chbase(BASE)2022-12-11 16:00Financial Performance - For the nine months ended October 31, 2022, revenue was 88.5 million in the same period of 2021[128]. - Annual recurring revenue (ARR) as of October 31, 2022, was 122.3 million in 2021[128]. - The company reported a net loss of 45.0 million in the same period of 2021, as it continues to invest in growth[128]. - Total revenue for the three months ended October 31, 2022, was 30,824 thousand in the same period of 2021[144]. - The net loss for the three months ended October 31, 2022, was 15.9 million in the same period of 2021[166]. - For the nine months ended October 31, 2022, the company reported a net loss of 29.1 million for the same period in 2021, reflecting an increase in losses of 78.5%[186]. Revenue Composition - Subscription sales accounted for 93% of total revenue for the nine months ended October 31, 2022, with the majority derived from the Enterprise Edition of the Couchbase platform[129]. - Revenue from services represented 7% of total revenue for the nine months ended October 31, 2022, highlighting the importance of professional services in customer success[129]. - Subscription revenue increased by 1.0 million, or 56%, during the three months ended October 31, 2022, primarily due to an increase in professional services hours performed[171]. Customer Growth - The total number of customers increased to 658 as of October 2022, up from 568 in October 2021, representing a growth of approximately 15.8%[140]. - The dollar-based net retention rate has been over 115% in seven of the past eight quarters, indicating strong expansion within existing customers[134]. Expenses and Losses - Total operating expenses for the three months ended October 31, 2022, were 42.6 million in the same period of 2021, reflecting an 18% increase[166]. - General and administrative expenses increased to 6.7 million in the same period of 2021[161]. - Sales and marketing expenses rose to 22.8 million in the same period of 2021[166]. - Research and development expenses were 13.1 million in the same period of 2021[166]. Cash Flow and Liquidity - Cash used in operating activities for the nine months ended October 31, 2022, was 38.92 million used in the same period in 2021[185]. - Cash provided by financing activities for the nine months ended October 31, 2022, was 190.8 million in the same period in 2021, primarily due to the IPO proceeds in 2021[189]. - The company incurred cash used in investing activities of 47.6 million for the same period in 2021[187]. - As of October 31, 2022, the company had cash and cash equivalents of 138.5 million[198]. Future Outlook - Couchbase Capella, the fully-managed DBaaS, is expected to gain popularity due to its compelling pricing model and flexibility, contributing to future revenue growth[133]. - The company plans to continue investing in research and development to enhance its platform and expand its geographic presence[136]. - The company expects sales and marketing expenses to increase in absolute dollars as it expands its efforts to attract new customers[160]. - The company may pursue acquisitions of businesses, technologies, assets, and talent to support its growth strategy in the future[183]. Market Conditions - Macroeconomic conditions, including inflation and recession fears, have led to customers opting for shorter deals, impacting revenue predictability[132]. - The company is exposed to market risks primarily from fluctuations in interest rates and foreign currency exchange rates[197]. Internal Controls and Legal Matters - The company believes its disclosure controls and procedures are effective at the reasonable assurance level, but they cannot prevent or detect all errors and fraud[203]. - There were no changes in the internal control over financial reporting that materially affected the company during the reporting period[202]. - The company is not currently involved in any legal proceedings that would have a material adverse effect on its business or financial condition[205].