Databricks, a leading data analytics software provider, has announced that its annualized revenue is projected to reach $2.4 billion by the midpoint of 2024. Former House Speaker Nancy Pelosi (D-Calif.) is one of the investors in the company, apart from Ark Invest’s Cathie Wood, and Nvidia Corp.
What Happened: The company’s annualized sales for the first six months of fiscal 2025 are expected to surge by 60% compared to the previous year, reported CNBC on Wednesday. This announcement was made by Databricks CFO Dave Conte during an investor briefing at the Data and AI Summit in San Francisco.
Despite challenges faced by other software companies due to inflation and rising interest rates, Databricks’ growth remains robust. The company is among the few venture-backed software firms that have been preparing for an IPO.
"Obviously there's some volatility going on in enterprise software, but I've been really eager to get up and share how we're performing financially," Conte said. "It's pretty exciting."
Although Conte did not provide an update on Databricks’ IPO plans, he did confirm that the company’s financial performance is strengthening. In March, Databricks reported a revenue of $1.6 billion for the fiscal year ending Jan. 31, marking a 50% year-over-year increase.
Why It Matters: Databricks’ revenue forecast comes amid a challenging period for the software industry. Other major players like Okta, Salesforce, and UiPath have attributed disappointing results to macroeconomic issues.
Despite these headwinds, Databricks’ growth trajectory remains strong, with an increasing number of Fortune 500 clients and net revenue retention of 140%.
These developments are particularly noteworthy given Databricks’ recent valuation of $43 billion in October, making it one of the most promising unicorns in the tech industry.
Additionally, high-profile investments have further spotlighted Databricks. Notably, Pelosi made a private investment in Databricks through the platform Forge Global Holdings. This move underscores the growing interest and confidence in Databricks’ potential.
Photo courtesy: Shutterstock
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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