sit done got Now see through from that things things

think I fiscal than seen more going you balanced like to you 'XX fiscal 'XX. in saw So probably much in be it's what have

Congrats results best and XQ. luck on of the in

Thank you, Matt.

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

And in will Capella will to the quarter. color This is maybe kind ARR growth it their consumption? of part takes the growth? it mechanics what of revenue just for Greg, I'm the the that customers growth the RPO on to is growth larger ramp guide causing becoming Capella with Harshil take for then in revenue And the you come possible with and square on in for underlying ARR given line the of up the remain kind of growth mix, shed and Could are there? away back with that divergence line kind Ittai. is some XQ to time time it RPO in the divergence trying what a

is, of complete your consumption rec we which was license. a Yes. go Good your pushes question. the further because And the the upfront more answer out of migrations, to we the the to getting do revenue question question, it part part versus a rev last

as And So we we out is, it Capella they're enterprise are when talked that push deals QX, in just if about, single done, just timing Capella. our again, it's of some versus which then of will of largest some did getting migration revenue.

the And quarter fourth out tell to know based So what's we've completely be up. we our know can on as versus out. to in you we've I be is for long growing ARR eventually guidance come think I jives we're the ARR be laid because faster revenue, to how revenue that's but enterprise. than said, catch will we're Capella that's it. the going what is how What happy behind going -- lag, And I've all going it with laid again, we terms always going of revenue as will to

next Our from the of question comes Oliver Baird. with Rob line

to you for start. one Matt,

you've accounts. guys, was Just spending there. wondering you have a on I know help as the these time calling strategic about And if you've could with nice how just you think kind notched you you understand been momentum into of guys us or lot of I migrations, those out, just to been time. bunch your preparedness preparedness as up ] migration [ head a year your largest with that at learnings for Obviously, you had renewal. ever. of contracts next customers your migrate

there which sort a enticing. a some reconsider is quick learnings to also, migration And had And And then clearly, people stepping commit I to for versus of out driver Couchbase? as actually a is well, Greg. from that's that. follow-up So you out to free getting up know community there I called

changes a every teams support and environment that offering, Look, and sophisticated and Yes. prepared. The say, testament are Thanks, customer to I we unequivocally, engineering it to we're and to day pertains where we can. more navigate capabilities of we to when would watch deployments has have their been Rob. the service that that our help them level as improve in work preparation, never

learnings. asked You for

every application? customer running Friday where their What's may is a environment I in think nature business are on? Are schedules. impact What Black of they version the they different.

of benefits And talking may think that understanding the they're deriving be they variables. environment, not on of the has really what or are customer off these for, solving I to who's the where may who the visibility most from signing account across specifics in it's so we the about and cost opportunity total ownership, all

Capella when navigating for in that have And with is dictate customers the the moving Capella. in see true new help for the paying TCO incremental when understand Community in say for have we them the people I'd are frankly, for that paid have been deployed as we a indicators into is market-leading, of variables a a we're as offering deployment migrating. Look, as reason that we to offering. to has the ready on we from those be So customer people that underlying learning, quarter, that the Edition because go to may incredibly the service do ability to a are lot inside on customers is ready pipeline. the can work prove are CE infrastructure, margin, value is and most that confident of But our of any more and customers been in are customers can in go, to it capabilities leading and the to quite have offering. that enough, Interestingly when the cases, better of even or move we important when

the services And remains I overall for to it's our land see go aligned the our expansion They long been continues that's additional for And of a platform. so the They get pipeline business Couchbase. think in we're the that of value So accelerate. and people market. that true with to us see set so using part value bringing after. to in the

quarter, you quarter. had not And helpful. I It this know Greg, and guys you. churn That's out sounds was one then, some just called -- pressure. for that called Great. out downsell last

that what come this a into these you think, great. important for I So headed initiatives this it sounds the sort like or guys internally an into just of some call, quarter, subject, that the lot contracts? which particularly was you an risk to as is of to help of of been questions you did mitigate not guys has But issue on what QX, which

which of agree. and and we've see Thanks, QX, in downsell going Yes, normal Look, We now. amount point We is deals. as we experienced would reviews to and QX be that in-range Yes. we Rob. far is consider this believe elevated QX which downsell of be the an loss to in done what we weekly, do I was don't us, going suspected loss sort of continuing can to there's anomalous. as to we

hoping that I not the that topic and -- in because just is to again, again -- to we for that it's quarter this have anomalous can us, think was several first this QX QX pointing is we seen cover had years. So

this I is don't trailing us. going again, for think to a So issue be

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

go How just have QX, Andres of mean a in level. been for your And fiscal hundred your have you in one thousand and QX about was that about think ahead QX. got upside. ARR to 'XX seeing performance more 'XX, midpoint I ARR your we sounding is 'XX, the couple we guys of more just positive the follows I couple at Rudy. conservatism embedded of of from 'XX, fiscal back think and QX a to if but should we guidance, I or guidance? This misses higher used a

if So we that that -- onetimes call should the those that in accounted is maybe anything forward? should conservatism we for anything, any QX going call there happened that

we've put the or Good quarter. [ question. same we Yes. No, do every let's guidance our we've this], approached -- don't think I way

the B, that renewal the haven't the be Difficulty] We've the because big we and [Technical because precontracted So and our A, revenue; changed particularly of QX of pool. size always was second going to of, half said approach.

