Company Experiences >2.5x Yoy ARR Growth; Exceeded $200 Million Revenue Run Rate During Q3 2019
Databricks, the leader in unified data analytics, 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, Databricks will:
- 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 years.
- 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.