CoreWeave coasts to a solid earnings beat, sending its stock higher after-hours
Shares of the artificial intelligence data center firm CoreWeave Inc. jumped more than 14% in extended trading today after it delivered solid financial results that easily beat Wall Street’s projections.
The company reported a second-quarter loss before certain costs such as stock compensation of $1.03 per share, well ahead of the analyst consensus estimate of a $1.20-per-share loss. Revenue for the period rose 112% to $2.58 billion, surpassing the Street’s target of $2.56 billion. However, the company’s net loss jumped from $290 million in the same period one year ago to $626 million today.
Despite CoreWeave’s mounting losses, investors have a lot of reasons to be optimistic about the company’s future prospects. For one thing, CoreWeave said its revenue backlog now stands at an impressive $104 billion in orders that have been booked but not yet fulfilled. That number excludes around $25 billion in new commitments secured during the current quarter.
With respect to guidance, CoreWeave said it’s looking for third-quarter revenue of between $3.4 billion and $3.6 billion, which would imply growth of 158% at the midpoint of that range. Wall Street analysts are looking for total sales of just $3.43 billion. Meanwhile, for the full year, CoreWeave’s management said it now sees adjusted operating income of around $960 million to $1.18 billion on total revenue of $12.4 billion to $13.2 billion. That’s up from an earlier forecast of $900 million to $1.1 billion in adjusted operating income and $12 billion to $13 billion in revenue. In contrast, analysts see CoreWeave delivering just $12.63 billion in full-year sales.
