↑ BACK TO TOP
open sidebar menu
  • Analyzing Software Companies/Analytics and AI
    Knowledge Bases
    Analyzing Software CompaniesBuilding Software ProductsAI, it's not that complicatedWorking With Data Teams
    Sections
    1: Analytics and AI
    What does Snowflake do?What does OpenAI do?What does dbt do?What does Alteryx do?What does Segment do?What does Databricks do?
    2: Communication and Automation
    3: Data Stores
    4: DevOps
    5: Fintech
    6: Infrastructure and Cloud
    7: Monitoring and Observability
    8: Security
Sign In

What does dbt do?

dbt (no capitals) is a tool for transforming and organizing data in your warehouse.

analytics

Last updated: July 4, 2025

The TL;DR

dbt (no capitals) is a tool for transforming and organizing data in your warehouse. It helps data teams get raw data ready for analysis and impact.

  • Data models are the core of effective data teams – they map business concepts onto cleaned, organized data
  • dbt helps data teams use SQL to build useful, documented data models that the rest of the company can benefit from
  • Core concepts in dbt: models, docs, seeds, and runs
  • dbt isn’t quite like anything on the market, and they’ve partnered with tools across the spectrum

The open source dbt product has seen almost fanatical levels of support from the engineering and data community; they also recently raised a $150M Series C. 

Terms Mentioned

Frontend

Open Source

SQL

Production database

Schema

Cloud

Framework

API

Analytics

Data warehouse

ETL

Machine Learning

Database

Query

Companies Mentioned

Snowflake logo

Snowflake

$SNOW
dbt Labs logo

dbt Labs

$PRIVATE
Stripe logo

Stripe

$PRIVATE

What’s a data model exactly?

🔮 Dependencies

Understanding dbt will be easier if you get comfortable with and . You’ll also want to be familiar with the concept of a .

dbt is quite simply a tool for building data models. If you’re on a data team, you probably know what that means. But alas, my dear audience, if you’re not, it may be unfamiliar. You’ve heard of machine learning models, but what’s a data model?

The age of the simple warehouse

First, the fundamentals. In a previous post, we talked about data integration:

Every company has this idealized vision of a data science and analytics team, with full visibility into how the business is doing, how the product gets used, how experiments are performing, super good looking and funny people, etc. The problem with getting there (and this is part of why data teams don’t get hired until later in the company lifecycle) is that the actual, cold hard data that you need to answer important questions typically lies all over the place. And it needs cleaning. 

The process and discipline of gathering data from original sources, cleaning it, and getting into a warehouse is a tedious, ongoing process, and it’s a lot (most?) of what early data teams spend their time on. 

Traditionally, there was a three step process for getting that done: you’d first extract the data from the source, then transform it in flight to clean and ready it for analysis, then load it into your data warehouse. Transformation was done in flight, because putting raw source data into the warehouse first wasn’t financially or technically feasible.

Today, though, as data warehouses have gotten easier to use, cheaper, and we’ve separated storage from compute, the paradigm is changing – companies are just funneling source data directly into their warehouses, and then working with it there. This is called ELT (because the transformation is happening after the load). And this is very important, because it makes data transformation as simple as writing SQL in your warehouse. 

“Analysis” ready data

Source data – or in other words, what your production database, events, or even Stripe customers look like – is usually very different than the format you’d want for analysis. You might be capturing event data that looks like this:

Access the full post in a knowledge base

Knowledge bases give you everything you need – access to the right posts and a learning plan – to get up to speed on whatever your goal is.

Knowledge Base

Analyzing Software Companies

The products and business models of leading software companies.

$199/month

Knowledge Base

Working With Data Teams

How to make positive contributions when working with analytics and data science teams.

$149.00/one-time

What's a knowledge base? ↗

Where to next?

Keep learning the products and business models of leading software companies.

What does Alteryx do?

Alteryx is a group of tools that helps business teams get insights out of their data, without needing to write any code.

Analytics and AI
What does Segment do?

Segment helps teams track their product and marketing data and send it to whichever tools it needs to go to.

Analytics and AI
What does Databricks do?

Databricks sells a data science and analytics platform built on top of an open source package called Apache Spark.

Analytics and AI
Support
Sponsorships
Twitter
Linkedin
Privacy + ToS