Databricks sees revenue increase by more than 50 percent thanks to explosive demand for AI products. In the second quarter, Databricks achieved a revenue run rate of $4 billion (€3.4 billion).
Databricks is aiming for a net revenue retention rate of over 140 percent. More than 650 customers spend over $1 million annually on its solutions. The company has generated positive free cash flow over the past 12 months.
The company’s AI products account for $1 billion of that. It has approximately 15,000 customers, including Shell and electric car manufacturer Rivian.
IPO on the horizon
The company raised a billion dollars in a recent funding round. The round was co-led by Andreessen Horowitz, Insight Partners, MGX, Thrive Capital, and WCM Investment Management. Databricks wants to use the money to accelerate its AI strategy. This means expanding its products, launching a new category of operational databases, and financing future AI acquisitions.
Databricks’ valuation rose sharply this year due to continued investor interest. CEO Ali Ghodsi says investors contacted him daily. The San Francisco-based company is considered one of the most promising candidates for an IPO.
Ghodsi emphasizes that Databricks has benefited from “an unprecedented global demand for AI apps and agents.” According to him, it’s “turning companies’ data into goldmines.”
The successful IPO of design software company Figma in July, which raised $1.22 billion, has led to numerous investor inquiries, according to Ghodsi.