Good morning, everyone. Welcome. Thank you all for coming, and welcome to everyone who's joining us today on the webcast. I'm Edward Parker. I serve as Head of Investor Relations for Couchbase. Very excited to be with you all here today in New York for our first Analyst Day as a public company. If you'll indulge me, I'd like to quickly go through the obligatory remarks. Today's discussion will contain forward-looking statements, which include statements concerning financial business trends and strategies, market size, product capabilities, and our expected future business and financial performance and financial condition, among other things further shown on the disclaimer slide. Actual results may differ materially. These statements reflect our views as of today only, and we have no duty to update these statements. Forward-looking statements are subject to risks and uncertainties. For a discussion of the risks and other important factors that could affect our actual results, please refer to the risks discussed in our most recent annual report on Form 10-K or quarterly report on Form 10-Q filed with the SEC. We will also discuss certain non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, as well as how we define these metrics and other metrics, is included in the deck and will be available on our investor relations website. Okay, I first met Matt and Greg about six years ago during my former life as an analyst, and now I've had the privilege of working for them for over three years now, and so I've seen firsthand how the company has grown and evolved and all the hard work it's taken to get us to where we are today. So I am personally thrilled that today, that all of you will have a an opportunity to get a deeper and hopefully richer appreciation of what we've built and where we are going. So we have a outstanding agenda for you today. Matt Cain, our Chair, President, and CEO, will kick us off, dive into why now is the time for Couchbase. We'll then hear from Gopi Duddi, SVP of Engineering, and Scott Anderson, SVP of Product Management, to talk our technology and our innovations. Then Huw Owen, our Chief Revenue Officer, will talk about our go-to-market motion and everything we're doing to drive efficient growth. We'll have a quick break, then John Kreisa, our CMO, will host a panel of some of our outstanding customers. And finally, Greg Henry, our CFO, will close us out, and we'll discuss how all this translates to the financials of the business. We will then have plenty of time for Q&A, so kindly request that you hold questions until then, and afterwards, I hope that you can all join us for lunch. Okay, let's go. With that, my pleasure to introduce Matt Cain, President and CEO of Couchbase. Thank you. Good morning. Right around seven years ago, I got an email from an investor who I met, who at the time I had been talking to about a lot of potential opportunities. This investor was the first investor at Couchbase and our lead investor at the time. He wrote me an email, and he said, "I wanna talk to you about maybe the best company you've ever heard of." This really took me aback. I thought about it. He had introductions... Am I on? Hello? Hello. Better? Now? Hello? Use this one. Sorry about this. Yeah. We gonna go-- Yeah? Yeah, good. Okay. Maybe the best company you've never heard of. And, you know, I was talking to him about a lot of things, and it was like, wow, that's, that's a very powerful introduction. Now, in the meantime, I was in a little bit of a crossroads, trying to figure out, like, you know, what kind of company do I wanna join? And I have friends giving me advice and basically putting the fear of death into me on, "Man, do not take the wrong job." Right? You pick the wrong thing, it could be career suicide, and so it's like excitement on one end and, and fear on the other. And so I said--thought to myself, "Well, I need to, I need to take this pretty carefully and, and really start to dig in. How could this be the best company I've never heard of?" And so I started to get stuck in on anything I could get my hands on: research reports, white papers, technical architectures, stuff by academics, digging into what is the database, what is it gonna mean on a go-forward basis? What is it that Couchbase has that other people don't as a starting point to take advantage of, of this big market? And after all that research, I came to the conclusion that I think that investor knew at the time, which was Couchbase had three magic ingredients. The first was a massive market that was poised for disruption. The second was core differentiated technology that could be extended and could be sustained. And the third was a group of people that were committed to build something truly special. Now, I'm so glad I came to that conclusion because I stepped into Couchbase; it's the best decision I've made. One of the values we have at our company is to make tomorrow better than today, starting now. And because of the hard work of so many people, those three things are more true now than they were seven years ago. In fact, I might have used that very introduction with some of the speakers you're gonna hear from today, and they've gone through their journey of evaluating the opportunity, the technology, and the team. And so I thought it only appropriate that I would take you through that perspective as I think about it today. Now, when I think about opportunity, people often wanna jump into, you know, the total addressable market, and that's certainly important. But as somebody who's spent multiple decades in technology, I like to think about, well, what is it about the technology and how is it impacting the world? What unmet, underserved need are we enabling for customers? I live in a small town called Los Gatos in Silicon Valley, and one of the great joys I have is driving one of my daughters to work or to school. It's only about a 2-mile drive, and we leave our house, and we go through a couple medical facilities. We pass by, you know, mid part of town, there's about a bunch of banks and financial institutions, and we roll through this classic downtown that's filled with retail stores. On one particular morning, we're getting into, "What does Dad do every day at work?" And so I have the challenge of explaining NoSQL distributed databases to my 13-year-old. And I started to say: Well, you know, Isabella, let's think about what we just drove through. You see those medical buildings over there? Do you realize that one day, me or you or one of the other family members could be in an operating room, and the procedure that you're having is depending on a Couchbase database? It's analyzing what's happening with you and your body. It's helping the surgeon with the very things that they're trying to do, and that's powered by software and robotics that are enabled by a Couchbase database. How about those banks that we went by? You know, when your mom and I help you open a new account and give you money to pay for whatever you need to pay for, all the fraud prevention and digital payments, there's a good chance that that's running through Couchbase. Now, at this point of my impassioned speech on the importance of databases, I'm losing her attention. She's on her phone, pulls up a game, and I said, "Isabella, that game that you're playing right there, that too could be powered by Couchbase. The way you're interacting with your friends, the thing that's allowing you to move up the next level and, you know, progress as a gamer, that could be powered by Couchbase. And oh, by the way, I would be willing to bet you that you've already asked your mom that you wanna go shopping downtown after school. All the experiences that you have when you walk in and you've already shopped online, but the person greets you, the associate, with a mobile device and helps you work through the inventory, that's enabled by Couchbase. The very experience that you're having throughout your day is powered by the work that we do. We have the potential to change the world with our technology, and it's one of the core reasons that we're so excited about what we do. And I would be willing to bet that many of you have interfaced with an application powered by Couchbase many times today and will do so many more times before the day is over. When we think about these applications, we think about them as the gateway between the physical and the digital world. But the thing about applications is they are nothing without databases to power 'em. So people get really excited about big total addressable markets. In fact, IDC suggests that by 2027, this is a $136 billion total addressable market. Some people talk about this as the most exciting layer in the modern tech stack because of its sheer size and magnitude. What gets us excited, not only are we not opportunity-constrained, but the disruptive nature of this is aligned to the very problem that we decided to solve. And if you look at the fastest-growing segments of this $136 billion TAM, the drivers include high performance and scalability for modern applications. Some of the fastest-growing segments, non-schematic data sets and cloud databases. Now, I'd ask you the following question: In a world of AI, are we gonna need more databases that power high-dense, mission-critical, data-driven applications or less? And as suggested here, AI only further accelerates this total addressable market. Now, one of the great things about Couchbase is we don't have to get too specific because this opportunity is so big. In fact, our biggest challenge is deciding which problem we wanna solve. Now, before I get into that, I wanna hit on a few critical market drivers that we think about on a daily basis. It's one thing to build technology, it's another thing to do so in service of the customers you're supporting. First thing, cloud. This is no longer about strategy, this is about execution. We talk to customers on a daily basis. You're gonna hear from several of them today. There's not a single one of them that isn't obsessing over their cloud strategy. Which applications need to be cloud native? What is my multi-cloud strategy? How do I support hybrid cloud? When we think about cloud, it's not just a thing in the sky. I've got to extend that to the edge. All of these things are central to every decision that companies are making as it pertains to their technology. While we all know the importance of applications and that we're living in a world of digital transformation, the number of people to build and modernize applications is far less than the demand to do so. So companies have to think about their own developer productivity. While we're focused on building new solutions, how do we repurpose a labor force that's out there that wants to build modern stuff with new tools? So you have to be mindful of developer productivity. Now, at the same time, you can't just throw a new tool at every single problem. The technology ecosystem has never been more complex, and one could argue it continues to increase almost exponentially. So companies need to be mindful about the platforms that they make strategic decisions in and be able to do more with less, empower developers with more tools, empower the back-end teams to manage things more efficiently, ensure that cost-benefit analysis makes sense... and we sit here on probably the single biggest market transition that any of us will ever experience in our lives, and that is artificial intelligence. So how do I have a platform that solves all these needs, but future-proofs and enables me in a world of AI? At Couchbase, our mission is to simplify how organizations develop, deploy, and run modern applications wherever they are, and that includes at the edge. This is a pretty audacious mission, and we've been committed to it. And what have we done? We've taken a platform approach to solving these problems. We've built the cloud database platform for modern applications, which we define as mission-critical applications that our customers are running their businesses on. At the core is Couchbase Enterprise, which is both our server and mobile product, a high-performance, highly scalable, multimodal database that brings to bear many, many services in an integrated architecture and platform. It can be deployed anywhere and is available in a subscription model. Now, we've very carefully architected our managed offering that we all know as Capella, and we're gonna spend a lot of time today on the benefits and the importance of Capella. But we were very intentional in ensuring that when you use Capella, you get the full power of Couchbase. All of those capabilities that we worked so hard and stayed so committed to, with a consumption model that reduces barriers to entry and makes it that much easier for customers to use. Now, as we've navigated this, we have stayed committed to architectural differentiation, and there's things that make Couchbase unique, and I would argue that these unique attributes are never more relevant than, than they have been. And the product teams are gonna spend time digging into this. But we think about incredible scale and performance. How do we do that? Because we have an in-memory, shared-nothing architecture, amongst other things. Developers need a highly flexible data model. At Couchbase, we chose a schemaless data model, JSON, that supports ingest data from multiple sources, structured data, unstructured data, proprietary, public. This world lives in a diverse, dynamic, and distributed data model, and we have that as part of our core architecture. Now, at the same time, managing all that complexity cannot come at the expense of developer efficiency, and so every decision that we've made is ensuring that developers will harness the full power of this platform, but do it in a way that's easy for them. In the very early days, we made a radical commitment to supporting the de facto language of databases called SQL, which stands for Structured Query Language, and we figured out the computer science to map that to an unstructured database. These are the types of problems that we've solved because it's in service of the very customers we want to support. We continue to add capabilities for developer productivity, like iQ, the copilot that we launched just recently inside of Capella. We believe that modern applications are gonna exist in a cloud-to-edge architecture, and if I were to ask every one of you to imagine an application that you depend on that's gonna be fundamentally better with AI, and I asked you, "Where do you think you're gonna be accessing that application?" I'd be willing to bet that most of you are doing that at the edge. And it's one thing to try to replicate data at the edge or push an application there. It's quite another to have a thought-through, architected architecture, inherently designed for cloud to edge, with the data movement and distribution technologies that we've committed to from the beginning, and enabling that at scale and performance levels that meet the demands and the SLAs of the applications we're gonna depend on. Because of our underlying architecture and things like separation of resources, we're able to have the highest scale and performance, but with the best TCO. And so we often talk about architectural differentiation, and everything starts with our, with our technology, but these things are never more relevant than they have been today. And so when I talked about that email, those three things, huge opportunity, differentiated technology, and did we have the people to build something special? Well, we're very proud of what we've built up to this point, and these numbers reflect our results as of last week's third quarter announcement: $189 million ARR business, very healthy growth rates, 115+ net retention rate, amazing renewal rates, a customer base that we are extremely proud of, a land and expand model that shows our product market fit with the most important applications and the most important enterprises, and future growth vectors like Capella, AI, and leverage that we're gonna get out of our investments. Now, what's interesting, and I talked to many of you over the course of the last week, you said, "You know, that was a really great quarter. You all continue to execute, but something feels different. I'm sensing just a little bit more excitement in what I'm hearing from you all." And in fact, you picked up on something right. And what is that thing? It's that we believe