Couchbase (BASE) Reports Earnings Tomorrow. What To Expect

Jabin Bastian /
2022/03/08 6:08 am EST
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Database as a service company Couchbase (NASDAQ: BASE) will be announcing earnings results tomorrow after market hours. Here's what investors should know.

Last quarter Couchbase reported revenues of $30.8 million, up 19.9% year on year, beating analyst revenue expectations by 4.76%. It was a decent quarter for the company, with a solid beat of revenue estimates and guidance for the next quarter roughly in line with what analysts were expecting.

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 15.6% year on year to $33.9 million, slowing down from the 21.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.25 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 5.02%.

Looking at Couchbase's peers in the data storage segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Commvault delivered top-line growth of 7.65% year on year, beating analyst estimates by 3.91% and DigitalOcean reported revenues up 36.7% year on year, exceeding estimates by 0.53%. Commvault traded down 0.6% on the results, DigitalOcean was down 14.7%. Read our full analysis of Commvault Systems's results here and DigitalOcean's results here.

There has been a stampede out of high valuation technology stocks and software stocks have been swept alongside with it, with share price down on average 16.1% over the last month. Couchbase is down 22.9% during the same time, and is heading into the earnings with analyst price target of $37.1, compared to share price of $17.89.

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.