CoreWeave Reports $56B Revenue, but Shares Dip Amid AI Bubble Concerns
CoreWeave, a prominent player in AI data-center infrastructure, recently announced a significant surge in its revenue backlog, now totaling $55.6 billion, nearly twice its previous $30 billion. This growth is largely attributed to contracts with major companies such as Meta and OpenAI.
Third-Quarter Financial Performance
For the third quarter, CoreWeave reported revenues of $1.4 billion, a substantial increase from $584 million in the same period last year. Despite this growth, the company faced a net loss of $110 million, improving from a loss of $359.8 million during the third quarter of the previous year.
Key Financial Metrics
- Revenue Backlog: $55.6 billion
- Third Quarter Revenue: $1.4 billion
- Net Loss: $110 million
- Adjusted Net Loss: $41 million
- Adjusted EBITDA: $838 million
- Operating Income: $51.9 million
- Interest Expense: $311 million
Revised Guidance and Market Response
Following the financial announcement, CoreWeave’s stock experienced a 6% drop in after-hours trading. Analysts are cautiously assessing the company’s future, particularly as it navigates infrastructure commitments and revenue delays related to data center construction. CEO Michael Intrator noted that demand for their services is robust, yet supply chain pressures remain a concern.
Future Projections
CoreWeave revised its full-year revenue guidance down to $5.05 billion to $5.15 billion, compared to earlier estimates of $5.15 billion to $5.35 billion. Additionally, 2025 capital expenditures are expected to range between $12 billion and $14 billion, down from a prior forecast of $20 billion to $23 billion.
However, positive projections for 2026 indicate expected capital spending will significantly exceed that of 2025. CFO Nitin Agrawal commented on the promising growth in backlog and the ongoing demand for their cloud services.
Concerns Over Financial Commitments
Despite an optimistic view from some investors, concerns persist regarding CoreWeave’s financial health. The company has $9.7 billion in bills due within 12 months and a total of $14 billion in current and long-term debt, raising alarms about its ability to meet these obligations. Additionally, interest expenses have surged, now sitting at $311 million for the quarter.
Nonetheless, CoreWeave’s recent contracts, including a $14.2 billion agreement with Meta and a deal with Poolside for a data center featuring 40,000 Nvidia GPUs, indicate a strong pipeline of future revenues.
