Ali Ghodsi, the co-founder and CEO of Databricks, addresses attendees at the company’s Data and AI Summit in San Francisco on June 11, 2025.
Jordan Novet | CNBC
On Wednesday, Databricks, a company specializing in data analytics software, announced that it anticipates reaching $3.7 billion in annual revenue by July, reflecting a 50% increase from the previous year.
During a briefing for investors and analysts at the Data and AI Summit in San Francisco, CFO Dave Conte revealed these figures. It was noted that growth for the October quarter was reported at 60%, as stated by Databricks at the end of 2024.
As one of the most valued tech startups, Databricks announced last December that it secured $10 billion in funding, achieving a valuation of $62 billion. In comparison, its main public competitor, Snowflake, has a market cap of approximately $70 billion with an annualized revenue of just above $4 billion for its latest quarter.
Conte did not specify when Databricks plans to go public. On the same day, fintech firm Chime set its IPO price, and stablecoin issuer Circle began trading on the New York Stock Exchange last week.
For the fiscal year ending in January, Databricks reported revenue of $2.6 billion, maintaining a net retention rate above 140%, consistent with the previous year. In the first quarter of the new fiscal year, around 50 out of Databricks’ more than 15,000 clients were spending over $10 million each year, stated Conte.
“We aim to ensure strong revenue growth paired with rapid product development while achieving profitability,” Conte mentioned.
The company currently employs about 8,000 people. Earlier in the day, CEO Ali Ghodsi announced plans to hire 3,000 individuals in 2025. Conte also noted that Databricks came close to being free cash flow positive for the first time during its most recent fiscal year.
In addition to Snowflake, Databricks faces competition from cloud service providers offering their own data warehousing solutions.
On the same day, Databricks introduced a preview of its Lakebase database software, leveraging technology from its recent $1 billion acquisition of startup Neon. Conte indicated that Lakebase could expand Databricks’ market potential.
Databricks was recognized as the third entry on CNBC’s newly launched 2025 Disruptor 50 list, following Anduril and OpenAI.
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