Winners And Losers Of Q1: Couchbase (NASDAQ:BASE) Vs The Rest Of The Data Storage Stocks
Looking back on data storage stocks' Q1 earnings, we examine this quarter's best and worst performers, including Couchbase (NASDAQ:BASE) and its peers.
Data is the lifeblood of the internet and software in general, and the amount of data created is accelerating. As a result, the importance of storing the data in scalable and efficient formats continues to rise, especially as its diversity and associated use cases expand from analyzing simple, structured datasets to high-scale processing of unstructured data such as images, audio, and video.
The 5 data storage stocks we track reported an ok Q1; on average, revenues beat analyst consensus estimates by 3.9%. while next quarter's revenue guidance was in line with consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and data storage stocks have had a rough stretch, with share prices down 5.4% on average since the previous earnings results.
Couchbase (NASDAQ:BASE)
Formed in 2011 with the merger of Membase and CouchOne, Couchbase (NASDAQ:BASE) is a database-as-a-service platform that allows enterprises to store large volumes of semi-structured data.
Couchbase reported revenues of $51.33 million, up 25.2% year on year, exceeding analysts' expectations by 5.6%. Overall, it was a strong quarter for the company with an impressive beat of analysts' billings estimates and in-line revenue guidance for the next quarter.
"We grew ARR by 21% year-over-year, continued to increase our Capella mix, and made meaningful progress in our efforts to improve our operational rigor and efficiency," said Matt Cain, Chair, President and CEO of Couchbase.
Couchbase scored the biggest analyst estimates beat of the whole group. The stock is down 17.7% since reporting and currently trades at $17.72.
Is now the time to buy Couchbase? Access our full analysis of the earnings results here, it's free.
Best Q1: Commvault Systems (NASDAQ:CVLT)
Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ: CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention, and compliance.
Commvault Systems reported revenues of $223.3 million, up 9.7% year on year, outperforming analysts' expectations by 5.1%. It was a very strong quarter for the company with management forecasting accelerating growth and a solid beat of analysts' billings estimates.
Commvault Systems scored the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 23.6% since reporting. It currently trades at $122.99.
Is now the time to buy Commvault Systems? Access our full analysis of the earnings results here, it's free.
Weakest Q1: MongoDB (NASDAQ:MDB)
Started in 2007 by the team behind Google’s ad platform, DoubleClick, MongoDB offers database-as-a-service that helps companies store large volumes of semi-structured data.
MongoDB reported revenues of $450.6 million, up 22.3% year on year, exceeding analysts' expectations by 2.4%. It was a weak quarter for the company with underwhelming revenue guidance for the next quarter and a miss of analysts' billings estimates.
MongoDB posted the weakest full-year guidance update in the group. The company added 85 enterprise customers paying more than $100,000 annually to reach a total of 2,137. As expected, the stock is down 18.1% since the results and currently trades at $253.80.
Read our full analysis of MongoDB's results here.
Snowflake (NYSE:SNOW)
Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake (NYSE:SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.
Snowflake reported revenues of $828.7 million, up 32.9% year on year, surpassing analysts' expectations by 5.4%. More broadly, it was a weaker quarter for the company with a miss of analysts' billings estimates and a decline in its gross margin.
Snowflake delivered the fastest revenue growth among its peers. The company added 24 enterprise customers paying more than $1m annually to reach a total of 485. The stock is down 16.8% since reporting and currently trades at $135.79.
Read our full, actionable report on Snowflake here, it's free.
DigitalOcean (NYSE:DOCN)
Started by brothers Ben and Moisey Uretsky, DigitalOcean (NYSE: DOCN) provides a simple, low-cost platform that allows developers and small and medium-sized businesses to host applications and data in the cloud.
DigitalOcean reported revenues of $184.7 million, up 11.9% year on year, surpassing analysts' expectations by 1.2%. Zooming out, it was a decent quarter for the company with a significant improvement in its gross margin.
DigitalOcean had the weakest performance against analyst estimates among its peers. The stock is up 1.6% since reporting and currently trades at $33.10.
Read our full, actionable report on DigitalOcean here, it's free.
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