CoreWeave Inc-A(US:CRWV)2025-11-10 23:02Financial Data and Key Metrics Changes - CoreWeave reported Q3 revenue of $1.4 billion, representing a 134% year-over-year increase [5][23] - Revenue backlog reached over $55 billion at the end of Q3, nearly doubling from Q2 [5][23] - Adjusted operating income for Q3 was $217 million, with an adjusted operating margin of 16% [24] - Net loss for Q3 was $110 million, a significant improvement from a $360 million loss in Q3 of 2024 [25] - Adjusted EBITDA for Q3 was $838 million, more than doubling from $379 million in Q3 of 2024, with an adjusted EBITDA margin of 61% [25] Business Line Data and Key Metrics Changes - CoreWeave expanded its active power footprint by 120 MW sequentially to approximately 590 MW [6][7] - Contracted power capacity grew over 600 MW to 2.9 GW, with more than 1 GW of contracted capacity expected to be sold to customers in the next 12 to 24 months [7][12] - 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 [8] Market Data and Key Metrics Changes - More than 60% of CoreWeave's revenue backlog is tied to investment-grade customers, down from approximately 85% at the beginning of the year [23][81] - No single customer represents more than approximately 35% of the revenue backlog, a decrease from about 50% last quarter [23][81] Company Strategy and Development Direction - CoreWeave aims to scale aggressively in a supply-constrained environment, focusing on AI cloud services [5][20] - The company is diversifying its customer base and expanding its product offerings, including new acquisitions to enhance its capabilities [17][20] - CoreWeave is also entering the public sector with the launch of CoreWeave Federal to serve U.S. government agencies [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory, despite current supply chain challenges [22][32] - The company anticipates continued robust demand for its services, with expectations for 2025 revenue in the range of $5.05-$5.15 billion [30] - Management noted that delays from a third-party data center provider would impact Q4 results but are expected to be resolved by Q1 of the following year [30][54] Other Important Information - CoreWeave's capital expenditures in Q3 totaled $1.9 billion, lower than anticipated due to delays [25][26] - The company has secured $14 billion in debt and equity transactions year-to-date to support its growth [29] - CoreWeave's new storage product, AI Object Storage, has already surpassed $100 million in annual recurring revenue (ARR) in Q3 [16] 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 delays [36][37] Question: How should we think about your infrastructure and its fungibility? - Management confirmed that the infrastructure is designed to be fungible, allowing for flexibility in usage across different customers and applications [41][42] Question: How far are we from reaching a point where disruptions should not affect revenue outlook? - Management indicated that as the company scales, the impact of individual delays will become less significant, with expectations for smoother operations as capacity increases [47][48] Question: What is the uniqueness of CoreWeave's value proposition in the future? - Management highlighted the company's focus on delivering customized infrastructure and software solutions that differentiate it from competitors [49][50] Question: Can you clarify the impact of CapEx reductions? - Management confirmed that the CapEx reduction is primarily due to delays from a single data center provider, with most of the impact expected to be resolved in Q1 [64][65] Question: How do you think about funding paths for CapEx? - Management stated that they will explore various financing options, including leasing, to ensure cost-effective scaling and service delivery [68][69]