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What does Pink Hat’s sale to IBM expose us about Couchbase’s valuation?

The IPO rush of 2021 continued this week with a recent filing from NoSQL provider Couchbase. The firm raised a complete bunch of thousands and thousands whereas non-public, making its impending debut a really crucial moment for a preference of non-public merchants, including project capitalists.

According to PitchBook recordsdata, Couchbase turned into closing valued at a put up-money valuation of $580 million when it raised $105 million in May seemingly per chance also fair 2020. The firm — despite its enormous fundraising history — is rarely any longer a unicorn heading into its debut to the finest of our recordsdata.

We’d would favor to give an clarification for whether or no longer this is able to per chance well well also be one when it prices and begins to commerce, so we dug into Couchbase’s industry mannequin and its financial performance, hoping to better realize the firm and its market comps.

The Couchbase S-1

The Couchbase S-1 filing minute print a firm that sells database tech. More specifically, Couchbase offers clients database technology that comprises what NoSQL can provide (“schema flexibility,” within the firm’s phrasing), to boot to the flexibility to quiz questions of their recordsdata with SQL queries.

Couchbase’s tool can also additionally be deployed on clouds, including public clouds, in hybrid environments, and even on-prem setups. The firm sells to colossal companies, attracting 541 clients by the pause of its fiscal 2021 that generated $107.8 million in annual habitual income, or ARR, by the shut of closing 365 days.

Couchbase breaks its income into two main buckets. The key, subscription, comprises tool license profits and what the firm calls “make stronger and varied” revenues, which it defines as “put up-contract make stronger,” or PCS, which is a bundle of choices, including “make stronger, bug fixes and the coolest to receive unspecified tool updates and upgrades” for the length of the contract.

The firm’s second income bucket is products and services, which is self-explanatory and decrease-margin than its subscription merchandise.

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