Looking back on data storage stocks' Q4 earnings, we examine this quarters’ best and worst performers, including Couchbase (NASDAQ:BASE) and its peers.
Data is the lifeblood of the internet and software in general, and the amount of data created is growing at an accelerating pace. Likewise, the importance of storing the data in scalable and efficient formats continues to rise, especially as the diversity of the data and associated use cases expand from analyzing simple, structured data to high-scale processing of unstructured data, images, audio and video.
The 5 data storage stocks we track reported a solid Q4; on average, revenues beat analyst consensus estimates by 3.99%, while on average next quarter revenue guidance was 1.45% above consensus. Technology stocks have been hit hard on fears of higher interest rates, but data storage stocks held their ground better than others, with the share price up 9.71% since the earnings, on average.
Weakest Q4: Couchbase (NASDAQ:BASE)
Formed in 2011 with the merger of Membase and CouchOne, Couchbase (NASDAQ:BASE) is a database as a service platform that allows enterprises to store large volumes of semi-structured data.
Couchbase reported revenues of $35 million, up 19.2% year on year, beating analyst expectations by 3.13%. It was a weaker quarter for the company, with a decline in gross margin and guidance for the full year below analyst estimates.
“We finished our first fiscal year as a public company with strong momentum including ARR of $132.9 million, representing 23% growth, as well as record net new ARR of $10.6 million, which was up 65% year over year,” said Matt Cain, President and CEO of Couchbase.
Couchbase delivered the weakest full year guidance update of the whole group. The stock is down 11.2% since the results and currently trades at $16.49.
Is now the time to buy Couchbase? Access our full analysis of the earnings results here, it's free.
Best Q4: Snowflake (NYSE:SNOW)
Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake (NYSE:SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.
Snowflake reported revenues of $383.7 million, up 101% year on year, beating analyst expectations by 2.92%. It was a strong quarter for the company, with an exceptional revenue growth and a meaningful improvement in net revenue retention rate.
Snowflake scored the fastest revenue growth among its peers. The company added 36 enterprise customers paying more than $1m annually to a total of 184. The stock is down 11.3% since the results and currently trades at $235.89.
Is now the time to buy Snowflake? Access our full analysis of the earnings results here, it's free.
Commvault Systems (NASDAQ:CVLT)
Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ: CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention and compliance.
Commvault Systems reported revenues of $202.3 million, up 7.65% year on year, beating analyst expectations by 3.91%. It was a mixed quarter for the company, with a decent beat of analyst estimates but a slow revenue growth.
Commvault Systems had the slowest revenue growth in the group. The company added 62 enterprise customers paying more than $100,000 annually to a total of 225. The stock is down 1.62% since the results and currently trades at $66.66.
Started by brothers Ben and Moisey Uretsky, DigitalOcean (NYSE: DOCN) provides a simple, low-cost platform that allows developers and small and medium sized businesses to host applications and data in the cloud.
DigitalOcean reported revenues of $119.6 million, up 36.7% year on year, in line with analyst expectations. It was a solid quarter for the company, with an improvement in gross margin and accelerating customer growth.
DigitalOcean had the weakest performance against analyst estimates among the peers. The company added 11,000 customers to a total of 609,000. The stock is up 23.8% since the results and currently trades at $58.12.
Started in 2007 by the team behind Google’s ad platform DoubleClick, MongoDB offers database-as-a-service that helps companies store large volumes of semi-structured data.
MongoDB reported revenues of $266.4 million, up 55.8% year on year, beating analyst expectations by 9.47%. It was a strong quarter for the company, with an exceptional revenue growth and guidance for the next quarter above analysts' estimates.
MongoDB achieved the strongest analyst estimates beat and highest full year guidance raise among the peers. The company added 106 enterprise customers paying more than $100,000 annually to a total of 1,307. The stock is up 48.9% since the results and currently trades at $420.
The author has no position in any of the stocks mentioned