Databricks projects $4 billion in annual revenue on surging AI demand

Sept 8 (Reuters) - Analytics firm Databricks was on track to hit $4 billion in annual revenue, up more than 50% from the prior year, on the back of surging demand for its AI products.

In the second quarter, the company serving around 15,000 customers including energy major Shell SHEL.L and electric-vehicle maker Rivian RIVN.O, surpassed a $4 billion revenue run rate, with AI products reaching $1 billion.

This follows the data and AI company's Series K funding close, where it raised $1 billion at a valuation exceeding $100 billion, co-led by Andreessen Horowitz, Insight Partners, MGX, Thrive Capital and WCM Investment Management.

The company plans to use the proceeds to accelerate its AI strategy, including expanding products, launching a new operational database category, and future AI acquisitions and research.

Databricks is targeting a net revenue retention above 140%, more than 650 customers with more than $1 million in annual spending and positive free cash flow over the past 12 months, the company said.

The San Francisco-based company is seen as one of the leading candidates to go public. Databricks CEO Ali Ghodsi said in an interview that the firm has received numerous investor inquiries since the successful $1.22 billion initial public offering of design software firm Figma FIG.N, another venture capital-backed startup, in July.