Couchbase (BASE 3.66%) stock is seeing significant gains in Wednesday's trading despite opening the day's trading with sell-offs. The company's share price was up 3.3% as of 3:30 p.m. ET on the heels of the company's recent earnings report. On the other hand, the stock had been down as much as 7.3% early in the session.

After market close yesterday, Couchbase published results for the first quarter of its current fiscal year, which ended April 30. The software specialist reported sales and earnings that topped the market's expectations, but the market initially bristled at management's forward guidance before reversing and turning bullish on the stock.

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Couchbase reports solid momentum in fiscal Q1

In the first quarter of its current fiscal year, Couchbase recorded a non-GAAP (adjusted) loss of $0.06 per share on sales of $56.52 million. For comparison, the average Wall Street analyst target had called for an adjusted loss per share of $0.08 on sales of $55.59 million. Revenue was up roughly 10% year over year in the period, and the company's adjusted loss per share narrowed from $0.10 in the prior-year period despite solid sales expansion. Annual recurring revenue (ARR) stood at $252.1 million at the end of the quarter -- up 21% year over year.

What's next for Couchbase?

For fiscal Q2, Couchbase is guiding for sales to come in between $54.4 million and $55.2 million. While the midpoint of that guidance range suggests a sequential quarterly sales decline, it still suggests year-over-year growth of 6.2%. Macroeconomic uncertainty is factoring into the company's forecast, but management still expects performance to pick up in the second half of the year.

For the full year, management is targeting sales between $228.3 million and $232.3 million. If the business were to hit the midpoint of that target, it would mean delivering annual growth of 9.9%. The market will be looking for signs that sales growth is accelerating again after guidance for some slowdown in the current quarter.