Data analytics firm Databricks is raising $5B at $134B valuation
What's the story
Data analytics company Databricks is in talks to raise $5 billion at a whopping $134 billion valuation. The figure is roughly 32 times this year's expected sales of about $4.1 billion, The Information reported, citing investor documents and a person familiar with the matter. To note, the company has revised its sales projections at least twice this year.
Financial outlook
Sales projections and gross margin
In September, Databricks raised its sales forecast from $3.8 billion to $4 billion, and then slightly upward again. The firm now expects a 55% growth in sales for the year. However, it also told investors that its gross margin is falling faster than expected due to the increased usage of AI products.
Company profile
Databricks's journey and customer base
Founded in 2013, Databricks provides a platform for users to ingest, analyze, and build AI applications. The company has long been considered a strong candidate for going public and has received several inquiries from investors. According to its website, Databricks serves over 20,000 customers including Block (a payments firm), Shell (an energy giant), and Rivian (an electric vehicle maker).