CoreWeave beats quarterly revenue estimates as AI cloud demand surges

Aug 11 (Reuters) - CoreWeave topped ‌Wall Street estimates ​for ​quarterly revenue on Tuesday and posted a smaller-than-expected loss, driven by strong demand for its AI cloud computing services, sending ‌its shares about 14% higher in extended trading.

So-called neoclouds such ⁠as CoreWeave and peer Nebius, which offer hardware and cloud capacity to other technology ‌companies, have seen demand skyrocket ‌as a result of relentless enterprise spending on AI.

CoreWeave, whose close ties with Nvidia have made it a key supplier of compute ​capacity powered by Nvidia's AI chips, has attracted several high-profile customers so far this year. It has signed cloud capacity agreements with ⁠Meta and Claude creator Anthropic.

The company reported revenue backlog of $104.2 billion as of June 30, up from $99.4 ​billion at the end of the first quarter. On top of the backlog, CoreWeave said it secured more than $25 ​billion of net new customer commitments ‌in the current quarter.

"We outperformed our plan across the board, with the operating leverage we have been building beginning ⁠to show up clearly in our results," co-founder and CEO Michael Intrator said on a post-earnings call.

The company's near-term capacity was effectively sold out, translating into ⁠compute capacity agreements on "increasingly favorable terms" from a growing set of customers, Intrator added.

Total ​revenue more than doubled to $2.58 billion in the second quarter ended June, compared with analysts' average estimate of $2.56 billion, according to data compiled by LSEG.

On an adjusted ‌basis, it posted a per-share loss of $1.03, compared with market expectations for a loss of $1.20.

CoreWeave has been ramping ‌up its infrastructure investments to meet the surge in demand. Its capital expenditures ⁠reached $9.4 billion in the June ‌quarter, compared with $6.8 billion ​in the prior three-month period and the $2.9 billion reported a year earlier.

(Reporting by Deborah Sophia in Bengaluru; Editing by ‌Shinjini Ganguli)

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