One of the week’s most hotly anticipated IPOs is happening today. Boasting an enviable client base and strong fundamentals, Couchbase is a good contender for those looking to add a database technology firm to their portfolio.
When is the Couchbase IPO?
Couchbase is set to make its public market debut today July 22, on the Nasdaq under the ticker symbol BASE.
The company plans to sell over 8 million shares of its common stock at a price of $24 per share. At the top of its estimated range, Couchbase is expected to raise $161 million, while it could see its valuation reach close to $3 billion.
What is Couchbase?
Couchbase empowers developers and architects to build, deploy and run their mission-critical applications by delivering a high-performance, flexible and scalable modern database that runs across the data centre and any cloud.
Originally known as Membase, it was developed by several leaders of the memcached project who had founded a company by the name NorthScale. The firm aimed to develop a key-value store with the simplicity, speed and scalability of memcached, but with the storage, persistence and querying capabilities of a database. In 2011, Membase merged with CouchOne, eventually establishing Couchbase Inc.
Several of the world’s largest enterprises rely on Couchbase to power the core applications their businesses depend on. Some of these include United Airlines (UAL), Cisco Systems (CSCO), Wells Fargo (WFC) and Comcast (CMCSA), amongst others.
What has Couchbase’s financial history been so far?
As enterprises across various verticals adopted the work-from-home model to safeguard the wellbeing of their employees and maintain operational efficiency during the COVID-19 pandemic, cloud-based solutions became crucial and Cloudbase has benefited immensely from this. In the year ended January 31, 2021, the company generated revenue of $103.3 million, up 25% from the $82.5 million generated in 2019. This momentum carried well into 2021, with the quarter ended April 30, 2021, seeing revenue at nearly $30 million, up 21% from the year-ago quarter.
Private equity firms have been great supporters, so much so that Couchbase has raised $294 million from investors. It last raised $105 million at a valuation of $580 million in May 2020. GPI Capital, North Bridge Venture Partners and Accel are among its backers.
How’s the future of Couchbase looking?
The Couchbase IPO is eagerly anticipated in the IPO arena which has enthusiastically welcomed other technology big names. Data-warehousing company Snowflake (SNOW) made its debut in September 2020, reaching a $33 billion valuation, whereas Palantir Technologies (PLTR), went public via a direct listing and currently has a market cap of $42.26 billion.
More importantly, the global cloud computing market has been growing at an impressive rate. According to analysts, the market size is expected to grow from $371.4 billion in 2020 to $832.1 billion by 2025 at a Compound Annual Growth Rate (CAGR) of 17.5% and this is set to bode well with Couchbase.
How to buy Couchbase (BASE) shares
The stock can be found under the ticker symbol BASE.
Please note that orders can only be placed as Limit Orders until regular trading commences after the opening auction. You can purchase whole shares when the market opens and fractional shares will be available later on during the day.
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