Technology
Couchbase Announces Second Quarter Fiscal 2025 Financial Results
Published
2 years agoon
By
SANTA CLARA, Calif., Sept. 4, 2024 /PRNewswire/ — Couchbase, Inc. (NASDAQ: BASE), the cloud database platform company, today announced financial results for its second quarter ended July 31, 2024.
“I’m pleased with our hard work and execution in the quarter,” said Matt Cain, Chair, President and CEO of Couchbase. “We delivered revenue and operating loss results that exceeded the high end of our outlook, generated strong new business and new logos, and saw a meaningful increase in our Capella mix. I remain highly confident in our outlook and ability to achieve our objectives in fiscal 2025.”
Second Quarter Fiscal 2025 Financial Highlights
Revenue: Total revenue for the quarter was $51.6 million, an increase of 20% year-over-year. Subscription revenue for the quarter was $49.3 million, an increase of 20% year-over-year.Annual recurring revenue (ARR): Total ARR as of July 31, 2024 was $214.0 million, an increase of 18% year-over-year, or 19% on a constant currency basis. See the section titled “Key Business Metrics” below for details.Gross margin: Gross margin for the quarter was 87.5%, compared to 86.3% for the second quarter of fiscal 2024. Non-GAAP gross margin for the quarter was 88.3%, compared to 87.2% for the second quarter of fiscal 2024. See the section titled “Use of Non-GAAP Financial Measures” and the tables titled “Reconciliation of GAAP to Non-GAAP Results” below for details.Loss from operations: Loss from operations for the quarter was $21.0 million, compared to $21.9 million for the second quarter of fiscal 2024. Non-GAAP operating loss for the quarter was $4.1 million, compared to $9.2 million for the second quarter of fiscal 2024.Cash flow: Cash flow used in operating activities for the quarter was $4.9 million, compared to cash flow used in operating activities of $0.5 million in the second quarter of fiscal 2024. Capital expenditures were $1.0 million during the quarter, leading to negative free cash flow of $5.9 million, compared to negative free cash flow of $1.6 million in the second quarter of fiscal 2024.Remaining performance obligations (RPO): RPO as of July 31, 2024 was $215.8 million, an increase of 27% year-over-year.
Recent Business Highlights
Announced the general availability of Capella Columnar, an exciting milestone for Couchbase with strong uptake and positive feedback from early adopters across various industries. Columnar helps organizations streamline the development of adaptive applications by enabling real-time data analysis alongside operational workloads within a single database platform.Announced the general availability of Couchbase Mobile with vector search, which makes it possible for businesses to offer similarity and hybrid search in their applications on mobile and at the edge. With Capella Columnar and vector search capabilities in one cloud database platform, Couchbase helps businesses reduce cost and simplify operations, while enabling developers to create trustworthy adaptive applications.Introduced Capella Free Tier, a workspace which empowers developers to work faster by enabling the development of next generation, production-ready applications on Couchbase. Developers now have the access and convenience they need to build on applications without worrying about an end date.Announced the appointment of Josh Harbert as senior vice president and chief marketing officer. In this role, Harbert will lead all marketing and sales development efforts, driving brand momentum, demand creation, market leadership and growth initiatives. He brings over 20 years’ experience in the enterprise software industry and a proven track record of accelerating growth and achieving strategic outcomes in both private and public companies.
Financial Outlook
For the third quarter and full year of fiscal 2025, Couchbase expects:
Q3 FY2025 Outlook
FY2025 Outlook
Total Revenue
$50.3-51.1 million
$205.1-209.1 million
Total ARR
$218.5-221.5 million
$235.5-240.5 million
Non-GAAP Operating Loss
$5.5-4.5 million
$24.5-19.5 million
The guidance provided above is based on several assumptions that are subject to change and many of which are outside our control. If actual results vary from these assumptions, our expectations may change. There can be no assurance that we will achieve these results.
Couchbase is not able, at this time, to provide GAAP targets for operating loss for the third quarter or full year of fiscal 2025 because of the difficulty of estimating certain items excluded from non-GAAP operating loss that cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.
Conference Call Information
Couchbase will host a live webcast at 1:30 p.m. Pacific Time (or 4:30 p.m. Eastern Time) on Wednesday, September 4, 2024, to discuss its financial results and business highlights. The conference call can be accessed by dialing 877-407-8029 from the United States, or +1 201-689-8029 from international locations. The live webcast and a webcast replay can be accessed from the investor relations page of Couchbase’s website at investors.couchbase.com.
About Couchbase
Modern customer experiences need a flexible database platform that can power applications spanning from cloud to edge and everything in between. Couchbase’s mission is to simplify how developers and architects develop, deploy and run modern applications wherever they are. We have reimagined the database with our fast, flexible and affordable cloud database platform Couchbase Capella, allowing organizations to quickly build applications that deliver premium experiences to their customers – all with best-in-class price performance. 30% of the Fortune 100 trust Couchbase to power their modern applications. For more information, visit www.couchbase.com and follow us on X (formerly Twitter) @couchbase.
