Funding led by new investor Thrive Capital
Company expects to cross $3B in revenue run rate and achieve positive free cash flow in fourth quarter
SAN FRANCISCO, Dec. 17, 2024 /PRNewswire/ -- Databricks, the Data and AI company, today announced its Series J funding. The company is raising $10 billion of expected non-dilutive financing and has completed $8.6 billion to date. This funding values Databricks at $62 billion and is led by Thrive Capital. Along with Thrive, the round is co-led by Andreessen Horowitz, DST Global, GIC, Insight Partners and WCM Investment Management. Other significant participants include existing investor Ontario Teachers' Pension Plan and new investors ICONIQ Growth, MGX, Sands Capital and Wellington Management.
The company has seen increased momentum and accelerated growth (over 60% year-over-year) in recent quarters largely due to the unprecedented interest in artificial intelligence. To satisfy customer demand, it intends to invest this capital towards new AI products, acquisitions, and significant expansion of its international go-to-market operations. In addition to fueling future growth, this capital will also be used towards providing liquidity for current and former employees, as well as pay related taxes. Finally, this quarter marks the first time the company is expected to achieve positive free cash flow.
"We were substantially oversubscribed with this round and are super excited to bring on some of the world's most well-known investors who have a deep conviction in our vision. These are still the early days of AI. We are positioning the Databricks Data Intelligence Platform to deliver long-term value for our customers and our team is committed to helping companies across every industry build data intelligence," said Ali Ghodsi, Co-Founder and CEO of Databricks. "We're building transformative data and AI infrastructure and excited to move aggressively in service of our customers and their success."
The Databricks Data Intelligence Platform democratizes access to data and AI, making it easier for organizations to harness the power of their data for analytics, machine learning, and AI applications. Built on an open source foundation, the platform enables organizations to drive innovation to increase revenue, lower costs, and reduce risk. Customers use the Data Intelligence Platform to find and treat diseases and cancer earlier, identify new ways to combat climate change, detect financial fraud, develop pharmaceuticals faster, reduce time to mental health intervention, decrease local financial inequality and much more.
"Databricks, driven by its mission to democratize data and AI, has emerged as the platform of choice," said Joshua Kushner, CEO of Thrive Capital. "We have witnessed the team's unrelenting execution, and consider it an honor to be partners with the company for the long term."
Today's announcement comes on the heels of Databricks' recent momentum which includes:
- Growing over 60% year-over-year in the third quarter ended October 31, 2024
- Expecting to cross $3 billion revenue run-rate and be free cash flow positive in the fourth quarter ending January 31, 2025
- Continuing to achieve non-GAAP subscription gross margins above 80%
- Having 500+ customers consuming at over $1 million annual revenue run-rate
- Achieving $600 million revenue run rate for Databricks SQL, the company's intelligent data warehousing product, up more than 150% year-over-year
Databricks' momentum builds upon a year of global business expansion. To continue to serve its customers around the world, Databricks announced its new European regional hub in London and Asia Pacific and Japan (APJ) regional hub in Singapore, as well as an expanded presence in Latin America and the Middle East.
About Databricks
Databricks is the Data and AI company. More than 10,000 organizations worldwide - including Block, Comcast, Condé Nast, Rivian, Shell and over 60% of the Fortune 500 - rely on the Databricks Data Intelligence Platform to take control of their data and put it to work with AI. Databricks is headquartered in San Francisco, with offices around the globe and was founded by the original creators of Lakehouse, Apache Spark, Delta Lake and MLflow. To learn more, follow Databricks on X, LinkedIn and Facebook.
Contact: Press@databricks.com
Logo - https://mma.prnewswire.com/media/1160675/5081556/Databricks_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/databricks-is-raising-10b-series-j-investment-at-62b-valuation-302333829.html
