The IPO rush of 2021 continued this week with a recent submitting from NoSQL supplier Couchbase. The corporate raised tons of of hundreds of thousands whereas personal, making its impending debut an necessary second for a variety of 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 Might 2020. The corporate — regardless of its expansive fundraising historical past — isn’t a unicorn heading into its debut to the very 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 raised 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 affords clients database expertise 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 might be deployed on clouds, together with public clouds, in hybrid environments, and even on-prem setups. The corporate sells to giant corporations, attracting 541 clients by the tip of its fiscal 2021 that generated $107.eight million in annual recurring income, or ARR, by the shut of final yr.
Couchbase breaks its income into two foremost buckets. The primary, subscription, consists of software program license earnings and what the corporate calls “help and different” revenues, which it defines as “post-contract help,” or PCS, which is a package deal of choices, together with “help, bug fixes and the precise 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.