Database software maker Couchbase Inc. saw its stock crumble away in after-hours trading after reporting a bigger-than-expected loss in its first earnings call since listing on the Nasdaq exchange in June.

The company reported a fiscal second-quarter loss before certain costs such as stock compensation of $1.54 per share on revenue of $29.7 million, up 18% from a year ago. That did just exceed Wall Street’s target of $28.1 million in sales, but the loss was quite a bit larger than the $1.08 per share analysts were modeling.

Investors bailed and Couchbase’s stock fell hard and fast, down more than 15% in after-hours trading.

Couchbase President and Chief Executive Matt Cain (pictured) put on a brave face, insisting the company delivered a strong performance and gained momentum during the quarter. He pointed to the company’s annual recurring revenue, which jumped 20%, to $115.2 million, as proof of that.

Couchbase sells one of the most popular NoSQL databases used to power enterprise applications. As opposed to traditional databases that can only accommodate either structured or unstructured data, Couchbase’s software can store both at the same time. It can function as a data cache, which allows enterprises to accomplish with one system what previously used to require three.

Not surprisingly, Couchbase says, that translates into a lower cost of ownership. It also simplifies the work of administrators and developers, since they have to operate fewer databases to keep applications running.

“With the introduction of our latest innovation in Couchbase Server 7, we have fused the strengths of relational with the flexibility of a modern database allowing customers to re-platform and modernize applications from legacy solutions while building new ones,” Cain said in a statement.

No doubt the after-hours market action will have upset Couchbase’s management, but the company’s stock had been growing steadily since its initial public offering in June, when it raised more than $200 million.

“Couchbase booked some solid numbers but they’re not strong enough to satisfy what investors expect from a hot start up in the database space that’s only just gone public,” said analyst Holger Mueller of Constellation Research Inc. “To keep its investors happy Couchbase needs to find more growth and at the same time apply better control to its cost base. Future quarters will show how well it does that.”

For the time being, Couchbase is showing some optimism. For the third quarter, it said it expects revenue of $29.3 million to $29.5 million, just above Wall Street’s consensus of $29.1 million.

For the full year, Couchbase said it’s looking at revenue of $120.8 million to $121.2 million, also above Wall Street’s $118.8 million forecast.

Photo: SiliconANGLE