Database as a service company Couchbase (NASDAQ: BASE) will be announcing earnings results tomorrow before the bell. Here's what investors should know.
Last quarter Couchbase reported revenues of $39.7 million, up 33.9% year on year, beating analyst revenue expectations by 10.9%. It was a strong quarter for the company, with an impressive beat of analyst estimates and solid top line growth.
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 18.7% year on year to $36.5 million, in line with the 20.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.33 per share.
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 over the past two years on average by 6.21%.
Looking at Couchbase's peers in the data storage segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. DigitalOcean delivered top-line growth of 36.5% year on year, beating analyst estimates by 2.81% and Snowflake reported revenues up 66.5% year on year, exceeding estimates by 3.36%. DigitalOcean traded up 3.83% on the results, Snowflake was down 11.9%. Read our full analysis of DigitalOcean's results here and Snowflake's results here.
There has been positive sentiment among investors in the software segment, with the stocks up on average 14.1% over the last month. Couchbase is up 37.5% during the same time, and is heading into the earnings with analyst price target of $20.00, compared to share price of $14.50.
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.