CoreWeave Inc-A(US:CRWV)2025-08-12 22:02Financial Data and Key Metrics Changes - Revenue for Q2 2025 grew 207% year over year to $1,200,000,000, marking the first quarter with both $1,000,000,000 in revenue and $200,000,000 in adjusted operating income [6][21] - Adjusted operating income for Q2 was $200,000,000, compared to $85,000,000 in Q2 2024, with an adjusted operating income margin of 16% [23] - Net loss for the quarter was $291,000,000, an improvement from a net loss of $323,000,000 in 2024 [23] - Adjusted EBITDA for Q2 was $753,000,000, scaling more than 3x year over year, with an adjusted EBITDA margin of 62% [24] - Capital expenditures (CapEx) in Q2 totaled $2,900,000,000, up over $1,000,000,000 quarter over quarter [24] Business Line Data and Key Metrics Changes - The company signed expansion contracts with both hyperscale customers, contributing to a robust pipeline and increased demand across various sectors [20][8] - Significant growth was noted in the VFX cloud service product, with a fourfold increase in usage [8] - The healthcare and life sciences verticals also showed significant growth, with partnerships established with companies like Hippocratic AI [9] Market Data and Key Metrics Changes - The total contracted power increased approximately 600 megawatts to 2.2 gigawatts, with a contracted backlog of $30,100,000,000, up 86% year over year [7][22] - The company is experiencing a structurally supply-constrained market, with demand outstripping supply for AI cloud services [20][52] Company Strategy and Development Direction - The company is focused on vertical integration to enhance operational efficiencies and reduce costs, highlighted by the proposed acquisition of Core Scientific [15][16] - Continued investment in data center infrastructure is planned, with over $6,000,000,000 allocated for a new data center in Pennsylvania [15] - The company aims to maintain its leadership in AI cloud services by expanding its infrastructure and enhancing its service offerings [19][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for AI cloud services, with expectations for Q3 revenue in the range of $1,260,000,000 to $1,300,000,000 [29] - The company anticipates a full-year revenue guidance increase to between $5,150,000,000 and $5,350,000,000, driven by strong customer demand [32] - Management acknowledged the challenges of scaling infrastructure to meet demand but remains optimistic about future growth [20][29] Other Important Information - The company has successfully raised $6,400,000,000 in the capital markets through high-yield offerings, reducing its cost of capital [21][28] - The company is introducing flexible capacity products to help customers manage demand more effectively [12] Q&A Session Summary Question: Renewal of hyperscaler contracts and achieving better return on assets - Management focuses on expansion rather than renewals, indicating confidence in continued business with hyperscaler clients [41][42] - Strategies to improve return on assets include acquisitions and operational efficiencies [43][44] Question: Demand and supply dynamics - The company sees a significant increase in inference workloads and acknowledges supply constraints primarily at the power level [50][52] Question: Government interest in AI data centers - Management noted discussions with various governments about building AI infrastructure, with varying levels of receptiveness to US-based providers [56][59] Question: Backlog figures and future expectations - The backlog of $30,100,000,000 reflects strong demand, with significant contracts expected to move the needle in the future [85][86] Question: Repurposing older GPU clusters - Older GPU clusters are being recontracted for additional terms, indicating strong demand for legacy infrastructure [89] Question: CapEx timing and cost implications - CapEx is expected to ramp up in Q4, with costs incurred ahead of revenue generation due to infrastructure deployment [96][99]