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.
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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 notified investors its gross margin is falling quicker than anticipated, to 74% compared to an earlier plan for 77%, due to increasing usage of its AI products, the Information stated.
Founded in 2013, Databricks offers a platform that supports utilizers 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.
Reporting by Disha Mishra in Bengaluru; Editing by Edmund Klamann and Diane Craft
Our Standards: The Thomson Reuters Trust Principles.
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