Graph and analytics leader Neo4j surpasses $200 million in revenue

Neo4j, the world’s leading graph database and analytics company, announced that it has surpassed $200 million in annual recurring revenue (ARR), doubling its ARR over the past 3 years. The company is on track to be cash flow positive in the coming quarters, driven by its leadership in the expanding graph technology market, which is critical for improving the accuracy, transparency, and explainability of Generative AI (GenAI) results.

Neo4j grew rapidly this year as organizations recognized graph databases as essential infrastructure for Artificial Intelligence (AI) systems that leverage vast amounts of interconnected data. Neo4j serves as the optimized database for these applications. Growth was also driven by enterprise demand for Neo4j’s cloud offering which has increased fivefold over the last three years, and partnership traction with leading cloud hyperscalers and ecosystem leaders.

“By 2025, graph technologies will be used in 80% of data and analytics innovations, up from 10% in 2021, facilitating rapid decision-making across the enterprise,” predicts Gartner in its Exploring the Top Use Cases for Graph Analytics report, May 10, 2024.

Neo4j leads the graph database management systems (DBMS) category with a 44% market share, based on an analysis by Cupole Consulting Group. Cupole estimates the total addressable market for the broader DBMS category at $110 billion in 2024, with graph DBMS growing at 32.6%+ CAGR driven by cloud adoption and emerging AI use cases.

Neo4j is used by 84% of all Fortune 100 companies and 58% of the Fortune 500. Examples include Daimler, Dun & Bradstreet, EY, IBM, Merck, NASA, UBS, Walmart, and others.

GenAI’s growing demand for graph databases and GraphRAG

Graph databases enable companies to store and query data in a way that mirrors how real-world entities are connected. Data is expressed as a knowledge graph, which grounds large language models (LLMs) in facts and rich context and gives AI systems better, faster access to relevant data critical for generating high-quality outputs.

Neo4j is also a leader in GraphRAG, a technique that enables LLMs to retrieve data from external sources, augmenting these systems with knowledge and preventing hallucinations. Gartner noted the importance of GraphRAG in its  Hype CycleTM For AI in Software Engineering, 2024 report: “RAG techniques in an enterprise context suffer from problems related to the veracity and completeness of responses caused by limitations in the accuracy of retrieval, contextual understanding, and response coherence. KGs (Knowledge Graphs), a well-established technology, can represent data held within documents and the metadata relating to the documents. Combining both aspects allows RAG applications to retrieve text based on the similarity to the question and contextual representation of the query and corpus, improving response accuracy.”

2025 growth fueled by new AI capabilities, cloud expansion, partnerships

Neo4j plans to add new GenAI features to its core offering, expand its capabilities for mainstream cloud adoption, and deepen partnerships to serve as the default graph analytics and GraphRAG layer.

The company recently secured $50 million in capital from Noteus Partners, a European specialist growth equity investment firm. While Neo4j is well capitalized and does not need the capital to run its business, the investment strengthens its balance sheet in the current macroeconomic climate, reaffirms the company’s $2 billion valuation, and underscores the Neo4j’s commitment to partnering with organizations it trusts and believes in.

Graph is expected to accelerate further with ISO and IEC’s 2024 publication of GQL, a new international standard for graph query language, signifying the maturity and omnipresence of graph technology. It is the first database query language to be certified since SQL in 1987. ISO invested more than five years of work into GQL with Neo4j involved from the start.

Commenting on the growth, Emil Eifrem, Co-Founder and CEO, Neo4j, stated, “This milestone is a testament to the growing recognition of graph technology as foundational to the new data stack. Neo4j empowers customers to transform data into knowledge, unlocking insights and possibilities that weren’t possible before. We’re now at the forefront of a seismic shift in how organizations achieve this with GenAI, with Neo4j uniquely positioned to enable this new wave of innovation.”