I so And there's don't different. think anything

talk the compelling have You of on. renewal want QX. have Several about of just to and are be number points, events, in deals other among size strategic we Matt are to things. going which They heard tending them

back approach an the So the of our said be question, Like of here QX normal QX or and but earlier uneven haven't particularly the we always this us was will loaded sort balance, more to results. year get fiscal quarter. with on sort philosophy on I 'XX end guidance to back changed leading based

Yes.

applications. And and could more there customers would point monetizing can and pull And articulated hurt very about pertains as to that And pricing on the tendency we go-to-market way without excited of lot margin are for that expense is in far, a the company focused are credit discipline give of maintaining interest that, we the I thing drop to which that on and of discounts, have while things that that want our turn deploying of the on are haven't one to a that be pertains that delivery one I'm it doing enjoying add finding as it be QX economics. that back proud best on the discounting to that as of are is longer-term the me at we're to the we around so in this. in quarter, ensuring customers' shareholders half. deals level growth that a in in teams and outcomes the growth Let a

you're as I'd build QX it guidance and dynamic pertains another QX, say so hearing and And from actuals us. the tone some that's in of second half to the that

you implies a and that number there follow-up, all net talk capital how contribution much is bit of some sense. hitting little precontracted if large big maybe close the about may. conversions that little new still ARR number. guide -- makes that you for still rates, for to Could have upsell, you ARR QX. risk that around that? Yes, QX, have a And quick have a assumptions Just understand Understanding I trying a the new I net

the sort we've approach. used Yes. of same the Again, guidance

our ARR see what -- guide of the We sort if will. precontracted is know So bank, you you we obviously the in is.

to come not and for And pool a how we I'll And logos, QX. the now and very guidance. of in point us deal sitting feel to But in of good again, clearly now, new deals comfortable again, outcomes, so to terms quarter large left et about range do the if we strategic renewals, the what we've QX guided about And into why Matt said back there we that with are here. our activity cetera, that's is for with opportunity where this versus look at and what's landed. we of migrate feel up we

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

composition made that you've seeing are an it then from Maybe you you those, use new on on precontracted relates you on renewal into Raimo's ARR the question, guide? double-clicking QX to can sort for the are the upside question in of are early You an on the area a vector cases that Anything those QX it called around the into net the once that verticals announcements sounded where response as second you specific And about sort or Are more Thun mix like really talking you then Services ARR. factored showing adoption were Greg, competitors? of articulate for quarter, being Theo just your And as the if and what qualify the could between announcements, Sanjit. factored in of signals found of momentum renewals early exciting pool? then sort those opportunity? Or to the you of of outsized you what AI of the are search guide. capabilities and sort really got differentiated just And out?

right. All Great.

kind question. the with start of product me Let

Tier. data on like to So look, going to I yesterday want The are think, we're back Columnar combine excited throughout choose. Step are the to absolutely as critical that that and we material that to enterprises has our delivering as innovation releases level are we articulated. made and we a building the of points areas we've the differentiators the AI do are differentiators, and platform operational year is Services, And in that developer about we and in capabilities. to one analytical market announcement but also think developer Free emerging platform on of that itself

the that directly from that's to productivity. The distributed And combine in of your of a of and goes has we and capabilities all able cloud into technologies enabling of data approach most of platform entirety have embedded Capella with build set going the different from is Capella carefully native, PDFs vectorize and expands source platform also of directly these come and synchronization integrated for data to added that about we've data than data and JSON offering applications that capabilities performance announcement platforms enhance support into and down large data to We that bring the applications. this performance the benefiting going applications. the ease-of-use architected platform. The enterprises it's architecturally how JSON thinking developer your AI bringing into to other And native rest aren't all that, as-a-service powerful format sets, models like scale and being AI to architecting the of yesterday open to CSVs holistic to then being to itself and and Capella to able on with have platforms. embedded and edge that consistency some we're in a are to scale the those reach unstructured models other

committed just value I that to this pipeline that come the and do to continues so You'd most opportunities worked because proposition of and that the important have hard-pressed the see with beyond a to in platform more And we a deliver has articulated. the the combination we to. be to database there's part of find we people applications stay that's that in the world. And that is of maintain unique reason some features have so the important and around build back why hard for of in -- architecture most and half companies

the roaring Couchbase, we about us. of AI engine the are front innovation and world excited So in is that's at

Yes.

logos and get point know much Capella the the of side of of enterprise new our second can know is renewal your of still much into on your Look, on hit consumption. forecast as to point upsell of how is the business, at which, We guidance can We we any or historical the rates. renewal, we the we see, XX% way business. Just build how upsell question. part and our outside you renewal, we then

several that So I've give is of through balance talked got that us bit stronger up ARR, of of now a what from precontracted because on After about range bookings. the ARR, right, layer will we And outcomes. we there is top. of as build you, that for pre-contract a remind QX it million I there, to QX

gives deliver. guiding for what us range what we and that's gives we so in And we're us QX outcomes and comfort can believe a what for, sort of of

a towards sales happens. end look can know high-quality year. assume do if business the some new they going will it's not, our that the end they that bring there's the right? On get that natural of particularly So is towards that get and they into accelerators, in minimal. of it tough as of that forward know as and our the always they who's 'XX, year, QX very fiscal it's team, guidance, pretty see to business, it always we some or the It's happens but but to of this do We in way, to

deals working a that there's certainly large we're be set small given baked customers could so are the with, more But willing. in. amount if And there of

on with well. is and provides guidance again, opportunities us QX comfort the what our this So gives cover what additional as us,

further for the to to at time. floor like remarks. this Cain, There CEO, back are I no questions Chairman turn closing would and Matt

fiscal and XXXX, in our again quarter. look operator, speaking We're all and confident thank joining. a you we forward deliver to next with for strong you Thanks, to end to ability

And this participation. may concludes today's this disconnect you your lines conference, at your you time. and Thank for