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Couchbase Announces Third Quarter Fiscal 2025 Financial Results

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SANTA CLARA, Calif., Dec. 3, 2024 /PRNewswire/ — Couchbase, Inc. (NASDAQ: BASE), the developer data platform for critical applications in our AI world, today announced financial results for its third quarter ended October 31, 2024.

“I’m pleased with the continued operational progress of the entire Couchbase team,” said Matt Cain, Chair, President and CEO of Couchbase. “We delivered top- and bottom-line results that exceeded our outlook, and we achieved another significant milestone with Capella, which now represents 15.1% of our ARR and one third of our customer base. I remain highly confident in our outlook and ability to achieve our objectives in fiscal 2025.”

Third Quarter Fiscal 2025 Financial Highlights

Revenue: Total revenue for the quarter was $51.6 million, an increase of 13% year-over-year. Subscription revenue for the quarter was $49.3 million, an increase of 12% year-over-year.Annual recurring revenue (ARR): Total ARR as of October 31, 2024 was $220.3 million, an increase of 17% year-over-year, or 16% on a constant currency basis. See the section titled “Key Business Metrics” below for details.Gross margin: Gross margin for the quarter was 87.3%, compared to 88.8% for the third quarter of fiscal 2024. Non-GAAP gross margin for the quarter was 88.2%, compared to 89.5% for the third 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 $19.2 million, compared to $17.5 million for the third quarter of fiscal 2024. Non-GAAP operating loss for the quarter was $3.5 million, compared to $5.0 million for the third quarter of fiscal 2024.Cash flow: Cash flow used in operating activities for the quarter was $16.9 million, compared to cash flow used in operating activities of $12.7 million in the third quarter of fiscal 2024. Capital expenditures were $0.6 million during the quarter, leading to negative free cash flow of $17.5 million, compared to negative free cash flow of $13.8 million in the third quarter of fiscal 2024.Remaining performance obligations (RPO): RPO as of October 31, 2024 was $211.3 million, an increase of 29% year-over-year.

Recent Business Highlights

Announced Capella AI Services to provide the critical capabilities and tools required for our customers to streamline the development of agentic AI applications. The new AI Services include model hosting, automated vectorization, unstructured data preprocessing and AI agent catalog services, allowing organizations to prototype, build, test and deploy AI agents while keeping models and data close together on one unified platform. Couchbase’s innovation and newest features with AI Services are on display at AWS re:Invent this week.Continued to advance the Couchbase platform with three major releases: Capella Columnar which converges operational and real-time analytics; 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; and Capella Free Tier, a workspace which empowers developers to work faster.Expanded Couchbase’s AI partner ecosystem through new and recently introduced integrations with industry leaders including Amazon Bedrock, Azure OpenAI, Google Vertex AI, Haystack, LangChain, LlamaIndex, NVIDIA NIM/NeMo, Unstructured.io, Vectorize and others. These integrations help empower our customers to more easily develop enterprise-class, RAG-based solutions and meet their specific deployment needs.Recognized innovative Couchbase customer achievements through the 2024 Customer Impact Awards, demonstrating how leading companies are leveraging Couchbase’s technology to transform their operations. For one of the award recipients – a leading software and technology company that powers the global travel industry serving a wide range of travel companies including airlines, hoteliers, travel agencies and other suppliers – Couchbase will enable a distributed, always-on transactional system. Couchbase handles hundreds of thousands of read transactions and more than 1,000 updates per second for this customer.

Financial Outlook

For the fourth quarter and full year of fiscal 2025, Couchbase expects:

Q4 FY2025 Outlook

FY2025 Outlook

Total Revenue

$52.7-53.5 million

$207.2-208.0 million

Total ARR

$236.5-239.5 million

$236.5-239.5 million

Non-GAAP Operating Loss

$5.7-4.7 million

$20.0-19.0 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 fourth 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 Tuesday, December 3, 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

As industries race to embrace AI, traditional database solutions fall short of rising demands for versatility, performance and affordability. Couchbase is seizing the opportunity to lead with Capella, the developer data platform for critical applications in our AI world. By uniting transactional, analytical, mobile and AI workloads into a seamless, fully-managed solution, Couchbase empowers developers and enterprises to build and scale applications with complete flexibility – delivering exceptional performance, scalability and cost-efficiency from cloud to edge and everything in between. Trusted by over 30% of the Fortune 100, Couchbase enables organizations to unlock innovation, accelerate AI transformation and redefine customer experiences wherever they happen. Discover why Couchbase is the foundation of critical everyday applications by visiting www.couchbase.com and following us on LinkedIn and X.