Couchbase has used, and intends to continue using, its investor relations website and the corporate blog at blog.couchbase.com to disclose material non-public information and to comply with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website and the corporate blog in addition to following our press releases, SEC filings and public conference calls and webcasts.
Use of Non-GAAP Financial Measures
In addition to our financial information presented in accordance with GAAP, we believe certain non-GAAP financial measures are useful to investors in evaluating our operating performance. We use certain non-GAAP financial measures, collectively, to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, may be helpful to investors because they provide consistency and comparability with past financial performance and meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business, results of operations or outlook. Non-GAAP financial measures are presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP financial measures used by other companies. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures (provided in the financial statement tables included in this press release), and not to rely on any single financial measure to evaluate our business.
Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss and non-GAAP net loss per share: We define these non-GAAP financial measures as their respective GAAP measures, excluding expenses related to stock-based compensation expense, employer payroll taxes on employee stock transactions, restructuring charges and impairment of capitalized internal-use software. We use these non-GAAP financial measures in conjunction with GAAP measures to assess our performance, including in the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance.
For the fourth quarter of fiscal 2024, we excluded the impairment of capitalized internal-use software, a non-cash operating expense, from our non-GAAP results as it is not reflective of ongoing operating results. This impairment charge related to certain previously capitalized internal-use software that we determined would no longer be placed into service. Prior period non-GAAP financial measures have not been adjusted to reflect this change as we did not incur impairment of capitalized internal-use software in any prior period presented.
Free cash flow: We define free cash flow as cash used in operating activities less additions to property and equipment, which includes capitalized internal-use software costs. We believe free cash flow is a useful indicator of liquidity that provides our management, board of directors and investors with information about our future ability to generate or use cash to enhance the strength of our balance sheet and further invest in our business and pursue potential strategic initiatives.
Please see the reconciliation tables at the end of this press release for the reconciliation of GAAP and non-GAAP results.
Key Business Metrics
We review a number of operating and financial metrics, including ARR, to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions.
We define ARR as of a given date as the annualized recurring revenue that we would contractually receive from our customers in the month ending 12 months following such date. Based on historical experience with customers, we assume all contracts will be renewed at the same levels unless we receive notification of non-renewal and are no longer in negotiations prior to the measurement date. For Capella products, ARR in a customer’s initial year is calculated as the greater of: (i) initial year contract revenue as described above or (ii) annualized prior 90 days of actual consumption; and ARR for subsequent years is calculated with method (ii). ARR excludes services revenue.
Prior to fiscal 2025, ARR excluded on-demand revenue and, for Capella products in a customer’s initial year, ARR was calculated solely on the basis of initial year contract revenue. The reason for these changes is to better reflect ARR where usage rates or timing of purchases may be uneven and to better align with how ARR is used to measure the performance of the business. ARR for prior periods has not been adjusted to reflect this change as it is not material to any period previously presented.
ARR should be viewed independently of revenue, and does not represent our revenue under GAAP on an annualized basis, as it is an operating metric that can be impacted by contract start and end dates and renewal dates. ARR is not intended to be a replacement for forecasts of revenue. Although we seek to increase ARR as part of our strategy of targeting large enterprise customers, this metric may fluctuate from period to period based on our ability to acquire new customers, expand within our existing customers and consumption dynamics. We believe that ARR is an important indicator of the growth and performance of our business.
We also attempt to represent the changes in the underlying business operations by eliminating fluctuations caused by changes in foreign currency exchange rates within the current period. We calculate constant currency growth rates by applying the applicable prior period exchange rates to current period results.
Forward-Looking Statements
This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include, but are not limited to, quotations of management, the section titled “Financial Outlook” above and statements about Couchbase’s market position, strategies and potential market opportunities. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements include all statements that are not historical facts and, in some cases, can be identified by terms such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “continue,” “could,” “potential,” “remain,” “may,” “might,” “will,” “would” or similar expressions and the negatives of those terms. However, not all forward-looking statements contain these identifying words. Forward-looking statements involve known and unknown risks, uncertainties and other factors, including factors beyond our control, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to: our history of net losses and ability to achieve or maintain profitability in the future; our ability to continue to grow on pace with historical rates; our ability to manage our growth effectively; intense competition and our ability to compete effectively; cost-effectively acquiring new customers or obtaining renewals, upgrades or expansions from our existing customers; the market for our products and services being highly competitive and evolving, and our future success depending on the growth and expansion of this market; our ability to innovate in response to changing customer needs, new technologies or other market requirements, including new capabilities, programs and partnerships and their impact on our customers and our business; our limited operating history, which makes it difficult to predict our future results of operations; the significant fluctuation of our future results of operations and ability to meet the expectations of analysts or investors; our significant reliance on revenue from subscriptions, which may decline and, the recognition of a significant portion of revenue from subscriptions over the term of the relevant subscription period, which means downturns or upturns in sales are not immediately reflected in full in our results of operations; and the impact of geopolitical and macroeconomic factors. Further information on risks that could cause actual results to differ materially from forecasted results are included in our filings with the Securities and Exchange Commission that we may file from time to time, including those more fully described in our Annual Report on Form 10-K for the fiscal year ended January 31, 2024. Additional information will be made available in our Quarterly Report on Form 10-Q for the quarter ended July 31, 2024 that will be filed with the Securities and Exchange Commission, which should be read in conjunction with this press release and the financial results included herein. Any forward-looking statements contained in this press release are based on assumptions that we believe to be reasonable as of this date. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.
