CoreWeave, Inc.

Thank you for standing by. My name is Tina and I will be your conference operator today. At this time, I would like to welcome everyone to the CoreWeave third quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. To ask a question, press star one on your telephone keypad. To withdraw your question, press star one again. Thank you. It is now my pleasure to turn the calls over to CoreWeave.

Thank you. Good afternoon and welcome to CoreWeave's third quarter 2025 earnings conference call. Joining me today to discuss our results are Mike Entrader, CEO, and Nitin Agarwal, CFO. Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward-looking statements. Actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are set forth in today's earnings press release and in our quarterly report on Form 10Q to be filed with the SEC. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. During this call, we will present both GAAP and certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release. The earnings press release and an accompanying investor presentation are available on our website at investors.coreweave.com. A replay of this call will also be available on our investor relations website. And now, I'd like to turn the call over to Mike.

Good afternoon, everyone, and thank you for joining us. CoreWeave once again delivered an exceptional quarter, showcasing the accelerating momentum underlying our business as AI adoption proliferates globally across industries. We continue to operate in a highly supply-constrained environment where the demand for CoreWeave's best-in-class AI cloud platform far exceeds available capacity. This insatiable customer demand is a clear signal that the world's leading companies trust CoreWeave to power their most critical AI workloads. In Q3, we beat expectations, delivering revenue of 1.4 billion, up 134% year over year. We added over 25 billion in revenue backlog in the third quarter alone. bringing us to over $55 billion in revenue backlog to end Q3, almost double Q2 and approaching four times year-to-date. Further, CoreWeave has reached $50 billion in RPO, faster than any cloud in history. These results demonstrate the deep confidence customers have in CoreWeave, the company they trust as their essential cloud for artificial intelligence. We continue to scale aggressively, even as the industry remains capacity constrained. We expanded our active power footprint by 120 megawatts sequentially to approximately 590 megawatts, while growing our contracted power capacity over 600 megawatts to 2.9 gigawatts. This leaves us well-positioned for future growth with more than one gigawatt of contracted capacity available to be sold to customers that we expect to largely come online within the next 12 to 24 months. In Q3, we executed large-scale compute contracts with many of our largest customers, including Meta and OpenAI. Each represents a meaningful expansion of existing relationships and a diversification away from any single customer. We also grew our relationship with a leading hyperscaler, marking the sixth contract with this customer to date. In fact, nine of our ten largest customers have now executed multiple agreements with us, the only exception being a new customer we onboarded in Q3. CoreWeave is the force multiplier that empowers pioneers to accelerate breakthroughs in AI innovation. These are the world's most sophisticated AI organizations, and once they experience the performance, flexibility, and reliability of CoreWeave Cloud, they consistently expand with us. That is the strongest validation we could ask for. Our exceptional growth illustrates just how quickly AI adoption is progressing beyond the frontier AI labs and hyperscalers. Border global demand and our recent large wins are driving diversification of our revenue base. For example, the number of customers that exceeded 100 million of revenue over the last 12 months tripled year over year. AI native and enterprises across sectors are embracing CoreWeave to transform operations and unlock new sources of innovation, productivity and growth. At the forefront of foundation model development, Poolside selected CoreWeave to power its mission to build artificial general intelligence and enable the deployment of agents across enterprises, while Periodic Labs is using CoreWeave to push the boundaries of scientific discovery and computational research. At the application layer, we added AI native customers like Jasper, who chose CoreWeave as their cloud partner as they transform the digital marketing landscape. We are also seeing incredible momentum within enterprises. CrowdStrike chose CoreWeave to advance the development of AI agents for cybersecurity, while Rakuten is using our platform to transform their visual language models, helping to achieve greater transparency, reproducibility, and speed in their AI workloads. We also saw further expansion with a wide range of enterprise customers, including a leading software design platform and a large telco operator in the US. Our reach now extends into the public sector, a market with unique performance and security requirements. We recently launched CoreWe Federal, to bring our cloud services to the US government agencies and the defense industrial base. Already, NASA is leveraging our services to advance scientific exploration at its Jet Propulsion Lab. We are honored to help strengthen America's AI infrastructure, enabling agencies to accelerate innovation and address critical missions and our national interests. These recent wins underscore that we are enterprise ready. With our customer base broadening across verticals and geographies, we are excited to welcome John Jones as our first Chief Revenue Officer. John joins us from AWS, where he served as Global Head of Startups and Venture Capital. John is a strong addition to our team and will play an important role scaling our global revenue organization and driving expansion through this next phase of growth. Next, as I move to discuss our growing data center footprint, I want to briefly touch on our previously proposed acquisition of Core Scientific, which was terminated in October. While the deal made sense strategically for both companies, the valuation required by their shareholders was simply not a price that was appropriate for CoreWeave, particularly because the outcome of the transaction in no way adversely impacts our ability to achieve our growth ambitions in the coming years. Instead, we will continue to work closely with Core Scientific on the approximately 590 megawatts of capacity we have already leased. Our disciplined approach to expanding our capacity footprint ensures we are meeting the surging global demand for CoreWeave's cloud services. As I mentioned, we grew our contracted power capacity to 2.9 gigawatts this quarter as we diversified across size, geography, and developers, enhancing resilience and flexibility across our portfolio. As of Q3, no single data center provider represents more than approximately 20% of our contracted power portfolio. In the past quarter, we added eight