“Innovative companies lead with AI”

Databricks stands as one of the leading unified analytics platforms in the rapidly expanding data and artificial intelligence market. Founded by the creators of Apache Spark, the company has positioned itself at the center of the enterprise data transformation movement, helping organizations manage massive data workloads while building and deploying AI applications at scale. As businesses increasingly prioritize data-driven decision making and AI integration, Databricks has emerged as a critical infrastructure provider enabling companies to process, analyze, and extract insights from their data assets in an era where data volume and complexity continue to grow exponentially.

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Business Model

Databricks operates on a cloud-based software-as-a-service model, offering its unified analytics platform across major cloud providers including Amazon Web Services, Microsoft Azure, and Google Cloud Platform. The company generates revenue primarily through consumption-based pricing, where customers pay for the compute resources and platform features they use, including charges for data processing units (DBUs), storage, and premium features like advanced security, collaboration tools, and machine learning capabilities. The platform combines data engineering, data science, and machine learning workflows in a single environment, eliminating the need for organizations to manage multiple separate tools, while also offering professional services, training, and support packages that contribute to their revenue streams.

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Scale and Growth

Databricks has achieved remarkable scale since its founding, serving thousands of enterprise customers worldwide, including major Fortune 500 companies across industries such as financial services, healthcare, retail, and technology, while processing exabytes of data and maintaining one of the largest managed cloud infrastructures in the industry. The company has experienced rapid revenue growth, reportedly reaching over $1 billion in annual recurring revenue by 2023 with growth rates exceeding 50% year-over-year, driven by increasing enterprise data volumes, growing demand for real-time analytics, accelerated AI and machine learning adoption, and ongoing cloud migration trends. This expansion has been supported by global operations spanning North America, Europe, and Asia-Pacific regions, combined with continued heavy investment in research and development to maintain technological leadership in the competitive data platform market.

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Competitive Edge

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The data intelligence market reveals a strategic spectrum between specialized tools and comprehensive platforms. Databricks leads with its unified lakehouse architecture spanning data engineering, analytics, and AI capabilities. Snowflake and Azure Synapse follow with strong but differently-oriented comprehensive offerings. Cloud providers offer breadth through multiple services but with variable integration quality. Domain specialists like MongoDB and DataRobot deliver depth in specific functions while sacrificing breadth. This competitive landscape highlights the industry's evolution from siloed tools toward integrated platforms that maintain analytical rigor across diverse data workloads.

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Targeted Impact

Databricks empowers organizations to accelerate innovation by unifying data, analytics, and AI for transformative global impact.

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What Comes Next?

Databricks is empowering enterprises to build and govern AI agents with Mosaic AI, unifying data/AI governance, and expanding platform capabilities.

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Who will benefit?

Data scientists, machine learning engineers, analytics teams, and enterprises gain from Databricks' unified data and AI solutions.

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Databricks's Timeline

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Bull and Bear Case

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Market Opportunity & Expansion

• Databricks reached a $4B revenue run-rate during Q2 2025, growing over 50% year-over-year
• Their AI product revenue run-rate surpassed $1B on September 8, 2025

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Market Risks & Competitive Threats

• Intense competition from Snowflake, OpenAI, and cloud giants like AWS and Google, putting pressure on growth and pricing
• The rise of proprietary AI platforms that enforce vendor lock-in and limit interoperability could reduce demand for Databricks’ open, enterprise-focused platform.

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Competitive Advantages & Defensibility‍

• The platform has 650+ customers spending over $1M annually, with net retention exceeding 140% showing strong customer loyalty and expansion
• Strategic partnerships with Microsoft, Nvidia, and Google enhance its technical ecosystem and competitive moat

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Operational Challenges & Execution Risks

• Scaling and adoption risks for new AI products and integrating acquisitions such as MosaicML pose challenges
• Managing a large and complex enterprise customer base with evolving demands increases operational complexity

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Financial Performance & Unit Economics

• Maintains positive free cash flow and healthy unit economics supported by high net retention
• Strong revenue growth driven by expanding enterprise usage and AI product monetization

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Financial Sustainability Concerns

• Revenue is concentrated, with 50 of 15,000 customers each spending $10M+ annually, creating risk if key accounts are lost
• Growth and cash flow might be vulnerable to market or macroeconomic volatility