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 the expected client demand for and benefits of our offerings, the impact of our recently-released and planned products and services and our 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 October 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 October 31,

Nine Months Ended October 31,

2024

2023

2024

2023

Revenue:

License

$                  4,343

$                  4,577

$                16,444

$                14,318

Support and other

44,955

39,420

131,185

109,175

Total subscription revenue

49,298

43,997

147,629

123,493

Services

2,330

1,816

6,915

6,455

Total revenue

51,628

45,813

154,544

129,948

Cost of revenue:

Subscription(1)

4,866

3,549

13,278

11,067

Services(1)

1,690

1,562

5,423

5,875

Total cost of revenue

6,556

5,111

18,701

16,942

Gross profit

45,072

40,702

135,843

113,006

Operating expenses:

Research and development(1)

17,486

15,903

52,703

47,578

Sales and marketing(1)

34,196

31,602

108,119

96,503

General and administrative(1)

12,624

10,739

37,843

30,823

Restructuring(1)

46

Total operating expenses

64,306

58,244

198,665

174,950

Loss from operations

(19,234)

(17,542)

(62,822)

(61,944)

Interest expense

(17)

(46)

(43)

Other income, net

1,790

1,298

5,062

3,986

Loss before income taxes

(17,461)

(16,244)

(57,806)

(58,001)

Provision for income taxes

691

11

1,236

780

Net loss

$              (18,152)

$              (16,255)

$              (59,042)

$              (58,781)

Net loss per share, basic and diluted

$                  (0.35)

$                  (0.34)

$                  (1.16)

$                  (1.26)

Weighted-average shares used in computing net loss per share, basic and diluted

51,831

47,586

50,821

46,724

(1)

Includes stock-based compensation expense as follows:

Three Months Ended October 31,

Nine Months Ended October 31,

2024

2023

2024

2023

Cost of revenue—subscription

$                     318

$                     130

$                     885

$                     559

Cost of revenue—services

104

119

354

413

Research and development

4,497

3,116

12,704

9,498

Sales and marketing

5,242

4,188

16,627

11,461

General and administrative

5,127

4,202

15,501

11,216

Restructuring

1

Total stock-based compensation expense

$                15,288

$                11,755

$                46,071

$                33,148

 

Couchbase, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)

As of October
31, 2024

As of January
31, 2024

Assets

Current assets

Cash and cash equivalents

$                33,031

$                41,351

Short-term investments

108,908

112,281

Accounts receivable, net

28,514

44,848

Deferred commissions

13,297

15,421

Prepaid expenses and other current assets

10,551

10,385

Total current assets

194,301

224,286

Property and equipment, net

7,000

5,327

Operating lease right-of-use assets

5,497

4,848

Deferred commissions, noncurrent

14,485

11,400

Other assets

1,176

1,891

Total assets

$              222,459

$              247,752

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable

$                  4,724

$                  4,865

Accrued compensation and benefits

12,323

18,116

Other accrued expenses

3,981

4,581

Operating lease liabilities

2,150

3,208

Deferred revenue

67,996

81,736

Total current liabilities

91,174

112,506

Operating lease liabilities, noncurrent

3,678

2,078

Deferred revenue, noncurrent

829

2,747

Total liabilities

95,681

117,331

Stockholders’ equity

Preferred stock

Common stock

Additional paid-in capital

676,360

621,024

Accumulated other comprehensive income

119

56

Accumulated deficit

(549,701)

(490,659)

Total stockholders’ equity

126,778

130,421

Total liabilities and stockholders’ equity

$              222,459

$              247,752

 

Couchbase, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2024

2023

2024

2023

Cash flows from operating activities

Net loss

$              (18,152)

$              (16,255)

$              (59,042)

$              (58,781)

Adjustments to reconcile net loss to net cash used in operating activities

Depreciation and amortization

757

399

1,520

2,034

Stock-based compensation, net of amounts capitalized

15,288

11,755

46,071

33,148

Amortization of deferred commissions

4,375

4,500

12,655

13,742

Non-cash lease expense

863

765

2,393

2,313

Foreign currency transaction losses (gains)

(60)

484

231

649

Other

(456)

(804)

(1,869)

(2,580)

Changes in operating assets and liabilities

Accounts receivable

2,912

1,577

16,207

9,114

Deferred commissions

(5,367)

(4,746)

(13,616)

(13,892)

Prepaid expenses and other assets

(606)

955

(163)

837

Accounts payable

(295)

(10)

(149)

1,735

Accrued compensation and benefits

(1,799)

(1,763)

(5,790)

(3,517)

Other Accrued Expenses

632

(1,126)

(475)

(2,997)

Operating lease liabilities

(876)

(838)

(2,501)

(2,561)

Deferred revenue

(14,111)

(7,636)

(15,658)

313

Net cash used in operating activities

(16,895)

(12,743)

(20,186)

(20,443)

Cash flows from investing activities

Purchases of short-term investments

(37,809)

