CoreWeave Inc-A(US:CRWV)2025-08-12 22:18Financial Performance - Revenue for Q2 2025 reached $1,212,788, a 207% increase from $395,371 in Q2 2024, driven by demand from existing and new customers [211]. - For the six months ended June 30, 2025, revenue totaled $2,194,420, reflecting a 276% increase from $584,055 in the same period of 2024 [211]. - Operating income for Q2 2025 was $19,209, compared to $77,721 in Q2 2024, indicating a decrease in profitability [208]. - Approximately 92% of the revenue increase in Q2 2025 was attributed to expansion within the existing customer base [211]. - The company reported an accumulated deficit of $2.1 billion as of June 30, 2025, reflecting significant operational losses [231]. Costs and Expenses - Cost of revenue for Q2 2025 was $312,667, up 187% from $108,838 in Q2 2024, primarily due to increased data center operational costs [214]. - Cost of revenue for the six months ended June 30, 2025 increased by $407 million, or 242%, compared to the same period in 2024, primarily due to higher data center operating costs [215]. - Technology and infrastructure expenses for the six months ended June 30, 2025 rose by $956 million, or 347%, driven by a $731 million increase in depreciation and amortization [217]. - Sales and marketing expenses for the six months ended June 30, 2025 increased by $39 million, or 476%, mainly due to a $18 million rise in personnel costs [219]. - General and administrative expenses for the six months ended June 30, 2025 surged by $312 million, or 832%, largely due to a $237 million increase in personnel-related expenses [221]. - Interest expense, net for the six months ended June 30, 2025 increased by $423 million, or 394%, attributed to higher borrowing levels and total debt obligations [224]. - The provision for income taxes for the six months ended June 30, 2025 increased by $38 million, or 69%, despite pre-tax losses due to nondeductible losses on fair value adjustments [229]. Capital and Financing - The company completed its IPO in March 2025, issuing 36,590,000 shares at $40.00 per share, raising $1.4 billion in net proceeds [193]. - Future capital requirements may necessitate significant debt and/or equity financing, which could dilute existing shareholders [234]. - The company anticipates that its existing cash and cash equivalents will be sufficient to meet obligations due within one year [234]. - As of June 30, 2025, total liquidity was $4.84 billion, down from $5.77 billion on December 31, 2024 [235]. - The company had drawn $450 million from its $1.5 billion Revolving Credit Facility, with $1.0 billion remaining capacity [237]. - Outstanding borrowings under the Delayed Draw Term Loan Facility 1.0 were $1.8 billion as of June 30, 2025, compared to $2.0 billion on December 31, 2024 [241]. - The company borrowed $5.0 billion against the Delayed Draw Term Loan Facility 2.0 as of June 30, 2025, with $2.6 billion remaining available for borrowing [245]. - The company issued $2.0 billion in senior notes due 2030, with a 9.25% interest rate, in May 2025 [248]. - The company closed a private placement of $1.8 billion in senior notes due 2031 in July 2025 [252]. Cash Flow - Net cash used in operating activities was $(190) million for the six months ended June 30, 2025, compared to $1.92 billion for the same period in 2024 [254]. - Net cash used in investing activities was $3.9 billion for the six months ended June 30, 2025, slightly down from $4.0 billion in 2024 [255]. - Net cash provided by financing activities increased to $4.1 billion for the six months ended June 30, 2025, from $2.9 billion in 2024 [256]. - As of June 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $1.2 billion, with an additional $0.9 billion in restricted cash [261]. Risks and Future Outlook - The company anticipates an increase in technology and infrastructure expenses as it focuses on growth and innovation [200]. - The company expects to incur additional expenses related to operating as a public company, including compliance and reporting obligations [203]. - A 100-basis point increase in interest rates would increase interest expense by approximately $18 million for the three months and $36 million for the six months ended June 30, 2025 [262]. - The company is exposed to foreign currency risks related to operating expenses in currencies such as the British pound, Euro, and Swedish krona, which may negatively affect future revenue [263]. - In Q2 2025, the company entered into foreign currency derivative contracts to mitigate foreign currency exchange risks, although these contracts do not eliminate the impact of exchange rate movements [264]. - The company does not believe inflation has materially affected its business, but rising personnel-related costs could harm financial performance if not offset by price increases [265]. Acquisitions - The company acquired Weights and Biases, Inc. for $1.0 billion on May 5, 2025, enhancing its AI development capabilities [194]. - An agreement to acquire Core Scientific, Inc. was made on July 7, 2025, in an all-stock transaction, expected to close in Q4 2025 [195].