Couchbase (NASDAQ:BASE) shares dropped more than 21% intra-day today after the company reported its Q1 earnings, with EPS coming in at ($0.27), above the Street estimate of ($0.32). Revenue came in at $41 million, beating the Street estimate of $39.77 million. While the results beat the estimates, management’s guidance disappointed investors.

The quarter was highlighted by 23% ARR (Annual recurring revenue) growth to $172.2 million, compared to the Street estimate of $170.7 million, which reflected net-new ARR of $8.5 million, up 25% year-over-year.

Management expects Q2/24 revenue to be in the range of $41.2-$41.8 million, compared to the Street estimate of $43.34 million. For the full 2024 year, the company anticipates revenue of $171.7-$174.7 million, compared to the Street estimate of $173.3 million.