So it’s a strange world out there in SaaS and Cloud. Many leaders in traditional B2B2B categories are struggling. Salesforce is predicting next year will be its first year with < 10% growth. Workday, MongoDB, UiPath and others leaders have seen substantial deceleration as well:
But AI and Cloud overall are growing faster than ever, according to the latest Gartner data. Growing 20%+ this year alone. And many SaaS leaders that sell to end consumers are strong as well. Canva just announced it’s growing 40% at $2.4 Billion in ARR.
Databricks is the latest leader to buck the deceleration trend. The other day at its annual conference it announced that not only will it cross $2.4B in ARR next month — but that it’s accelerating. At $1.5B ARR, it was growing a still impressive 50%. Today? 60% (!).
Databricks is accelerating — growing faster at $2.4B ARR (60%) than last year at $1.5B ARR (50%)#whatdownturn https://t.co/djGWcTG6Vk
— Jason ✨👾SaaStr.AI Sept 11✨ Lemkin (@jasonlk) June 13, 2024
Per CNBC, it got even better:
- In the last quarter, Databricks saw 221 transactions that exceeded $1 million
- Net revenue retention in the 2024 fiscal year, which ended in January, was higher than 140% (!!)
Many SaaS and Cloud leaders have seen their NRR fall the past 18-24 months, but not Databricks. 140% NRR at $2.4B in ARR fuels a ton of growth.
More in the CNBC piece here:
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- Source: https://www.saastr.com/databricks-is-growing-at-2-4-billion-in-arr-and-accelerating/
