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Databricks Just Caught Snowflake at $3.7B ARR. Here’s How They Did It (And What’s Next)
- Databricks reached a $3.7B revenue run-rate this quarter with 50% YoY growth, becoming the fastest-growing infrastructure company in the public software universe.
- Key factors contributing to Databricks' growth include $1.2B in net new revenue this year, 80%+ subscription gross margins, and 140% Net Revenue Retention.
- Their AI-focused products like Databricks SQL and AI/ML Platform are driving significant revenue growth, with 50% of customers using 6+ products.
- Databricks is outpacing Snowflake with a 50% growth rate compared to Snowflake's 29% growth, adding around $800M more in net new revenue annually.
- The market implications include Databricks reshaping the infrastructure market with its 'Lakehouse' architecture, infinite demand for AI infrastructure, and strong platform effects.
- Competitors like Snowflake are responding, while investors are witnessing potentially the largest infrastructure company emerge.
- Databricks' growth trajectory since 2019 shows significant acceleration, positioning them to surpass Snowflake's ARR and dominate the infrastructure market.
- Databricks is not just dominating today but also preparing for a bigger tomorrow, with a strong emphasis on AI-driven competitive advantage.
- The article highlights Databricks' exceptional growth, strategic advantages, and industry implications compared to competitors and investors.
- Databricks' success signifies a shift in data infrastructure perception from a cost center to a foundation for AI-driven competitive edge in the market.
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