What does Red Hat’s sale to IBM tell us about Couchbase’s valuation? – TechCrunch

The IPO rush of 2021 continued this week with a recent submitting from NoSQL supplier Couchbase. The corporate raised hundreds of millions whereas personal, making its impending debut an necessary second for plenty of personal buyers, together with enterprise capitalists.

In response to PitchBook data, 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 — is just not a unicorn heading into its debut to one of the best of our information.

We’d prefer to uncover whether or not it is going to 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 filing particulars an organization that sells database tech. Extra particularly, Couchbase presents prospects database know-how that features what NoSQL can provide (“schema flexibility,” within the firm’s phrasing), in addition to the flexibility to ask questions of their knowledge with SQL queries.

Couchbase’s software program could be deployed on clouds, together with public clouds, in hybrid environments, and even on-prem setups. The corporate sells to massive firms, attracting 541 prospects by the tip of its fiscal 2021 that generated $107.eight million in annual recurring income, or ARR, by the shut of final 12 months.

Couchbase breaks its income into two major 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.