CoreWeave, a prominent player in the cloud computing sector, announced its first earnings report since going public, revealing better-than-expected revenue growth. For the recently completed quarter ending March 31, the company announced soaring revenue of $981.6 million. That’s a shocking 420% jump compared to last year’s $188.7 million in the same time frame. This figure surpassed analysts’ expectations of $853 million, showcasing CoreWeave’s significant market momentum.
CoreWeave’s revenue growth was strong, but the company was deep in the red with a growing net loss. That loss grew to $314.6 million down from a gain of $129.2 million a year earlier. The large lever of stock-based comp costs of $177 million made that easy. This dramatic spike in losses was largely attributed to settlements related to its near simultaneous initial public offering (IPO). The firm’s stock traded on Nasdaq for the first time at the end of March with an opening share price of $39. In the seven days prior to the earnings release, the stock climbed 31%.
CoreWeave’s CEO, Mike Intrator, highlighted the company’s rapid growth and commitment to innovation in cloud services, particularly in artificial intelligence. Iliad’s recent monumental $38 million dollar contract with OpenAI. In late 2016, they agreed to a far-reaching five-year partnership worth up to a mind-boggling $11.9 billion. This contract cements CoreWeave’s role as a major player in supplying the massive computational power required for AI development.
CoreWeave’s growth trajectory is one example of the increasing demand for cloud computing resources. This scary trend has been exacerbated by the likes of OpenAI, which have blitzscaled their way into existence. CoreWeave’s new partnership will help the company improve operational efficiency and profitability while spurring top-line revenue expansion over the next several years.
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