12:43 PM EST, 03/06/2024 (MT Newswires) -- Couchbase's ( BASE ) latest financial results show the company is executing well, particularly with its Capella cloud database platform, and building momentum with better-than-expected revenue growth, analysts at RBC Capital Markets said Wednesday in a research note.

Couchbase ( BASE ) shares rose Wednesday after the database company narrowed its Q4 non-GAAP net loss and increased revenue more than 20% year-over-year, exceeding Wall Street estimates. It also guided revenue for its current Q1 above the analyst consensus.

Annual recurring revenue produced by the Capella platform will be a key factor determining whether it tops expectations, RBC said, although it agreed with Couchbase ( BASE ) management investors shouldn't focus on shorter-term trends because the pace of growth for the company may be somewhat "lumpy."

"Management remains comfortable with the four- to six-year time frame to derive at least one-third of the ARR from Capella, though we believe it will likely progress faster than that," the RBC analysts wrote.

RBC reiterated its outperform rating for Couchbase ( BASE ) and increased its price target to $35 from $32 previously.

Couchbase ( BASE ) shares were more than 3% higher in midday trading, easing from a 19% gain earlier Wednesday to a new 52-week high at $32 apiece.

Price: 27.86, Change: +0.96, Percent Change: +3.57