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CoreWeave Second-Quarter Results Top Estimates Amid Cloud Computing Demand

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CoreWeave Second-Quarter Results Top Estimates Amid Cloud Computing Demand

CoreWeave (CRWV) reported better-than-expected second-quarter results as revenue more than doubled year on year amid strong demand for cloud computing.

For the quarter ending June 30, CoreWeave's net loss widened to $1.14 per share from $0.60 a year earlier, compared with the consensus on FactSet that called for a per-share loss of $1.46. Revenue jumped to $2.58 billion from $1.21 billion, surpassing the average analyst estimate of $2.55 billion.

"CoreWeave reached an important inflection point this quarter as our scale began to translate into expanding operating leverage," Chief Executive Michael Intrator said. "Customer demand is accelerating, as enterprise adoption broadens and we continue to deepen our technology platform."

The company's revenue backlog rose to about $104 billion at the end of the June, compared with $99.4 billion as of March 31.

Shares of CoreWeave were up 9.4% in after-hours trading, and had gained 26% this year through Tuesday close.

CoreWeave said Monday it closed a $2.6 billion loan facility to fund the expansion of its AI cloud platform, bringing the total amount of capital secured to more than $30 billion this year.

BofA Securities expects stronger demand and pricing dynamics at CoreWeave in the second half than the first as "inference continues to proliferate."

CoreWeave, which rents cloud-computing power for AI, is targeting 1.7 gigawatts of active power by the end of 2026, implying "a meaningful acceleration in capacity deployment over the next few quarters," BofA said last month.

Key industry players have reported strong annual cloud growth rates for their most recent quarter, with Amazon.com's (AMZN) Amazon Web Services sales surging 37% to $42.23 billion, Microsoft's (MSFT) Azure soaring 43% and Alphabet's (GOOG, GOOGL) Google cloud revenue jumping 82%.

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