Couchbase, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended July 31,
Six Months Ended July 31,
2024
2023
2024
2023
Revenue:
License
$ 5,242
$ 4,798
$ 12,101
$ 9,741
Support and other
44,051
36,156
86,230
69,755
Total subscription revenue
49,293
40,954
98,331
79,496
Services
2,296
2,185
4,585
4,639
Total revenue
51,589
43,139
102,916
84,135
Cost of revenue:
Subscription(1)
4,455
3,845
8,412
7,518
Services(1)
2,008
2,064
3,733
4,313
Total cost of revenue
6,463
5,909
12,145
11,831
Gross profit
45,126
37,230
90,771
72,304
Operating expenses:
Research and development(1)
17,370
16,292
35,217
31,675
Sales and marketing(1)
36,168
32,348
73,923
64,901
General and administrative(1)
12,636
10,459
25,219
20,084
Restructuring(1)
—
—
—
46
Total operating expenses
66,174
59,099
134,359
116,706
Loss from operations
(21,048)
(21,869)
(43,588)
(44,402)
Interest expense
(29)
(18)
(29)
(43)
Other income, net
1,741
1,255
3,272
2,688
Loss before income taxes
(19,336)
(20,632)
(40,345)
(41,757)
Provision for income taxes
559
19
545
769
Net loss
$ (19,895)
$ (20,651)
$ (40,890)
$ (42,526)
Net loss per share, basic and diluted
$ (0.39)
$ (0.44)
$ (0.81)
$ (0.92)
Weighted-average shares used in computing
net loss per share, basic and diluted
50,822
46,714
50,311
46,285
_______________________________
(1)
Includes stock-based compensation expense as follows:
Three Months Ended July 31,
Six Months Ended July 31,
2024
2023
2024
2023
Cost of revenue—subscription
$ 301
$ 236
$ 567
$ 429
Cost of revenue—services
109
149
250
294
Research and development
4,214
3,614
8,207
6,382
Sales and marketing
6,162
4,032
11,385
7,273
General and administrative
5,370
4,086
10,374
7,014
Restructuring
—
—
—
1
Total stock-based compensation expense
$ 16,156
$ 12,117
$ 30,783
$ 21,393
Couchbase, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
As of July 31,
2024
As of January 31,
2024
Assets
Current assets
Cash and cash equivalents
$ 62,607
$ 41,351
Short-term investments
93,526
112,281
Accounts receivable, net
31,263
44,848
Deferred commissions
13,187
15,421
Prepaid expenses and other current assets
10,092
10,385
Total current assets
210,675
224,286
Property and equipment, net
7,053
5,327
Operating lease right-of-use assets
3,497
4,848
Deferred commissions, noncurrent
13,603
11,400
Other assets
1,119
1,891
Total assets
$ 235,947
$ 247,752
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable
$ 5,031
$ 4,865
Accrued compensation and benefits
14,123
18,116
Other accrued expenses
3,373
4,581
Operating lease liabilities
2,670
3,208
Deferred revenue
81,906
81,736
Total current liabilities
107,103
112,506
Operating lease liabilities, noncurrent
1,170
2,078
Deferred revenue, noncurrent
1,031
2,747
Total liabilities
109,304
117,331
Stockholders’ equity
Preferred stock
—
—
Common stock
—
—
Additional paid-in capital
658,165
621,024
Accumulated other comprehensive income
27
56
Accumulated deficit
(531,549)
(490,659)
Total stockholders’ equity
126,643
130,421
Total liabilities and stockholders’ equity
$ 235,947
$ 247,752
Couchbase, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended July 31,
Six Months Ended July 31,
2024
2023
2024
2023
Cash flows from operating activities
Net loss
$ (19,895)
$ (20,651)
$ (40,890)
$ (42,526)
Adjustments to reconcile net loss to net cash used
in operating activities
Depreciation and amortization
363
745
763
1,635
Stock-based compensation, net of amounts
capitalized
16,156
12,117
30,783
21,393
Amortization of deferred commissions
4,184
4,702
8,280
9,242
Non-cash lease expense
765
776
1,530
1,548
Foreign currency transaction losses (gains)
8
249
291
165
Other
(589)
(1,030)
(1,413)
(1,776)
Changes in operating assets and liabilities
Accounts receivable
3,130
9,811
13,295
7,537
Deferred commissions
(5,179)
(4,322)
(8,249)
(9,146)
Prepaid expenses and other assets
412
(1,523)
443
(118)
Accounts payable
938
(3,713)
146
1,745
Accrued compensation and benefits
5,188
2,306
(3,991)
(1,754)
