Databricks says annualized revenue will reach $3.7 billion by next month
Databricks, a data analytics software vendor, said on Wednesday that it expects to generate $3.7 billion in annualized revenue by July, with year-over-year growth of 50%.
CFO Dave Conte delivered the numbers at a briefing for investors and analysts tied to the company's Data and AI Summit in San Francisco on Wednesday. Growth in the October quarter was 60%, Databricks said in late 2024.
Databricks is one of the most highly valued tech startups, announcing in December that it raised $10 billion at a $62 billion valuation. Snowflake, its closest public market competitor, has a market cap of about $70 billion on annualized revenue of just over $4 billion, based on its latest quarter.
Conte didn't give any indication of when Databricks might file for an IPO. On Wednesday, fintech company Chime priced its IPO, and stablecoin issuer Circle started trading on the New York Stock Exchange last week.
Databricks had $2.6 billion in revenue in its fiscal year that ended in January, with a net retention rate exceeding 140%, unchanged from last year. In the first quarter of the new fiscal year, nearly 50 of Databricks' 15,000-plus customers were spending over $10 million annually, Conte said.
"We want to combine good revenue growth and good product velocity with profitability," Conte said.
The company has roughly 8,000 employees. Earlier on Wednesday, Databricks CEO Ali Ghodsi said the company is hiring 3,000 people in 2025. Databricks was close to being free cash flow positive for the first time in the most recent fiscal year, Conte said.
In addition to Snowflake, competition also comes from cloud providers that sell their own data warehousing software.
Also on Wednesday, Databricks announced a preview of Lakebase database software drawing on technology from its recent $1 billion acquisition of startup Neon. Lakebase stands to expand the size of Databricks' market opporunity, Conte said.
Databricks ranked third on CNBC's newly release 2025 Disruptor 50 list, behind only Anduril and OpenAI.
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