The IPO rush of 2021 continued this week with a contemporary submitting from NoSQL supplier Couchbase. The corporate raised lots of of hundreds of thousands whereas personal, making its impending debut an vital second for various personal buyers, together with enterprise capitalists.
In keeping with PitchBook knowledge, Couchbase was final valued at a post-money valuation of $580 million when it raised $105 million in Could 2020. The corporate — regardless of its expansive fundraising historical past — shouldn’t be a unicorn heading into its debut to one of the best of our information.
We’d prefer to uncover whether or not will probably be one when it costs and begins to commerce, so we dug into Couchbase’s enterprise mannequin and its monetary efficiency, hoping to higher perceive the corporate and its market comps.
The Couchbase S-1
The Couchbase S-1 submitting particulars an organization that sells database tech. Extra particularly, Couchbase gives prospects database know-how that features what NoSQL can supply (“schema flexibility,” within the firm’s phrasing), in addition to the power to ask questions of their knowledge with SQL queries.
Couchbase’s software program may be deployed on clouds, together with public clouds, in hybrid environments, and even on-prem setups. The corporate sells to giant firms, attracting 541 prospects by the tip of its fiscal 2021 that generated $107.8 million in annual recurring income, or ARR, by the shut of final 12 months.
Couchbase breaks its income into two principal buckets. The primary, subscription, contains software program license revenue and what the corporate calls “assist and different” revenues, which it defines as “post-contract assist,” or PCS, which is a bundle of choices, together with “assist, bug fixes and the suitable to obtain unspecified software program updates and upgrades” for the size of the contract.
The corporate’s second income bucket is companies, which is self-explanatory and lower-margin than its subscription merchandise.