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Rethinking Databricks’ valuation amid a changing market –

How much will it be changes in the evaluation landscape of software companies affect the unicorns most flying? Also, why is Databriks still not available to the public? The answer to the former can be the answer to the latter.

TechCrunch has spent enough time until the end of 2021 to monitor software revenue changes. To catch up with you: Several factors have combined to create an environment in which software companies are now less expensive than they were during most of 2021 when it comes to high-income.

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One result of this particular issue has been concern that many companies that started high-value capital last year are struggling to protect – let alone improve – their valuers when they next raise capital. And since it is not expected that the startup asset class will suddenly turn into cash, more money will be needed. This sets a precedent for external observers – including potential staff, mentors – who cannot tell who initiated and attracted external capital to the assessment of open and non-aggressive aggression.

But there is one particular company to consider, part of the high-end start-up team: mega-unicorns. These companies – the private market already started with the highest ratings – are in the view of those closest to the public.

My question is how changing market valuation conditions affect these small companies. So let’s go back to our previous work on Databriks, which recently collected $ 1.6 billion valued at $ 38 billion, and see what the new facts can tell us.

What is the value of Databriks today?

Here are some tips to remind you where the company stands:

  • February 2021: Databricks is up $ 1 billion worth $ 28 billion compared to ARR of $ 425 million.
  • August 2021: Databricks raises $ 1.6 billion compared to $ 38 billion ARR of $ 600 million.
  • February 2022: Databriks announces closure of 2021 with more than $ 800 million worth of ARR.

These work to earn revenue numbers close to 66x, 63x, and 47.5x.

Although we do not know exactly when Databricks received any revenue, and we have not been able to accurately determine how much the company’s $ 800 million ARR was by the end of 2021, we can estimate that the company added up to $ 50 million. of ARR per month in the last quarter of last year. Since it has been almost four months since the beginning of the year, we can easily say that Databriks should be the $ 1 billion ARR mark today, more or less.

As a result, the company’s revenue is down 38x less. Our question is whether that number makes sense.