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A new revenue figure and growth rate has been disclosed by the big-data analytics company. The company has been tracked by the site for a long time, curious about its growth and what it said about its market. We are going to revisit its last private round against its most recent financial data. We have to do some background work before we can do that.
When Databricks raised a $1.6 billion round in August of 2021 at a $38 billion post-money valuation, TechCrunch got on the phone with the company's CEO. We had some questions.
He felt that the huge private-market valuation would make it seem like there was more pressure to succeed than there really was. He wasn't sweating it.
He said at the time that he was sleeping well and didn't feel much pressure.
He gave a few reasons. He believed that his company was building a new category of service. There was more demand to put capital in than there was room to accept it, and he hadn't maximized for valuation in the fundraising event.
It is standard CEO-fare when it comes to startups. He threw out a 75% growth rate as a talking point that companies can overcome market corrections by growth. If the market changed its tune about the value of software revenues so long as Databricks kept growing, things would work out just fine.
The value of software revenue is going to be repriced by the public markets starting in late 2021. Databricks continued to grow.
We can calculate the company's revenue multiples at the end of the year and back in August, using market data. The experiment will show us how much ground Databricks has to power through before it can translate its private-market valuation to the public markets. I promised myself that I would stop making jokes when Databricks went public.
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