Rigetti Computing’s Q3 Results Mixed; Shares Drop
CoreWeave has reported significant financial achievements in its third quarter of 2023, surpassing analyst expectations in both sales and operating income. The company posted a revenue of $1.36 billion, well above the analysts’ forecast of $1.23 billion.
Financial Highlights of Q3 Results
CoreWeave’s performance in Q3 included:
- Revenue: $1.36 billion
- Analyst Estimate: $1.23 billion
- Guidance Range: $1.26 billion – $1.30 billion
- Adjusted Operating Income: $217.15 million
- Analyst Estimate for Operating Income: $177.2 million
- Guidance for Operating Income: $160 million – $190 million
These results not only exceeded analysts’ estimates but also set a new benchmark for the company’s earnings.
Revenue Backlog and Future Prospects
CoreWeave’s revenue backlog has shown remarkable growth, increasing to $55.6 billion at the end of the quarter. This figure nearly doubles the $30.1 billion recorded at the end of Q2. This substantial backlog indicates a promising pipeline of future revenue.
Operational Challenges
Despite these positive financial results, CoreWeave faces challenges in scaling its compute power. By the end of Q3, the company’s active compute power was reported at 590 megawatts, falling short of the 625 megawatts anticipated by analysts. This discrepancy could affect future capacity and operations.
Strategic Partnerships and Contracts
During the quarter, CoreWeave secured several lucrative contracts, including:
- A $14 billion agreement with Meta for AI computing
- An expanded partnership with OpenAI
- A $6.3 billion contract with Nvidia for cloud computing capacity
These partnerships highlight CoreWeave’s growing significance in the AI computing sector.
Corporate Developments
On October 30, 2023, CoreWeave’s proposal to acquire Core Scientific was rejected by shareholders. This decision marked a setback for CoreWeave’s expansion plans but did not overshadow its impressive quarterly performance.
The results this quarter have seen less volatility compared to the last quarter, following a lock-up period that ended shortly after the release of CoreWeave’s Q2 earnings. This led to substantial profit-taking among investors.
As CoreWeave continues to navigate market challenges, its financial performance and strategic contracts will play a crucial role in its future growth and stability.
