Ali Ghodsi, co-founder and CEO of Databricks, speaks during a press conference at the Databricks Data and Artificial Intelligence Summit in San Francisco on June 12, 2024.
Jordan Novett | CNBC
Databricks, a provider of data analytics software and one of the most valuable private technology companies in the United States, told investors on Wednesday that annualized revenue will reach $2.4 billion by the midpoint of this year.
Annualized sales through July, the first six months of fiscal 2025, will be higher than last year, Databricks Chief Financial Officer Dave Conte said Wednesday during an investor briefing in San Francisco in conjunction with the company’s Data and Artificial Intelligence Summit. Growth of 60% over the same period.
Databricks’ growth contrasts with parts of the software industry, which has struggled since 2022 when soaring inflation and rising interest rates ended a long bull market. In recent weeks, Okta, Salesforce, UiPath and other software companies have blamed disappointing results or guidance on the economy or other macro issues.
“Obviously, there’s some volatility going on in enterprise software, but I’m really eager to stand up and share our financial performance,” Conte said. “It’s very exciting.”
Databricks is one of the few well-known venture capital software makers with a long-term commitment to IPOs. Others include Canva, Figma and Stripe. However, the IPO market has been quiet for more than two years, and there is still some activity even in 2024. scarlet letter Listed on the New York Stock Exchange.
While Conte didn’t provide an update on Databricks’ plans to go public, he did say business is strengthening. In March, the company tell the media The company generated revenue of $1.6 billion in the fiscal year ended Jan. 31, up more than 50% from the same period last year. The 11-year-old startup has an annualized operating rate of $1.5 billion and a growth rate of 50% for the quarter ending July 31, 2023.
when it release Based on those figures, Databricks said in September it had raised $500 million in funding, valuing the company at $43 billion. top competitors snowflakeThe company listed on the New York Stock Exchange in 2020 and was valued at $43.6 billion at the end of trading on Wednesday.
Conte said that during the January quarter, Databricks had 221 transactions worth more than $1 million. Existing customers are spending more, he said, and the company is adding Fortune 500 customers. The net income retention rate for fiscal 2024, which ended in January, was above 140%. This number indicates the growth of existing customers.
At the same time, Databricks is investing in growth. Conte said R&D spending as a share of revenue was 33% in each of the past three fiscal years, compared with 19% for peer groups and 23% for the 89 companies listed since 2018. Databricks’ subscription gross profit margin exceeds 80% in fiscal 2024.
Databricks CEO Ali Ghodsi told reporters at a briefing on Wednesday that part of the growth comes from the company’s data warehousing products launched in 2020.
“I think by any B2B standard, it’s probably one of the fastest-growing industries,” Ghodsi said.
Databricks and Snowflake have been trying to reduce the cost of cleaning and executing queries on the client side by using a standard format called Apache Iceberg. Last week, Databricks said it would spend more than $1 billion to acquire Tabular, a startup whose founder founded Iceberg. According to CNBC, Snowflake is also bidding for Tabular.
watch: Databricks CEO says everyone is interested in building their own AI models these days
About The Author