that this is just the beginning. We're just getting started. And so what we're here to talk about today is the following thing: We have worked so hard from the very beginning of our company to be maniacally focused on a foundation that we could build a generational company on. And our speakers today are gonna take you through more detail on the underlying technology and why the differentiation is so unique and so important. We're gonna follow that up with discussion on how we've built a highly orchestrated go-to-market model. We've got some of our go-to-market leaders in the room, and they would all tell you that selling databases is hard. But to have the level of predictability we have comes because of our instrumented go-to-market model, which is gonna benefit us as we go forward. We are now at the point of inflection with Capella, and we wanna talk a lot about that today. What is the offering unlocking for us, not just for our customers, but how does it make our jobs easier? How is it easier to build product? How is it easier to support our customers? Equally important, how does it make the job of selling and getting the value proposition of Capella into the hands of our developers and customers that much easier? And then we're gonna talk about the leverage in our model that's coming as a result of this foundation and the inflection, and that leverage is product development, go-to-market, and more importantly, the financials. What I think you're gonna hear today is ongoing excitement about this generational market opportunity, our core differentiation, but the fact that now is the time for Couchbase, and our future has never been brighter. At some point later today or tomorrow, when I'm talking to somebody to come join us, I will be talking about this massive market opportunity, differentiated technology, and a core of committed people to build something truly special, and that's what we believe our future is. You're gonna hear from the team, you're gonna hear the enthusiasm, and we are really excited to share the details today. To get us going, I'm very excited to announce our next speaker, our Senior Vice President of Engineering, Gopi, to take us through our technology foundation. Gopi. Thank you, Matt. Good morning, ladies and gentlemen. It's great to be with you all today. As a quick intro, I am, my name is Gopi Duddi, I'm the SVP for engineering at Couchbase. I joined Couchbase about two years back. Prior to joining Couchbase, I was with AWS for a decade, and I had the good fortune of building some of their critical services like Redshift, Aurora, and Glue, and looking at what Couchbase provides for me. As a developer, the single important thing for me is speed of development. Time is money. The next important thing for me is to make sure that I don't have schema limitations, so that it doesn't stop me from making my progress. And third, is that I need to be able to build it on my laptop, build and test it on an on-prem system, then push it to the cloud for my production users. Let's assume these are my base requirements. Let's layer in some additional requirements I might have. The app needs to be able to run everywhere, including in the middle of the ocean. The app needs to be super responsive. And I need to leverage a platform that has built-in analytics so that I can personalize my app for end users as they wish in their own cohorts. And last but not the least, I need to be able to leverage the platform innovations that are happening so that I get to benefit out of that, so that my app becomes faster, better, cheaper over a period of time. So the way all this happens is by the architecture that we have. Primarily, at a high level, the architecture of Couchbase can be broken down into three distinct layers. The top layer provides our users with multi-model data access capabilities. This is built or powered by a foundational layer, which sits on top of a deployment layer, which seamlessly works between cloud and on-prem systems. The beauty of the architecture is that it can be shrunk to be run on cloud, on mobile and edge devices as well, without sacrificing any performance or functionality, which is pretty cool. So as you are looking at this, at the architecture, the question I would ask myself is: Why have a multi-model data access layer? As a developer, I would like to get everything that I need from a single platform. I no longer need a Dynamo for key-value store or an Elastic for full-text search. Couchbase comes with everything included. Why did we build our own foundational layer? One single reason: performance. For example, you get a 10x performance gain by using Magma Storage as compared to everything, every storage systems out there. So what did we see so far? I gave you a glimpse into the architecture. I also talked to you about why I would use Couchbase to build my app. Now, but what is that foundational principle that powers everything that we do at Couchbase? The first principle is we are memory first architecture, which is shard nothing. Why is it important? Laws of physics. Writing to memory is 10x faster than writing to disk, even SSDs. Second, we have an amazing scale, which we get out of our XDCR proprietary technology, and we use it for applications between nodes, and it's extremely simple. If you ask the customers, it will be extremely simple to scale Couchbase. You just add nodes. Nothing needs to be done by the developer. The system auto scales by redistributing the workloads among the nodes available. Third, we are a document database at our core. We are built for JSON, and we do this really, really well. And finally, we have a unique architecture for mobile that allows us to work in environments there is no connectivity. As I said, in the middle of the ocean, that's the technology that makes it all work. In terms of competitive landscape, we can segment our competitors into three cohorts: the legacy RDBMS systems like Oracle and IBM. Listen, I've worked in some of these firms myself. They have a rigid architecture, which is kind of antiquated and no longer pertinent for modern app building. The second cohort is the purpose-built NoSQL technologies like Mongo and Redis. What we have heard from customers is the fact that these vendors have issues when performing at scale. Moreover, while they call themselves databases, they lack basic functionalities like SQL to access their system. And finally, there is cloud-native vendors like Cosmos and Dynamo, which are purpose-built to solve one single problem. For example, Dynamo is extremely good at doing key value store, but if you want to bring in analytics, you need to bring in Redshift, which adds to the overall complexity of the system and cost. And not to mention, you are getting into a vendor lock-in as well. With that, let me invite Scott to the stage. Thanks, Gopi. My name is Scott Anderson. I'm the Senior Vice President of Product Management at Couchbase. I joined Couchbase about six and a half years ago, and when I joined Couchbase, Matt gave me a charter, and the charter was to define our cloud strategy and then execute on that cloud strategy. I'm incredibly proud of what we've been able to accomplish, specifically over the last couple of years since we launched Capella. When we launched Capella, it was available on a single cloud, AWS, and over the last two years, we proliferated that to GCP as well as Azure. We've extended it from just our core server technology to include our mobile solution with App Services. We've also extended the number of enterprise features that we've added, which are critically important for our existing install base to give them the features that they need so that they can easily migrate into Capella. What I'm gonna speak about today, I'm gonna talk about two different topics. One, which is how Capella benefits our customers. Second, how it benefits developers, how it benefits Couchbase, and gives us additional leverage. Then I'm gonna speak about how we're going to extend the capabilities of our overall platform to ensure we have the best platform for the next generation of developers who are building AI-powered applications. Earlier this year, I traveled around the world for a couple of weeks, and we had six customer advisory boards, some of our most strategic customers and leading technology companies. Some of those customers are Capella customers, other of them are on-prem. What they told me about the benefits of Capella is it brings world-class experience to all of the developers. Finally, and probably most importantly, how do we make them more productive? When we look at access, a developer can come into Capella, in just a few clicks in a minute, they can get a database endpoint with Couchbase in Capella, and then we give them a world-class experience. We're maniacally focused on ensuring our UI that we've built continues to be enhanced to meet the needs of developers. At the same time, it's not just about the UI, it's about documentation, it's about sample applications, it's about code that they can leverage to get started. And finally, we're building a robust developer community, where developers can learn from each other to give them the utmost experience to accelerate their adoption of Couchbase, and more importantly, their ability to build that next generation application. Now, finally, productivity. We announced iQ on August 31st, which is our coding assistant. And what does that allow us to do? It flips the support model on its head. We're no longer reactive to an issue that a customer brings to us. We're proactive because we understand the health of the system, and we can proactively remediate problems before they happen. And that gives a better customer experience and lowers our cost of support. Finally, feedback-driven support. Because we are monitoring all the interactions in Capella, we understand what features are being adopted. We understand where people are making rage clicks 'cause they're unhappy or they're confused about the application. This allows us to improve our documentation, update our UI, and constantly get feedback from our customers. We also use Capella to introduce new features before they're GA, which allows us to limit the number of customers who are exposed to that new feature, but gives us valuable feedback to ensure that we have product market fit, and we have all the features we need when we make that product or that feature generally available to the broader community of Couchbase users. So I'm going to pivot right now and talk a little bit about the future and our long-term product vision. We first invested in our core architecture 12 years ago and extended the multi-model capabilities of the platform. Then, over the last few years, we've delivered that as a service, making it much easier for customers to adopt and removing administrative cost of the overall solution. Our roadmap is going to make us even more relevant and applicable for the next generation of AI-powered adaptive applications. So let me go through the architecture. I'm going to break this down into four sections. I'm going to start at the top, adaptive applications. So we look at adaptive applications, what are the requirements for them? They must support transactions. They must be able to provide real-time, complex analytical queries. They need to support generative and predictive AI. And we do that with the Capella platform. If you look on the left side of the screen, you'll see OLTP, Couchbase Enterprise Server, our multi-model capabilities with KV, query, SQL support, full-text search, is one Couchbase cluster, but multiple clusters, and ingest that into Columnar in real time, doing memory-to-memory replication. The data latency is in milliseconds. This is not about batch processing, where data moves once a week, once a day, or once an hour. It's moving at millisecond speed. The other thing, and probably the most important arrow on this chart, is the arrow to the left. We are unique in the industry. We can take the results of those analytical queries and pump that back into our database. And what does that mean? I can serve those responses in millisecond response time or millisecond latency, and I can process millions of operations per second. Analytical systems are not designed to do that. They cannot handle a high concurrency of requests. That's what our KV engine is built to go ahead and do. Now, all of this is incredibly important for Couchbase, but we work in a much broader ecosystem. Day one with Columnar, we announced a number of integrations, the ability to move data from relational systems directly into our Columnar service. Other NoSQL providers' data can be ingested directly from the UI and Capella into our Columnar service, and we have full access to S3, which is really the dominant object store. That allows a customer to be able to combine data from multiple data sources, Couchbase, as well as third-party data, and both batch that to be separate and distinct, as I mentioned before, so you do not disrupt your production application in your database. You need to have a multi-model capability. You cannot be accessing data from multiple systems and streaming that data. It brings complexity and latency in the system. And finally, you need to be able to support the edge and device. As Matt said, that is where data is created and consumed, and our ability to persist data and eventually be able to persist models as they continue to shrink, and we've seen that in the open source community, to run the inferencing at the edge on the device is going to be critically important to reduce latency, be able to perform tasks in a disconnected mode if required. So applications leveraging Couchbase will be hyper-personalized and context-aware. They'll include the ability to have user-facing analytics, which is critically important, not just bringing kind of simplified data, but complex data into the application. And finally, to the business owner and the application owner, the ability to provide robust insights about how their application is being used. Before Huw comes up, to discuss our go-to-market strategy, let's have a look at what's possible in the future. Can you guys go ahead and roll the video? We all have places to be and things to do. New York, vacation trip day. Some big, some small, all important to you. Your rideshare to the airport will arrive in 15 minutes. Lights and sprinkler times are set. Travel details sent to pet sitter. Modern apps tie everything together, making your life easier and more personal. Here's 20% off lunch at your favorite airport restaurant. Time for a quick drink? They can even work when there's no internet. Continue with your game of 4 Pics 1 Word. With more proactive data, life is better. Congratulations on gold status. Three next steps to get you to platinum. Personalization will just become normal everywhere. Your streaming playlist is now on the hotel TV. Would you like to go to a local fair trade flower shop I found in the neighborhood? - My name's Huw Owen. I'm Chief Revenue Officer here at Couchbase. I'm delighted to share with you some insight into what we do from a go-to-market perspective, but also how we're driving efficient market velocity. If there's three things you can take away from what I'm about to talk about, it's firstly, to drive further efficiency. So everyone's talked about the call they got from Matt. Mine was about five and a half years ago. Matt gave me a call. We'd worked together in a, a multi-billion-dollar company in the past, and he encouraged me to go and speak to some customers. Slightly different to what he asked Gopi to do. Obviously, I was going to talk to customers. Gopi went and spoke to, technical people. The three things that took me aback when I spoke to these customers before joining: firstly, the use cases that we were helping them to deliver were extraordinary, and we were massively technically differentiated as the only NoSQL database that could satisfy the requirements of these customers.... Secondly, the customer advocacy was unbelievable. We had a community of customers who were prepared to speak openly about what they do with us, and they would help us on our journey. And then the third thing, which was super important to me, is in all of these accounts, we had a huge opportunity to grow and to sell them more. And I'm delighted to say those three organizations have gone on to be, continue to be customers and have spent and invested a lot more with