Nov 30 (Reuters) – Data analytics firm Databricks is in talks to raise $5 billion at a valuation of $134 billion, which is roughly 32 times this year’s expected sales of about $4.1 billion, The Information reported on Sunday, citing investor documents and a person familiar with the matter.
Reuters could not immediately verify the report. Databricks declined to comment.
The company has increased its sales projections at least twice this year, the Information reported, adding that in September, Databricks revised its sales projection from $3.8 billion to $4 billion, before revising it upward again slightly. It now expects sales to grow by 55% this year.
At the same time, the company has told investors its gross margin is falling faster than anticipated, to 74% compared to an earlier plan for 77%, due to increasing usage of its AI products, the Information said.
Founded in 2013, Databricks offers a platform that helps users ingest, analyze and build AI applications. The company has long been viewed as a leading candidate to go public and has received numerous investor inquiries.
Databricks has more than 20,000 customers, including payments firm Block, energy giant Shell and electric vehicle maker Rivian, according to its website.
(Reporting by Disha Mishra in Bengaluru; Editing by Edmund Klamann and Diane Craft)
Comments