(26,141)

(75,614)

(90,456)

Maturities of short-term investments

23,000

41,854

81,144

111,974

Additions to property and equipment

(583)

(1,066)

(2,645)

(3,425)

Net cash (used in) provided by investing activities

(15,392)

14,647

2,885

18,093

Cash flows from financing activities

Proceeds from exercise of stock options

1,115

2,703

5,251

7,353

Proceeds from issuance of common stock under ESPP

1,720

1,153

3,515

2,000

Net cash provided by financing activities

2,835

3,856

8,766

9,353

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(124)

(290)

(328)

(542)

Net (decrease) increase in cash, cash equivalents and restricted cash

(29,576)

5,470

(8,863)

6,461

Cash, cash equivalents, and restricted cash at beginning of period

62,607

41,980

41,894

40,989

Cash, cash equivalents, and restricted cash at end of period

$                33,031

$                47,450

$                33,031

$                47,450

Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown above:

Cash and cash equivalents

$                33,031

$                46,907

$                33,031

$                46,907

Restricted cash included in other assets

543

543

Total cash, cash equivalents and restricted cash

$                33,031

$                47,450

$                33,031

$                47,450

 

Couchbase, Inc.
Reconciliation of GAAP to Non-GAAP Results
(in thousands, except per share data)
(unaudited)

Three Months Ended October 31,

Nine Months Ended October 31,

2024

2023

2024

2023

Reconciliation of GAAP gross profit to
non-GAAP gross profit:

Total revenue

$               51,628

$               45,813

$            154,544

$            129,948

Gross profit

$               45,072

$               40,702

$            135,843

$            113,006

Add: Stock-based compensation expense

422

249

1,239

972

Add: Employer taxes on employee stock transactions

22

55

120

86

Non-GAAP gross profit

$               45,516

$               41,006

$            137,202

$            114,064

Gross margin

87.3 %

88.8 %

87.9 %

87.0 %

Non-GAAP gross margin

88.2 %

89.5 %

88.8 %

87.8 %

Three Months Ended October 31,

Nine Months Ended October 31,

2024

2023

2024

2023

Reconciliation of GAAP operating
expenses to non-GAAP operating expenses:

GAAP research and development

$                17,486

$                15,903

$                52,703

$                47,578

Less: Stock-based compensation expense

(4,497)

(3,116)

(12,704)

(9,498)

Less: Employer taxes on employee stock transactions

(106)

(199)

(585)

(430)

Non-GAAP research and development

$                12,883

$                12,588

$                39,414

$                37,650

GAAP sales and marketing

$                34,196

$                31,602

$              108,119

$                96,503

Less: Stock-based compensation expense

(5,242)

(4,188)

(16,627)

(11,461)

Less: Employer taxes on employee stock transactions

(275)

(327)

(1,378)

(777)

Non-GAAP sales and marketing

$                28,679

$                27,087

$                90,114

$                84,265

GAAP general and administrative

$                12,624

$                10,739

$                37,843

$                30,823

Less: Stock-based compensation expense

(5,127)

(4,202)

(15,501)

(11,216)

Less: Employer taxes on employee stock transactions

(64)

(176)

(391)

(264)

Non-GAAP general and administrative

$                  7,433

$                  6,361

$                21,951

$                19,343

Three Months Ended October 31,

Nine Months Ended October 31,

2024

2023

2024

2023

Reconciliation of GAAP operating loss to
non-GAAP operating loss:

Total revenue

$               51,628

$               45,813

$             154,544

$            129,948

Loss from operations

$              (19,234)

$              (17,542)

$              (62,822)

$             (61,944)

Add: Stock-based compensation expense

15,288

11,755

46,071

33,147

Add: Employer taxes on employee stock transactions

467

757

2,474

1,557

Add: Restructuring(2)

46

Non-GAAP operating loss

$                (3,479)

$                (5,030)

$              (14,277)

$              (27,194)

Operating margin

(37) %

(38) %

(41) %

(48) %

Non-GAAP operating margin

(7) %

(11) %

(9) %

(21) %

Three Months Ended October 31,

Nine Months Ended October 31,

2024

2023

2024

2023

Reconciliation of GAAP net loss to
non-GAAP net loss:

Net loss

$              (18,152)

$              (16,255)

$              (59,042)

$              (58,781)

Add: Stock-based compensation expense

15,288

11,755

46,071

33,147

Add: Employer taxes on employee stock transactions

467

757

2,474

1,557

Add: Restructuring(2)

46

Non-GAAP net loss

$                (2,397)

$                (3,743)

$              (10,497)

$              (24,031)

GAAP net loss per share

$                  (0.35)

$                  (0.34)

$                  (1.16)

$                  (1.26)

Non-GAAP net loss per share

$                  (0.05)

