Sid Kumar

I got this question so many times today. "How can you grow 80% at $7B?" The true answer is that we're finally seeing a breakthrough with AI agents starting to work in the enterprise. The AIs have been super smart for a while, but have lacked basic context that's in people's heads, or in some SaaS system-or-record. A lot of organizations are deploying FDEs to capture this context, or Ontology, and feed it to the AI. This is labor intensive and expensive. We just automated that with Genie Ontology. Once you have that enterprise context graph, an AI agent like Genie becomes magical. I find myself no longer waiting for answers from my CRO, CFO, CMO, CHRO etc, I just keep queuing up questions on the phone while sitting in meetings. It'd frankly addictive. Our customers are starting to do the same, over 70% of all queries on the platform are now generated by Genie agents. This fuels more questions to the platform, which drives consumption, which drives revenue. That's the simple answer.

I now constantly get questions about the SAAS meltdown, role of AI, system of records etc. I don't have an answer to all these. But I do know that we saw an acceleration in our business in Q2, Q3, and now finished the year with accelerating Q4. The question is, why? Short answer: AI. But the underlying reason is subtle. We are growing fast because we are finally removing the biggest bottleneck in data: the technical barrier to entry. For years, if you didn’t know SQL, Python, you were locked out of the value chain. That has changed fundamentally with the 𝐆𝐞𝐧𝐢𝐞 𝐟𝐚𝐦𝐢𝐥𝐲, and it is the "secret sauce" behind our recent momentum: • 𝐆𝐞𝐧𝐢𝐞: Analysts can query data without any SQL. I use this every day myself. • 𝐃𝐚𝐭𝐚 𝐒𝐜𝐢𝐞𝐧𝐜𝐞 𝐆𝐞𝐧𝐢𝐞: Builds end-to-end AI models for you, similar to Cursor for ML on your data. • 𝐃𝐚𝐭𝐚 𝐄𝐧𝐠𝐢𝐧𝐞𝐞𝐫 𝐆𝐞𝐧𝐢𝐞: Write Spark pipelines, does plumbing, troubleshooting. We've been talking about DATA + AI democratization, but generative AI finally enabled it in a way that wasn't possible before. That's why we're seeing a market response. Take 𝐋𝐚𝐤𝐞𝐛𝐚𝐬𝐞 𝐏𝐨𝐬𝐭𝐠𝐫𝐞𝐬. We launched this serverless engine for agents and apps recently. At 8 months into its journey, its revenue is already 2x what our Data Warehouse product was at the same stage. All this taken together, we ended up with the following stats for Q4: 🚀 $5.4B Revenue Run-Rate, growing >65% YoY 🚀 $1.4B AI Revenue Run-Rate 🚀 FCF Positive for the year 🚀 NRR >>140% databricks.com/company/newsr…