Initial public offerings or IPOs are known as a great way for investors to make a big profit in a relatively short time. On average, they can bring investors 40% returns in the first 3 months. Once the initial funding stages are out of the way, IPOs can be a great way for companies to sell their shares on the open market and raise more capital to continue their growth. Whether or not you use this platform yourself, if you’re into new tech stocks you might have wondered, “is Databricks publicly traded?” Read on to find out everything about the upcoming Databricks stock IPO.
Databricks is a software company focused on data science, AI-based data analytics, engineering, data warehousing, and business analytics.
The company was founded in San Francisco 2013 by the creators of Delta Lake, Apache Spark, and MLflow.
Databricks pioneered “lakehouse” cloud architecture, which combines large amounts of raw data or “lakes” with organized data structures or “warehouses.” This platform helps organizations to manage their data using a unified data and AI platform. This new approach to storage and analysis may be the next step in the evolution of data warehousing that is able to make the old approaches obsolete.
Databricks has many high-profile business clients, such as Condé Nast, H&M, Regeneron Pharmaceuticals, Shell, and over 7 thousand organizations around the world. Over 40% of companies on the Fortune 500 list have used Databricks services.
When the Covid pandemic made businesses move a lot of their operations online, this contributed to Databricks’ growth. At the end of 2021 the company disclosed a revenue of over $800 million. In August of the same year they raised $1.6 billion in the latest funding stage, Series H, bringing up the total raised amount to $3.5 billion and giving the company a post-money valuation of $38 billion.
The company’s fast growth and the number of IPOs in 2020-2021 made everyone start asking the question, “when is Databricks going public?”
Read on to find out the Databricks IPO date and price, and other key info.
Databricks Public Listing Key Data and IPO Date
Databricks IPO Date: 2022 (TBA)
IPO stock price: N/A
Valuation pre-IPO: $38 billion
Market cap: N/A
CEO: Ali Ghodsi
Category: Cloud technology
Like most other tech companies, Databricks is very likely to file its IPO on Nasdaq. However, they may decide to launch their IPO on the NYSE instead.
Because much of the information about the launch remains private, we don’t know anything specific about their IPO date, suggested stock price or stock symbol, as private companies don’t have to disclose any of this information beforehand. Check back to this page to find out all the key information when it becomes available.
They decided to make their IPO process as straightforward as possibly by offering its shares directly to the public without an investment bank or other financial intermediary.
We saw a boom of SPAC IPOs in 2020-2021. However, many of these turned out to be flops. SPACs have many downsides, at least the speculative way in which they were used in the last 2 years.
CEO Ali Ghodsi, who owns a stake between 5 and 6 percent of the company, has a net worth of $1.8 billion. Fellow co-founders Ion Stoica (Executive Chairman) and Matei Zaharia (CTO) own similar stakes and each have a net worth of $1.6 billion, which puts both of them in the third place in the list of richest people in Romania as they were both born there.
So What About Investing Now?
A Databricks IPO may become one of the most exciting events in 2022. But the company’s decision to postpone the IPO may be a good idea considering what’s been happening on the market all year. If we are to witness the company going public this year, this may be a good opportunity both for short-term returns as well as long-term growth.
Because a lot of our life and work is migrating online, data warehouses are key to the performance of many IT businesses, which puts Databricks in a good position for success in years to come.
While the company is still private and does not share information about its profitability, the company is backed by the major players in cloud technology, such as Amazon, Microsoft, Alphabet, and Salesforce.
It’s important to keep in mind that IPOs are much more risky than investing in big companies with proven business models, if IPOs are your thing this is a great company to watch.
What’s even better is to build a balanced portfolio of stocks in an industry you know or believe in. Download Gainy to check out TTF stock collections to invest in themes you like, like Cloud technology or investment strategies you’d like to try.
Check out our IPO section to look at other scheduled IPOs. If you want to find companies that match your interests, investment goals and portfolio, try Gainy for some great IPO investment ideas, as well as established blue-chip companies and a variety of other assets.
Is Databricks a public company?
While the Databricks stock IPO date has not been confirmed yet, but the company has been preparing for an IPO for a while, and Databricks stock IPO date should be sometime in 2022 or early 2023. When a company launches an IPO (initial public offering), they become a public company whose shares are traded openly on the stock exchange. When that happens, we’ll find out the Databricks IPO price.
Is Databricks a SPAC?
While a lot of the details about the Databricks IPO remain private, most likely the company will go for a traditional IPO instead of merging with a special purpose acquisition company (SPAC).