Databricks says annualized revenue will reach $3.7 billion by next month

Databricks, a prominent player in data analytics software, announced on Wednesday its ambitious forecast of achieving $3.7 billion in annualized revenue by July, showcasing a remarkable 50% growth year-over-year. CFO Dave Conte shared these expectations during a session for investors and analysts at the company's Data and AI Summit in San Francisco. According to Databricks, the growth rate for the October quarter was an impressive 60%, as reported earlier in late 2024. The company, which is among the most valued tech startups, revealed in December that it had successfully raised $10 billion, resulting in a valuation of $62 billion. In comparison, Snowflake, its nearest competitor in the public market, boasts a market capitalization of approximately $70 billion, with annualized revenue surpassing $4 billion. While Conte refrained from providing a timeline for when Databricks might pursue an IPO, other companies in the fintech sector, such as Chime, have recently launched their public offerings. Databricks reported $2.6 billion in revenue for its fiscal year ending in January, maintaining a robust net retention rate of over 140% from the previous year. Conte noted that nearly 50 of Databricks' 15,000 customers are now spending more than $10 million each year. "Our goal is to strike a balance between solid revenue growth, rapid product development, and profitability," Conte emphasized. The company currently employs around 8,000 individuals and is set to hire an additional 3,000 in 2025, as stated by CEO Ali Ghodsi. Conte further mentioned that Databricks nearly achieved positive cash flow for the first time in the last fiscal year. The company faces competition not only from Snowflake but also from major cloud providers with their own data warehousing solutions. In a significant development, Databricks unveiled a preview of its new Lakebase database software, leveraging technology from its recent $1 billion acquisition of startup Neon. Conte believes this innovation will broaden Databricks' market potential. Moreover, Databricks received a notable accolade, ranking third on CNBC's recently published 2025 Disruptor 50 list, trailing only Anduril and OpenAI.