At the midpoint of the year, Databricks predicts its annualized revenue will be $2.4 billion.

• The first half of the year is expected to see Databricks achieve annualized revenue growth of over 60%, totaling $2.4 billion.
• At the company's Data and AI Summit in San Francisco on Wednesday, the figures were presented by CFO Dave Conte during an investor briefing.
• The growth is coming from new and existing customers, Conte said.

By the midpoint of this year, Databricks, a data analytics software vendor valued at over $10 billion, expects to achieve annualized revenue of $2.4 billion.

According to Dave Conte, CFO of Databricks, annualized sales for the first six months of fiscal 2025 are expected to increase by 60% compared to the previous year.

While some parts of the software industry have been negatively impacted by inflation and rising interest rates, Databricks has experienced growth. In recent weeks, companies such as Okta, Salesforce, and UiPath have attributed their disappointing results or guidance to economic or macro issues.

"Clearly, there's volatility in enterprise software, but I'm eager to share our financial performance," Conte said, adding, "It's exciting."

Among the few prominent venture-backed software companies that have been on the path to an IPO for a long time, Databricks is one of them, along with Canva, Figma, and Stripe. However, the IPO market has been quiet for over two years, even with some activity in 2024. In April, a security software company debuted on the New York Stock Exchange.

Despite not sharing any updates on Databricks' plans to go public, Conte stated that the company's business is improving. In March, the company announced that it generated $1.6 billion in revenue for the year ending Jan. 31, representing a more than 50% increase year over year. Additionally, the 11-year-old startup had an annualized run rate of $1.5 billion and 50% growth for the quarter that ended July 31, 2023.

In September, Databricks announced that it had raised $500 million in funding, valuing the company at $43 billion. Meanwhile, its top competitor, which went public on the NYSE in 2020, was valued at $43.6 billion at the end of Wednesday's trading session.

In the January quarter, Databricks experienced 221 transactions worth over $1 million, according to Conte. He stated that existing clients are spending more and the company is acquiring Fortune 500 clients. The net revenue retention rate in the 2024 fiscal year, which ended in January, was higher than 140%. This figure reflects growth from existing customers.

Databricks has been investing heavily in growth, with research and development spending as a percentage of revenue being 33% in each of the past three fiscal years, compared to 19% for its peer group and 23% for a group of 89 companies that have gone public since 2018. Additionally, Databricks' subscription gross margin for the 2024 fiscal year was above 80%.

On Wednesday, Ali Ghodsi, CEO of Databricks, informed reporters that the company's data warehouse product, launched in 2020, is generating some growth and has reached an annualized revenue of over $400 million.

Ghodsi stated that it is likely one of the fastest-growing B2B companies according to industry standards.

Both Databricks and Snowflake have been attempting to lower the expenses associated with managing and executing queries for their clients through the utilization of a standardized format known as Apache Iceberg. Last week, Databricks announced that it had spent over $1 billion to acquire Tabular, a startup founded by the creators of Iceberg. According to CNBC, Snowflake was also actively bidding for Tabular at the time of the acquisition.

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