Insights·Company deep-dive

Databricks at $62B: the Series J and what comes next

After a $10B Series J, Databricks is one of the most valuable private companies in the world. We model employee packages, the Delta Lake revenue story, and IPO scenarios.

2025-03-28 · 8 min read
Article from 2025-03-28 — valuations have moved since

This piece references valuations and round details as they stood at the time of writing. For the current 4-method estimate for Databricks, see its company page — refreshed monthly.

Key takeaways
  • December 2024 Series J: $10B raised at $62B post-money, led by Andreessen Horowitz.
  • Strong ARR growth ($2.4B+ in 2024) and rising margins make Databricks one of the most defensible private valuations.
  • Implied per-share at $73 — early-cohort employees with $35–$55 strikes are net positive even after exercise costs and AMT.

Databricks raised $10B in December 2024 — one of the largest private rounds ever. The Series J priced the company at $62B post-money, up from $43B in 2023. The round is unusual for being so large: it allowed early investors and employees to take secondary, while the primary capital funds aggressive expansion.

The revenue picture

Databricks ARR crossed $3B during 2024, growing 60%+ year over year. That's a remarkable rate for a company this size. Snowflake (a useful public comparable) trades at ~16× EV/Revenue with 29% growth. Databricks at $62B is around 20× $3B — a slight premium, justified by faster growth and the AI tailwind.

Implied share price and strike math

On 850M fully-diluted shares, $62B implies $73/share. For employees who joined in the 2021–2022 cohorts with strike prices in the $35–$55 range, that's a $20–$40 per-share spread before tax. A 10,000-option grant from that era is worth $200K–$400K of pre-tax paper gain.

IPO timing

CEO Ali Ghodsi has publicly said Databricks isn't in a rush to IPO. The Series J gave them enough capital to operate as a private company for years, and the secondary mechanism (combined with periodic tenders) keeps employees liquid.

Most likely path: 2026–2027 IPO, conditional on stable public markets. The recent regulatory environment for tech IPOs is more favourable than 2022–2023, but Databricks has the luxury of waiting.

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