CoreWeave, a key player in the artificial intelligence infrastructure sector, reported impressive third-quarter earnings on Monday, surpassing analysts’ expectations. Here’s a detailed look at the company’s performance compared to the consensus from LSEG:
– Earnings: The company posted a loss of 22 cents per share.
– Revenue: CoreWeave generated $1.36 billion, exceeding the anticipated $1.29 billion.
This marks a significant increase of 134% from $583.9 million in revenue during the same quarter last year. Despite the robust revenue growth, CoreWeave reported a net loss of $110 million, an improvement from approximately $360 million lost during the same period in the previous year.
CoreWeave’s expansion is closely linked to the flourishing AI industry. The company primarily offers rental services for Nvidia graphics processing units, attracting business from major cloud infrastructure players like Google and Microsoft. As a result, CoreWeave’s backlog has impressively grown, currently standing at $55.6 billion with 2.9 gigawatts of contracted power, up from 2.2 gigawatts as of June 30, the company stated.
During the quarter, CoreWeave made headlines by announcing a significant $6.5 billion expansion of its partnership with OpenAI. Additionally, the company secured a six-year contract with Meta, potentially worth up to $14.2 billion. Notably, CoreWeave has also entered into its sixth agreement with a leading hyperscaler, further solidifying its position in the market.
Following its initial public offering (IPO) on the Nasdaq in March, where shares were sold at $40 each, CoreWeave’s stock has seen remarkable growth. On Monday, shares closed at $105.61, representing an impressive 164% gain since the IPO, while the Nasdaq itself has risen by 32% over a similar timeframe. However, CoreWeave shares experienced a slight decline during extended trading on Monday.
Just months after its public debut, CoreWeave expressed intentions to acquire data center infrastructure operator Core Scientific for $9 billion. However, the proposed acquisition faced a setback when shareholders of Core Scientific voted against the deal.
Looking ahead, company executives plan to discuss the earnings results and provide future guidance during a conference call scheduled for 5 p.m. ET.
Investors and analysts alike will be keenly listening to the insights offered during this call to gauge the company’s trajectory amid an increasingly competitive AI infrastructure landscape.
This is a developing story. Stay tuned for further updates.
