CoreWeave Inc-A(US:CRWV)2025-11-10 23:00Financial Data and Key Metrics Changes - CoreWeave reported Q3 2025 revenue of $1.4 billion, representing a 134% year-over-year increase [4][19] - Revenue backlog reached over $55 billion, nearly doubling in Q3 alone, and RPO reached $50 billion, the fastest growth in cloud history [4][19] - Operating expenses for Q3 were $1.3 billion, with an adjusted operating income of $217 million, up from $125 million in Q3 2024 [20] - Net loss for Q3 was $110 million, significantly improved from a $360 million loss in Q3 2024 [21] - Adjusted EBITDA for Q3 was $838 million, more than doubling from $379 million in Q3 2024, with an adjusted EBITDA margin of 61% [21] Business Line Data and Key Metrics Changes - CoreWeave expanded its active power footprint by 120 megawatts to approximately 590 megawatts and contracted power capacity to 2.9 gigawatts [5][10] - The number of customers exceeding $100 million in revenue over the last 12 months tripled year-over-year, indicating a diversification of the revenue base [6] - The company executed large-scale compute contracts with major clients like Meta and OpenAI, enhancing customer relationships [5][6] Market Data and Key Metrics Changes - CoreWeave's customer concentration decreased, with no single customer representing more than 35% of revenue backlog, down from 50% last quarter and 85% at the beginning of the year [19] - More than 60% of revenue backlog is tied to investment-grade customers, reflecting successful diversification efforts [19] Company Strategy and Development Direction - CoreWeave aims to be the essential cloud for AI, focusing on scaling operations and diversifying its customer base across various sectors [4][17] - The company is expanding its data center footprint and has launched CoreWeave Federal to serve U.S. government agencies [8][10] - Recent acquisitions, including OpenPipe, Merge, and Monolith, are intended to enhance product offerings and market reach [15][16] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing supply constraints in the industry and the need for strategic partnerships to navigate these challenges [4][30] - The company expects continued robust demand for its services, with 2025 revenue guidance set between $5.05 billion and $5.15 billion [25][26] - Management expressed confidence in the long-term growth trajectory, emphasizing the importance of infrastructure investments to support future demand [28][29] Other Important Information - CoreWeave's CapEx for Q3 totaled $1.9 billion, lower than anticipated due to delays from a third-party data center provider [21] - The company has secured $14 billion in debt and equity transactions year-to-date to support its growth ambitions [24] Q&A Session Summary Question: Can you speak to the situation relating to the third-party provider? - Management acknowledged systemic challenges in supply chains affecting infrastructure delivery but emphasized efforts to diversify data center providers and manage operational components effectively [30][31][32] Question: How should we think about your infrastructure and the risk of overcapacity? - Management clarified that infrastructure is designed to be fungible, allowing flexibility in usage across different clients, which mitigates risks associated with overcapacity [36][37] Question: What are the implications of the delays on 2026? - Management indicated that the majority of delays are expected to be resolved by Q1 of next year, with a ramp-up in capacity anticipated [43][44] Question: How do you think about the pacing on contracting out the remaining capacity? - Management expressed confidence in the demand for infrastructure and the company's ability to allocate remaining capacity thoughtfully to meet customer needs [56][58] Question: Is there any IP that CoreWeave has that contributes to the build-out of these data centers? - Management stated that the company has built an organization capable of assisting with self-build efforts, embedding deeper into the supply chain to enhance delivery capabilities [59][60]