us over the years. This slide, I could literally have put up four or five versions of this slide, and I could spend all day talking about what we do for these organizations. I—hopefully, you've already acknowledged what's super exciting is we're relevant in every vertical. We have customers, we have advocates in every vertical that exists. And all day talking about this slide, and we're excited that when John hosts the customer panel a little later on, you're going to hear from four of our customers about how we work with them. So, as I mentioned, myself and Matt worked together in the past in a very large multi-billion dollar company. I've had the privilege over the years. I know it may not look like it. I've been in the industry for 25 years, and I've worked for large companies and smaller startups. What I would say with our enterprise go-to-market engine, we've been really set up for success. By the nature of what we sell, we sell globally, and we've got teams set up globally in all the main hubs that you would imagine to help us service both our prospects and our customers. We've set up our sales team and our field technical team to support our customers, and we've organized them in a logical way with our strategic largest accounts getting a strong coverage from us, both from a selling, account management, customer success perspective. We've got appropriate resources aligned to the major accounts that we've got set up around the world to help us leverage and extend what we're already doing with them, but also acquiring new customers. And then finally, we've got a team of people, mostly telephone-based, some field resources, who are helping us take advantage of the new opportunity that's opened up with Capella to service the opportunity that exists in what we call our growth mid-market space. So it's a very logical setup. We work very closely with our marketing colleagues, who've got a fully integrated marketing machine, driving awareness, education, and really supporting prospects through that decision-making process in ultimately selecting Couchbase. And we're highly instrumented. We've got an operational function of this large opportunity that we've got ahead of us and that we're in. So let's talk about enterprise and the bit, the way we've seen our customers grow with us. So how it would operate is we would land the first application, whether that be a existing use case that's been running on some legacy technology that they've decided to move over to Couchbase, or indeed, it's a new application. The way we've operated is we've landed, we've made our customer successful with that first application. Historically, we've seen that application grow, which ultimately results in more technology being required from Couchbase. That's given confidence for us and the customers to then look at adding additional applications that we sell to them, and we see the account grow, which you see with these bubbles. And then ultimately, what we're trying to get to, which we've got with a number of our customers, is that we become a strategic platform. We become the NoSQL technology of choice, and indeed, we've got many customers who've used us for literally tens of applications that they deliver both internally and externally to their customers. So this is the enterprise model that has helped us get to where we are now, and when we talk about the foundation, this is the foundation that we have. I've already touched on our partner ecosystem, but let me talk about it in a little more depth. As you can imagine, and I'm sure you've heard from us before, we work with the three cloud service providers. You're going to hear from a colleague in a little while about what we've done with AWS and why we believe we've built a really successful partnership with them. But we've got the same relationships with all three major cloud service providers. The second area of independent software vendors, the likes of Amdocs, where we work with them in a multifaceted way. So indeed, Couchbase is built into many of Amdocs' offerings as an example, that they've taken to market, that we are built into that, which in many cases is invisible to that end customer. But we also work with them to help them go to market and resell our technology into that telco space. The third area, global systems integrators, the likes of Infosys, where we work with them to build out applications that they build and ultimately run for their customers. We've also got a community of bespoke, boutique, more local SIs that we work with as well, that deliver our technology to those customers. Finally, obviously, an area we're very focused on is the technology ecosystem, to make sure that we're partnering with other technology companies to make sure we've got the relevant integrations that will support our customers in how they build applications with Couchbase. So takeaway, we've got a great partner ecosystem that gives us scale and reach to again, drive more efficiency going forward. So when we talk about the inflection point of Capella, and again, you've heard Scott and Gopi talk about the product. It really has changed the game for us, both for our existing customers and acquiring new customers. Why? It's a more developer-oriented product. Again, you've heard from Scott and Gopi on that already. It's much faster, and I'll talk about this in a bit more detail in a moment, but it enables you to start small and grow fast. The barrier to starting with a Capella customer is much lower than it would be on the enterprise side. We're very aligned with the cloud service providers. We've got highly incentivized starter packs that exist on the marketplace, so it's very quick, very easy for a prospect to start on their Capella journey with us. And then finally, it's a very strong TCO message. We've got a really, really strong message when we sit down with both our customers and our prospects in helping them drive TCO into their application by leveraging Couchbase. What you see on the screen here is a number of organizations, some who are existing customers of Enterprise, that have made the decision to move across to be a Capella customer, and other organizations that have started their journey with us on Capella. But it really has changed the game for us in what we're able to offer to our customers. So I've already alluded to, it's slightly different with Capella, and I thought it would be of interest for people to understand how the motion of acquiring a customer can be materially different between an enterprise prospect and a Capella prospect. So on the screen here, what you'll see is a few different stages of a given relationship that we would build with a prospect. So firstly, take the evaluation process. If we're selling enterprise software, there are multiple touch points that you have to have with a given prospect in that selling cycle. You might have to speak to many different teams to build out the solution, to understand what the requirements would be from that prospect. With Capella, it can quite literally be a developer who gets going on that journey. The volume of people that we have to interact with to acquire a Capella customer is dramatically smaller than what it would be in selling enterprise. Deal sizing. So one of the things that we have to do when we sit down with a prospect is to articulate what is their requirement, the sizing of what they need to purchase from Couchbase. Well, with enterprise, that can get quite complicated. We might have to interface with multiple different teams within that organization to come up with the best accurate sizing that would be needed for that prospect. Well, as you've heard me already say with Capella, there's starter packs that exist on the marketplace. It's as simple as pressing a button. There's no real sizing required. They can start on the journey with us. The sales cycle can be dramatically different. So on enterprise, again, it's a longer process. 12-18 months would not be unheard of within the enterprise space. Quite literally yesterday, we closed a new customer. The sales cycle was 6 days. From the first interaction to closing a transaction with them, it was that quick. The friction is much lower. Our ability to operate with pace and velocity with Capella is literally a game changer to what we've had historically with enterprise. I hear many of you ask questions of Matt and Greg about what we see in the market conditions. Well, if you think about when we're acquiring a new customer, the initial deal, by definition with enterprise, is higher. It needs more approvals. It needs to go to higher levels within an organization for them to buy, so it takes longer. It's something we need to do from a very much an enterprise sales cycle. With Capella, much lower friction, much quicker. Indeed, go back to it could quite literally be a developer starting off with us by just clicking on the marketplace. And then the final area, I think, which is of interest, is around how quickly can we get to a follow-on deal? Well, with enterprise, regularly, the next follow-on deal comes at the anniversary of the first purchase. That's when we get the opportunity to upsell and potentially scope a wider opportunity for Couchbase. Well, with Capella, you start quicker, and you get to the next deal much, much quicker. So indeed, you'll hear Greg talk about it a little later on. We've got multiple examples now that a customer could make 3, 4 purchases in the first 12 months of starting on that Capella journey with us, whereas with enterprise, it could be the anniversary date. Hopefully, you found this slide insightful because I think it really demonstrates why we're excited, and when we talk about the inflection point, this is why. It is quite literally a game changer from a sales motion perspective. Now, when we talk about customer growth and how it can accelerate with Capella, you heard, you've already heard me talk about the ease and speed of deployment. You've heard me talk about how you can accelerate to new apps, and there is no anniversary because you've just burned through the credits that you've bought. Another area I'd just like to acknowledge is, we call it leakage, right? Now, what this is really about is being able to see what technology the customer's actually using, and this is a challenge always with enterprise software, that you don't actually know how much of your software is being used by that given customer. So we do have leakage because the nature that customers can overuse the license that they may not be consciously doing, but what might happen by accident. Well, with Capella, that doesn't happen because you're literally burning through credits continually, and so we talk about there is no leakage with Capella. So these two big numbers here, let me explain them. A customer on Capella goes from zero to 100K twice as fast as a customer goes from zero to 100K on Enterprise. A customer goes from $100K to $500,000, 4 times quicker on Capella than it does on Enterprise. So again, when we talk about the inflection point, the fact that Capella is a game changer, I'm sure you can appreciate why these two stats are very exciting for us. So our prospects easier to acquire, and they're growing much, much quicker with us when they're on the Capella offering. So you've heard me distinctly talk about a product-led growth approach to our customers at an enterprise selling motion. The key thing to take away is we are set up from a go-to-market perspective to service both motions. So whether that be using the alerts that we get from Capella, whether it's driving the work with our partner ecosystem, we're set up that a customer can join the family by going down a product-led approach with a trial, the development community, and ultimately converting them to be a customer. Or if that prospect still wants to go through a more enterprise selling motion of doing a proof of concept, building a richer relationship to start with us, we have the resources, and we're set up, both ourselves and our partner ecosystem, to get that prospect on board, so we can service both product-led growth and an enterprise selling motion. You've heard me talk about the efficiencies that come with Capella, and I just wanted to share a few points here that I think will be of interest. Within Capella, there's a lot of embedded product signals. So when a customer starts or prospect, excuse me, starts running a trial or starts on the beginning of the journey with us, we get a lot of information back. We can see what they're doing in the platform, and it enables us, from a sales team perspective, to be very focused in where we allocate our resource to supporting that prospect to getting on board with us. So we get a lot of product signals. From an observability and a telemetry perspective, we also have signals to see what our customers are doing with that product. So we can see if they're going down the wrong path, or we can see if they're trying to do something new. It enables our field technical teams to get ahead, to get involved, to offer our support to that customer, to that prospect, to hold their hand through the early days of the adoption of Capella. It also enables us to work much tighter with our partner ecosystem. As an example, when we work with AWS, we work with them from a registration point of view to tell them we're working in one of their given customers. An analogy I would use: the telemetry we get enables us to know where we're putting the fishing line into the sea. It gives us the ability to be very targeted in how we allocate our resources and our partners' resources to make us much more accurate in where we win. And then finally, this streamlined marketing engine. We talk a lot about our ideal customer profile. Well, the marketing engine, you can imagine, if we've got this telemetry, we can see these signals, it enables us to be very targeted with our resources to make sure we're getting the right information into the hands of that prospect or the customer to make sure they understand the potential that they can get out of Couchbase Capella. So again, when we think about efficiencies, that's gonna come from Capella, and we're starting to see it already. It enables us to be much more accurate. It enables us to work with our partner ecosystem much more effectively in where we target our efforts. And again, this is why we get super excited about what comes from Capella. So without any further ado, what I'd like to do is just share a clip here from Chris Grusz at AWS, who's the managing director of their technology partnerships. If you can play the video. My name is Chris Grusz, and I serve as Managing Director for Technology Partnerships at AWS. AWS and Couchbase have had a nice trajectory together, delivering meaningful results and accelerating innovations for customers as they build modern applications with our solutions. Our collaboration is rooted in a couple of key areas. First, Couchbase offers a highly differentiated database platform that enables customers to build next-generation applications quickly without compromise, while reducing cost. Furthermore, Couchbase has developed an excellent product with Capella, has made extensive use of AWS, leveraging over 20 AWS services as part of the solution. Like AWS, Couchbase is obsessed with customer success, and we see real impact Couchbase can have on monetization efforts. Second, we've aligned our go-to-market strategies focused on both expanding workloads for existing customers and acquiring new customers. AWS Marketplace is driving larger deals and faster sales cycles as part of that solution. When customers purchase Enterprise or Capella through AWS Marketplace, it's a win-win. Looking ahead, I'm very optimistic about the large opportunity in front of AWS and Couchbase. We are still in early days of cloud and AI, and having a leading cloud database company paired with the world's largest cloud computing company will help customers accelerate innovation. AWS and Couchbase are well-positioned for this next phase of growth. So, in summary, hopefully you're taking away from my presentation. We have a strong foundation. What the Enterprise product has done for us is enabled us to be engaged with many customers, and it enables us to really build from that strong foundation that Enterprise gave us. Capella is an inflection point. The opportunity that Matt talked about is huge, and Capella gives us the product to take advantage of that opportunity. Finally, with