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Why Couchbase Stock Crashed On Thursday

By Anders Bylund – Sep 10, 2021 at 9:28AM

Key Points

  • The database expert’s stock was priced for absolute perfection ahead of Wednesday's earnings report.
  • The company beat some analyst targets while missing others, triggering a dramatic price correction.

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The next-generation database software maker posted mixed results in its first earnings report.

What happened

Shares of Couchbase (BASE 2.17%) 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.

Anders Bylund owns shares of MongoDB. The Motley Fool owns shares of and recommends MongoDB. The Motley Fool has a disclosure policy.

Stocks Mentioned

Couchbase, Inc. Stock Quote
Couchbase, Inc.
BASE
$14.61 (2.17%) $0.31
MongoDB Stock Quote
MongoDB
MDB
$160.17 (-1.09%) $-1.77

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