$                  (0.08)

$                  (0.21)

$                  (0.51)

Weighted average shares outstanding, basic and diluted

51,831

47,586

50,821

46,724

(2)

For the nine months ended October 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 October 31,

Nine Months Ended October 31,

2024

2023

2024

2023

Net cash used in operating activities

$              (16,895)

$              (12,743)

$              (20,186)

$              (20,443)

Less: Additions to property and equipment

(583)

(1,066)

(2,645)

(3,425)

Free cash flow

$              (17,478)

$              (13,809)

$              (22,831)

$              (23,868)

Net cash (used in) provided by investing activities

$              (15,392)

$                14,647

$                  2,885

$                18,093

Net cash provided by financing activities

$                  2,835

$                  3,856

$                  8,766

$                  9,353

 

Couchbase, Inc.
Key Business Metrics
(in millions)
(unaudited)

As of

Jan. 31,

April 30,

July 31,

Oct. 31,

Jan. 31,

April 30,

July 31,

Oct. 31,

2023

2023

2023

2023

2024

2024

2024

2024

Annual Recurring Revenue

$     163.7

$     172.2

$     180.7

$     188.7

$     204.2

$     207.7

$     214.0

$     220.3

 

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Stanford, MIT, Carnegie Mellon Lead First-Ever Benchmark of AI Production Capacity Across 50 Global Universities – New 5W AI Communications Report

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5W AI Communications ranks universities on six equally weighted dimensions. Tier I set includes Stanford, MIT, Carnegie Mellon, UC Berkeley, Tsinghua, University of Toronto, Peking, and Princeton.

MIAMI, July 22, 2026 /PRNewswire/ — Stanford University, the Massachusetts Institute of Technology, and Carnegie Mellon University lead the first-ever benchmark of AI production capacity across 50 global universities, according to a report released today by 5W AI Communications. The Tier I set of eight universities is completed by the University of California, Berkeley; Tsinghua University; the University of Toronto; Peking University; and Princeton University. The full report is available at www.5wpr.com/research/ai-higher-education-index/.

The 5W AI Higher Education Index 2026 measures where AI is being produced at the university source. Six equally weighted dimensions — Frontier Lab Anchor Density, AI Research Output, AI Curriculum Depth, Founder and Capital Pipeline, Compute and Infrastructure, and modeled AI Citation Share — combine into a composite score on a 0–100 scale.

About the Report
The 5W AI Higher Education Index 2026 was produced by the 5W AI Communications research team over a four-month research window between February and May 2026. All sub-component weightings, three worked sample calculations, five-variant sensitivity checks, and confidence intervals are published in a dedicated methodology chapter.

The report is designed as a benchmark of one specific variable — AI production capacity — rather than a general university ranking. It measures the source-layer capacity of universities to produce frontier AI research, faculty, founders, and technical leadership.

Institutional endowment, undergraduate teaching quality, admissions selectivity, Nobel prize counts, athletic programs, and general research budget are explicitly outside the framework’s scope. Traditional rankings such as QS, Times Higher Education, and Shanghai Rankings measure institutional reputation across all disciplines; the 5W AI Higher Education Index is designed to complement those rankings, not replace them.

The Complete Ranking — 50 Universities

TIER I — Composite ≥ 78
1. Stanford University (USA) — composite 96.0
2. Massachusetts Institute of Technology (USA) — composite 94.7
3. Carnegie Mellon University (USA) — composite 91.3
4. University of California, Berkeley (USA) — composite 88.2
5. Tsinghua University (China) — composite 84.3
6. University of Toronto (Canada) — composite 82.3
7. Peking University (China) — composite 80.3
8. Princeton University (USA) — composite 79.2

TIER II — Composite 70 to 77.9
9. ETH Zurich (Switzerland) — composite 77.5
10. University of Oxford (UK) — composite 75.0
11. University of Cambridge (UK) — composite 74.5
12. University of Washington (USA) — composite 74.0
13. University of Illinois Urbana-Champaign (USA) — composite 72.5
14. Cornell University (USA) — composite 71.5
15. Georgia Tech (USA) — composite 71.0
16. California Institute of Technology (USA) — composite 70.0

