Is Databricks profitable?
Since Databricks is still a private company, it doesn't need to publicly report its profitability. However, it has released some financial information publicly.
In late 2024, the company revealed that it raised $10 billion in new funding from investors. In a press release, Databricks reported that it expected to achieve positive free cash flow in the fourth quarter of that year. A big factor driving its improving profitability is its soaring revenue.
Databricks' revenue
Databricks' annual recurring revenue (ARR) run rate crossed the $3 billion milestone in 2024. The company is increasing revenue at a rapid clip; it surged more than 60% in the third quarter of 2024.
Databricks' revenue will likely continue growing briskly. It now has more than 500 customers, providing it with over $1 million in annual revenue. Meanwhile, its intelligent data warehousing product (Databricks SQL) reached an annual revenue run rate of $600 million, up more than 150% in the past year.
Databricks' valuation
Databricks last raised money from private investors in December 2024. The funding round raised a staggering $10 billion at a $62 billion valuation. That's up from $43 billion at its last funding round in 2023.