Other Accrued Expenses
(294)
(615)
(1,107)
(1,871)
Operating lease liabilities
(782)
(897)
(1,625)
(1,723)
Deferred revenue
(9,255)
1,526
(1,547)
7,949
Net cash used in operating activities
(4,850)
(519)
(3,291)
(7,700)
Cash flows from investing activities
Purchases of short-term investments
(18,351)
(56,494)
(37,805)
(64,315)
Maturities of short-term investments
34,000
50,697
58,144
70,120
Additions to property and equipment
(1,067)
(1,071)
(2,062)
(2,359)
Net cash provided by (used in) investing
activities
14,582
(6,868)
18,277
3,446
Cash flows from financing activities
Proceeds from exercise of stock options
842
2,733
4,136
4,650
Proceeds from issuance of common stock under
ESPP
—
—
1,795
847
Net cash provided by financing activities
842
2,733
5,931
5,497
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
58
(149)
(204)
(252)
Net increase in cash, cash equivalents and
restricted cash
10,632
(4,803)
20,713
991
Cash, cash equivalents, and restricted cash at
beginning of period
51,975
46,783
41,894
40,989
Cash, cash equivalents, and restricted cash at end
of period
$ 62,607
$ 41,980
$ 62,607
$ 41,980
Reconciliation of cash, cash equivalents, and
restricted cash within the consolidated balance
sheets to the amounts shown above:
Cash and cash equivalents
$ 62,607
$ 41,437
$ 62,607
$ 41,437
Restricted cash included in other assets
—
543
—
543
Total cash, cash equivalents and restricted cash
$ 62,607
$ 41,980
$ 62,607
$ 41,980
Couchbase, Inc.
Reconciliation of GAAP to Non-GAAP Results
(in thousands, except per share data)
(unaudited)
Three Months Ended July 31,
Six Months Ended July 31,
2024
2023
2024
2023
Reconciliation of GAAP gross profit to
non-GAAP gross profit:
Total revenue
$ 51,589
$ 43,139
$ 102,916
$ 84,135
Gross profit
$ 45,126
$ 37,230
$ 90,771
$ 72,304
Add: Stock-based compensation expense
410
385
817
723
Add: Employer taxes on employee stock
transactions
28
21
98
31
Non-GAAP gross profit
$ 45,564
$ 37,636
$ 91,686
$ 73,058
Gross margin
87.5 %
86.3 %
88.2 %
85.9 %
Non-GAAP gross margin
88.3 %
87.2 %
89.1 %
86.8 %
Three Months Ended July 31,
Six Months Ended July 31,
2024
2023
2024
2023
Reconciliation of GAAP operating
expenses to non-GAAP operating
expenses:
GAAP research and development
$ 17,370
$ 16,292
$ 35,217
$ 31,675
Less: Stock-based compensation expense
(4,214)
(3,614)
(8,207)
(6,382)
Less: Employer taxes on employee stock
transactions
(170)
(123)
(479)
(231)
Non-GAAP research and development
$ 12,986
$ 12,555
$ 26,531
$ 25,062
GAAP sales and marketing
$ 36,168
$ 32,348
$ 73,923
$ 64,901
Less: Stock-based compensation expense
(6,162)
(4,032)
(11,385)
(7,273)
Less: Employer taxes on employee stock
transactions
(421)
(330)
(1,103)
(450)
Non-GAAP sales and marketing
$ 29,585
$ 27,986
$ 61,435
$ 57,178
GAAP general and administrative
$ 12,636
$ 10,459
$ 25,219
$ 20,084
Less: Stock-based compensation expense
(5,370)
(4,086)
(10,374)
(7,014)
Less: Employer taxes on employee stock
transactions
(172)
(59)
(327)
(88)
Non-GAAP general and administrative
$ 7,094
$ 6,314
$ 14,518
$ 12,982
Three Months Ended July 31,
Six Months Ended July 31,
2024
2023
2024
2023
Reconciliation of GAAP operating loss to
non-GAAP operating loss:
Total revenue
$ 51,589
$ 43,139
$ 102,916
$ 84,135
Loss from operations
$ (21,048)
$ (21,869)
$ (43,588)
$ (44,402)
Add: Stock-based compensation expense
16,156
12,117
30,783
21,392
Add: Employer taxes on employee stock
transactions
791
533
2,007
800
Add: Restructuring(2)
—
—
—
46
Non-GAAP operating loss
$ (4,101)
$ (9,219)
$ (10,798)
$ (22,164)
Operating margin
(41) %
(51) %
(42) %
(53) %
Non-GAAP operating margin
(8) %
(21) %
(10) %
(26) %
Three Months Ended July 31,
Six Months Ended July 31,
2024
2023
2024
2023
Reconciliation of GAAP net loss to non-
GAAP net loss:
Net loss
$ (19,895)
$ (20,651)
$ (40,890)
$ (42,526)
Add: Stock-based compensation expense
16,156
12,117
30,783
21,392
Add: Employer taxes on employee stock
transactions
791
533
2,007