TIER III — Composite < 70
17. Harvard University (USA) — composite 69.0
18. Columbia University (USA) — composite 68.0
19. Yale University (USA) — composite 67.0
20. Shanghai Jiao Tong University (China) — composite 66.5
21. National University of Singapore (Singapore) — composite 66.0
22. Hong Kong University of Science and Technology (Hong Kong) — composite 65.5
23. Nanyang Technological University (Singapore) — composite 64.5
24. KAIST (South Korea) — composite 64.0
25. Technion — Israel Institute of Technology (Israel) — composite 63.5
26. University of Michigan (USA) — composite 63.0
27. University of Texas at Austin (USA) — composite 62.5
28. Tel Aviv University (Israel) — composite 62.0
29. University of California, Los Angeles (USA) — composite 61.5
30. EPFL (Switzerland) — composite 61.0
31. University of Chicago (USA) — composite 59.5
32. University of Southern California (USA) — composite 58.5
33. New York University (USA) — composite 58.0
34. Duke University (USA) — composite 56.0
35. Purdue University (USA) — composite 55.0
36. University of Pennsylvania (USA) — composite 54.5
37. Northwestern University (USA) — composite 54.0
38. Vanderbilt University (USA) — composite 53.5
39. University of Wisconsin-Madison (USA) — composite 53.0
40. Technical University of Munich (Germany) — composite 52.5
41. Imperial College London (UK) — composite 52.0
42. Sorbonne / PSL (France) — composite 51.5
43. University of Edinburgh (UK) — composite 51.0
44. University of Waterloo (Canada) — composite 50.5
45. McGill / Mila (Canada) — composite 50.0
46. Seoul National University (South Korea) — composite 48.5
47. University of Tokyo (Japan) — composite 47.0
48. IIT Bombay (India) — composite 45.5
49. IIT Delhi (India) — composite 44.5
50. IISc Bangalore (India) — composite 43.0 

Stanford University — The Frontier Anchor
Stanford is the only university scoring in the top three on every one of the six dimensions. The Stanford AI Lab (SAIL) and the Institute for Human-Centered AI (HAI), co-directed by Fei-Fei Li, operate two of the largest concentrations of AI faculty at any US university. Christopher Manning, Andrew Ng, Percy Liang, Chelsea Finn, and Dan Boneh anchor a research bench that produces both foundational research and the technical alumni populating frontier AI companies. Stanford graduates include OpenAI chief executive Sam Altman and Nvidia chief executive Jensen Huang.

Massachusetts Institute of Technology — Institutional Commitment
MIT’s Computer Science and Artificial Intelligence Laboratory (CSAIL) is the largest AI research organization in the world by faculty count. The Stephen A. Schwarzman College of Computing, launched in 2019 with a US$1 billion commitment from Blackstone chairman Stephen Schwarzman, embedded AI into the broader institution’s operating structure. Regina Barzilay, Josh Tenenbaum, and Antonio Torralba anchor the current research bench. President Sally Kornbluth has positioned MIT as a reference institution on AI policy in the current cycle.

Carnegie Mellon University — The Deepest Faculty Bench
Carnegie Mellon operates the largest concentration of AI-active faculty in the world by headcount, spread across the Machine Learning Department, the Language Technologies Institute, the Robotics Institute, and the Human-Computer Interaction Institute. CMU launched the first bachelor’s degree in AI in the United States in 2018, three years ahead of every peer institution. The report finds CMU alumni populate the applied-AI staff of every major frontier lab.

UC Berkeley — The Open-Source Anchor
The Berkeley Artificial Intelligence Research Lab (BAIR), the RISE Lab, and the Sky Computing Lab produce much of the field’s most-cited work of the last five years. Pieter Abbeel, Trevor Darrell, Sergey Levine, and Stuart Russell anchor the current bench. The public-university funding structure creates a specific advantage in open-source AI infrastructure — TensorFlow’s early ties, PyTorch-adjacent research, and the reinforcement-learning frameworks now used across the industry all trace to Berkeley or its adjacent research community.

Tsinghua and Peking — The Chinese Frontier
Tsinghua University ranks fifth on the composite (84.3). Peking University ranks seventh (80.3). Tsinghua’s Institute for Interdisciplinary Information Sciences was founded in 2005 by Andrew Yao, the 2000 Turing Award recipient. Tsinghua faculty and alumni populate DeepSeek’s founding technical team, Zhipu AI’s leadership, and much of the research direction at Alibaba’s DAMO Academy. Peking University’s School of Intelligence Science and Technology anchors the second-largest concentration of AI research output in China. Both universities rank higher on Research and Compute than on Citation Share — a compression the report documents as attributable to English-language bias in Western AI engines.

University of Toronto — Origins of Modern Deep Learning
The University of Toronto, at rank 6 (composite 82.3), is the origin institution of the modern deep-learning revolution. Geoffrey Hinton — the 2018 Turing Award co-recipient with Yoshua Bengio and Yann LeCun — ran the lab that produced the 2012 ImageNet breakthrough. Ilya Sutskever, Alex Krizhevsky, and Ruslan Salakhutdinov emerged from that Toronto lab. Aidan Gomez, co-founder of Cohere, is a Toronto graduate. The Vector Institute, launched in Toronto in 2017 with initial funding of C$150 million, anchors the current ecosystem. The report finds Toronto’s per-capita AI production is the highest in the world outside the Bay Area.

