Databricks launches Lakehouse for Retail as CEO focuses on growth
Ali Ghodsi (co-founder, chief executive of Databricks Inc.) speaks in a Bloomberg Technology Television interview, San Francisco, on October 22, 2019.
Bloomberg | Bloomberg | Getty Images
Cloud stocks are in the midst a two month slide. The CEO of the best private software company isn’t worried.
Databricks, whose software helps customers store and clean up data so employees can analyze and use it, was valued at $38 billionIn August, the company’s most recent funding round. Although the company has not yet announced when they plan to make public their plans, Ali Ghodsi, CEO, told CNBC that the stock price would be manageable if the revenue continues growing at the current rate.
Ghodsi stated this week in an interview that “As long you have growth rates as fast as us, then that growth rate will break the multiple compression happening in the markets, sooner or later.”
This is a bold statement. The investors have dramatically slashed the valuationsRecently, many publicly traded software vendors have transformed themselves into much more profit-oriented companies in preparation for rising interest rates. There are WisdomTree Cloud Computing FundIt includes Bill.com, Datadog, SnowflakeLow-growth companies, including other names that are high-growth, have fallen by 8% in 2022 so far and are 27% below their record November high.
Databricks, which was 37th in CNBC’s 2021 Disruptor50 list, stated in August that they were generating $600 millions in annual recurring revenues, an increase of 75% over the previous year. It is growing faster than the other half of the WisdomTree group’s 58 members. In the last quarter, Bill.com reported growth of 152% and 11% respectively.
Ghodsi explained that Databricks’ and other sector workers need to continue spending in their favor.
Ghodsi stated that although it is possible for the market to correct now in early stages, it has not yet been able to change our spending on data, AI, and analytics.
Databricks, a private business, can still focus on customers and is currently aiming at reaching more commerce businesses and consumers. Databricks unveiled the Databricks Lakehouse for Retail Thursday. This lakehouse provides better data and artificial insight tools for retailers. Early adopters include H&M Group, WalgreensA subsidiary Kroger, Databricks said.
Following the departure of former presidents, this strategy was put into action last year. SalesforceAndy Kofoid was appointed president of Global Field Operations at Databricks by Databricks. Other big cloud-based software firms like Salesforce and infrastructure companies have found that retail is a lucrative market. GoogleAnd Microsoft.
Kofoid’s group will face many competitors including the incumbent data warehouse. Teradata.
Ghodsi declared that “I believe many things on the market are too expensive.” “Some of these margin structures out there I see as an opportunity for sort of cutting into some of these without raising prices.”