Why did BASE's EPS exceed forecasts in 2025?

Couchbase's EPS exceeded forecasts in 2025 due to several key factors:

1. **Revenue Growth**: Couchbase reported a 10% year-on-year revenue increase in Q4 2024, which contributed to the overall growth in EPS. This growth was driven by a 20% increase in revenue in Q4 and a 16% increase for the full year.
2. **Cost Management**: The company's non-GAAP operating loss narrowed significantly, nearing breakeven, thanks to effective cost management. This improved profitability had a direct impact on the EPS.
3. **Gross Margin Improvement**: Couchbase improved its gross margin to 89.7% in Q4 and 87.7% for the full year. Gross margin is a critical component of EPS calculation, as it represents the portion of revenue after deducting the cost of goods sold.
4. **New Product Launches**: The introduction of new products like Couchbase Server 7.1 and the Couchbase Edge Server has likely contributed to the company's financial performance. These new offerings can lead to increased sales and profitability.

In summary, Couchbase's EPS exceeded expectations due to strong revenue growth, effective cost management, improved gross margins, and the impact of new product launches. These factors combined to enhance the company's financial performance and resulted in an EPS that surpassed forecasts.