What would Databricks be value in a 2021 IPO?

By | October 26, 2020

TechCrunch just lately coated Databricks’ financial performance in 2020, contrasting its latest efficiency to some historic 2019 information that the corporate shared.

The info-and-analysis-focused unicorn grew its annual run fee 75% to $350 million, in comparison with its year-ago quarter, which means that the agency is rising properly at scale. TechCrunch described it as “an apparent IPO candidate” on the time, somewhat beneath two weeks in the past.

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Since that time, Bloomberg reported that Databricks is certainly charging forward with an IPO, a transaction that would come as quickly as the primary half of 2021, writing that it “has held talks with banks however has but to rent underwriters” for its flotation.

That’s sufficient information for us to have enjoyable with. So, this morning let’s collate all that we all know concerning the firm’s monetary efficiency, combine in some present market valuation metrics, and do some gentle projecting of Databricks’ development. Our query? What would possibly the corporate be value on the finish of Q1 or Q2 subsequent yr.

In fact, there are some worrying signs on the horizon that the stock market is about to shift lower, however, hey, there’s no must be a pessimist this early on a Monday morning. Let’s get into the mathematics.

Databricks’ potential IPO valuations

Beginning with some historical past, Databricks was value $6.2 billion after its September, 2019 Series F round of capital. The corporate raised $400 million within the transaction, its largest spherical to-date by $150 million. That capital ought to get the corporate to an H1 2020 IPO, supplied that its spending didn’t go all old-school Dropbox.

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