Here's How Analysts View Couchbase Post Q1 Earnings Beat

Analysts hailed Couchbase, Inc BASE post Q1 beat. RBC Capital analyst Matthew Hedberg reiterated an Outperform rating with a price target of $25.

Couchbase delivered a solid start to the year with accelerating ARR and cRPO growth while guidance moves higher but remains prudent, Hedberg said. 

Hedberg liked the continued early traction in Capella with another seven-figure win, while the pace of innovation has increased and should continue from here. The new CRO should help scale the model to the next level.

Hedberg believes Couchbase is well positioned due to a significant market opportunity, its NoSQL architecture, Couchbase Cloud, the flexibility of the platform, GTM focus, and post-COVID tailwinds around digital transformation. 

Barclays analyst Raimo Lenschow maintained an Overweight and a price target of $19. Lenschow believes Q1 should be a positive catalyst for Couchbase. 

The moderate rise in the FY23 revenue and ARR guides is still better than feared in light of an uncertain macro and a meaningful FX headwind absorbed within this raise. 

Much of the call highlighted the progress on Capella, and with management noting that they saw a 50% q/q increase in new Capella trial accounts, it's clear that the self-serve motion is showing some progress. 

Importantly, management also spoke to the progress made with the cohort of Covid impacted customers who are now close to pre-pandemic growth rates. 

Stifel analyst Brad Reback maintained a Buy and cut the price target from $25 to $20. Morgan Stanley maintained an Equal-Weight and raised the price target from $17 to $18.

Oppenheimer analyst Ittai Kidron maintained an Outperform and lowered the price target from $25 to $22. Goldman Sachs maintained a Neutral and cut the price target from $28 to $25.

Price Action: BASE shares traded higher by 13.8% at $16.10 on the last check Thursday.

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