Capella, it enables us to be much more efficient in how we work with our time and our partner ecosystems time, to be more accurate in how we grow our relations with our existing customers, but also acquire more customers as well. Without any further ado, I think we've got time for a coffee and a quick bio, and if people could come back in 10 minutes, so we go on to the customer panel from there. Thank you very much for your time. Yeah. So John at the MC, Steve Baker, so like on him, Jerome, and then here. This is TDA, so I guess we're all sitting there, the TDA, but all their mics have got to go on, so. Yo, if you're going to do the candles, I would do the Bath & Body Works. Right now, they got a sale for that for Christmas. They only have it once a year, this sale, so it's only for, like, I think December 5th all the way up to, like, December 20th. Mm-hmm. Yo, the candles that they sell on there are, like, the best candles I've ever seen, really, hands down. Like, I'm talking about. So they actually have a sale, all the candles are $5, which is originally $30. Really? Yeah. That's why I'm like, I'm about to go back in there. All right, so we got to get the next panel miked up. Yeah, we'll get them miked up, and then I'll just go ahead and use the handheld so that you can use the- No, we have 5. I know, but there's Greg after me, and there won't be a chance to get him miked. Ah, I see what you're saying. All right. Everything is set, so we won't have this issue. Okay. That, that was an issue, that the mic wasn't even set. So. But it wasn't the way it plays it then? Okay. If it's not set, it doesn't matter. It's not going to come up. And then Lamont pointed out it was on channel 9. Oh. Which was not the channel that it was assigned to. God damn! Yeah. My panel is here. Okay. Number 2. Number 2? Hey, get Jerome. Okay. So just place these down, so I can have no idea which is which. Good morning. Morning. How you doing today? So far, so good, but I haven't said anything. So you quit, you quit on it. So it shut? It sold. Yeah. Maybe it was ringing your bell. Yeah. That's going to be comfortable for you? Yep. Okay. Figure it out. Is one of the- Can we turn off the mic? Somebody on the live stream saying that the mic is still hot. Someone got a hot mic. It's on? Yes. It's blocked. ... ... Okay, let's go ahead and get settled back into the seats, please. Try to keep the trains somewhat running on time. Thank you. Good morning to everybody, and good morning to everybody on the stream. I'm John Kreisa. I'm the Chief Marketing Officer here at Couchbase. I, too, had a call from Matt to come and join the company. It turns out I have been in the data space for a long time, so I was aware of the great things that Couchbase had. So it was an opportunity that I very much looked forward to to taking. I have the distinct pleasure of going through the industry leaders panel, our customer panel. Of course, you've heard from some of the great examples that Huw mentioned and some of the ones that Matt mentioned, and hopefully now, you know, really it's, it's best heard from customers and some of the real live customer use cases and the impacts that Couchbase is having, in fact, on those customers. So it's all about those applications. So Greg, if you give me a click, I'd like to welcome to the stage Steve Baker from Playgon Games. Steve, please come on up. Thank you. Jerome Benoit from Doctolib. Jerome. Karthik Mani from Aptos Retail. Karthik. And Haveer Singh from Western Union. Thank you, gentlemen. We'll just settle in here. Firstly, just on behalf of Couchbase, thank you all for taking the time to come and, you know, be on the panel and share your stories. We really appreciate it. I think first we'll just start off with an easy one. We'll start with you, Javier. Just introduce yourself and your role at the company. Morning. My name is Haveer Singh. I am the Chief Data Architect, Head of Data for Western Union. I run data globally for Western Union, including all data platforms that support all critical applications, including risk, finance, and core money transfer services, and the digital bank. Thank you. Karthik? Karthik Mani. I'm responsible for the product organization, so I'm the Chief Product Officer and Chief Technology Officer at Aptos Retail. And product management, engineering, architecture, all of those report to me. Aptos Retail is a smaller company among the folks that are here. We are a Goldman Sachs-owned company, and our focus is on serving retailers, bring together store commerce and online commerce. Thank you. You have some amazing customers. Jérome Jérome Benoit. I joined Doctolib since 4 years ago. Doctolib is a fast-growing scale-up in Europe, and our mission is to simplify the daily life of healthcare professionals. To make it happen, we build a booking management solution used by 80 million patients to book appointments. I'm Engineering Director, and I'm in charge of financial services by the easy builder Couchbase. Thank you, and one of the hottest startups in Europe. Steve? Hi, my name's Steve Baker, the CEO of Playgon Games, and unlike my very highly technical, compatriots here, I'm where the buck stops in our group. I think you said you were the- The official 'no' department. The official 'no' department. Yes. Yes, in fact. So that's great. That's a little bit about who you are. Let's talk about the applications. I'll start. I'll go back to you, Jérome, on the application. Can you give us a little more detail of how, you know, the application that we're being powered by Couchbase? Yes. Doctolib, we have a younger company. We are just 10 years, and at the beginning, we build a booking management solution as a first product, and today, it's used by 80 million patients and 400,000 doctors in Europe, in France, Italy, and Germany. We build a second product, a video consultation platform. It was used during the lockdown, you can imagine it. And since 4 years, we decide to build a new product, a mission-critical product, to simplify the daily life of healthcare professionals and to provide a full operating system with a clinical part and a financial part. For this system, when we think about the architecture, we wanted to build a solution fully resilient, when infrastructure is down or when the network is down. And we build our solution on Couchbase to move all data, invoices, on the go, when doctor go to a patient in the in-home visit. ... That's great. Clearly, mission-critical operational data, transactions, and connecting, and medical data, of course, connecting doctors and patients. That's, that's great. Karthik? So if you imagine yourself going into a retail store, you want to buy something, or you want to pick up something that you ordered online, you want to buy something nice for your spouse, and you want to maybe order something on the other coast to your niece who's there, right? So all of those transactions can be done on a mobile device. You tap your card, and you're ready to go, right? That is what is the magic that we try to create for direct-to-consumer brands. And what needs to happen for that one, right? Your entire catalog of products that you sell should be available on the device. Whether you have internet connectivity or not, you should be able to transact. We are not mission-critical in the sense of, somebody dying, but we are mission-critical in the sense of business dying, right? They want to be able to transact on a Black Friday. If you have one hour of outage, you'll be reporting that to the street. So you should be able to transact at very high reliability, and that's what we enable. So Couchbase helps us in terms of getting the data, price data, tax data, promotion data, any of those things on the cloud, and then make it available on demand on the device, offline or online. Yeah, mission critical. Both have talked about mobile, and we will definitely come back to that. Haveer? So Western Union has been around for 170 years. We are probably the oldest company in this lot. We have been transformed... We've transformed ourselves a few times. In terms of what we do with Couchbase is, and from an end-to-end perspective, capture, in terms of capturing the funds, working with the receiver fronts or the agent fronts on the other side. So all of that pipeline takes into account digital risk, fraud, and analytics, predictability, as well as, communication to the customers, and including preferences to customers. Couchbase powers all of that to our end customers. So our motto is, "Let's move data fast, so the money can move fast." So Couchbase helps us move the data fast. Very good. Thank you. So we'll go from the oldest company on the panel to the newest company on the panel, I believe. Yes, Steve? Oh, yeah, by a mile. So for us, we provide a live dealer table game experience, so a lot of baccarat, roulette, blackjack. Globally, 24 hours a day, 7 days a week, we are subject to pretty stringent regulations, so we need good capability, we need reliability, we need scalability because we're subject to anti-money, money laundering laws, we're KYC, so everything has to be very accurate. There can't be any latency, there can't be any on-prem, you know, servers that can be, you know, hacked. So everything for us requires very exact tolerances, otherwise, you know, our business fails in a minute from a regulatory standpoint and from a integrity standpoint. So we have to rely on a, on a very strong relationship with a very, very good partner. That's great. Thank you. And just, if you sort of think about the story that Matt told when he started us off this morning about the story he's telling his daughter about healthcare, financial services, and retail, sort of all represented here on stage. So quite proud of that. So, Haveer, just in terms of the journey, you know, you've been a Couchbase customer for a while. The company has been transforming. Can you just tell us a little bit where you are on your journey, your cloud kinda journey, as you're moving towards Capella? Yeah. So we started our cloud journey in 2020 during, I think, the peak of COVID. Many different reasons. The cost of infrastructure and maintaining data centers becoming expensive. Retaining talent, extremely expensive. People like Couchbase, AWS, they're all stealing good talent. So it's hard to compete. I'm a financial services company. I'm not an infrastructure company. I'm not into... I'm a pseudo tech company. I wanna be a fintech where I can bring the best of breed of softwares to build end solutions for the customer and not worry about, "Is this database up, or is this server up?" You know, I don't want to be in that business of swapping in and out. I want to be in the business of serving our customers. That was one of our core decisions in... Regulations, you know, are so stringent that we have to maintain some kind of a, you know, what if AWS was to go down, right? It hasn't happened, like, per se, but there's enough DR, but we have to maintain some of that stuff. So for Couchbase, we started with, you know, lifting and shifting whatever we had initially on our on-prem environment to the cloud. One thing we realized is, we were taking the same mistakes. We were doing the same mistakes of trying to manage it ourselves, and that's when we realized Capella is a platform that, you know, database as a service, that I don't need to worry about. It's a 99.999% uptime, and they've guaranteed it, and we have seen it. You know, it's reducing my query performance by 50% to what I can tune. It's always available, and it is always DR ready because the data is available in multiple zones. Given the global nature with which Western Union operates, we have huge data centers or, you know, huge requirements to store our data, both in the U.S. and internationally. The Couchbase basically offloads, say, all that complexity behind the scenes in the Capella platform, and it basically gives us a no-ops platform to work on. We've saved quite a bit, year one, over $500,000 right off from infrastructure costs, and then over a period of time, we've been saving cost on removing redundant human talent that was basically sitting and doing nothing, I would say. For us, it's been an interesting journey. Now, we have about 10 applications running on Capella today, and we have a strong demand to move some other application, consolidate our NoSQL databases in the future as well. ... That's great, very interesting, and, thank you for the note on the, on the TCO, like just how that's actually adding value. And also the platform approach, which I think you-- you know, we heard Gopi and Scott reference earlier, but how we've taken that platform approach to allow you to incorporate those, those additional services. So, Karthik, I think you're on a journey as well. You want to kind of let everybody know where, where you are there? Yeah. So we are not 170 years old, but we are somewhere around those of, Do I look that old? No. No. So, five years or so back, we started on a journey saying that we want to build a SaaS solution entirely from scratch, cloud-native application, and we chose Couchbase as our solution. Early on, we decided that we wanted to be platform-neutral, cloud provider-neutral, so we tried hosting everything, right? From Couchbase to our own Kubernetes, everything we tried hosting on ourselves. Then we realized that finally, our value proposition to our brands, like a North Face or somebody like that one, is how fast we can deliver functionality, not how well we run our infrastructure. So, we decided that we are going to go to managed services from as many vendors as possible. So we moved to Aurora, we moved to, EKS, all of these things. As part of that one, we also are in the process of moving to Capella, for us to be able to deliver this kind of great capabilities around that one. But we have been using Couchbase and delivering solutions to some of the largest retailers today. Yeah. As I mentioned, you have some amazing customers. And similarly, that ability for Couchbase to provide that service helps you focus your resources, as you said, and think also for you, Haveer, on the appropriate value add that you can- Yeah -as an organization. Yeah, absolutely. Thank you. Jérome, I know there's, you know, there's lots of, you hire lots of developers. We were talking about the number of developers that are joining Doctolib's amazing growth that you've had as a company. Can you just talk a little bit about the developer kind of experience, how you are bringing more developers onto using Couchbase and kind of what their, you know, what their approach is? It doesn't write the code in charge of security and data isolation. And you keep the middleware your database takes this work in charge. The database, the middleware is in charge of replicate the data, only the data for a given authenticated user. And as a developer, you just write new feature without in mind all the consideration regarding to security, data isolation. And this is a complex topic, and it's a source of lot of stress. It's a huge responsibility for our developer, and just do nothing on this topic. It's just magic for developer. I'd say that there's a reduced complexity. Yes, yes ... from developing on a platform approach that has all the capabilities. We heard about it, obfuscate some of the complexity from Haveer and the things you're trying to do as a global business. Yeah, our developers actually love the platform. Every time, you know, somebody in the new leadership comes and say, "What if we use this?" And they're like, "Nope, we like it. It works. It's been performing well." And there's a strong, strong developer community behind it, and that's one of the reasons it's getting stronger adoption within the organization as well. So that's a key here. That's great, and that kind of goes to some of the things that... You know, Huw was talking about how get in there and sort of build an app, prove how well the technology works, and then naturally, natively, other developers want to come onto the platform, you know, to take advantage of, of what they're learning. I think what Gopi said was very resonated with me very well because that's what I heard from my developers, how quickly we can develop and how quickly we can scale. Mm-hmm. That's the key. Yeah, yeah. Yep. Steve, I want to come to you- expense that you would, you know, as down the road, you can come in at that enterprise level and really get your... You can get used