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Management Team & Execution Capability

• Experienced leadership with CEO Ali Ghodsi at the helm, a co-founder of Apache Spark
• Demonstrated execution through AI product launches such as Agent Bricks and Lakebase operational database

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Regulatory or Structural Headwinds

• Navigating global data privacy and compliance regulations exposes Databricks to potential fines, legal penalties, and reputational risk
• Operational and reputational risks from data security in a multi-tenant, collaborative environment

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Strategic Positioning & Optionality

• Databricks continues to expand its platform capabilities with offerings such as the Data Intelligence Platform and Data Intelligence for Marketing, enabling enterprises to integrate AI and analytics into workflows
• Successfully raised $1 billion in Series K funding at a valuation over $100 billion in September 2025, fueling innovation and growth

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Valuation & Timing Risks

• Premium valuation exceeding $100 billion may face downward adjustment if growth slows or IPO timelines slip
• Market sentiment around tech and AI valuations is volatile, adding timing risk for investors

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Prominent News

IPO Candidate Databricks Builds its Name in Latin American AI Market, September 16, 2025 - Databricks has taken a minority equity position in Brazilian data and AI consultancy Indicium, representing the company's inaugural investment in a Latin American startup as it seeks to strengthen its foothold in the region's emerging AI sector. Click here to read more.

Databricks Crosses $4 Billion in Annual Revenue Rate, September 8, 2025 - Silicon Valley data and AI platform leader Databricks announced that its annual revenue run rate has surpassed $4 billion as of July, marking impressive 50% year-over-year growth for one of the region's most highly valued private companies. Click here to read more.

Databricks is raising a Series K Investment at >$100 billion valuation, August 19, 2025 - Databricks has signed a term sheet for its Series K funding round with existing investors, which is expected to close shortly and will value the data and AI company at more than $100 billion. Click here to read more.

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Revenue

The graph below displays the revenue and revenue growth of Databricks from 2019 to 2025.

• Revenue was up 60.00% in 2024 from $1.90 billion in 2023
• Its annual revenue run rate will be more than $4 billion going forward as of July

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Return on Investment (ROI)

The graph below displays Databricks' ROI over the past 180, 90, and 30 days, computed as of September 22, 2025.

• 180D: ↑ +46.19% since March 27, 2025‍
• 90D: ↑ +34.24% since June 25, 2025‍
• 30D: ↑ +26.07% since August 24, 2025

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Funding Round in USD

• Primary Funding Round: Databricks raised $1 billion in Series K on September 08, 2025, at a $100 billion valuation and a share price of $150.00
• Investors:  Series K was co-led by Andreessen Horowitz, Insight Partners, MGX, Thrive Capital, and WCM Investment Management ‍
• Current Implied Valuation: $102.00 billion on September 22, 2025, according to PM Insights
• Change Since Last Primary Round: Up 2% from its Series K valuation

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Primary Round Valuation

<span class="date">2025-09-08</span>
<span class="value">$100.00B</span>

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Implied Valuation

<span class="date">2025-09-22</span>
<span class="value">$102.00B</span>

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Change Since Last Round

<span class="date">2025-09-08 → 2025-09-22</span>
<span class="value green">+2.00%<span>

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Quarterly Bid:Ask Volume Ratio

PM Insights highlights the quarterly bid:ask volume ratio of Databricks where there were at least three institutionally-sized broker contributions within that period. The stacked bar chart below shows the total quarterly bid and ask volumes alongside their relative ratios.

• Highest volume: $1.38 billion in Q1 2025‍
• Lowest volume: $146.49 million in‍ Q1 2023‍
• Largest bid-side activity: 90% of $199.60 million in Q2 2024‍
• Largest ask-side activity: 88% of $529.25 in Q4 2024

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Volatility of Composite Price

The volatility of the composite price is calculated based on price movements within a 90-day rolling window ending on each respective date. The graph below illustrates the trend in volatility of composite price for Databricks for a one year period from September 23, 2024 until September 22, 2025.

• Volatility started at 8.04% at the beginning of the observed period
• It gradually increased, reaching a peak of 18.94% in late December 2024
• Afterwards, it declined steadily to a minimum of 7.38%
• It increased modestly in August 2025, ending the period at 11.53%

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