CoreWeave Reports Upside Revenue and Operating Income
CoreWeave reports $2,575M revenue, 112% Y/Y growth, and $128M adjusted operating income
CRWV Rosenblatt pt 250 CoreWeave reported upside to revenues and operating income this quarter and hit the margin inflection the company has been discussing over the past several quarters.
Revenue of $2,575M grew 112% Y/Y and 24% Q/Q, 2% above the guide midpoint.
The even bigger beat sat in the margin - adj operating income of $128M vs $21M last quarter, $30-90M guide, and our $74M est.
Full year guidance rose across the board, with revenue guide up 2%, adjusted operating income up 6%, capex up 14%, and exit run-rate revenue up 3%.
Backlog closed at a record $104B, up 46% Y/Y, and excludes over $25B signed in early 3Q.
Our preview thesis was that AI compute remains a scarce asset, and the quarter proved it on price -- capacity continues to be sold out, they took price up 25% in July, and a 2020-era A100 just got contracted through to 2029 at an "attractive price." The interest expense of $640M in 2Q was guided to $860-$940M in 3Q against $200-$260M of operating income to finance an onslaught of new and accelerating deployments.