CFO Nitin Agrawal said the company’s cost of revenue and technology and infrastructure spend increased as it ramped up investments in data center and server infrastructure to meet growing customer demand.
CoreWeave, Inc. (CRWV) stock fell sharply in Tuesday’s extended trading after the data center operator’s earnings miss and the looming initial public offering (IPO) lockup expiration dented sentiment toward the stock.
On Stocktwits, retail traders largely shrugged off the stock drop. CoreWeave’s stock elicited an ‘extremely bullish’ (94/100) reaction from watchers of the stock on the platform, an improvement from the ‘bullish’ mood seen a day ago.
The message volume on the Stream also spurted to extremely high levels.
The Livingston, New Jersey-based company reported a loss per share of $0.27 for the second quarter of the fiscal year 2025, narrower than the year-ago loss of $1.62. The quarterly loss per share, however, was wider than the Fiscal.ai-compiled consensus estimate (-$0.20).
During the call, CFO Nitin Agrawal stated that the company’s cost of revenue and technology and infrastructure spending increased as it ramped up investments in data center and server infrastructure to meet growing customer demand, according to a transcript provided by Koyfin.
Revenue climbed 207% year-over-year (YoY) to $1.21 billion, beating the consensus estimate of $1.08 billion.
CEO Michael Intrator said, “Our strong second quarter performance demonstrates continued momentum across every dimension of our business,” adding that the company was scaling rapidly to meet “unprecedented” artificial intelligence (AI) demand.
CoreWeave stated that its revenue backlog stood at $30.1 billion as of the end of the June quarter.
Capital expenditures for the quarter totaled $2.9 billion, representing an increase of over $1 billion from the previous quarter. The company expects capital expenditures to be between $2.9 billion and $3.4 billion in the fourth quarter.
During the earnings call, the company guided third-quarter revenue to be in the range of $1.26 billion to $1.30 billion, and adjusted operating income to be in the range of $160 million to $190 million. Analysts, on average, expect the company to report revenue of $1.25 billion for the quarter.
CoreWeave has raised its full-year revenue guidance to a range of $5.15 billion to $5.35 billion, up from a previous range of $4.9 billion to $5.1 billion, citing continued strong customer demand. The outlook aligned with the $5.04 billion consensus estimate. The company maintained its adjusted operating income guidance at $800 million to $830 million.
It also maintained its full-year capital expenditure (Capex) guidance at $20 billion to $23 billion.
CNBC’s Mad Money host and stock picker, Jim Cramer, was left impressed with the results. “Coreweave is good,” he said in a post on X. But he cautioned regarding the lockup expiration. “There are a lot of people who have found money, and they are going to take it off the table,” he said.
A retail watcher of the stock on Stocktwits noted that the adverse stock reaction may be due to the company’s high debt levels. “But I expect upgrades to come soon because of the pure revenue explosion ahead,” they said.
On the call, Agrawal said, “We expect our Q3 interest expense to be in the range of $350 million to $390 million impacted by increased debt to support our demand-led CapEx growth.”
Another user recommended buying the dip.
CoreWeave stock is up over 270% since its late March IPO.
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