to the Couchbase platform. You can get used really well for us. That's great. So that adoption pattern Huw was just describing- Yeah ... perfectly fits kind of how you were, how you're seeing the platform go along. Yeah. Now, that's great. And this, we can have anybody comment on this one, but I want to go back to mobile, right? Mobile, we heard about the offline sync, the ability to be able to deliver services in the video. You know, Gopi and Scott talked about it, but maybe I'll start with you, Karthik, on mobile, the importance of how that is helping you build a differentiated business and, you know, meet the customer need. Yeah. For us, we are a mobile-first company, and all of the transactions either happen on a tablet or on an iPhone or an Android phone, right? That's how retailers want to do business. They want their associates to be walking around on the sales floor and be able to help customers buy the products that they need or any other information that they need right there, so that they can be out of there rather than bring them over to a cash wrap, and cash wraps take a lot of space, retail space. So if you go to a New Balance store and buy something that is not in the store, you can't keep all of that information in the store on that device. So you need to be able to go to the cloud. For promotion calculation, price calculation, tax calculation, all of these things, you want to have the same code running on the mobile device as it happens in the cloud. Being able to have one database that is replicated, Couchbase Lite on the device, Couchbase in the cloud, and having the same code, being able to access both of these things, and it behaves the same way on both of those things, is really, really important for us. So those are kind of capabilities that are helping us deliver the great experience that we want when the product information is available at the store, and if they need to go to the cloud for other products that are not at the store, that's our... ... Well, that's great, and it's the very definition of a modern application. You are helping retailers with their brick and mortar compete with- Yeah online, right? By giving an experience that's more streamlined, plus optimization of their sales space, like a lot of different benefits. Yeah, though we don't look at it as competing- Well- we look at it as seamlessly- Yeah. going through both of those experiences. Fair. Fair. Jérome, your company relies heavily, it couldn't deliver the services without the mobile capabilities. Just wanna talk a little bit about the importance of mobile to Doctolib? Yes. As I said, we build a mission-critical application as a mobile first, but not only mobile first. We build our application based on Couchbase, on mobile technology, on desktop, and we have the capability to be resilient when the network shut down is in a medical practice. And we build a unique solution on our market with the capability to move the data from medical practice to patient home on the pocket, on the doctor through the Couchbase replication mechanism. And it's really a powerful use case for our user. Yeah. Critical, effectively. Critical, yes, yes. Yeah, yeah. It's unique. We have no competitor with equivalent solution. Thank you for mentioning that. So there are other providers out there. Did you evaluate other providers when you looked? Yes. Since 4 years, we evaluated Realm technology just before the acquisition by MongoDB. And, the technology was built uniquely on the mobile. And, we want to build one to build application universal application working on on the desktop, on Windows, macOS, and and on on mobile application. And, we chose Couchbase also for the the capability to customize and to extend the technology. In our use case, we manage sensitive data because we are we we use health data for for patient, and we want to build the capability to have end-to-end encryption on device. We work closely with Couchbase engineering team to contribute to co-specify a new feature in Couchbase Mobile to be able to plug our end-to-end encryption technology to Couchbase in order to encrypt and decrypt sensitive data on device. Mm-hmm. And it's clearly a game changer for us to use. A critical capability. Obviously, medical records is something that we all want kept safe, and we're providing that for you. And in both cases here, the ability to have the same database running on the edge, on the mobile, as well as back, you know, in on the servers, whether you're hosting it or we're hosting it in Capella, is critical capability, just that- Yeah ... the ability to have that seamless. Yeah, yeah. So Steve, you know, gaming, a huge growing area. Mm-hmm. Maybe if you could just talk a little bit about the importance also when you—as you build and expect the business to grow there at Playgon. We were talking yesterday about some of the, sort of the size and scale that you see, and what the potential is. Maybe you could talk about how you see Couchbase enabling that. Sure. And by the way, our service is mobile only, and, Please, please comment then. Yeah. So it, it's designed specifically for that. It's not designed for the desktop, so... And it's global, so, you know, latency is very important to us. So, you know, being partnered with AWS is very helpful, you know, to all of this, for everything we do. And the transactions, the number of people that are, you know, making bets and playing multiple games at the same time, you know, whether it's roulette and, you know, anybody who's ever played roulette, you know, you're putting money all over a board and you're double, you know, I mean, it, the number of transactions can be tremendous. You get a lot of people who will wager the equivalent of $0.25 at a time, and you get some people who will wager $1 million in less than 24 hours across your platform. So everything is very, very critical, and it has to be reliable. There can't be latency. It has to be mobile. As a matter of fact, we don't even have ours designed in landscape. It's designed for one-handed portrait use, and so everything has to fit on into that screen, and there's a lot of information, from game history, all kinds of... the bets, all, all of that. It has to be secured. So yeah, having the right partner is critical for us in this. Yeah. Yeah, and I mean, clearly, with all of the, you know, business-critical data that is going through those games, you have to make sure that it's, it's... And the scale, you said, you were saying yesterday, I think, you know, can be billions of, of, you know, bets made- Oh. over the course of time, and- Yeah, right. You know, for us, and we're a very, very small, inconsequential company in the space, but, you know, we've already had a, I think, $1.25 billion bet across our platform already this year. And we, and we have to do 10 times that to ever break even, right? You know, so this is a massive industry that does big dollars, big numbers of transactions, and, you know, you, you have to be able to scale. ... quickly and reliably to be able to break into this business and be successful. Yeah. Yeah, no, understood, and sounds like we're powering that well for you. We'll drop back to just a little bit of technical just to kind of validate some of the critical capabilities that are in the database. So I'll start with you, Javier. Just in terms of critical capabilities, what would you say your top three critical capabilities are in the database that we're delivering? Yeah. So the effectiveness of the database to provide millisecond-based responses. It's critical for us because, you know, in terms of our customer base, you can imagine somebody standing in a-- on a retail store and trying to send, like, $100 to his mom or someone, his family in Mexico or in India or in Bangladesh or whatever. They don't have time to spend, say, stand there for, like, hour, to wait for a decision to happen on that transaction. They wanna see if the money is sent already, and sometimes the person on the other side is actually waiting to the pickup, because that's the time. And for us, making-- capturing that funds, making sure the agent that is doing the transaction, his limits are-- he's within his limits to do that transaction, because they also have, like, a credit that we get, give them. Then making a decision based on our risk applications, understanding the AML laws, because this person could have been gone around, like, five places, placing some money, so have to do all of that stuff. And then finally, on the receiver side, taking their information, gathering their information, making sure they're the right person for pickup. All of this needs to happen in a few minutes. So for us, that's, that's very, very critical. That's the customer- That's- That's the customer experience right there. That's the customer experience, the agent experience as well, because these agents, all of them are not exclusive. Sometimes they have, like, four money transfer terminals, one for MoneyGram, one for Western Union, one for Ria, one for something else. If this doesn't work, he'll have lost a customer. He's not gonna come back again. So that's, for us, it's very, very critical. So that's one. The second one is NoO ps. For me, I reiterate, I'm not a technology company, I'm a fintech company. Yes, I like to call myself a technologist, but I'm not as smart as the people in this in the Couchbase area who can do a better job in building that platform. I think I can do a better job in using the platform. I can bring my I can bring that to my customers. I can put together that solution for my customers. So I'd rely on that, on their engineering help to do that. So having a strong engineering support is extremely important. And the third piece is the ease of use. It's not technical in nature, but it's so critical. I always use this example, you know, when I first wanted to give my parents a phone, the first phone that came to mind is, like, let me give them an Apple, an iPhone. Why? It's easy to use, right? Do they really need to know all the intricacies? No. They're a user of that phone. Same way, my customers are a user of my platform. They don't need to know if, you know, if this server is failing or that server is... Even the developers, why do I have that limitation that they have to figure out all of that stuff? Go build the application, do the best you can, test it out, and make sure you can deliver it fast. So it's like I'm building that Apple of the fintech industry to, to get it out to the customer. It may not be very technical, but it works. And then finally, the resiliency. They're having the data available in multiple zones because of our global nature, helps us a lot. That's great. That's a bonus. Thank you. Extra, thank you. Karthik? Yeah, for us, there are only two things that matter, right? One is customer experience, and when a store associate is standing there and a customer is right in front of them, that's a high-pressure situation for the entry-level person that is trying to serve them. The more they have to override price, the more they have to override promotions and stuff like that, it makes it worse for them. So making sure that the information that they have is the right information, and it is there reliably, is really, really important. The second most important thing for us is the developer experience. Right now, we want to be able to quickly move. There are competitors of ours that are trying to build all of these things into their product, and that makes them slower in terms of the development. We want to be able to leverage best-in-class and move faster. And so that and within the developer experience, as I said before, having the same code that runs both on the cloud and the device, rather than having to say that, "Okay, on the device, it behaves this way. I need to have it here, and then the price calculation needs to be different there because I use a different technology there." That is a huge advantage for our developers. So that's customer experience, developer experience. That's great. And we keep coming back to and hearing over and over again, developer experience, consistently, which is just great. Jérome? Yes. The first one is probably the consistency. When you use a mobile database, you can have several thousand of local database in a on mobile device, and it's really important to have a consistency and didn't lose data. And the second one is probably the scalability. During the lockdown, we learn a lot about scalability. Let me share a story. When the President Emmanuel Macron talk in the television and said to say, "Hey, my dear, dear French citizen, we buy a lot of vaccine. Please go to Doctolib, take an appointment on the vaccination center." Five minutes later, we... I was a bit nervous, our developer to build a tooling and to understand how it work, and it's a really powerful and facilitate troubleshooting operation. Yeah. Yep. You know, it's a big number, and I can't remember what it is, but it's too much. ... So, you know, we rely on- It and sort of goes to what Jerome was saying about if you've got those, all those thousands of databases operating at the edge, you need to know that they're going to be able to come back, resolve, and be consistent, right? Mm-hmm. I think it's probably fair. And, you know, clearly, performance in all of these businesses is critical. It's critical for the user experience, right? And you-- and for you, have your multiple competitors are sitting right there in front of the operators- Yeah. Right? So they can go. There's multiple games on their phones, probably, right? Yeah. So it's a highly competitive environment that you need to operate in. So Haveer, maybe just a bit of a competitive question for you. Were there other technologies that you sort of sniffed around at? Yeah. So we do have other technologies that exist today within the landscape of Western Union. A couple of your competitors also exist, but a very small footprint. I'll tell you this: they were brought in as challengers, but they failed. 