What happened

Shares of Couchbase (BASE -1.75%) plunged as much as 27.7% on Thursday, hamstrung by the database software expert's first earnings report as a public company.

So what

Couchbase's sales for the second quarter of fiscal year 2022 rose 18% year over year, landing at $29.7 million. And $28 million of that revenue was in the form of renewable subscription fees. The bottom line showed an adjusted net loss of $13.9 million, or $1.54 per diluted share. Your average analyst had expected a net loss of $1.23 per share on sales near $28.2 million.

Office worker watches a large, red arrow crash down through the floor at their feet.

Image source: Getty Images.

Now what

The company set mildly optimistic guidance targets for the third quarter and full fiscal year, but a mixed earnings report simply wasn't enough to support the skyrocketing stock. Entering this report, Couchbase shares had gained 69% since entering the stock market just six weeks ago. Thursday's sharp correction took the edge off Couchbase's surging prices, giving investors a chance to nibble on this interesting stock at a more reasonable valuation. Like its competitor MongoDB, Couchbase is disrupting a massive database market and probably deserves a second look from risk-tolerant growth investors.