CoreWeave, Inc. Class A ((CRWV)) has held its Q1 earnings call. Read on for the main highlights of the call.
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CoreWeave’s recent earnings call painted a picture of robust financial health, underscored by impressive revenue growth and strategic maneuvers. The company reported significant achievements in revenue and partnerships, although it acknowledged challenges such as increased net loss and higher interest expenses. Despite these hurdles, the overall sentiment was optimistic, driven by strong customer demand and strategic infrastructure investments that promise a positive long-term trajectory.
Record Revenue and Adjusted Operating Income
CoreWeave achieved record revenue of $982 million and a record adjusted operating income of $163 million, marking a staggering year-on-year growth of 420% and 550% respectively. This financial milestone underscores the company’s robust performance and strategic positioning in the market.
Strategic Deal with OpenAI
In a significant strategic move, CoreWeave completed a deal with OpenAI valued at up to $11.9 billion. This partnership is expected to enhance CoreWeave’s capabilities and market reach, positioning it as a key player in the AI industry.
Acquisition of Weights & Biases
CoreWeave’s acquisition of Weights & Biases brought over 1,400 new customers and bolstered its AI developer platform. This acquisition is a strategic step towards expanding CoreWeave’s influence and capabilities in the AI sector.
Expansion in Data Center Capacity
The company expanded its data center capacity by adding approximately 300 megawatts of incremental contracted power in Q1. This expansion is crucial for supporting the growing demand for CoreWeave’s services.
Strong Revenue Backlog Growth
CoreWeave’s revenue backlog grew to $25.9 billion, a 63% increase year-over-year, excluding a $4 billion expansion deal signed in Q2. This growth reflects the company’s strong market position and future revenue potential.
Net Loss Increase
Despite its successes, CoreWeave reported a net loss of $315 million, up from $129 million in the same quarter last year. This increase was attributed to one-time stock-based compensation, higher interest expenses, and increased taxes.
Higher Interest Expenses
Interest expenses rose to $264 million in Q1, exceeding expectations due to improved vendor payment terms that reduced the days between vendor payment and asset service.
Increased Capital Expenditures
CoreWeave’s capital expenditures reached $19 billion in Q1, reflecting strategic investments to accelerate platform growth and meet rising customer demand, albeit impacting short-term margins.
Forward-Looking Guidance
Looking ahead, CoreWeave anticipates Q2 revenue between $1.06 billion to $1.1 billion, with adjusted operating income expected to range from $140 million to $170 million. For the full year 2025, the company projects revenue between $4.9 billion to $5.1 billion and adjusted operating income in the range of $800 million to $830 million. The company has already secured over $21 billion to expand its infrastructure, with capital expenditures for 2025 expected to range from $20 billion to $23 billion.
In conclusion, CoreWeave’s earnings call highlighted a company on a strong growth trajectory, driven by strategic partnerships and investments. While challenges such as increased net loss and interest expenses were noted, the overall sentiment remains positive, with expectations of continued growth and expansion in the coming quarters.