10+ critical applications versus one-off here and there, something that is being tested out for the last few years but hasn't seen the sunlight. It's always going to be there. So from a competitive advantage, either things are, I would say, on a scale of way too expensive for what they do or cheap, but they don't scale. So finding that right balance is where I would say Couchbase is sitting in that fine balance, which is, I don't think it's too expensive for what it does. I don't think it's too cheap for what it scales. So it's, it's that right balance, and that's what our, our developer community likes. Right in a sweet spot there. Right in a sweet spot. Yeah, I appreciate that. So, just a few minutes left here. Let's just turn a little bit towards the future, just innovation. How do you think Couchbase is helping you innovate? As you look forward and kind of see things, obviously, the mission critical capabilities for you today, but, you know, as you, as you think forward, what does that look like? And I'll start with you, Karthik, on that one. Yeah, for us, as I said before, speed to market- Mm-hmm. -is the most important thing, right? The more we can depend on partners, the better off we are going to be, and we need a trusted partner for us to be able to get there. For me, AWS is the first trusted partner. Mm-hmm. Second, most trusted partner is you guys. Mm-hmm. That's the reason why I'm spending the time to come here- Yes ... to present, which has nothing to do with my business in terms of. So, that is important in terms of how it is going to help us in terms of innovation. We spend nearly 15%-16% of our revenues in R&D, and a lot of that we are going towards building solutions. We are a premium solution provider. We sell premium brands. Like, if you go into a Coach store, they are utilizing our solution, right? So, we need to be able to provide a premium experience to their sales associate. Some of them might be on commission. They need to be able to earn their commission. Their base pay is very little, and their commission is the one that is going to feed them, feed their family. So we need to be able to provide that kind of experience for them. And we continue to improve or continue to add to our capabilities. We have a lot of capabilities around inventory, right? How do you make the inventory in the store visible online? So when somebody orders something, even if it's not in the warehouse, it is in one of their stores, and they can ship it to the consumer. And for a retailer, something that is stuck in a store in Miami, when in the middle of winter in the north, is not going to help them in anything, right? How did it get there? That's one question. But now it is there in the store, how do I get that visible online and be able to ship it to the consumer? So not only the price, promotion, tax, and stuff like that going down to the store, and but the inventory information that is there, somebody comes and returns it. You want to be able to immediately put it on the online and sell it, right? Being able to get that information up. So a lot of these kind of replication capabilities are going to be critical for us. That's great. So providing premium experiences, which is absolutely what you do- Yeah ... and continuing to innovate so that you, you know, have your customers grow with you. Yeah ... is one of the critical things that Couchbase is helping with. Yeah. Yeah. Fantastic. Jérome, just in, you know, you're, you know, growing very fast-growing business in medical. How do we help innovate? Yes, for me, basing a new product on Couchbase provides a capability to for the engineering team to be more focused on shipping of business critical feature and not doing some technical work on foundation. Building a system with data replication and conflict resolution is a really complex topic, and we are really happy to use Couchbase and to be focused on deliver feature. That's great. Thank you. And you'd mentioned before that we've innovated around some open source projects. Like I know we've contributed together, your team has contributed, and that has advanced the overall capability of what customers are able to do. So that's been great. Haveer, I'll come to you. Yeah. So for us, our innovation revolves around gathering more information about the customer. You know, 20 years ago, we had a survey form with, like, 10 items. What do you think? Give us a little bit more about you. Today, we collect more than 300 data points for a customer at any given point of time, whether it's, you know, activity on the mobile phone, whether it's foot traffic, be able to adapt to that. How does a human emotion play into a transaction? You know, IoT things can blow things out of equation. You know, a camera can very well pick up a human emotion when somebody is transacting on that screen. You can clearly understand what that person is going through, and being able to communicate, relay back to that agent is like: Hey, this person is sad because he's sending $100, but he's sad. Ask him, how is he doing? It's gonna make a huge difference to his life... maybe he has an unfortunate incident. He's sending money for some medical reason. I'm just talking about my use case because I really, 'cause it's too rigid of an architecture to change with time. This is where that innovation comes in place. No matter how and what I'm collecting, I can keep adding and building those blocks in a modular fashion. It becomes like a widget-based. Okay, today I have four widgets. Tomorrow, I think I have a five widget that describes about customer's personalization or his score or his, you know, overall score. Has he been happy? He's been sad, et cetera. To all of our agents, including customer service as well as the retail agent, it's, it's very powerful. So for me, that modular approach is the real innovation. I don't want to innovate a new product. I just want to make sure my customer is happy. Mm-hmm. What can I do to make my customer happy? Yeah. No, I love that. All about the experience- All about the experience. and the ability to continue to push innovative... I love to see, you know, a company of the age of Western Union just push and Yeah ... focus on that. It's really great. And Steve, you know, just sort of similar, the innovation side of it for you at Playgon? Yeah. You know, not to be flippant, I would just say stay invisible. Mm-hmm. You know, if our team starts coming to me and talking about our database provider. Mm-hmm ... then there's something wrong. Mm-hmm. Right? As long as, as long as you keep doing a great job, including, you know, bringing new products like Columnar that Gopi was talking about, things like that, but otherwise, have it so that it just—it's an engine that just runs, purrs in the background. That's the best thing. I think that's the best compliment, you know, we could give you. Yeah. That's fantastic. Well, I think with that, I will wrap our panel. Please join me, a big applause for a great panel. Thanks very much. Hopefully, you learned as much of it about it, and it was insightful to the applications, the breadth of companies, both in terms of age and the markets that they, that they play in, and how Couchbase is helping them drive innovation forward. So with that, gentlemen, thank you very much. Thank you. We'll excuse you from the stage. Thank you. Thank you. With that, I'll bring up our last presenter, which is Greg Henry, our Chief Financial Officer. Greg? John, thank you very much. To the Achieving Profitable Growth section, I'd like to again say good morning to everybody in the room. We've got a very full room here. It's very exciting. And again, good morning to all those who are joining us on the live streaming. I'm very excited to be here. I've been looking forward to this since I joined Couchbase seven years ago. I'm gonna spend my time taking all these great updates you've heard today and tell you why, from my position as CFO, I have never been more excited about what's to come with Couchbase. Like we've been saying today, our best days are ahead. We have a very strong foundation. We've built this enterprise model now for over a decade. It's well instrumented. The margin position, we come from a position of strength as we move into Capella. We have a net retention rate that's been over 115% for a long time, since we've been public, and that's been driven by the enterprise business, the foundation of our business. From a Capella inflection point, I wanna talk about, you know, the NRR for Capella. I'm gonna share that with you today, how, what we achieved in the last quarter, and show you how that's performing along with customer count and our total ARR. From faster time to monetization, you heard from Huw, right? Customers are growing 2 x faster, zero to 100K, 5, 4 x faster, 100K to 500K. And I'm gonna show you a couple examples of that as well. On consumption, we're still seeing the very early days, the benefits of having the consumption model. Again, customers can no longer overuse without paying. From future leverage, we will get much efficiency. Huw demonstrated this. We're already starting to see this with the go-to-market, but there's more to come. On a free cash flow perspective, we've made a good move this year. We will continue that, and we'll be declarative today on when we'll get to free cash flow positive. From Rule of 40, look, we've just changed the whole mindset, the culture of the business. We're very focused on that. We will be Rule of 40 positive, and we think in the midterm, we can actually become a Rule of 40 company. So with that, I wanna highlight some of our foundational strengths. We're 90% software revenue. We've been that way for a long time. In fact, we're probably closer to 95% model. I've talked about the land and explode. We've been 115%+, and we think it's only gonna get better from here. And our non-GAAP gross margin of 90% at the end of last quarter, again, best in class. We have some of the largest and best enterprises as customers and delivered a very solid growth rate of 24% CAGR over the last couple of years. And our fiscal 2024 year-to-date net new ARR is actually up 33% on a reported basis, and that's despite the macro challenges that all of us have been facing this year. On our ARR per customer, I hit on this a little bit. If you look at our total customer, we still grew this very nicely, up to $264,000 per customer. But on our over $100,000 customers, our larger customers, we've now grown that from sub-$500,000 to $600,000 in about 2 years. It's pretty amazing what we've been able to do building off of our foundation. Our customer ARR base grows rapidly and consistently. I've talked about this land and explode model. To accentuate this, I wanna show you our ARR customer cohort for the first time. This will be by fiscal year since fiscal 2017. All the customers acquired in each respective year, and I just want to be clear that this customer cohort assumes all the customers acquired in that year and all their upsell, downsell, and if they're lost over the period. So full, complete ARR throughout that period. You'll see that we've grown each cohort nicely, mid- to upper-20s% growth rates, with the exception of fiscal 2021, which was the COVID year. And you can see in fiscal 2022, we're starting to see some really nice traction. That's really the first year that Capella became meaningful. But the point about the foundation here is that this has all been without Capella for the most part. Only most recently that we've been growing mid-20s without it. And obviously, the fiscal 2023 is not complete yet because we have to wait for the full fiscal 2024. And even our largest customers continue to grow. I'll show you a couple examples that we actually showed at the IPO roadshow and how they progressed. Note that these customers grow due to continued growth of the apps that they're already running, plus new applications that they've been building over the period. So this is a travel and entertainment customer we showed. They landed $500K in fiscal 2019, and at the IPO period, two years later, they were a $2 million customer. They'd grown four times since their initial purchase. And where are they today, just two years later? They're a nearly $4 million customer, having grown eight times since their initial purchase, and this is just a couple of years after our IPO. So even large customers continue to grow. And lastly, our logistics customer started with a $100K deal, one single application back in fiscal 2017. They're now running tens of applications. At some of the good news and what we've been seeing around Capella. I'm gonna talk about a couple of things, how our potential is already being realized. We see that in the model today, and I'm gonna share that with you. I'm gonna give you two examples of how we're driving faster growth and customer footprint. One example is a new logo, another one is a customer that has migrated to Capella. So without further ado, I want to share, is growing. In Q3, this is the in-quarter Q3, the net retention rate for Capella was 167%. You know, we've been talking about for some time, we talked about it in Q2 and alluded to a little Q3, that we've had some of our best in-quarter net retention rates we've seen as a company in years. We have a great foundation. Capella is now pulling that along and inflecting. So with that, let me give you a couple examples. So this is a new logo, example, coming into Capella. So, and I just... And you can see it grew, grew nicely. So what happened? They actually came back and made a couple additional purchases because of the consumption. They were not only growing the application that they were using, but they actually brought more applications onto the platform. So in the beginning of year two, they made another purchase, and based on the quarterly consumption, they actually made a second purchase, a second additional purchase before the end of year two. The, the first initial purchase was 3x their initial buy, and the second was 5x their initial buy. So you can see the growth. Again, as Huw alluded to, these larger customers grow faster. So how did it play out from an ARR perspective? If you follow the red line through, you see that first year, it's fixed. It's based on their first purchase, and after that, the consumption model kicks in. And where we sit today, based on the consumption, they're actually running ARR at seven times their initial purchase after about just two years. I've also added in a dashed orange line in the middle, which shows what our average enterprise new logo would have looked like, just running it out on average. And you can see it's multiples of where we would have had in enterprise. It, it's an amazing journey. Now, I want to show you what a migration looks like. So this is a large existing customer. They said they want to go all in on Capella. We've talked about them on some of the earnings calls, you know, anonymously. So here's what happened. They actually made a multi-year purchase. They made 2 years. They're like, "We're going all in. We're gonna make a year 1 purchase and a year 2 purchase." So they did that all up front. You can see the quarterly consumption again. You can see by the time we got to year 2 there, the quarterly consumption was at half the rate of their year 2 purchase. Why? Because, again, they brought on certain applications to begin, more was being used within those applications, and they added new additional applications along the way. So how did this play out? Well, because of their consumption, they actually had to do a little top up just before they got to the year 1, and then they made 2 additional purchases in year 2 because of the consumption. So how does it look from an ARR perspective? Again, you've got the initial phase in the red bar staying flat the first year. It moves up to the consumption phase, and today they're running at a little over 3 times their initial purchase from an ARR perspective. Again, we've added in the orange line to say if this was a regular enterprise customer, what would they have expanded after the same period? And you can see again, we're way beyond that. This is showing you the power of Capella and how we're seeing this inflection in the model. Now, let's talk about this. You've been seeing I've been focused on ARR. We've said for a long time, ARR is our North Star. That's how we run the business. Revenue does trend differently. We get a number of questions, obviously, about why is there a difference in growth rates on ARR and revenue, and we want to leave you a few examples today, some generic scenarios, just to show you why you see some dislocation from time to time. So I'm gonna show you three examples. One is an enterprise new logo with a future start date and upsell. Second one will be a Capella new logo with multiple rebuys. Lastly, will be an enterprise account with a full migration to Capella. Again, the material will be posted, so you'll get this all, you know, after the show. So first, our future start date, 50% upsell. I'm gonna show you the ARR line first. So this is a $500,000 new logo. It was purchased in, actually, we'll call it before year one. So at this point, we have 500,000 of ARR in the quarter it was purchased. We have no revenue because it's a future start date. The customer sold in year two, and again, I get the license revenue upfront, at the year two purchase, and then pro rata for the rest of the year. But you can see at the beginning, I told you we had ARR, no revenue. Now, in Q1 of year two, the growth rate. So you can see the growth rate of the ARR here. It exits at 170,000 of ARR, and the growth rate's, you know, 40%, 55%, 65%, and 70%. The revenue for this, however, starts small because it's on a consumption right out of the gate, and it's a new logo, so it takes time to ramp. You can see it's $10, $26, $30, and it ramps over time, but they're nice consumption. Then you get to the second year, and you see the annual growth rates. The annual growth rate, again, Q1 250%, where the ARR growth rate was 40%, and then it comes down, and then by the end, the revenue growth rate is actually below the ARR growth rate. However, we exit the year both at $170,000 of annualized, either revenue or recurring revenue. After that, because we're both on consumption, the growth rates will be consistent. Lastly, an enterprise account with a full migration. Again, $500,000 enterprise renewal, and before the end of the first year. And then we go to consumption, and again, same thing, enjoying, enjoying Capella, seeing the inflection, some nice growth there on the consumption. And the ARR, ARR is now 2.6x the initial enterprise deal or the renewal. How will revenue go? So revenue, again, first year is on enterprise, so I get a little bit of the license upfront, then pro rata. Now they switch to consumption, and because it's consumption, we don't get the upfront revenue, and it