800
Add: Restructuring(2)
—
—
—
46
Non-GAAP net loss
$ (2,948)
$ (8,001)
$ (8,100)
$ (20,288)
GAAP net loss per share
$ (0.39)
$ (0.44)
$ (0.81)
$ (0.92)
Non-GAAP net loss per share
$ (0.06)
$ (0.17)
$ (0.16)
$ (0.44)
Weighted average shares outstanding, basic
and diluted
50,822
46,714
50,311
46,285
_______________________________
(2)
For the six months ended July 31, 2023, an immaterial amount of stock-based compensation expense related to restructuring charges was included in the restructuring expense line.
The following table presents a reconciliation of free cash flow to net cash provided by (used in) operating activities, the most directly comparable GAAP measure, for each of the periods indicated (in thousands, unaudited):
Three Months Ended July 31,
Six Months Ended July 31,
2024
2023
2024
2023
Net cash used in operating activities
$ (4,850)
$ (519)
$ (3,291)
$ (7,700)
Less: Additions to property and equipment
(1,067)
(1,071)
(2,062)
(2,359)
Free cash flow
$ (5,917)
$ (1,590)
$ (5,353)
$ (10,059)
Net cash provided by (used in) investing
activities
$ 14,582
$ (6,868)
$ 18,277
$ 3,446
Net cash provided by financing activities
$ 842
$ 2,733
$ 5,931
$ 5,497
Couchbase, Inc.
Key Business Metrics
(in millions)
(unaudited)
As of
Oct. 31,
Jan. 31,
April 30,
July 31,
Oct. 31,
Jan. 31,
April 30,
July 31,
2022
2023
2023
2023
2023
2024
2024
2024
Annual Recurring
Revenue
$ 151.7
$ 163.7
$ 172.2
$ 180.7
$ 188.7
$ 204.2
$ 207.7
$ 214.0
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SOURCE Couchbase, Inc.
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An arduous expedition like the Long March posed unparalleled trials for any military unit.
Bitter cold on snow-capped mountains, hidden mire across marshlands, and dangers lurking every step of the way; food and warm clothes were constantly scarce, while enemies and artillery fire were relentless. Even so, through the Long March, these poorly equipped and raggedly dressed Red Army troops remained tightly bonded as one.
This bond was not coerced by harsh military discipline, but arose spontaneously from every soldier’s heart. Before they even set off, shared ideals and conviction had already taken deep root within every soldier, steeling their resolve to follow the Communist Party of China without hesitation. Along the trail, officers and soldiers of the Red Army ate from the same pots and wore uniforms made from the same coarse cloth. High-ranking commanders like Zhu De and Peng Dehuai covered most of the journey on foot alongside their troops, leaving their horses to the ill and wounded, while splitting their last rations with soldiers. Amid food shortages, even when columns in the front discovered edible greens, they would never dig them all up; instead, they sent words to rear units so that all troops could share.
The Red Army’s unity took root in shared ideals, flourished under equal treatment for all, and was forged through countless moments of entrusting each other with their lives. It also became the unshakable foundation that carried them through every ordeal.
In the late autumn of 1936, the Loess Plateau in northwestern China witnessed two hopeful rendezvous, marking the Long March’s triumphant close. First in Huining, soldiers of the First and Fourth Front Armies embraced in a long-awaited reunion. Just over 10 days later, at Jiangtaibu, the waiting First Front Army finally greeted the travel-worn soldiers of the Second Front Army.
Many of these soldiers had never met before, yet they greeted one another like long-lost brothers, eyes brimming with tears as they clasped hands. Officers and soldiers of the First Front Army sent whatever supplies they had saved up to their brother troops. Three battle-hardened columns merged into a mighty iron stream across the plateau. Just one month later, they fought in coordinated formation to secure triumph in the battle of Shanchengbao, putting a glorious full stop to the Long March.
