Why Couchbase Stock Is Crashing Today
Next-generation database software provider Couchbase (NASDAQ: BASE) delivered a solid earnings report after the close of trading Tuesday, but offered somewhat disappointing guidance. In response, traders punished the stock. Shares plunged by as much as 24.2% during Wednesday morning trading, and were still down by 21.6% as of 1:22 p.m. ET.
Couchbase's results for its fiscal 2025 third quarter exceeded expectations. For the period, which ended Oct. 31, revenues rose 13% year over year to $51.6 million, above the $51.1 million that had been the top end of management's guidance range. The company's adjusted loss from operations stopped at $3.5 million, down from a $5.0 million loss in the prior-year period and better than management's most optimistic projection for a loss of $4.5 million. Couchbase also beat Wall Street's consensus estimates across the board.
But it wasn't a perfect report. Revenue guidance for the fiscal fourth quarter came in slightly below the analysts' consensus forecast, and management's guidance for annual recurring revenues (ARR) in fiscal 2025 narrowed around the midpoint of last quarter's forecast. In other words, Couchbase didn't surprise anybody with either stellar growth or unexpected large-scale contracts. Its quarter was more of a quiet continuation of existing trends, including a robust but non-thrilling adoption rate for its cloud-based, subscription-style Capella database service, which is seen as Couchbase's core product for the long haul.
Source Fool.com
