Couchbase (BASE) Q1 Earnings Report Preview: What To Look For

Kayode Omotosho /
2022/06/07 7:16 am EDT

Database as a service company Couchbase (NASDAQ: BASE) will be reporting results tomorrow after the bell. Here's what investors should know.

Last quarter Couchbase reported revenues of $35 million, up 19.2% year on year, beating analyst revenue expectations by 3.13%. It was a slower quarter for the company, with a full year guidance missing analysts' expectations.

Is Couchbase buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Couchbase's revenue to grow 16.6% year on year to $32.6 million, slowing down from the 21.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.39 per share.

Couchbase Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time since going public on average by 4.39%.

Looking at Couchbase's peers in the data storage segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Snowflake delivered top-line growth of 84.5% year on year, beating analyst estimates by 2.26% and DigitalOcean reported revenues up 35.9% year on year, exceeding estimates by 0.87%. Snowflake traded down 10.5% on the results, DigitalOcean was down 5.51%. Read our full analysis of Snowflake's results here and DigitalOcean's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 8.15% over the last month. Couchbase is down 0.21% during the same time, and is heading into the earnings with analyst price target of $24.9, compared to share price of $14.21.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.