new data centers across the US, strengthening our domestic coverage with additional expansions underway across Europe, including a major new presence in Scotland, which is being developed in partnership with the UK government. And as we announced over the course of the summer, we have embarked on self-build projects to further accelerate our footprint and provide us greater operational control. While we are experiencing relentless demand for our platform, data center developers across the industry are also enduring unprecedented pressure across supply chains. In our case, we are affected by temporary delays related to a third party data center developer who is behind schedule. This impacts fourth quarter expectations, which Nitin will discuss shortly. Having said that, the customer affected by the current delays has agreed to adjust the delivery schedule and extend the expiration date. As a result, we maintain the total value of the original contract and the customer preserves their capacity for the full duration of the initial agreement, demonstrating the confidence they have in our ability to provide the most performance solutions in market. We are incredibly proud of our technical accomplishments and our customers continue to tell us that CoreWeave is the absolute best place to run AI workloads. In the third quarter, we continue to deliver many of the initial scale deployments of the GB200s, while once again being first to market, this time with the GB300s, further highlighting our incredible track record of operational excellence. CoreWeave's industry leadership is unmatched. We are the only cloud provider to submit MLPerf inference results for GB300s. setting the benchmark for real-world AI performance. And just last week, Semi Analysis once again recognized our dominance, awarding CoreWeave its highest possible distinction, its Platinum Cluster Max ranking, for the second time, ahead of more than 200 providers, including the hyperscalers and emerging neoclouds. No other cloud has achieved this once. CoreWeave has done it twice, underscoring yet again that CoreWeave stands alone at the forefront of the AI cloud. Demand for AI cloud technology remains robust across generations of GPUs. For example, in Q3, we saw our first 10,000 plus H100 contract approaching expiration. Two quarters in advance, the customer proactively re-contracted for the infrastructure at a price within 5% of the original agreement. This is a powerful indicator of customer satisfaction, as well as the long-term utility and differentiated value of the GPUs run on CoreWeave's platform. CoreWeave is the world's first AI cloud at hyperscale. comprising compute, storage, networking, and software purpose built for AI workloads. Our growing cloud portfolio is underpinned by an expanding suite of software and services that help our customers build, train, and deploy new products faster. In addition, to mission control, our proprietary orchestration solution, which is critical to autonomously operate our AI cloud at the bleeding edge. We recently launched CoreWeave AI Object Storage, a fully managed storage service that eliminates any friction of moving data between regions, clouds, and tiers with zero egress or transaction fees. CoreWeave's AI Object Storage delivers the highest amount of throughput of AI workloads while cutting the customer's cost by more than 75%. We have already seen tremendous interest in this offering, adding a number of initial customers, including frontier AI labs like Mistral. Across our entire storage platform, we have seen rapid customer adoption, eclipsing 100 million in ARR in Q3. Combined with our unique global network backbone purpose-built for AI, this positions CoreWeave as the hub for customers and their key AI workloads, enabling consistent best-in-class performance and seamless user experiences when utilizing CoreWeave Cloud or a secondary provider. We've supplemented these capabilities with further expansion of our observability and security suites to ensure that CoreWeave is best positioned to handle all of our customers' critical workloads, regardless of the use case or geography. Our role over the last few years has been to support the pioneers who are developing and improving AI. Now we are expanding our role to help put AI to work. from the tools that developers require to build AI to the solutions that the physical world requires to adopt AI. We've used M&A as a key tool to accelerate this journey, including the recently announced acquisitions of OpenPipe, Marimo, and Monolith. With OpenPipe, we quickly integrated their solutions into our broader fine-tuning product suite and introduce the first publicly available serverless reinforcement learning tool. With Marimo, we are expanding CorWee's exposure to and impact within the open source community, starting with entry-level exploration and prototyping. Both OpenPipe and Marimo fit seamlessly with the capabilities of weights and biases where we are rapidly growing the developer base reliant on CoreWeave's holistic platform. With Monolith, we are expanding these capabilities into the physical world to unlock the monetization of AI today, initially focusing on industrial use cases with an established enterprise customer base and mature workloads, including leading auto OEMs like Nissan and Stellantis. Through the rapid and successful launch of new products and services, we are expanding our addressable market and growing with our customers. We are fundamentally evolving the capabilities of CoreWeave, which is creating beachheads and expansion opportunities into new markets, all in the service of further supporting the rapid growth of AI and enabling AI builders and innovators to get to market faster and more reliably and drive ROI. Our engagements are getting more sophisticated, as evidenced by our partnership with CrowdStrike, which will unlock and accelerate partner-driven growth. Our new storage product and partnership with Vast Data is another example of accelerating both our product portfolio and partner go-to-market motions and allows us to compete in new markets where we previously had limited or no offerings. This facilitates customer-driven platform adoption and product-led growth, creating tailwinds for our business. As I close, I want to emphasize what truly sets CoreWeave apart. We are the essential cloud for AI, combining unmatched technical and operational excellence with a rapidly diversifying customer base. We deliver the most performant infrastructure, the fastest time to market, and the most advanced capabilities in the industry. The world's leading AI innovators choose CoreWeave because we enable them to move faster, scale smarter, and achieve outcomes that simply are not possible anywhere else. Our momentum has never been stronger, and the opportunities ahead continue to expand. Powered by exceptional products, an extraordinary team, and unrivaled execution, CoreWeave is ready to enter the next phase of growth as a full-stack AI service provider and hyperscale. The future runs on CoreWeave, and we are just getting started.