Let’s take a look at Databricks IPO valuation and Latest update.
Databricks, found in 2013 by the creators of Apache Spark—MLflow and Delta Lake—is an artificial intelligence-powered data analytics company whose headquarter is based in San Francisco, California. It’s an enterprise software company that helps create specialized solutions for big data.
They help organizations manage their data by implementing an open and unified platform (The Lakehouse Platform) for AI and data. Their services cut across functions like data engineering and analytics and other applications of Artificial Intelligence (AI).
They initiated the creation of the ‘lakehouse’ in the cloud, with the two core words—’lake’ and ‘house’—sourced from ‘lakes’ and ‘warehouses’. In this context, these two words imply ‘raw data in a very large quantity’ and ‘a well-arranged processed data respectively.
This is definitely a lot to take in, so let’s chop down the basics first.
What Is A Data Lake?
A lake that has data thriving in it? Of course, not!
Data Lakes are more like deposits of reserves that are used to store and provide protection to all sorts of data, irrespective of the information type or size.
What Is A Data Warehouse?
You might already have an idea of what this s by generating a literal meaning, but do know that Data Warehouses, just like Data Lakes, are centralized reserves of information, the only difference between the two is that the information type in a Data Warehouses can be readily examined.
What Is The Lakehouse Platform Platform All About?
This is a product that was designed by Data Bricks to actually merge or unify the unique qualities of Data Lakes and Data Warehouses, which are information degree of quality and pliancy respectively.
Databricks currently operates globally in over 12 countries, their span covering over 5,000 enterprises. The company is also maintaining partnerships with 450 plus companies that provide services on Databricks’ Lakehouse Platform.
Databricks IPO Valuation.
Databricks attains a $38 billion valuation
In just a space of about seven months, Databricks has experienced an uprising after their Series H funding round. The company landed $38 billion valuations, which is a huge $10 billion difference to their previous valuation after their Series G funding round. Tracing their current financial records, Databricks had a grand revenue valuation as of 2021 which amounted to $425 million and a YoY increase of 75% plus. The profitability of the company is termed untraceable to date, and this is why investors raise a brow as to whether the company is profitable or not.
Databricks IPO valuation is estimated at $1 billion this year
As stated earlier, Databricks was able to end last year with a closing in September; its grand revenue and YoY increase amounted to $425 million and 75% respectively. As the year 2021 progressed towards its ending, the annual revenue valuation increased by an additional $175 million in value. In reference to several analyses and reports, Databricks experienced an increased demand for their services during the pandemic, as there was an increase in the demand for cloud-data analysis. With the company’s motive now known to investors, and their recent feat of reaching a $38 million valuation, investors are out on the look, expectant of a Databricks IPO to land soon.
Databricks Ipo Filing Info.
After the Security Exchange Commission (SEC) recently implemented a new rule that granted companies to raise funds whilst being involved in direct listening, co-founder and CEO of Databricks, Ali Ghodsi had dropped a hint in an interview with CNBC that Databricks was beginning to consider going public, but only through a direct listing. Later on, he made a motion in favor of the traditional IPO methods, stating the advantage traditional IPOs have.
Though the exact method through which the company intends to go public is still unknown, let’s try and decipher what exactly Databricks intends to do if they go public via Traditional IPOs. A certain advantage is granted to the company via this method, and that is the power to make a selection of its new shareholders. Databricks are intent on growth; hence they need the advantage of having investors with a long-term investment motive.
It’s being speculated that Databricks might get listed under NASDAQ or NYSE. But if investors are quite expectant for this company’s IPO, it’s advisable for them to tap the cables into the company’s current developments and activities.
In summary, BE ON THE LOOKOUT.