Investing.com - Databricks, a leading data analytics software provider and one of the highest valued private tech firms in the US, has projected an impressive sales growth of over 60%, anticipating an annualized revenue of $2.4 billion by mid-year.
The company's Chief Financial Officer, Dave Conte, revealed these figures during an investor briefing at Databricks' Data and AI Summit in San Francisco. He indicated that the revenue growth is being driven by both new and existing customers.
"Obviously there's some volatility going on in enterprise software, but I've been really eager to get up and share how we're performing financially," Conte said. "It's pretty exciting."
The robust growth forecast by Databricks stands in stark contrast with sections of the software industry that have been grappling with challenges following the end of the prolonged bull market due to rising inflation and interest rates in 2022. Several software firms, including Okta, Salesforce, and UiPath (NYSE:PATH), have attributed their lackluster performance or guidance to economic or other macroeconomic factors.
The company, along with other venture-backed software developers like Canva, Figma, and Stripe, has been on the path to an Initial Public Offering (IPO) for quite some time.
In March, Databricks reported a revenue of $1.6 billion for the year ending January 31, representing a year-over-year growth of over 50%. As of July 31, 2023, the company had an annualized run rate of $1.5 billion, with a growth rate of 50%.
In September, Databricks announced that it had secured $500 million in funding, valuing the company at $43 billion. This valuation puts it on par with its major competitor, Snowflake, which had a market valuation of $43.6 billion at the end of the trading session on Wednesday.
In the January quarter, Databricks recorded 221 transactions exceeding $1 million, with existing clients increasing their spending and new Fortune 500 clients being added. The net revenue retention in the 2024 fiscal year, which ended in January, was higher than 140%, indicating growth from existing customers.
The company is also investing heavily in growth, with research and development spending as a percentage of revenue standing at 33% for each of the past three fiscal years.