Here's our initial take on CoreWeave's (CRWV 2.08%) financial report.

Key Metrics

Metric Q1 2024 Q1 2025 Change vs. Expectations
Revenue $189 million $982 million 420% Beat
Earnings per share ($0.62) ($1.49) n/a Missed
Revenue backlog   $25.9 billion n/a n/a
Operating margin 9% (3%) -12 pp n/a

Blazing Revenue Growth

AI cloud software company CoreWeave (CRWV 2.08%) went public in late March, so this was its first earnings report as a publicly traded company. Investors were especially excited to see if the company would sustain its breathtaking growth rate and also had questions about CoreWeave's customer concentration.

Well, CoreWeave delivered generally strong numbers. It handily beat expectations for revenue, coming in at $982 million versus consensus estimates of $860 million. The company isn't profitable on the bottom line, even on an adjusted basis, but investors seem happy to overlook a modest loss (even one that missed expectations) when the business is growing at a year-over-year rate of more than 400%.

Immediate Market Reaction

Investors were pleased with CoreWeave's earnings report. As of 4:30 p.m. EDT on Wednesday, shares were higher by about 6% in after-hours trading.

It's worth noting that this reaction is before management's earnings call, and the comments made by CoreWeave's leadership could certainly move the stock in one direction or the other. In CoreWeave's earnings release, executives said that forward-looking guidance will be provided on the conference call, so it could be the main moving factor of the quarter.

CoreWeave has taken investors on quite a roller-coaster ride since it went public less than two months ago. After an initially disappointing investor reaction to its IPO, shares of the cloud computing stock soared then gave up their gains amid the reciprocal-tariff uncertainty. The stock has since rallied and now sits about 70% above its $40 IPO price.

What to Watch

CoreWeave's revenue beat indicates strong demand for GPUs in the tech sector, but it's important to note that these numbers are before the reciprocal-tariff uncertainty truly started. If the company's growth rate is strong in the second quarter as well, it could be a very positive sign.

One important thing to keep an eye on going forward is CoreWeave's concentration in its largest customer, Microsoft (MSFT 0.50%). Microsoft accounted for 62% of CoreWeave's revenue in 2024, and the company mentioned in its prospectus that it intends to diversify away from such reliance on a sole customer. However, Microsoft has been a key driver of revenue growth for CoreWeave, so it will be interesting to see if the company can keep growing revenue rapidly and reduce its dependence on Microsoft at the same time.

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