Princeton University — The Ivy in Tier I
Princeton is the only Ivy League institution in Tier I on the composite (79.2). Dario Amodei, Anthropic’s chief executive, and Daniela Amodei, its president, both hold Princeton undergraduate degrees. Sanjeev Arora’s theoretical computer science group and the Center for Statistics and Machine Learning produce sustained frontier-relevant research. Princeton President Christopher L. Eisgruber has become one of the most-cited university leaders on AI policy in the current cycle.

Technion and Tel Aviv University — Israeli Anchor Density
Israel places two universities in the top 30. The Technion — Israel Institute of Technology ranks 25th on the composite (63.5). Tel Aviv University ranks 28th (62.0). Both maintain dense ties to Nvidia’s Israeli R&D operations in Yakum — the semiconductor company’s largest engineering site outside the United States — Intel’s Israeli operations in Kiryat Gat and Haifa, and the alumni pipeline from IDF Unit 8200. The report finds founder-per-capita yield at the Technion rivals Stanford’s.

“AI is being produced inside a small number of universities, and the concentration is structural,” said Ronn Torossian, Founder and Chairman, 5W AI Communications. “This benchmark exists so university leaders, prospective PhD candidates, corporate recruiters, and donors can see where AI is actually being built — with a reproducible methodology anyone can audit and reweight.”

Additional Findings from the Report

Stanford is the only university scoring in the top three on every one of the six dimensions — Frontier Lab Anchor Density, AI Research Output, AI Curriculum Depth, Founder and Capital Pipeline, Compute and Infrastructure, and modeled AI Citation Share.Stanford, MIT, Carnegie Mellon, and UC Berkeley collectively account for an estimated majority of frontier-lab founding technical leadership across OpenAI, Anthropic, Google DeepMind, xAI, and adjacent frontier labs.MIT’s CSAIL is the largest AI research organization in the world by faculty count. Carnegie Mellon operates the largest concentration of AI-active faculty in the world by headcount, distributed across four dedicated schools and institutes.Carnegie Mellon launched the first bachelor’s degree in AI in the United States in 2018 — three years ahead of every peer institution in the report’s universe.The University of Toronto ranks first in the world for per-capita AI production outside the Bay Area, reflecting the founder yield and research productivity of the Hinton lineage and the Vector Institute.China places two universities in Tier I — Tsinghua at rank 5 (composite 84.3) and Peking at rank 7 (composite 80.3). Under language-neutral citation-share normalization, both would rank higher.Princeton is the only Ivy League institution in Tier I, sustained by the Amodei alumni tie to Anthropic and the theoretical CS bench at the Center for Statistics and Machine Learning.Israel places two universities in the top 30 — the Technion at 25 and Tel Aviv University at 28. Founder-per-capita yield at the Technion rivals Stanford’s.The 50-university universe spans 13 countries and regions: the United States (25 universities), China (3), the United Kingdom (4), Canada (3), India (3), Singapore (2), Switzerland (2), South Korea (2), Israel (2), plus one each from France, Germany, Hong Kong, and Japan.The report publishes a five-variant sensitivity check showing how the ranking shifts under founder-weighted, research-weighted, language-neutral citation, and compute-weighted composite formulations.

The Six Dimensions

Frontier Lab Anchor Density. Alumni and current-faculty presence at OpenAI (25%), Anthropic (20%), Google DeepMind (20%), xAI (10%), and others including Mistral, Cohere, DeepSeek, Inflection, and Sierra (25% combined). Sourced from Crunchbase and PitchBook.AI Research Output. Publications at NeurIPS, ICML, and ICLR (40%); ACL and EMNLP (20%); h-index of top 20 AI faculty (25%); AI-related patents (15%). Sourced from CSRankings.org (2018–2025 rolling window) and the Nature Index AI subject data.AI Curriculum Depth. Named AI degree program (30%); dedicated AI school or college (25%); GEO/LLMO in required curriculum (25%); cross-disciplinary integration across CS, business, communications, law, and medicine (20%).Founder and Capital Pipeline. Alumni founder count (40%); AI venture capital raised by alumni-founded companies (30%); AI unicorn count (20%); alumni CEO and senior-technical leadership at frontier labs (10%). Sourced from Crunchbase, PitchBook, and Dealroom.Compute and Infrastructure. On-campus GPU capacity (30%); hyperscaler partnerships across AWS, Azure, GCP, and Oracle (25%); federal AI research funding from NSF, DARPA, DOE, and national equivalents (25%); institutional AI governance maturity (20%).AI Citation Share (Modeled). Modeled share of mentions across 3,600 prompt-engine runs — 60 prompts, five AI engines, three runs per wave, four monthly waves between February and May 2026. Each engine weighted equally at 20% of the dimension.

