H1 FY25 ARR Growth of Over 200% With NRR At 190%
SAN MATEO, Calif., Sept. 26, 2024 /PRNewswire/ — Observe, Inc., the SaaS observability company reinventing the way machine-generated data is stored, managed and analyzed, today announced “Project Voyager,” its most significant product update yet. Voyager introduces an AI Investigator along with OpenTelemetry-Native APM and Snowflake Observability, enabling Engineering, DevOps and SRE teams to troubleshoot incidents faster and improve customer experience. Also announced today is the closing of $145 million in Series B funding with the most recent investments by Evolution Equity Partners and Madrona Ventures. Madrona Managing Director Soma Somasegar also joins Observe’s board of directors, effective immediately.
Traditional logging, monitoring and APM tools are too complex, failing to curb skyrocketing costs and mean-time-to-resolution (MTTR) of incidents for modern distributed applications. In stark contrast, Observe continues to simplify – delivering a single observability product for all telemetry data and tooling, and a unique AI-powered approach to troubleshooting which provides on-call engineers with the information they need, when they need it.
“The introduction today of Observe APM fulfills the original vision we had for Observe – to ingest data into a single data lake, analyze it using a single query language and access it through a single consistent user interface,” said Jeremy Burton, CEO of Observe Inc. “Next, Observe’s AI Investigator clearly outlines our vision for the future – a world in which a network of intelligent agents will work on behalf of, and in conjunction with, on-call engineers to further reduce MTTR.”
Observe’s AI Investigator orchestrates a network of domain-specific AI agents, assisting engineers in quickly identifying and resolving issues. AI agents are finely tuned for specific tasks such as accessing runbooks or prior incidents, understanding Kubernetes, AWS or Github, or generating queries to interact with Observe. When incidents are resolved, summaries are generated and used to train AI agents so they get smarter over time.
AI Agents are orchestrated by a master “AI Planner” which drives the troubleshooting workflow. This can be thought of as a digital companion or assistant to the on-call engineer.
“There is immense opportunity in leveraging AI for the modern observability industry,” said Kate Holterhoff, senior analyst at RedMonk. “Observe’s AI-powered investigation features are a promising addition to this growing market.”
Project Voyager’s OpenTelemetry-Native APM provides immediate visibility into the services, traces and spans of all applications instrumented using the OpenTelemetry standard. Unlike many legacy vendors, Observe exclusively uses the upstream OpenTelemetry agent for instrumentation – nothing proprietary is included.
Observe released Trace Explorer earlier this year and, today, adds to that with Service Explorer and Service Level Management. Teams can now align their observability practices with customer experiences by setting Service Level Objectives with a single click and proactively track the consumption of error budgets. Observe’s unique architecture enables users to retain more of their traces for longer periods of time. Some vendors will downsample traces to as little as 1% and retain them for as little as 15 minutes. Observe does not downsample traces by default and retains all tracing data for 13 months.
Finally, Voyager introduces Snowflake Observability, now available in the Snowflake Marketplace and offers 1TiB/month of Snowflake data for free. This integration allows developers to gain critical insights into query performance and application health without moving telemetry data outside of Snowflake, ensuring maximum security and efficiency.
“We make guarantees that not a single byte of our customers’ data leaves their Snowflake accounts. So it is important to us that our Observability data remains in Snowflake,” said Molham Aref, CEO of Relational AI. “We chose Observe for its native integrations with Snowflake, OpenTelemetry support and cost efficiencies.”
Today’s announcement also caps a period of exponential growth for Observe, with Annual Recurring Revenue (ARR) up over 200% year-over-year and Net Revenue Retention (NRR) over 190% at the end of the first half of FY25. The Series B funding will be used to further build out engineering and sales functions to keep pace with growth expectations in the second half of the year.
“Observe was the first to recognize that Observability was fundamentally a data problem and have taken a unique approach”, said Karthik Subramanian, Partner at Evolution Equity Partners. “The economics and speed of troubleshooting that Observe has pioneered for current modern IT stacks with massive data scale and growth promises to be a game changer. We are thrilled to support them as they continue to scale.”
Observe now serves almost 100 customers, including large enterprises such as Capital One and Commonwealth Bank of Australia.
For more information, please read about Observe’s Project Voyager on their blog, or visit observeinc.com.
About Observe, Inc.
Headquartered in San Mateo, Calif., Observe is the observability company reinventing the way business data is stored, managed and analyzed. Only Observe eliminates silos of logs, metrics and traces by storing all data in a single, more cost-efficient data lake. The company’s unique Data Graph technology enables users to troubleshoot distributed applications three times faster than competing observability solutions. Brands such as Capital One and Topgolf trust Observe to turn their business data into actionable information. Investors include Capital One Ventures, Madrona Venture Group and Sutter Hill Ventures. For more information, visit: www.observeinc.com.
About Evolution Equity Partners
Evolution Equity Partners, headquartered in New York City, partners with rapidly growing software companies that safeguard our digital world. The firm was founded by investor and technology entrepreneurs Richard Seewald and Dennis Smith, who manage and lead the firm, and its partners have been involved as founders, investors and as senior operating executives in leading software companies around the world. Evolution has invested in over sixty enterprise software companies building a growing portfolio of market leaders. Learn more at www.evolutionequity.com and follow us on LinkedIn and Twitter.
Media Contact:
Courtney Bonness
Bateman Agency for Observe
observe@batemanagency.com
SOURCE Observe, Inc.
