Shares of Couchbase, Inc. (NASDAQ: BASE) surged 5.23% in the after-hours trading session on Tuesday, following the company's impressive fourth-quarter results and upbeat guidance for fiscal 2026.
The developer data platform provider reported better-than-expected quarterly revenue and strong growth in its Annual Recurring Revenue (ARR), a key metric for subscription-based businesses. According to the earnings release, Couchbase's Q4 revenue of $54.9 million surpassed analyst estimates of $53.25 million, representing a 10% year-over-year increase.
Furthermore, the company's ARR reached $237.9 million, up 17% year-over-year, driven by robust expansions and migrations. Couchbase's guidance for fiscal 2026 also instilled confidence, with projected revenue of $228.0-$232.0 million and ARR of $273.6-$278.6 million, suggesting continued momentum in its business.
The strong results and optimistic outlook were attributed to several factors, including the successful launch of Capella AI Services, which streamlines the development of agentic applications, and the integration with NVIDIA NIM microservices for optimized AI workload performance. Additionally, the availability of Capella Analytics Services on Google Cloud and industry recognition for Capella's innovation contributed to the positive sentiment surrounding the stock.