CoreWeave Reports 420% Sales Growth In First Earnings Report

Artificial intelligence (A.I.) cloud-computing start-up CoreWeave (CRWV) has reported 420% sales growth in its first financial results as a publicly traded company.

The New Jersey-based company announced an earnings per share (EPS) loss of -$1.49 U.S.

Revenue in the period totaled $981.6 million U.S., which was ahead of the $853 million U.S. expected on Wall Street.

CoreWeave’s sales were up 420% from $188.7 million U.S. a year ago.

Management attributed a net loss of -$314.6 million U.S. to stock-based compensation given to employees as part of the company’s initial public offering (IPO) that took place in March.

CoreWeave competes with other cloud providers such as Amazon (AMZN) and counts companies such as Alphabet (GOOGL) and Microsoft (MSFT) as customers.

During the quarter, OpenAI committed to a five-year deal with CoreWeave that’s worth up to $11.90 billion U.S.

Despite the big contract with OpenAI and its strong print, there had been some skepticism towards CoreWeave after the company went public in an underwhelming market debut.

After completing the biggest U.S. technology IPO since 2021, CoreWeave’s stock debut on the Nasdaq exchange in late March at a disappointing $39 U.S. per share.

Long-term uncertainty related to A.I. demand, and worries about the U.S. economy, dampened enthusiasm for CoreWeave’s stock.

However, the shares have since risen to trade at $63.30 U.S.