CoreWeave (CRWV) stock rose after hours Tuesday as the cloud provider reported better-than-expected quarterly revenue and raised its revenue outlook, fueled by growing customer demand for AI computing capabilities.
“This was an exceptional quarter for CoreWeave, with revenue up more than $1 billion sequentially and adjusted operating margins reaching double digits a quarter ahead of schedule,” Michael Intrator, co-founder and CEO of CoreWeave, said in the earnings release.
The company reported third-quarter revenue of $3.66 billion, compared to the consensus estimate of $3.56 billion, according to Bloomberg data. CoreWeave’s loss per share of $1.27 was less than the $1.46 Wall Street expected. The company also raised its full-year revenue forecast to $13 billion to $13.3 billion, up from a previous target of $12 billion to $13 billion.
The company highlighted $9 billion in expected customer prepayments and deposits over the next three months alone.
48.73 -0.25 (-0.51%)
At close: 4:00:01 p.m. EST
51.09 +2.36 (+4.84%)
CoreWeave shares have been battered in recent weeks, falling more than 40% in the past month amid growing concerns over AI funding. A chart that went viral in October showed CoreWeave’s rising bond yields, highlighting concerns about the company’s heavily leveraged balance sheet and its ability to expand its business quickly enough to cover rising interest expenses.
Amid the sell-off, Nvidia (NVDA) CEO Jensen Huang attempted to allay concerns about the company’s debt-heavy balance sheet by saying he was “optimistic” that its “cost of capital was coming down.”
Ines Ferre is a senior economics reporter for Yahoo Finance.
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