Methodology
The composite score is the simple unweighted mean of the six dimension scores on a 0–100 scale. Tier boundaries are defined as Tier I (composite ≥ 78), Tier II (composite 70 to 77.9), and Tier III (composite < 70). Tiebreaks are resolved by Dimension 6 (Citation Share). Within each dimension, sub-component weightings are published and applied consistently across all 50 universities. Raw values (paper counts, founder counts, GPU capacity, etc.) are rank-ordered across the universe and mapped to 0–100 with logarithmic smoothing where the raw distribution is heavily skewed. The full methodology chapter is published in the report.

Data Sources and Freeze Dates
Research output is drawn from CSRankings.org (2018–2025 rolling window) and Nature Index AI subject rankings. Faculty h-index data is drawn from institutional bio pages and Google Scholar. Founder-pipeline data is drawn from Crunchbase, PitchBook, and Dealroom. Unicorn counts come from CB Insights. Federal AI funding is drawn from public awards data at NSF, DOE, and DARPA. Hyperscaler partnership data is drawn from Synergy Research and institutional disclosures. All institutional data was frozen as of May 15, 2026. Citation-share modeling ran between February and May 2026 across four monthly waves.

Confidence Intervals and Sensitivity Checks
Composite scores carry an approximate ±2.5 point uncertainty band at the 95% confidence level, driven primarily by Dimension 6 (Citation Share) modeling variance. The report notes that rank differences smaller than five composite points may not be statistically distinguishable, and that tier assignments are more reliable than exact positional rank within a tier. The report publishes a five-variant sensitivity check demonstrating what happens under founder-weighted, research-weighted, language-neutral citation, and compute-weighted composite formulations.

The 60-Prompt Universe
The modeled Citation Share dimension is drawn from 60 prompts distributed across six sub-categories:

General AI universities (10 prompts) — questions about the leading AI universities globally and by regionFaculty and Research (10 prompts) — questions about leading AI researchers, faculty, and research labsStudents and Careers (10 prompts) — questions about undergraduate, graduate, and career-track AI programsFounders and Alumni (10 prompts) — questions about the universities that produced AI founders and CEOsCurriculum and Degrees (10 prompts) — questions about AI courses, ethics programs, and degree structuresIndustry and Funding (10 prompts) — questions about AI research funding, hyperscaler partnerships, and applied specialization

Each prompt is run three times per engine per monthly wave, across four waves — producing 3,600 total prompt-engine executions. Prompt order is randomized within each engine session to control for context-window bias. The full 60-prompt list is published in the report’s methodology appendix.

About 5W AI Communications
5W is the AI Communications Firm, building brand authority across the platforms where decisions now happen — ChatGPT, Claude, Perplexity, Gemini, and Google AI Overviews — alongside earned media, digital, and influencer channels. 5W combines public relations, digital marketing, Generative Engine Optimization (GEO), and proprietary AI visibility research to help clients measure and grow their presence in AI-driven buyer research. Founded in 2003, 5W is recognized as a Top U.S. PR Agency by O’Dwyer’s, named Agency of the Year in the American Business Awards®, honored as a 2026 Top Place to Work in Communications by Ragan, and named to Digiday’s WorkLife Employer of the Year list. 5W serves clients across B2C sectors — Beauty & Fashion, Consumer Brands, Entertainment, Food & Beverage, Health & Wellness, Travel & Hospitality, Technology, and Nonprofit — and B2B specialties including Corporate Communications, Reputation Management, Public Affairs, Crisis Communications, and Digital Marketing across Social, Influencer, Paid Media, GEO, and SEO. Learn more at 5wpr.com.

Media Contact
press@5wpr.com

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Pelico signs agreement with Boeing to support C-17 Globemaster III readiness

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FARNBOROUGH, England, July 22, 2026 /PRNewswire/ — Pelico today announced a strategic project agreement with Boeing to modernize how C-17A Globemaster III heavy maintenance is planned and executed. Under the agreement, Pelico’s Manufacturing Orchestration Platform will be used as a single, AI-enabled workspace to help reduce depot cycle time, improve fleet availability and make aircraft delivery performance more predictable by connecting supply, engineering, planning and depot workflows and operations.

Pelico announces a strategic agreement with Boeing to modernize C-17A Globemaster III maintenance planning and execution

“Our customers rely on us to help keep their fleets flying safely, and Pelico’s platform will give us a clear, comprehensive view of potential sustainment and support challenges so that we can operate and execute more efficiently, reduce out-of-fleet cycle time, and deliver on our commitments,” said Turbo Sjogren, vice president and general manager of Government Services, Boeing Global Services.

