Junta N.’s Post

Conventional wisdom is that Databricks missed an opportunity with the pre-pandemic IPO bubble. It could be argued either way: (1) Venture investors missed cashing out at sublime levels; or (2) Databricks maintained sustainable growth in spite of surging interest rates, and consequently, when market conditions become IPO friendlier, it should be inoculated from the threat of being too ridiculously priced. The good news is one of continued sustainable growth. Or as Thomas W. Dinsmore termed it yesterday, a common sense approach to building its platform from the bottom up rather than some grand strategery from the top down.

Is there any good reason for Databricks to IPO? Databricks has traded very actively in the secondary market for a range of reasons. It's a well known company in a hot space. Also, the CEO has shared information publicly about the company's performance. Visibility into how a private company is doing helps a lot to generate demand. Databricks is also a rare stock that does not trade directly but trades very actively on an indirect basis (ie. no actual shares change hands, but buyers and sellers use structures like SPVs in order to trade). The significant variations in transacted prices are therefore more the result the range of transaction structures that buyers and sellers employ in transfering interests, rather than a lack of available price discovery. Different structures have different prices, and so do different classes (eg. common vs. RSUs) As Rebecca Szkutak of TechCrunch recently wrote, private companies are increasingly satisfying liquidity needs in the private secondary market. What's more, as we start to get robust price discovery, I believe that the private market will act more like the public markets for companies' PRIMARY fundraising needs. Liquid pricing benchmarks will help companies source investors and set fundraising terms much more easily. All of this begs the question: is there something that Databricks can get from going public that it cannot get as a private company? #privatemarket #secondarymarket #liquidity #fundraising #unicorns #preipo

Databricks recorded $1.6B in revenue for its fiscal year ended January 31st. The data and AI company is not wasting time deploying some of that cash into acquisitions. It made its second acquisition just this year in March, acquiring Lilac — which simplifies unstructured data evaluation for genAI applications. The bottom line: Databricks is building a one-stop-shop. https://cbi.team/3PLSYyr

Databricks' Bold Play: $2 Billion for Tabular In a striking move, Databricks has reportedly shelled out $2 billion to acquire Tabular, a startup with just $1 million in annual revenue. This acquisition underscores the fierce competition between Databricks and Snowflake, two titans in the analytics and AI landscape. Tabular, backed by heavyweights like Altimeter Capital and Andreessen Horowitz, is renowned for its Apache Iceberg table format, making it a coveted asset in the data wars. This hefty price tag highlights the strategic value Databricks sees in staying ahead of Snowflake, especially as Snowflake grapples with a significant stock price drop and security challenges. Is this merely a high-stakes gamble, or a visionary move to solidify Databricks' dominance? #Databricks #Tabular #Acquisition #ApacheIceberg #Snowflake #TechMergers #Saasverse

*Obligatory Career Update* In 2017, I started my journey at Databricks when it was a small startup with 150 employees. As the company expanded and grew, I was lucky to experience a wealth of meaningful professional opportunities that greatly enriched both my personal and professional life. Yet, at the heart of any company are its people, and at Databricks, they are truly exceptional. The relationships I've developed with my colleagues there are the most valuable takeaway from my experience. In no particular order I'd like to shoutout the following folks for making my time at Databricks truly meaningful: Brian Clapper, Jen Aman, Jody Soeiro de Faria, Astrid Nicole Ng, Mylene Biddle, Kori O'Brien, Sabina Shaikh, Rochana Golani, Jason McIntyre, Chelsea Weintraub, Debra Broberg, Bobby Alvarez, Zach Relli, Bo Zhang, Frieda Y., Sebastian Furtal, Samantha Menot, Juliet W., Conor B. Murphy, Brooke Wenig, Ambareesh Kulkarni, Jason Martin, Venkat Krishnan, Louis Frolio, John Young, Scott Smith So, where am I now? Anyscale, ya’ll 🚀 ! I'm leading all of Enablement - both internal and external. The opportunity here is immense, and the shared DNA with Databricks is striking: both originated from UC Berkeley's AMPLab (#GoBears!), both were founded by the creators of open-source projects, both were co-founded by Ion Stoica, both have backing from Andreessen Horowitz, and both offer a managed service built on their open-source foundations. I am incredibly excited about the possibilities at Anyscale and am impressed by the substantial investment we're making in senior leadership as we lay the groundwork for future success 🚀 There are far too many amazing people at Databricks to mention, so if I've missed anyone, don't hesitate to reach out and say hello!