takes a little while for the consumption to get going. So you can see at that point, I have a 70% growth on the Capella migration for ARR, but the revenue is actually down year-over-year. And even in Q1, same thing, the consumption is still ramping. So I actually have negative year-over-year revenue of 22%, but from there, it gets growing and the revenue normalizes, and once we get to a consumption phase, the growth rates and the revenue and ARR will align. So we just wanted to give you some examples since there's a lot of questions, and this will hopefully clarify why we're seeing some of the differences. Now, with that, I'm confident by this point you will now see why we're so excited about what the future holds for Capella. We have a great foundation, which we've demonstrated over the last year and what we've guided to this year in terms of growing 20%, best-in-class margins, and continuing our journey to profitability, both free cash flow and op income. While it's still early days at Capella, what we want to show you is our midterm view, which is a 4-6-year timeframe. We believe that we can grow 20%+ over this period, driven by Capella. Gross margins will be approximately 80% based on our scale and efficiencies. On sales and marketing, R&D, and G&A, we will continue to get more efficient, both through what Huw talked about PLG, what Scott and Gopi talked about on the product innovation, and what the G&A teams will drive on scale and innovation and automation. Now, for Capella mix, we would be disappointed if by the end of this medium term, we were not at least 1/3 of ARR on Capella. And we certainly believe we could be, have the majority of the business be Capella by the time we get to this end of this 4-6-year journey. And the driver of how we'll ultimately land here really is the pace of our migrations, because we have a very tremendous install base, and as that moves, that will grow, which we've demonstrated today. Now, I'd like to leave you with this. We expect to deliver a 20+% growth over the next several years, as I talked about. We expect to be free cash flow positive by fiscal 2026, and we expect to be op income positive by fiscal 2027. And I also remain confident that in the long term, beyond this, we expect to deliver the 20+% operating margins we talked about at the IPO time. We are on that journey, tracking nicely. So as we stated throughout the day, we have a well-established and instrumented enterprise business. Capella is showing very strong growth and inflecting, and there's much more to come, both on the product portfolio and the go-to-market efforts, which will drive material leverage in the model. So I want to thank you all for coming to again today. We appreciate it, and we'd now like to move to the Q&A session. I'll be joined by my team. Great. Thank you. Rob Oliver with Baird. Greg, this one's for you. Just, so sounds like that one-third at Capella is, you know, kind of worst case for you guys out in the 4-6-year timeframe. So with the potential that, you know, maybe half your customers will still not be on Capella, how should we think about the balance of investments relative to product and innovation between those two? Obviously, Capella's been a really big focus for you guys. Maybe talk about the balance there. Yeah, let me start then. Matt will probably pile on here. So just to be clear, like I said, we'd be disappointed if it's not at least a third. We very much believe that we have the opportunity to be, have the majority of our customers on Capella by that timeframe. And so we're investing towards going for the majority of the customers on the platform, and we want, you know, to continue to focus our investments around the Capella platform. Yeah, and look, I think we were very intentional in how we've architected the underlying platform, and Capella supports full Couchbase Server and mobile. And so, Rob, as we think about our future big investment areas of innovation, take AI, extending database capabilities, continuing to improve the customer experience, some of those will be unique to Capella, but the majority are going to run, and we can backport to, you know, the enterprise portion of the business. So we're going to derive a lot of efficiency and net new capabilities and resources. A big part of the heavy lift with Capella has been getting the initial platform to the level of capability that we have, building the control plane, taking away the management responsibility of the database. A lot of that is behind us, and now it's about net new capabilities, fine-tuning the UI. There's efficiencies to be derived there, but we'll be able to get those features back into the enterprise version for the customers that prefer, you know, that deployment for whatever reason. Got it. Thanks. And if I can, just one quick follow-up for Huw. You know, obviously, conversions are going to be very important here, so just be curious to know how you're approaching that with your team, and have you found to date that the conversions are not competitive? In other words, you know, there's it doesn't create an opportunity for, you know, the customer to say, "Hey, let's just at least check out another vendor while we're doing this." Thanks a lot. Yeah, I think that question came up last week on the earnings call. We don't see the door getting open from a competitive point of view. I would say our customers enjoy what they get from Enterprise today, and they're looking to get the TCO that gets delivered with Capella. So we spend a fair bit of time with them, working out what support we can give that customer in the migration and helping them articulate the TCO that they will derive from doing that. So we do not see it opening up a competitive threat. You know, Rob, we are benefiting from the other dynamic. You know, you heard Javier talk about the fact that he has other vendors in for dual vendor strategy. Quite frankly, until we've had Capella, we've been somewhat unable to penetrate some big accounts that have already standardized on other database solutions. And one of the things that has us pretty excited is the amount of opportunities in our pipeline, where large customers are inviting us in to be the alternative to, you know, other competitive solutions because we have Capella, and they're seeing it maturing. And so a lot of our initial lands, new application with Capella, what really has us excited is the opportunity behind if we're able to, you know, really put a dent in some of those competitive deployments. I think we're seeing a lot more of that than anything working against us on Capella. Sanjit Singh, Morgan Stanley. Thank you for all the data and the presentation. It was super helpful. When we think about making the cloud journey, I think there's sort of two phases to that. One is sort of the technology side and delivering a world-class serverless offering, which there's been a lot of progress on that front. But the second piece of it is sort of go-to-market motion, and you're seeing even companies that are way more further penetrating cloud evolve their go-to-market. You're seeing a trend line of less committed contracts upfront, getting customers just to start, remove the sort of haggling around initial deal sizes. I guess my question is, from a go-to-market perspective, is there further evolution that needs to happen between a sales organization that's been used to selling subscription contracts now pivoting to, like, a cloud-first strategy with Capella? Does that need to evolve in some way? Is there any potential sort of disruption associated with that? Yeah, Sanjit, I think it's a well-made point, and I'll comment, and then I'll turn it over to Huw. Quite frankly, at the outset of this fiscal year, if you had asked me or if I was talking to the board on where are we on the transition, we needed to make that fundamental cloud-first mindset shift. And I'll give a lot of credit to Gopi for coming in AWS DNA, showing the organization a way, and giving us credit for the capabilities we have, knowing that when we layered in that from a technology perspective, how much faster we could go. And I think the rest of the company kind of followed that, you know, dramatic change management. Credit to Huw for really spearheading that on the go-to-market side. At the turn of the fiscal year, the thing that I was talking to Huw a lot about is, while we were Capella first in kind of value proposition, we were still doing it with somewhat of an enterprise sales mindset. And I remember, I think it was at our kickoff, somebody asked me: "Well, Matt, who is your favorite customer at Couchbase?" And, you know, the reps want their name to be mentioned, and I said: "It's actually the starter pack of the customer that we don't know that's going to close tomorrow." And what we needed to do was change the mindset of just get started. Now, we talk a lot about new logos, but the challenge for us is not just getting started with new logos, it's getting started with new apps. I do believe when we say we feel the inflection, I think our, our field organization, everything from reps to SEs, to our marketing teams, to our developer community, understands that, and you're starting to see that behavior much more prevalent. Hugh talked about a six-day new logo that closed. We were sitting back there, and we had a win rate of another eight-day initial starter pack, eight-day sales cycle, and we're seeing a lot more of those with the, "Hey, this is going to be a bigger opportunity," you know, over time. So Hugh, I don't know what you would add. Yeah, I'll just add a few points. We've spent a lot of time and effort and investment around enablement, so really making sure that we're training and evolving our existing employees. The second thing we've done, we've slightly changed the hiring profile of who we're looking to hire, people who come from a more cloud background per se. And I think the third thing that we spend a lot of time on internally is sharing win stories. And I think this is the point that Matt alludes to there, is showing the sales teams that you can start small, and you can grow quick. And we spend literally weekly, we're sharing these win stories of where we see that. And so they would be the three things that I would add to what Matt said. I appreciate the detail there. One follow-up for Greg. On the long-term targets around 20%+ AR growth, I assume that's a CAGR in the sense that we're probably not committing to 20%+ next year. It seems like the macro is still a little uncertain. You guys are growing, sustaining growth quite well. But just want to get a clarification that we should think about AR growth on a CAGR basis over the next 4-6 years. And then on the operating margin side, the 20% target, any sort of time frame to reach the 20% margins? Yeah, thanks, Sanjit. Yeah, on that top line growth, we just think over that period, we have the opportunity to be a 20%+ grower. We're obviously going to give you the fiscal 2025 guidance at the Q4 earnings. And yes, there is some uncertainty in the macro and timing of certain things, but we just want to give context of how we thought we could continue to grow. Like we've said before, we're certainly not running this company to slow down. We want to continue to accelerate, and we think Capella gives us the chance to do this. And just to be clear, that was what we'll call the medium term, which we shared today, which is like a 4-6 year. The long term is we haven't sort of given a time frame on it, but you'll see we're based on the way the free cash flow and the op income is going, you'll see we're sort of, you know, clearly working our way to be that 20%+ operating margin business in the future. Thank you, Greg. Rudy Kessinger, DA Davidson. Matt, could you talk about what% of applications or really database spend with your customers comes from mission-critical enterprise-grade applications that require the performance that you got alternative? Yeah, Rudy, it's a good question, and I think it varies so much based on the company. And if we go to the Playgon example, I mean, their business is running on Couchbase. I don't think there is any database spend that is not mission-critical. If we were to shift over to Harvir's business, he probably has a lot of applications that aren't mission-critical that can, you know, we're good enough, maybe viable. You know, we would be approximating at best if we tried to slice the TAM because I think there's so much variability. That said, what I think about is the percentage of applications that require the attributes that Couchbase as an architecture has been architected for, and what that share mix looks like five years from now versus five years ago. And I think if you think about digital transformation, AI, the demands we have on applications in every aspect of our life, that share is only going to go up. And so whereas before, we might have been more challenged to find those mission-critical applications in enterprises, where maybe good enough or stretching relational database might have been viable, more often than not, we're running into situations where customers realize that it's, it's not good enough. And picking a platform that can satisfy those requirements, and at the same time, have the developer flexibility and agility that the customers on the panel talked about, that's a position that we enjoy and we're excited about because we are moving where the opportunity, you know, is, is going to expand. Huw, I don't know if there's anything you'd add. Yeah, I've been here for five and a half years, so my, the context of my answer comes from, well, what did we see then and how that's evolved. And, you know, just to back up Matt's point, I think the conversations that we get into now, it's much more about the attributes of the technology versus, "I've got this mission-critical situation I need to solve, you're the answer." I think the other thing that's really opened up a number of different parts of the market is the relationship with the cloud service providers. You know, again, as you heard from our colleague at AWS, the close partnership that we've got with these cloud providers get us into conversations that we probably wouldn't have been in in the past, and being on the marketplace opens us up and accessing multiple opportunities that we may not have seen in the past, so. Yeah, Rudy, I would just one thing I would add is remember that, even with these large customers that we showed you today, we're still we still only have a fraction of their total database spend as well. So there's plenty of opportunity within the existing customers' marketplaces today. I have to lean on you on the numbers side. If we share, we're embedded in programs with all three of the providers. We've got resources who are aligned to those partnerships. I think it's fair to say we'd probably be a bit more advanced with AWS than probably Google and Azure, but we've got great partnerships with all of them, and a lot of it comes down to specific customer relationships with those cloud providers of who we leverage in how we operate to support the customer requirement. Yeah, Rudy, we haven't shared, and we're not planning on sharing how much is coming from the marketplace, but just know that we're very engaged and driving business through there. In fact, we lean in with a number of our customers to say, "Hey, let's take this through to a private marketplace offer." I mean, that's how we wanna go to market, and we're actually even incentivizing our team to do that as well. ... One up front here, Edward. Hi, everyone. Howard Ma with Guggenheim Securities. Thank you all for a really good presentation. I first have a question for Greg, which is, can you—if we think more near term on top line, can you comment on the shape of ARR and revenue? When I think about it, if, like, if we were to extrapolate the... you showed two customer examples, right? If we were to extrapolate that the new logo, the new Capella logo, more broadly, and then also consider the fact that server migrations, that on at least on an ARR basis, might be kind of, you know, flattish in the near term, and then—but then you get this, you get this, this big bump, right? To, like, Capella, smaller initial lands, big expansions. Is the right way to think about it, that it's not exactly linear in the near term, that the progression it might be? So, you know, maybe, you know, maybe ARR growth doesn't quite accelerate so much near term, but