CoreWeave Q3 Revenue Beats Expectations, Debt Pressure Remains in Focus

Odaily: CoreWeave (CRWV.O) reported third-quarter revenue of $3.66 billion, up 167% year-over-year, beating the market expectation of $3.55 billion. Loss per share was $1.27, better than the expected loss of $1.46. The company raised its full-year revenue guidance from $12.4 billion–$13.2 billion to $13 billion–$13.3 billion. According to MSX.COM data, CoreWeave shares rose as much as 8.7% in after-hours trading following the earnings release. The stock had fallen more than 40% over the past month and is down 32% year-to-date.

CoreWeave still faces heavy debt pressure, with debt exceeding $50 billion as of the end of June and its 2030 bonds yielding approximately 15.2%. The company's CEO said that its investments are based on signed customer contracts, customer prepayments also help support data center construction, and the existing order backlog is sufficient to cover debt obligations. Microsoft (MSFT.O) previously said that some emerging cloud service providers' data center projects had been delayed, and it has tightened project oversight and exited some high-risk projects.

After the U.S. midterm elections, several newly elected officials also said they would slow or block data center construction, adding uncertainty to the industry's expansion. CoreWeave said it plans to expand revenue by launching new services and expanding into Asian markets.