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Databricks Achieves Significant Milestones in Revenue and Investment

Databricks, the leading company in Data and AI solutions, has recently announced an impressive milestone: surpassing a revenue run-rate of $5.4 billion, illustrating a remarkable year-over-year growth of greater than 65%. This announcement is made all the more impactful by the backdrop of substantial investments pouring into the company, exceeding $7 billion in total. The funding aims to enhance two of their innovative platforms: Lakebase and Genie.

Financial Performance

In the fourth quarter, Databricks demonstrated strong financial momentum, achieving notable milestones:

• - Revenue Run-Rate: Surpassing $5.4 billion, marking a 65% increase from the previous year.
• - AI Products: Realizing a revenue run-rate of over $1.4 billion specifically from its AI-driven products.
• - Client Retention: Maintaining a remarkable net retention rate of over 140%.
• - High-Value Clients: The company has over 800 customers generating in excess of $1 million in annual revenue, with more than 70 customers exceeding $10 million.

This financial performance not only reflects the growing demand for AI solutions but also positions Databricks as a crucial player in the data management landscape.

Investment Breakdown

The new funding, which includes approximately $5 billion in equity financing at a staggering valuation of $134 billion, will facilitate further advancements in their products. This significant financial backing comprises contributions from a blend of both new and existing investors, showcasing confidence in Databricks' trajectory. Key participants include:

• - JPMorgan Chase: Increased its investment through its newly formed Strategic Investment Group.
• - Goldman Sachs and Morgan Stanley: Participated actively, alongside several other leading financial institutions.

With this influx of capital, Databricks aims to accelerate the development of Lakebase, a groundbreaking serverless Postgres database designed for AI agents, and Genie, their conversational AI assistant, making data interaction seamless for employees at all levels.

Future Endeavors

The investment will enable Databricks to double their efforts in creating operational databases tailored for AI, as well as expand Genie’s capabilities to provide natural language processing features—thereby democratizing access to data across organizations.

CEO Ali Ghodsi remarked, “We’re witnessing immense investor interest as we embark on a new chapter, targeting emerging markets. These funds will allow developers to engage with data insights more effectively, enhancing operational efficiency.”

Furthermore, Databricks plans to use these funds to push the boundaries of AI research, engage in strategic acquisitions, and ensure employee liquidity, thereby reinforcing its commitment to innovation.

About Databricks

Databricks is a cornerstone for over 20,000 organizations globally, including a significant portion of Fortune 500 companies such as Adidas, ATT, Bayer, and Mastercard. With headquarters in San Francisco and over 30 offices worldwide, it provides a unified Data Intelligence Platform that encompasses a variety of services including Agent Bricks, Genie, Lakebase, and more. To stay informed about their latest advancements, follow Databricks on LinkedIn, X, YouTube, and Instagram.

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