When scattered sparks merge, inherent unity surges into a mighty force, powerful enough to rewrite an army’s fate and shift the course of a nation’s history.
At the time, Japanese invaders advanced deeper into China, occupying more and more territory, yet the civil war persisted. The CPC clearly understood that brutal conflict among the Chinese would only play to the invaders’ hands, and only national unity could safeguard the motherland. The CPC publicly called for an end to the civil war and joint resistance against Japanese invaders, officially proposed to build the national united front against Japanese aggression, and even took the initiative to halt military operations and withdraw troops as a gesture of goodwill — when the survival of a nation hung by a thread, they chose to unite all Chinese people.
The two KMT officers, Zhang Xueliang and Yang Hucheng, who were stationed in the northwest, witnessed the nation’s peril and were touched by the CPC’s advocacy of a united resistance. Resolved to collaborate with the CPC to fend off Japanese aggression, Zhang and Yang repeatedly pleaded with Chiang Kai-shek to shift focus to national defense, but to no avail. Ultimately, they detained Chiang by force, which later became known as the Xi’an Incident.
When word spread of Chiang’s detention, many assumed the CPC would demand a public trial, given years of bitter partisan strife. Instead, Zhou Enlai personally traveled to Xi’an with the CPC delegation to mediate, laying out the stakes for all parties concerned: executing Chiang would only result in a much larger-scale civil war, handing the Japanese aggressors golden opportunities to advance further into China. The only path to a promising future for the Chinese nation lay in a peaceful settlement that would compel Chiang to join the resistance against Japanese aggression.
Setting aside partisan divisions and prioritizing the supreme interests of the nation — this was the answer delivered by the CPC. At last, the Xi’an Incident was settled in peace, bringing an end to a decade of war. Since then, the Chinese nation finally stood united in fighting back against foreign invasion.
Nearly a century has passed, yet the spirit of unity forged on the Long March has never faded.
In September 1949, the First Plenary Session of the Chinese People’s Political Consultative Conference (CPPCC) was convened, officially instituting the system of multiparty cooperation and political consultation under the leadership of the Communist Party of China. The spirit of solidarity tempered amid the Long March was thereafter embedded in the very fabric of China’s governance system, with unity becoming one of its enduring tenets.
From the early reconstruction years since the founding of the People’s Republic of China in 1949, through the era of reform and opening up since 1978, to today’s march toward China’s modernization, each successive trial has burnished this core spirit of unity. In the fight against absolute poverty, the whole nation pulled together as a single force: the more developed eastern regions lent robust support to underdeveloped western regions, officials devoted themselves to working at grassroots communities, and local residents worked hard and strove for self-improvement. Together, hundreds of millions of Chinese worked to eradicate absolute poverty nationwide. When earthquakes and floods struck, rescue teams rushed to disaster zones from every corner of the country, while relief supplies and charitable donations poured in ceaselessly.
From the helping hands extended between soldiers along the Long March to the nationwide solidarity repeatedly demonstrated today, the essence of unity has never changed. It was the key that carried the Red Army through seemingly impossible odds, and it endures as China’s bedrock strength that propels China forward to this day.
David Ferguson:
After hearing the stories of the reunion of the three main forces of the Red Army and the Xi’an Incident, I found my answer.
The Long March showed me that unity is a condition for survival — not in the sense of “I need you for now, so let’s work together.” Rather, it was “We believe in a common cause, so we must stand together.” That kind of unity does not dissolve when the danger is gone, because it is rooted not in fear, but in conviction.
Whether I look at stories of the Long March or at China’s development today, what strikes me is not simply unity itself. What gives unity its power is the shared ideal that enables people to stand together, and the common mission that at critical moments, enables them to rise above the interests of the individual, of groups, and even of political parties.
Wang Xiaohui:
From the arduous trails of the Long March to the contemporary journey of national rejuvenation, when a group of people or a whole nation stand united around common ideals, they will always arrive at the future they hoped for, no matter how lengthy and winding the road ahead is.
China Mosaic
http://www.china.org.cn/video/node_7230027.htm
Unity: The Convergence of the Three Main Red Army Forces
http://www.china.org.cn/2026-10/20/content_118741729.shtml
View original content to download multimedia:https://www.prnewswire.com/news-releases/unity-the-convergence-of-the-three-main-red-army-forces-302914999.html
SOURCE China.org.cn
Technology
KingClean Debuts at the 140th Canton Fair with One-Stop ODM Solutions for Global Brands
Published
37 minutes agoon
October 21, 2026By
GUANGZHOU, China, Oct. 21, 2026 /PRNewswire/ — KingClean, a global leader in home appliances and cleaning solutions, showcased its latest smart home product line at the 140th Canton Fair, which includes cleaning appliances, kitchen and coffee equipment, drinking equipment, personal care and air comfort products. During the exhibition, KingClean held in-depth discussions with global channel partners at Booths E30–36 and F13–19, Hall 2.2, Zone A.
