Couchbase's (BASE) solid fiscal Q4 results are a "step in the right direction" as its cloud-based database platform Capella has generated momentum moving into the next fiscal year, Wedbush said in a Wednesday note.
The company's annual recurring revenue was reported at $237.9 million, up 17% from the previous fiscal year and slightly beating consensus estimates, as Capella's share grew to 16.2% of the figure from 15.1%, Wedbush analysts said.
Couchbase's fiscal Q4 revenue at $54.9 million was up 13% from a year ago and also beat consensus estimates, as the company "continues executing on its pipeline of large strategic opportunities," with the migration to Capella driving even further growth opportunities, they said.
The company is well-positioned to drive expansion deals to Capella with its enterprise customers, while focusing on innovation and maintaining a disciplined approach to capital spending, the analysts said.
Wedbush maintained the company's outperform rating and its $26 price target.
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