Shares of Couchbase (NASDAQ:BASE) begin trading after the database provider upsized its initial public offering (IPO) to 8.3 million shares at $24, above the range of $20 to $23. The company originally planned to offer 7 million shares of BASE stock at the same range.
The Santa Clara, California-based company provides NoSQL database technology to application developers. The software helps businesses manage their mobile applications. The company had 549 customers as of April 30, up from 511 in 2020. The list includes Cisco Systems (NASDAQ:CSCO), eBay (NASDAQ:EBAY), General Electric (NYSE:GE) and Marriott International (NYSE:MAR), according to Couchbase’s website.
A NoSQL database provides a mechanism for storage and retrieval of data that is modeled in means other than the tabular relations used in relational databases. But the “No” doesn’t mean “no,” instead it’s “not only” SQL, implying greater flexibility for developers.
The pandemic has only increased businesses’ reliance on mobile apps for customer interaction and transactions. There were about 218 billion annual mobile app downloads in 2020, about a 7% year-over-year increase.
BASE Stock IPO Signals Strong H2 Market
The Couchbase IPO was cited earlier this month as a sign of a strong new stock haul. “Investors said as 2020 closed that quarters one, three and four would prove very active in terms of public market exits this year,” TechCrunch noted. “Then the second quarter surpassed expectations, with more companies going public than at least some market observers anticipated.”
What are BASE stock investors getting in this new offering? Couchbase lost $14.6 million for the quarter ended April 30, up from $11.4 million in losses for the same period in 2020. Total revenue rose 21% to nearly $28 million for the three months ended April 30.
It has been a pretty good year so far for enterprise software companies like Couchbase. Shares of iShares Expanded Tech-Software Sector ETF (BATS:IGV) are up 13.2% year to date. The exchange-traded fund (ETF) has one of the biggest portfolios in the sector, holding some 125 stocks among its $5.14 billion assets under management.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News and as a buyside equity research editor. His Substack newsletter, TLV Strategist, covers the Israel business scene.