KingClean showcased over 40 innovative products. The cleaning appliances exhibition area covers cordless stick vacuum cleaners with docking stations, upright 3-in-1 wet-and-dry vacuum cleaner with steam, spot cleaner with steam, cordless mattress cleaners and canister. The kitchen appliance exhibition area showcases products such as cooking robot, commercial blenders, and fully automatic coffee machines. The water & beverage solutions area presents desktop intelligent water purifiers with functions of water purification, sparkling water, ice making, and tea brewing. In addition, KingClean balances personal care with environmental comfort, showcasing water-ion turbofan hair dryers, desktop air purifiers, and smart air circulation fans.
The collaboration between high-performance cleaning equipment and intelligent base stations is the key direction of this exhibition. The exhibits include cordless vacuum cleaners equipped with high-power motors, dust‑cup or dust‑bag docking stations, charging and automatic cleaning functions, as well as floor cleaning vacuum cleaners that integrate functions of steam cleaning, automatic water refilling, and hot air drying. Multiple reference models intuitively demonstrate how the same technology platform can flexibly adapt to different power levels, structural schemes, and accessory configurations.
KingClean also showcased a series of home fully automatic coffee machines, smoothies and ice-making equipment, as well as desktop intelligent beverage purifiers that supported flexible combinations of sparkling water, ice water, tea brewing, and coffee related modules in the beverage area. These exhibits could be further customized based on the customer’s beverage menus, usage frequency, and after-sales mode.
“We connect globally through innovative products, focusing on smart solutions that improve life and strengthen our leadership in the smart home industry” said Nate Yang, Senior Marketing Director at KingClean Electric Co., Ltd.
About KingClean
KingClean was founded in 1994 and is headquartered in Suzhou, China. The company specializes in high-end smart home appliances and mechatronic products, with motor as our core technology.
For more information, visit http://www.kingclean.com.
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SOURCE KingClean
Technology
Husqvarna Group: INTERIM REPORT JANUARY – SEPTEMBER 2026
Published
37 minutes agoon
October 21, 2026By
STOCKHOLM, Oct. 21, 2026 /PRNewswire/ —
Consistent strategy execution in a continued challenging market
Third quarter 2026
Net sales decreased organically by 5%.Net sales decreased by 2% to SEK 9,012m (9,204), and included a positive impact of 3% from changes in exchange rates.Operating income amounted to SEK -334m (141) and the operating margin was -3.7% (1.5).Items affecting comparability (IAC) amounted to SEK -88m. These were primarily related to the execution of cost-saving initiatives.Excluding IAC, operating income amounted to SEK -246m (140), and the operating margin was -2.7% (1.5).Earnings per share (EPS) after dilution amounted to SEK -0.70 (-0.02) and EPS excluding IAC and after dilution amounted to SEK -0.58 (-0.02).Free operating cash flow was SEK 2,422m (2,423).Net debt was SEK 9.4bn (9.9).
January – September 2026
Net sales decreased organically by 2%.Net sales decreased by 5% to SEK 37,356m (39,184), and included an impact of -3% from changes in exchange rates.Operating income amounted to SEK 2,977m (3,735) and the operating margin was 8.0% (9.5).Items affecting comparability (IAC) amounted to SEK -445m. These were primarily related to the execution of cost-saving initiatives.Excluding IAC, operating income amounted to SEK 3,421m (3,742), and the operating margin was 9.2% (9.5).IEEPA-related tariff refunds of SEK 240m were recognized in COGS during the second quarter.Earnings per share (EPS) after dilution amounted to SEK 3.14 (4.43) and EPS excluding IAC and after dilution amounted to SEK 3.74 (4.44).Free operating cash flow was SEK 4,891m (4,743).
CEO Comment
We are making solid progress on our strategic priorities. Our cost savings program remains on track, recent product launches are receiving encouraging customer feedback, and we are broadening our presence across sales channels. Although these measures have not yet fully offset current market headwinds, they reinforce our confidence in the Group’s long-term competitiveness and prospects.
Financial performance summary
Net sales were SEK 9,012m (9,204), representing an organic decline of 5% in the quarter, primarily driven by continued weakness in Europe. Organic sales in the Husqvarna Forest & Garden Division declined by 10%, sales in the Husqvarna Construction Division were unchanged, while the Gardena Division delivered solid organic growth of 8%. Performance in the Husqvarna Forest & Garden Division was significantly affected by the widespread drought across large parts of Europe and continued weak consumer demand in key markets, including Germany and France. In contrast, strong growth in the Gardena Division’s Watering business highlighted the resilience of our diversified portfolio, gaining market shares in key markets, and the Husqvarna Construction Division has continued good momentum in its aftermarket business. I am also encouraged by continued growth across all three divisions in North America.
