10-Q Dec 07, 2023
Investor Presentation Third Quarter 2024/Q2/Q3 Earnings Call
Highlights:
189M/23% ARR/YOY Growth, 23% growth in subscription revenue YoY.
More investments in the Capella platform. Customers consuming ahead of their initial contracts and
electring to buy more.
Notes that from the rise cloud hosted platforms in 2018 the market is shifting towards companies
serving the needs of artificial intelligence.
Technology:
● Performance driven my memory first speeds and innovative active clustering.
● Flexibly JSON schemas for personalization, resource optimization.
● Better price/performance, lower cloud and operating costs.
● Announced at AWS reinvent, Capella columnar service which enhances ability to harness real
time analytics to build dynamic applications.
○ Build in NLP with Capella IQ, a developer co pilot feature.
● Developments:
○ 2022 Couchbase enters an agreement with AWS, leading to Capella available on all 3
cloud marketplaces with Time Series data and access from JSON.
○ Note from customer that they migrated to Capella due to its deliverance on all of the
application requirements with the most compelling pricing/performance.
○ Columnar Analytics:
■ Real time analytics platform, access to information from many difference inputs
to give real time recommendations.
○ Headwinds:
■ Notes that macro environment has seen formed a headwind for IT spending, so
the deal cycle may be elongated and more scrutiny. Customers stickier to
platforms, but strengthening consumptions and Capella reaches scale.
■ Notes that strength in lower TCO and time to value.
Competitor Analysis:
● Proposition lied that it is more flexible than legacy antiquated competitors (Oracle/IBM),
performs better at scale than MongoDB and Redis (corroborated from Reddit).
Revenue Segmentation:
● 289 Customers > 100k ARR, 42 > 1M ARR
● Roughly between 62-65% of revenue from the US, 92-96% Subscription based.
Financials
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24% CAGR growth, 10% CAGR for >100k ARR Customers and 11% CAGR growth across all
customers.
NRR exceeds 115%, driven by strong renewal and upsell activity across base of enterprise
customers.
Expenses:
○ R&D as % of Non-GAAP Revenue on downturn, currently at 27%.