Question for Databricks employees: When joining Databricks they calculated my total comp assuming ~$70 per share (I know paper money but humor me). Once I joined and the grant came, It was showing ~$50 per share. Asked my manager he gave me some hand wavey answer as ~$50 is the worst case scenario. Does anyone know based on their funny formula, what is the per stock valuation today? #databricks
Haha. How casually you are asking someone to do a full discounted cash flow analysis for a pre ipo company. 😂
I started by addressing the question to databricks employees, why did you feel compelled to chime in? databricks has its own way of valuating their own stock, my question is why they have two numbers ans which is the accurate one, according to databricks
73.48$ is post money valuation. I saw 42$ as last private transaction on hiivemarkets.com
What are their grant sizes like these days?
Probably you got an offer in the midst of a 409a valuation (another company trying to figure out the company value). During this time, the updated share price is unknown, so they use the old valuation to put some numbers for your offer. Though, I’m not sure about Databricks, but your RSU grant should be based on the new 409a valuation.
Private companies always quote the value of RSU/options part of their offer at the preferred price, not 409a. They’ll still tell you the latest 409a if you ask them, but offer numbers assume preferred price. 409a is important to know if you’re offered options (not RSU) since it indicates what you need to pay to exercise those options.
Is it always the case though? When companies disclose RSUs they disclose a set amount and recruiters can fool the new hires by claiming the last known preferred price and trick the candidate to accept it.
Underestimate by assuming $50 for calculating your NW, and $70 or above as a hopeful over deliver scenario.
What's the total addressable market worth for the space Databricks is competing in ? Do you see the company becoming as big as Snowflake? Because Snowflake at it's peak was valued at $100B so Databricks can have a potential $100B market cap by the time it IPOs.
Our TAM is substantially larger than Snowflakes fundamental TAM. Our biggest risks are probably division of focus and avoiding hype train distractions.
Databricks going to tank after ipo , mark my words . I believe in their product but overvalued already
Databricks is the new cloudera
Thanks, I guess I should join nutanix
We literally created a programming language that allows you to type English and executes code for you. If you don’t think this company is going to the moon you should reevaluate your analysis. Also cloudera was an on prem solution while databricks is cloud native. So the comparison underneath the hood doesn’t make sense
Okay. Give me a number. How much do you think Databricks is going to be in market cap by the time it goes to IPO. Let's say 2026. (interest rates go down).
100 billion easy by 2026 possibly more. We are going to be more profitable and our growth rate should still be great
If a software company raises $3.5B (billion, yes) in funding - it’s just nuts. Simple business logic - u need ~3B to setup n run a business? N the pvt valuation in last round is already at about $38B — basically it’s a hot potato where the early investors transfer the hot potato to later greedy n ignorant investors n bail. I would stay far away from the IPO. They eventually want retail investors to suffer. Greedy hedge funds hopefully can participate. I hope retirement funds don’t.
Go touch fish.
Amazing intelligence slimshady_! Lucky Databricks 😀
Was $50 the 409a and $70 the preferred price from last funding round?
Yes the 70 was from last funding round. Not sure what that $50 is, hence asking
Well, I’m telling you - it’s probably the 409a. Look it up.