Harshil Thakkar's questions to Couchbase Inc (BASE) leadership • Q3 2025
Question
Harshil Thakkar, on for Ittai Kidron, asked about the divergence between the Q4 revenue growth guidance and the higher ARR and RPO growth. He questioned when revenue growth might realign with ARR growth, especially as the Capella mix increases.
Answer
CFO Gregory Henry explained that the divergence is partly due to the increasing mix of Capella, including the largest-ever migration in Q3. Capella's consumption-based model pushes revenue recognition out compared to upfront enterprise licenses. He stated that revenue will eventually catch up and that as long as ARR grows faster than revenue, it's a positive indicator of future performance.