Operating income excluding IAC was SEK -246m (140), corresponding to a margin of -2.7% (1.5). The result reflected lower volumes in the Husqvarna Forest & Garden Division, an unfavorable product mix, inventory reductions and cost increases on raw materials and logistics costs. Free operating cash flow was stable at SEK 2,422m (2,423), as lower operating income was offset by changes in working capital, primarily driven by reduced inventories. We further strengthened the balance sheet, reducing net debt to SEK 9.4bn (9.9).
Executing on cost savings while navigating cost headwinds
Our transformative cost savings program remains on track to deliver SEK 3bn in gross savings by the end of 2028. Year-to-date savings reached approximately SEK 935m, including around SEK 305m in the third quarter, driven mainly by sourcing activities and personnel reductions. However, lower volumes, inventory reductions and cost headwinds continue to weigh on profitability. We are responding with targeted price increases, supply chain actions and product cost optimization, which will partly offset these pressures, although near-term headwinds are expected to remain.
We are advancing our asset-light strategy through further outsourcing initiatives. We will transfer production of selected Husqvarna-branded battery handheld products from Europe to Asia, using both our own facilities and external partners to enhance efficiency and competitiveness.
In addition, the ongoing discontinuation of the stone diamond tool business in the Construction Division, the phase-out of our Brastad component factory in the Husqvarna Forest & Garden Division and relocation of selected activities within Gardena’s European manufacturing network are progressing according to plan.
Unlocking the next phase of robotics growth
Our robotic lawn mowing business faced a difficult quarter, with adverse weather, competitive headwinds, and elevated channel partner inventories in Europe constraining demand for Husqvarna- and Gardena-branded products. Although recent performance has fallen short of expectations, we remain the clear market leader and we are confident in our strategy and longer-term development.
The strategic review of the Powered Garden BPU in the Gardena Division is ongoing and we aim to provide an update in the beginning of next year. Our priorities in the Husqvarna Forest & Garden Residential Robotics BPU include expanding our retail footprint and product range across price points and channels, strengthening the robotics organization and development model.
During the quarter, the US became the largest market in terms of sales for our Professional Robotics BPU, driven mainly by continued growth in the golf segment. Upcoming product launches and broader US distribution are expected to further strengthen our competitive position next season. We are also encouraged to be the first robotics company to receive conditional approval from the Federal Communications Commission (FCC) for foreign-produced advanced robotic devices in the US market.
Building a stronger, more competitive Husqvarna Group
We are accelerating change across the Group to create a leaner, more agile and asset-light organization. By challenging established ways of working, simplifying operations and acting decisively, we are strengthening competitiveness and profitability in the longer-term. Significant work remains, but I am confident we are moving in the right direction.
When consumer sentiment recovers, particularly in Europe, we will be well positioned to capture growth and improve earnings.
Glen Instone, CEO
Webcast presentation and telephone conference
A webcast presentation of the Q3 report hosted by Glen Instone, CEO and Patrik Johnson, CFO will be held at 9:00 CEST on Oct 21, 2026.
To view the presentation, please use this link.
The dial-in to the telephone conference (to ask questions):
+46 (0) 8 505 100 31 (Sweden) or +44 203 059 58 63 (UK)
Contact
Emelie Alm, Vice President, Investor Relations
+46 70 514 64 14
Husqvarna AB (publ), P.O. Box 7454, SE-103 92 Stockholm
Hälsingegatan 49, +46 8 738 90 00, www.husqvarnagroup.com
Reg. Nr: 556000-5331
(NASDAQ STOCKHOLM: HUSQ-A) (NASDAQ STOCKHOLM: HUSQ-B)
This report contains insider information that Husqvarna AB is required to disclose under the EU Market Abuse Regulation. The information was submitted for publication, through the contact person set out above, at 07:00 CEST on Oct 21, 2026.
Factors affecting forward-looking statements
This report contains some forward-looking statements. These statements are subject to risks and uncertainties that may give rise to major deviations in the result due to several aspects. These aspects include, among other things: consumer demand and market conditions in the geographical areas and lines of business in which Husqvarna operates, the effects of currency fluctuations, downward pressure on prices due to competition, success in developing new products, outcome of product responsibility litigation and progress in terms of reaching the goals set for productivity and efficient use of capital.
This information was brought to you by Cision http://news.cision.com
https://news.cision.com/husqvarna-group/r/interim-report-january—september-2026,c4412543
The following files are available for download:
https://mb.cision.com/Main/996/4412543/4328797.pdf
Interim report Q3 2026 Husqvarna Group
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SOURCE Husqvarna Group
Unity: The Convergence of the Three Main Red Army Forces
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