Company Experiences >2.5x YoY ARR growth; Exceeded $200M Revenue Run Rate During Q3 2019
AUSTRALIA – Media OutReach – October 23, 2019 – Databricks , the
leader in unified data analytics, today announced a $400 million investment to
continue powering its market-leading growth and rapid customer adoption. This
Series F round, led by Andreessen Horowitz’s Late Stage Venture Fund , is
intended to accelerate innovation and scale across the globe, and values
Databricks at $6.2 billion. Andreessen Horowitz is joined by major new
investors including funds and accounts managed by BlackRock, Inc., funds and
accounts advised by T. Rowe Price Associates, Inc., and Tiger Global
Management. The company has grown annual recurring revenue (ARR) well over 2.5x
over the past year and has gone from almost no revenue to a $200 million
revenue run rate in less than four years.
“Data teams at thousands of
organizations globally are now leveraging our Unified Data Analytics Platform
to solve their toughest problems,” said Ali Ghodsi, co-founder and CEO at
Databricks. “Our bets on massive data processing, machine learning, open source
and the shift to the cloud are all playing out in the market and resulting in
enormous and rapidly growing global customer demand. As a result, Databricks is
among the fastest growing enterprise software cloud companies on record.”
The new investment will allow the company
to scale R&D and continue its rapid global expansion. Specifically,
- Invest 100 million Euros in its
recently announced European Development Center in Amsterdam over the next
three years; this engineering hub has already grown 3x over the past two
- Build dedicated engineering
teams to advance the popular open source technologies it invented recently
for data management and machine learning: Delta Lake, MLflow, and Koalas.
- Fuel its rapid and accelerating
global growth, which includes expansion in Europe, Middle East and Africa;
Asia Pacific; and Latin America.
“Databricks’ net revenue retention is
astounding,” said David George, general partner at Andreessen Horowitz. “Why?
Because customers love the product. Beyond that, they’ve followed up their
breakthrough Spark technology with an amazing series of open source innovations
including Delta Lake, MLflow, and Koalas.”
Investors that participated in this
funding round included Alkeon Capital Management, Andreessen Horowitz, funds
and accounts managed by BlackRock Inc., Coatue Management, Dragoneer Investment
Group, Geodesic, Green Bay Ventures, Microsoft Corporation, New Enterprise
Associates (NEA), funds and accounts advised by T. Rowe Price Associates, Inc.
and Tiger Global Management.