12:00 PM EDT, 09/05/2024 (MT Newswires) -- Couchbase's ( BASE ) fiscal Q2 revenue and earnings remained inline with expectations but Q3 and fiscal 2025 guidance was softer due to increased churn and downsells during the quarter affecting net new annual recurring revenue, Oppenheimer said in a note Thursday.

The company experienced higher-than-usual churn and downsells in fiscal Q2 particularly due to two large accounts, according to the note.

The firm said Couchbase's ( BASE ) Capella platform showed continued growth and new products like Capella Columnar and Couchbase Mobile are also showing promise.

The company is facing near-term headwinds from Capella's expansion that are impacting revenue growth and gross margins, Oppenheimer added. "Continued investments will keep Couchbase ( BASE ) at an operational loss near-term."

Couchbase ( BASE ) is on the right track for long-term growth, particularly with the potential of Capella, the firm said.

Oppenheimer maintained its outperform rating on Couchbase's ( BASE ) stock and kept the price target at $23.

Shares of the company fell 16% in recent trading.

Price: 15.76, Change: -3.23, Percent Change: -17.01