The Red Herring: Stacking profits brick by brick, Databricks is laying the foundation for the perfect IPO timing! 🧱 📈(⏰1 min read) ❓What is it – Founded in 2013 by a lot of smart people, it helps companies manage and analyze large amounts of data using a cloud platform for data processing, AI, and analytics. 💸 How Much – To date its raised $4 billion inclusive of $500 million raised last September at a $43 billion valuation. This would be a 27x revenue multiple well above some competitors, Snowflake (10x), but not others Crowdstrike (33x). 📅 When – “The way we’re operating, the way we’re doing our audits, the way our financials are, the CFO, the board structure, we are ready to do it. We can press a button if we want to.” 🏛️The Bank – Not noted at this time, but Morgan Stanley was an investor through some of its managed funds. 💰 Path to Profit – Databricks reported $1.6 billion in revenue for the latest fiscal year, growing 50% year-over-year. Its data-warehousing product, launched in 2021, reached $250 million in annual run-rate, now accounting for over 10% of its business. After acquiring AI platform MosaicML last June and data management provider Tabular this year, it plans to “remain aggressive”, capitalizing on the AI boom by offering tailored generative AI solutions. With over 10,000 customers, more than 300 generate $1 million+ annually from its software and services. 🤯 Something Interesting – Databricks got its name from "Data," reflecting its focus on big data analytics, and "Bricks," symbolizing the building blocks used to create scalable data systems, much like bricks in building a house. I'll continue to post about interesting IPO developments and companies on a weekly basis.

If your eng team is overwhelmed with operational duties and constantly firefighting, you’re not alone. Just a year ago, the Databricks Money Team faced the same hurdle, with operations consuming the majority of their time and energy. In less than a year, the Money team was able to cut their operational workload in half through the use of the right "proverbs." This journey should inspire some actionable ideas for your own teams. https://lnkd.in/gxj_rTpD

So proud of this, and it feels like we're doing something right. It's a real privilege to be leading a few teams delivering real client impact, and to see how that translates into our clients investing back in us. Databricks #DataIntelligence #Lakehouse #GenAI

Big moves in the data analytics and AI space! Thrive Capital is reportedly in talks to acquire a $1B stake in Databricks, valuing the company at $55B. 🚀 Databricks continues its impressive trajectory: Secondary market valuations range from $24B to $53B, influenced by deal structures like cap tables or SPVs. The last funding round in September 2023 valued Databricks at $43B. This upcoming transaction isn’t a new funding round but a share sale (tender offer) led by Thrive Capital. With annualised revenue hit $2.4B (a 26% yoy increase). Databricks is solidifying its role as a leader in analytics and AI innovation. Learn more about Databricks financials: https://lnkd.in/eDDfdT5u #Databricks #preIPO #SecondaryMarket #Secondaries #Investments #PortfolioMonitoring The Sky Cliff Platform serves as a comprehensive portfolio monitoring solution for the Late-Stage Private Equity Market (pre-IPO), offering independent informational services. Please note that Sky Cliff Professionals does not provide investment or tax advice. Potential investors are advised to seek specialized independent tax and financial advice before investing in any alternative investment. Past performance does not guarantee future returns, and investments involve risks to your capital.

𝟱𝟬% - 𝗗𝗮𝘁𝗮𝗯𝗿𝗶𝗰𝗸𝘀 𝘄𝗶𝘁𝗵 𝗥𝗲𝗰𝗼𝗿𝗱 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗚𝗿𝗼𝘄𝘁𝗵 Databricks, the renowned data company, has disclosed staggering financial results, reaching over $1.6 billion in revenue for the fiscal year, representing a 𝗿𝗲𝗺𝗮𝗿𝗸𝗮𝗯𝗹𝗲 𝟱𝟬% 𝘀𝘂𝗿𝗴𝗲 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗽𝗿𝗲𝘃𝗶𝗼𝘂𝘀 𝘆𝗲𝗮𝗿. Despite its status as a privately-owned entity, Databricks is adopting public reporting practices, fueling speculation about an imminent IPO. CEO Ali Ghodsi emphasizes the company's readiness for public listing, citing robust financials and operational efficiency. Notably, Databricks' innovative offerings, including its data-warehousing product Databricks SQL, contribute significantly to its revenue stream. 𝗧𝗵𝗲 𝗰𝗼𝗺𝗽𝗮𝗻𝘆'𝘀 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀 𝗶𝗻 𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝘃𝗲 𝗮𝗿𝘁𝗶𝗳𝗶𝗰𝗶𝗮𝗹 𝗶𝗻𝘁𝗲𝗹𝗹𝗶𝗴𝗲𝗻𝗰𝗲 𝗳𝘂𝗿𝘁𝗵𝗲𝗿 𝗯𝗼𝗹𝘀𝘁𝗲𝗿 𝗶𝘁𝘀 𝗺𝗮𝗿𝗸𝗲𝘁 𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻, 𝘄𝗶𝘁𝗵 𝗖𝗘𝗢 𝗚𝗵𝗼𝗱𝘀𝗶 𝗵𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝗶𝗻𝗴 𝘁𝗵𝗲 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗶𝗻𝗴 𝗱𝗲𝗺𝗮𝗻𝗱 𝗳𝗼𝗿 𝗔𝗜 𝗶𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲. While Databricks continues to assess market conditions for its IPO, it remains focused on strategic investments and sustained growth, exemplifying its commitment to innovation in the data analytics space. #Databricks #DataAnalytics #AI #RevenueGrowth #IPO #Innovation https://lnkd.in/dYJbdrCa