CoreWeave (CRWV) stock rose in after-hours trading on Tuesday as the cloud provider reported better-than-expected quarterly revenue and raised its revenue outlook, fueled by booming customer demand for AI compute capacity.
“This was a breakout quarter for CoreWeave, with revenue increasing by more than $1 billion sequentially and adjusted operating margins reaching double digits a quarter ahead of plan,” said Michael Intrator, co-founder and CEO of CoreWeave, in the earnings release.
The company reported $3.66 billion in third quarter revenue versus consensus estimates of $3.56 billion, according to Bloomberg data. CoreWeave’s loss per share of $1.27 came in narrower than the $1.46 expected by Wall Street. The company also raised its full-year revenue guidance to $13 billion to $13.3 billion, up from a prior target of $12 billion to $13 billion.
The company highlighted $9 billion in customer prepayments and deposits expected in the next three months alone.
48.73 -0.25 (-0.51%)
At close: 4:00:01 PM EST
51.02 +2.29 (+4.70%)
After hours: 6:12:54 PM EST
CoreWeave shares have been battered in recent weeks, dropping more than 40% over the past month amid growing concerns about AI financing. A chart that went viral in October showed CoreWeave’s spiking bond yields, underscoring concerns about the company’s debt-heavy balance sheet and whether it can scale its business quickly enough to cover rising interest expenses.
Amid the sell-off, Nvidia (NVDA) CEO Jensen Huang tried to ease concerns about the company’s debt-heavy balance sheet by stating he was “optimistic” and that its “cost of capital is actually decreasing.”
Ines Ferre is a senior business reporter for Yahoo Finance.