CoreWeave delivers top- and bottom-line beat in Q2
CoreWeave gave back all of the day’s big gains, and then some, after-hours even as the AI cloud company delivered better-than-expected second-quarter results.
Revenue: $1.21 billion (estimated $1.08 billion, guidance of $1.06 billion to $1.1 billion).
Adjusted operating income: $199.8 million (estimated $162.75 million, guidance of $140 million to $170 million)
The company also saw its massive backlog swell to $30.1 billion from $25.9 billion at the end of Q1.
Still, shares were down 7.2% after the report. The stock had climbed 6.4% during the regular session.
“We are scaling rapidly as we look to meet the unprecedented demand for AI,” said cofounder, chairman, and CEO Michael Intrator. “Our purpose-built AI cloud platform continues to set new benchmarks for performance and scalability including becoming the first company to offer the complete Blackwell GPU portfolio at scale, making CoreWeave the platform of choice for the world’s most advanced AI workloads and AI pioneers.”
CoreWeave’s earnings report promises to be a catalyst for the stock beyond the actual numbers: the lockup period for 84% of its shares expires at the close of trading two days after this announcement (that is, August 14).
The stock is up more than 250% from its IPO through Tuesday’s close, and the low float constraining supply for the AI darling has been a contributor to its stellar run.
(Nvidia has been one of the biggest beneficiaries of this performance, as its position in CoreWeave stock is up more than $2.5 billion from the end of Q1 through today.)
Beyond the potential for some profit-taking by large early holders, the cost of borrowing CoreWeave to sell short is also likely to decline as a huge chunk of the shares becomes unlocked.
We’ll stay tuned for any color on the conference call surrounding CoreWeave’s all-stock deal to buy Core Scientific amid reports that major shareholders of the latter are unhappy with the terms of the arrangement.
Shares of CoreWeave are down about 10% since the deal was announced in early July.
