Databricks tells investors annualized revenue will reach $2.4 billion at midway point of year

Databricks, a data analytics software vendor, stated that its annualized revenue is expected to reach $2.4 billion by mid-2025. The company’s CFO announced this information during an investor briefing at the Data and AI Summit. Despite challenges faced by some software companies, Databricks’ growth remains strong. The IPO market has been relatively quiet, but Databricks’ business is strengthening. The company reported generating $1.6 billion in revenue for the previous fiscal year and experiencing 50% growth. Databricks’ investment in research and development has contributed to its growth, while its subscription gross margin for the fiscal year was above 80%. The data warehouse product launched in 2020 has also been a significant source of growth for the company. Additionally, Databricks and Snowflake have been using Apache Iceberg to reduce costs for clients.