CoreWeave has announced impressive financial results for the third quarter, significantly exceeding analyst expectations. The company reported revenue of $1.36 billion, surpassing predictions of $1.23 billion and guidance figures ranging from $1.26 billion to $1.30 billion. Additionally, its adjusted operating income hit $217.15 million, while analysts had estimated around $177.2 million, with an earlier guidance of $160 million to $190 million.
One of the standout highlights from the earnings report is the expansion of CoreWeave’s revenue backlog which has reached an astonishing $55.6 billion, almost doubling from $30.1 billion at the end of the second quarter. This promising backlog suggests a robust pipeline of future revenues for the company.
However, CoreWeave did face a minor challenge as its active computing capacity stood at 590 megawatts, falling short of analysts’ expectations of nearly 625 megawatts. This discrepancy raises questions about the company’s ability to fully meet demand and accelerate growth, particularly given the substantial capital expenditure and power requirements indicated by the anticipated revenue realization.
In the highly competitive cloud computing landscape, CoreWeave has had an eventful quarter, securing a landmark $14 billion agreement with Meta for AI computing resources, expanding its partnership with OpenAI, and concluding a $6.3 billion deal with Nvidia for unused cloud computing capacity.
Despite a previously tumultuous quarter marked by shareholder uncertainties, this quarter’s results reflect a more stable environment for CoreWeave, especially after the lock-up period expired following their robust Q2 performance. The future looks bright for the company as it continues to strengthen its foothold in the rapidly evolving AI and cloud computing sectors.