Database as a service company Couchbase (NASDAQ: BASE) will be reporting earnings tomorrow after market hours. Here’s what investors should know.
Couchbase beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $51.63 million, up 12.7% year on year. It was a slower quarter for the company, with a significant miss of analysts’ billings estimates and full-year revenue guidance meeting analysts’ expectations.
Is Couchbase a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Couchbase’s revenue to grow 6.3% year on year to $53.25 million, slowing from the 20.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Couchbase has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Couchbase’s peers in the data and analytics software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Commvault Systems delivered year-on-year revenue growth of 21.1%, beating analysts’ expectations by 6.9%, and Palantir reported revenues up 36%, topping estimates by 6.8%. Commvault Systems traded down 7.5% following the results while Palantir was up 23.7%.
Read our full analysis of Commvault Systems’s results here and Palantir’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Band is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the data and analytics software stocks have shown solid performance, the group has generally underperformed, with share prices down 2.8% on average over the last month. Couchbase is up 4.9% during the same time and is heading into earnings with an average analyst price target of $22.87 (compared to the current share price of $18.07).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
