CoreWeave easily topped quarterly revenue estimates on Tuesday as the rapid adoption of artificial intelligence tools boosted demand for its cloud services, but a bigger-than-expected net loss sent its shares slumping 10% after the bell.
The company currently operates 33 AI data centers across the U.S. and Europe and offers access to backer Nvidia (NASDAQ:NVDA)’s chips, which are highly coveted by enterprises to train and run large AI models amid intense competition.
CoreWeave posted second-quarter revenue of $1.21 billion, beating estimates of $1.08 billion. It also reported a revenue backlog of $30.1 billion as of the end of June, compared with $25.9 billion on March 31.
“Demand is humming, but it is the cost of growth that tempered the stock down in aftermarket trading,” said Michael Ashley Schulman of Running Point Capital Advisors.
Operating expenses jumped to $1.19 billion in the second quarter, from $317.7 million a year earlier.
The company posted a net loss of $290.5 million, compared with analysts’ average estimate of $190.6 million, according to data compiled by LSEG.
“We are scaling rapidly as we look to meet the unprecedented demand for AI,” CEO Michael Intrator said. “There’s a lot of different pieces that are constrained, but ultimately the piece that is the most significant challenge right now is accessing power shells that are capable of delivering the scale of infrastructure that our clients are requiring.”
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