CoreWeave's stock jumped in extended trading after second-quarter revenue more than doubled and beat Wall Street estimates. The AI cloud provider is deepening ties with Meta and Anthropic even as its debt and losses keep climbing.
CoreWeave shares jumped 12% in extended trading on Tuesday after the AI infrastructure provider posted revenue that beat Wall Street expectations. The company reported revenue of $2.58 billion, against a consensus estimate of $2.56 billion compiled by LSEG.
On an adjusted basis, CoreWeave posted a per-share loss of $1.03, smaller than the $1.20 loss analysts had expected. Revenue climbed 112% from a year earlier, while net loss widened to $626 million, up from $290 million, or 60 cents per share, a year ago.
Backlog and spending both keep growing
The company's revenue backlog now stands at $104 billion, with 1.5 gigawatts of active power under contract. On top of that backlog, CoreWeave said it secured more than $25 billion of net new customer commitments in the current quarter.
As of quarter end, the company carried $35 billion in debt on its balance sheet to cover the cost of Nvidia graphics processing units and other equipment. Capital expenditures reached $9.4 billion in the June quarter, up from $6.8 billion the prior quarter and well above the $2.9 billion spent in the same period last year. CoreWeave also added eight data centers during the quarter, bringing its global footprint to 51.
New commitments from Meta and Anthropic
During the quarter, Meta said it would spend an additional $21 billion with CoreWeave. The company also announced a multi-year agreement with Anthropic and a $6 billion commitment from quantitative trading firm Jane Street. According to Reuters: "our scale began to translate into expanding operating leverage", co-founder and CEO Michael Intrator said.
Still, competition is building. SpaceX has begun selling excess computing capacity, and Meta has considered launching a cloud business of its own. CoreWeave, an 8-year-old company racing Amazon, Google and Microsoft to build AI data centers, remains unprofitable, unlike its larger rivals.
As of Tuesday's close, CoreWeave shares had gained 26% year to date, compared with an almost 13% gain for the S&P 500 over the same period.
Sources: US Top News and Analysis, All News
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