then we might get this big spike, and then, you know, kind of thinking about it the way that Sanjit framed it, maybe that's more of a CAGR. And then it really just seems like revenue, then- We think the way we've constructed our ARR definitions is much more forward-looking in terms of what's actually happening in the business today. In terms of the dynamics around ARR as we go, so yes, there will be, you know, the customers that are on the initial phase obviously are sort of fixed for that first year. And the reason we do it is because, you know, in consumption, you can't start at a, at your exact run rate, and it's gonna take some time. So we want to represent the kind of deal we did and why we think you're gonna see that ARR or potentially more in the future. But yes, there will be some, in some cases, some delay. But, you know, look, we're at 10%+, so we're getting enough where we're have enough of our customer base on the consumption and some of the customer base on the initial phase, so you're seeing sort of a blend. But over time, I think you're gonna see that, you know, just continue to sort of flow through the model nicely, and, and, we're, we're just excited about what Capella can do here for, for our, our growth story over the next several years. Okay, great, thanks. I have a follow-up for Gopi, maybe for Matt too, and it's more of a philosophical question. The question is, it seems like you guys are of the belief that combining real-time analytics, or you know, operational analytics in the same platform, combining real-time analytics with the operational data store as part of one platform, that that is the way for the future, for AI-powered adaptive applications, as you all call it. Is that? Like, I have a follow-up, but is that, can you confirm that that's, that's a superior approach, you believe? Yeah, look, fundamentally, if we think about the requirements of an application to deliver a hyper-personalized, real-time, what we refer to as adaptive experience, I need to not only have access to everything in the dataset, but I need to be able to query that in an intelligent way to derive insights to change the very performance of the application while it's running. Independent of our philosophy, applications will require that. So then we say, "Well, how, how will we best deliver that?" And the fact that in a single platform, we can do the operational data store, and Scott articulated that we can ingest data from many, many sources, run those queries without slowing the performance, pump that in, and do it in a single platform? Now, imagine going to developer. All of our customers talked about the importance of developer flexibility. The fact that you can do that in a single engine and then layer in things like vector search and other capabilities. We think a lot about the density of the data platform supporting applications, and we want to be really smart about where we have an architectural advantage to own a very dense, important part of that and where we want to integrate with other parts of the stack. So this real-time analytics is pretty fascinating when you, when you think about the application examples today. Javier's talking about the emotional state of people transferring money. You're not deriving that by simple data. That's analyzing data in real time while you're transferring. It's a perfect example- Initially, the in-memory capabilities already has real-time analytics built in, so can you comment on what... Basically, in terms of performance and scalability, what does the columnar service add that the existing in-memory analytics didn't already? And can you also talk about alternative approaches to bringing, you know, analytical data stores into your operational database? Okay. Thanks. So, as you rightly pointed out, we already had, we still have, and customers still use our analytic capabilities as part of our OLTP system. If you look at what, how Couchbase has been architected, we have a multidimensional scale, so you can add an analytical node or a query node or any of those kind of stuff. But basically, it's backing a data node, which is actually feeding the data into an analytical system. But that takes you only so far. But if you are trying to get into a full-fledged analytical system, like for doing a Zero- ETL. So we pride ourself in making sure that we have done so much for JSON. But if you look at a traditional analytical system, the data goes from an OLTP store like Couchbase. It goes all the way, and, like, you know, customers spend time, money, and resources to transform these data into some format so that it finds its way into a column store at the very end, like doing a Parquet or Avro, right? To get that data efficiencies back in. What we have invented here is the fact that we are able to do the whole thing using JSON. This is probably the first time it's been done. ... like we are keeping the same format. The customers are not spending time, money, or resources to transform the data. So we can store—I mean, generally, these data go into S3, and we can analyze the data, and you're not spinning up any compute as long as you don't need it. We'll be able to spin up the compute and bring up the data that we need. Or ingest, as Scott mentioned, we have a ingest mechanism built in that you'll be able to ingest from other OLTP system, not just us, to be able to do that. So it's much more powerful in terms of performance and scale. We are still in private preview, but we are order of magnitude better than anyone out there, including our own analytical systems out there. So it's more of a total system in terms of being able to go from one end of the spectrum to another end and coming back, which is also important. Matt, want to answer? Yeah. Let me give you an example. So I was talking to a customer, really a prospect right now, where they store... They have JSON data that they're converting into an AWS service, which is relational-oriented. So they're ETL-ing and converting that data, so they're actually flattening the JSON and losing some of the richness of the array data within that. Then they do a computation. So they convert that relational-oriented analytics and serve that up via documents via KV store. So if you look at that pipeline, the data that's coming in is getting processed, and it's taking minutes to hours to move entirely through that platform. So the data the application is getting served is latency embedded within that. So you have this very complex process of taking the... You know, it's like, all right, you've got oranges, you're squeezing to turn it into orange juice, and then somehow you're recombining it into an orange again to do it. And so what you get with that is just more complexity, fragility of the pipeline, because you have to maintain the data mappings throughout that process. So if your data changes at all, you're going to break your pipeline. Keeping that natively within JSON and being able to stream that data in real time into our platform is incredibly powerful. To add on to what Gopi was saying, when we look at our existing analytics service relative to our columnar service, because of the columnar format, there's actually two benefits. One is performance, where we've seen significant performance improvements. The other is storage efficiency because the level of compression that we get. So there's a TCO benefit that customers receive. In addition to that, the performance improvements that we've seen is also reflective of using smaller compute nodes. So we're able to get not- ... solution from net new logos on Capella versus enterprise migrations in the context of that midterm framework? Thank you. Want to go? Yeah. I mean, look, like I said, the thing that's going to get us from at least a third to over 50% is going to be the migrations. We have large, very large customers, as I showed you examples of. If they want to go, and go in a meaningful way, it's going to be material for us. So it's going to be more from the migrations and the new logos in the early days, but we also have showed you the example of a Capella new logo that went from a low six-figure deal to now over a seven-figure deal in a matter of two years. They will be meaningful, but we believe that the migrations with the uplift we can get, and again, as the technology team brings more services like Columnar and iQ, that's just more opportunity for customers to benefit from the platform and thus use more of Capella. I think that's how it's going to play out, most likely. I think the other thing that I would add is, you know, when we talk about a migration, you know, Greg walked through some examples, Huw talked about this, the customers alluded to this, you know, of what we support, but what we're getting there is new apps. And so I know there's a lot of focus on new logos, and we've committed to, you know, doing better there, but a big part of what we think about with the go-to-market teams is net new applications powered by Couchbase. And so I think the growth of new apps on that Capella percentage is going to be significant. How exactly the mix is between logos we have today and logos we're going to acquire, that's a dynamic that we're going to have to, you know, manage closely. I think we're going to be very smart about how we approach customers and not force them to the migration, because look at the relationship. I think a lot of what came out in the customer panel is relationships matter when these people have their jobs on the line, and I think other vendors have been a little bit more aggressive in trying to force a migration. And, you know, we're going to, we're going to be smart about that, live according to our values, and, you know, make sure that we don't do things that are out of alignment with how customers want to run their business. Hey, guys. Taz Koujalgi from Wedbush. Either for Greg or Matt. So you spoke about migrations from existing database vendors versus new applications, and I think good feedback from the customer panel on new apps being built on Couchbase. But when you think about the opportunity from existing, you know, moving from existing Oracle or SQL to Couchbase, how's that today? Do you get a big deal win from that, or is it mostly new apps? And do you see that changing as you go forward, as you add more new features with vector search and columnar database? Do you think a bigger mix of new ARR comes from migrations than you are seeing today? Yeah. So maybe I'll start, and then I'll ask Huw to comment. First of all, I think the opportunity for relational offload is significant, and I think it's going to happen over time. When we talk to customers, they express, well, what is the most important priority for them at any given moment? And there needs to be a compelling event to repurpose an application or to migrate it. Maybe it's part of a cloud migration, maybe it's because an e-commerce engine is no longer performing. That's our opportunity to come in and show that we're a better platform, you know, for the future. I don't think people are going to go out, particularly in an economic environment like this, and just say, "Now's the time to move all relational databases," without that compelling event. ... So I think it depends on where you find the enterprise on their particular project. We're talking to a lot of customers about the value that Couchbase brings in being able to simply repurpose the portion of the app that's working today by things that we're doing with the data modeling and data movement, while also benefiting from, from net new capabilities. So I think this will be a very important driver of the transition of that $130+ billion market, but I don't think it's a, it's the, you know—there needs to be that compelling event that goes along with it, and that's digital transformation and AI, and, you know, what's aligned to their, their business strategy. I don't- Yeah, I'd only add two points. One would be, if you think about what we're representing as a field sales team, the great thing that we've got in our kit bag is able to say, "We can help you with that new application. We can help you migrate off a maybe competitive solution," in no risk of where we would start with them. Thank you. And one follow-up on Capella. So, Greg, you mentioned the NRR for Capella is 167% in the quarter. If you look at the overall NRR for the business, it's been in that 115 range. As your Capella mix goes from 10 to 30 to 50, do you expect that it should, basic math, should drive up that NRR way forward. Is that a fair assumption? Yeah, I mean, again, we're not giving any forward projections on Net Retention Rate. We've tried to, in the last couple of earnings calls, drop some hints about where our net retention, end quarter Net Retention Rate is, and that it's been the highest in, you know, Q2 was the highest in three years, and Q3 was right around there. It's driven by strong foundation being over 115%, and now you see the Capella piece bringing it up. So if that continues, yes, we could see that continue to move up, and, you know, we'll continue to try to update you and give you some insights, but we're not, at the time, going to change the position that we're going to be 115%+ Net Retention Rate. Just one final question. On the net new ARR, you've added about $8 million-$9 million net new ARR for the last two, three quarters. Any color on how much of that was Capella versus Enterprise? I know you gave us the overall ARR mix, but within the net new ARR that you've added, how does Capella versus... What's Capella versus Enterprise? Any- Yeah, I think what we're going to do, Taz, is at the Q4 earnings, we're going to actually break out and give you specifically the net Capella ARR, so you'll be able to track sort of what's net new coming from Capella versus Enterprise going forward. Got it. Yeah. Thank you. I think, Edward, maybe one more before we break here, if we have it. Going once? Yeah, one more. Hi, this is Rob from Stifel. On Capella iQ, I know it's very early, but I was wondering what specific feedback you've heard from customers as to the pace that they've been able to reduce new workload time to market and increase efficiency? Want to take that? What was the first part? I'm sorry. The pace in which customers on Capella iQ have been able to reduce new workload time to market. Yeah. We were in private preview. That's going to be GA next year. I think what we found in the feedback, and we added tens of developers using that, and we had a mix of developer types. So we had some people who were called early in career, and just that time to get data created within the system and sample data, and then the right indexes, and then the SQL code. What I would say is it just accelerated, I guess, their journey to expertise, and it'd be difficult to quantify, but I would say they were very impressed with that. And I think one of the proxies I always look at new features is how many new feature requests they have associated with that. So there's this level of excitement around iQ where we love it, but can I have this? Can I have this? Can I have this? And I think that's a great proxy in terms of the reaction and the power of that tool. So it's an area that Gopi and I are very committed to, to ensure that we're prioritizing our engineering resources to enhance that capability and broaden that. And a demonstration of that in our private preview with Columnar, day one, it came with iQ support. So you'll see that continue as we bring in new capabilities in the platform, and we'll extend the capabilities of iQ generally. Great. Well, listen, on behalf of Team Couchbase, not just the members of the team that are here, but our employees around the world, we genuinely want to thank all of you in the room and online for joining us for what we hope was a fantastic day. As I said at the outset, I hope you pick up on our collective enthusiasm for what we're doing as a company. I think you heard that relayed from some of our customers. We do truly believe that our technology is helping change the world, and we've spent a lot of time being meticulous and maniacal about building a foundation, being very strategic about layering in Capella, and preparing for a future that we genuinely believe will provide the best days of Couchbase. So once again, thank you for being here. We hope you enjoyed the day, and look forward to spending some time, with some of you, over lunch as we conclude. Thank you. Thank you. Thank you.