The platform is expected to replace fragmented, spreadsheet-driven processes with a shared, real-time view of material shortages, bottlenecks and maintenance priorities. The agreement builds on an earlier deployment of Pelico’s platform in Boeing Global Services’ commercial spare parts operations that validated its ability to significantly reduce backlog and improve operational efficiency.

“Sustaining aging fleets is one of the most complex problems in aerospace, with sustainment stretching decades” said Tarik Benabdallah, CEO and co-founder of Pelico. “Pelico’s solutions will offer Boeing visibility into complex dependencies across supply, production and repair, so that teams can identify disruptions and coordinate the next action before it becomes a late delivery.”

Boeing and Pelico will use the agreement to assess how similar digital tools could support sustainment operations across additional platforms.

ABOUT PELICO

Pelico is the AI-powered Manufacturing Orchestration Platform for discrete manufacturers in various industries including aerospace, defense, energy managing complex products and multi-plant networks. Pelico closes the gap between what’s planned and what happens on the factory floor, coordinating planning, production, and supply chain teams around one operational reality. Manufacturers use Pelico to reduce shortages, protect on-time delivery, and accelerate turnaround. Backed by General Catalyst, Pelico operates in more than 25 countries. Learn more at pelico.ai.

Media contact: Ina Foalea – Chief of Staff, Pelico — media@pelico.ai  — +1 (786) 820-2649

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Mission Critical Partners (MCP) Selected to Help Advance Kentucky’s Statewide NG911 Transformation

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MCP will provide NG911 procurement and implementation oversight, GIS and cybersecurity support.

STATE COLLEGE, Pa., July 22, 2026 /PRNewswire-PRWeb/ — Mission Critical Partners (MCP) announced that the Kentucky 911 Services Board has selected the firm to support the next phase of its multiyear effort to implement Next Generation 911 (NG911) in every emergency communications center (ECC) statewide. Currently, about 20 percent of the 117 ECCs in the state have transitioned to NG911.

“The Kentucky 911 Services Board has turned to Mission Critical Partners as its trusted advisor for its NG911 transformation — it’s a role and opportunity that we take very seriously,” said Darrin Reilly, MCP’s president and CEO.

NG911 is a critical step forward in modernizing emergency communications infrastructure, strengthening system resiliency, improving location accuracy, and helping ECCs deliver faster, more reliable service to communities across the commonwealth.

MCP will support the board across several key areas:

Independent third-party oversight — MCP will monitor NG911 procurements and implementations to ensure that deployed systems perform according to technical specifications. They also will monitor system acceptance testing and cutovers to ensure that all elements are performing as contracted before go-live. The goal is to ensure a smooth transition to the new platform without disruptions to emergency communications.

Providing geographic information system (GIS) support — NG911 systems depend on accurate NG911-ready GIS data to route calls and dispatch emergency response to the correct location. MCP will supplement the state’s GIS resources by assisting in the creation and verification of addressing data, as well as the development of ECC and emergency responder boundary polygons, and any other GIS requirements needed to support NG911 operations. This support is particularly important for smaller and rural ECCs that lack dedicated GIS personnel.

Expanding cybersecurity support — MCP will assist the board with various initiatives, including cybersecurity planning and risk management. In addition to addressing any intrinsic vulnerabilities that might exist in NG911 systems, the overarching goal is to strengthen the security posture of all ECCs across the state.

Developing continuity of operations plans (COOPs) — COOPs, disaster recovery documentation, and crisis communications plans are critical elements when an ECC suffers a service-affecting outage. MCP will provide a COOP template that will identify gaps across the state and then work with individual ECCs to address the gaps.

Providing grant and funding guidance — While the board manages its own grant applications, MCP will help state 911 leadership better understand the ECCs’ evolving technological and operational requirements to determine funding priorities.

Updating the board’s strategic roadmap — Given that this is a complex multiyear initiative, MCP will help the board update Kentucky’s strategic roadmap to guide future 911 modernization initiatives and statewide planning efforts.

“The Kentucky 911 Services Board has turned to Mission Critical Partners as its trusted advisor for its NG911 transformation — it’s a role and opportunity that we take very seriously,” said Darrin Reilly, MCP’s president and CEO. “By providing procurement support, implementation oversight, GIS expertise, strategic planning, continuity planning, cybersecurity guidance, and funding-related consultation, we will help the board successfully modernize emergency communications across the state.”

About Mission Critical Partners (MCP)

Mission Critical Partners (MCP) is a leading provider of consulting, technology, and data integration services for public safety, justice, and government organizations. MCP helps its clients advance their missions through modern, interoperable, and data-driven solutions. Learn more at missioncriticalpartners.com

Media Contact

Morgan Sava, Mission Critical Partners, 1 608-658-8858, rscarpino@pipitone.com, https://www.missioncriticalpartners.com/ 

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