Q1 2025 CoreWeave Inc Earnings Call

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Operator: First quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise.

First quarter 2020 earnings conference call all lines have been placed on mute to prevent any background noise.

Operator: After the speaker's remarks, there will be a question and answer session. To ask a question, simply press star followed by the number one on your telephone keypad. We do respectfully ask that you keep your questions to one. Thank you.

The speaker's remarks, there will be a question and answer session.

To ask a question simply press star followed by the number one on your telephone keypad, we do respectfully ask that you keep your questions to one.

Speaker Change: Thank you I will now turn the conference over to Deborah Crawford, Vice President and head of Investor Relations. Please go ahead.

Deborah Crawford: I will now turn the conference over to Deborah Crawford, Vice President and Head of Investor Relations. Please go ahead.

Deborah Crawford: Good afternoon and welcome to CoreWeave's first quarter 2025 earnings conference call. Joining me today to discuss our results are Mike Entrader, CEO, and Nitin Agrawal, CFO. Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward-looking questions.

Speaker Change: Good afternoon, and welcome to core waves first quarter 'twenty 25 earnings conference call. Joining me today to discuss our results are Mike and trader CEO and niche in Agra wall CFO before we get started I would like to take this opportunity to remind you that our remarks today will.

Speaker Change: Include forward looking statements.

Deborah Crawford: Actual results may differ materially from those contemplated by these forward lookers. 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 10-Q filed with the SBA.

Speaker Change: Actual results may differ materially from those contemplated by these forward looking statements.

Speaker Change: Factors that could cause these results to differ materially are set forth in todays earnings press release and in our quarterly report on Form 10-Q filed with the SEC.

Deborah Crawford: 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 gap-to-non-gap measures is included in today's earnings press.

Speaker Change: 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.

Speaker Change: 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.

Deborah Crawford: 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.

Speaker Change: The earnings press release, and an accompanying investor presentation are available on our website at investors dot or we've dot com.

Speaker Change: 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.

Mike Entrader: And now I'd like to turn the call over to Mike. Thank you, Deborah, and welcome, everyone. We appreciate you joining us for our first call as a public company following our March. We're looking forward to a productive, ongoing dialogue with all.

Mike: Thank you Debra and welcome everyone. We appreciate you joining us for our first call as a public company. Following our March IPO, we're looking forward to a productive ongoing dialogue with all.

Mike Entrader: We are off to an amazing start in 2000. The company has continued its momentum of the last My remarks are going to highlight significant milestones. We delivered outstanding Q1 financial. highlighted by record revenue of $982 million. and a record-adjusted operating income of $163 million. up 420% and 550% respectively year-on-year. In Q1, we completed a strategic deal with OpenAI, the contract value for which is up to $11.9 billion. We have also added new enterprise customers. at a new hyperscale. and sign Expansion Agreement. including a recent $4 billion expansion with a large AI enterprise.

Mike: We are off to an amazing start in 2025. The company has continued its momentum of the last few years. My remarks are going to highlight two significant milestones and achievements.

Mike: We delivered outstanding Q1 financial performance highlighted by record revenue of $982 million and a record adjusted operating income of $163 million up, 420% and 550% respectively year on year.

Mike: In Q1, we completed a strategic deal with open AI the contract value for which is up to $11.9 billion.

Mike: We have also added new enterprise customers and a new hyperscale or.

Mike: And sign expansion agreements with several large customers, including a recent 4 billion dollar expansion with a large enterprise.

Mike Entrader: The details of which will be included in our 10- We announced and completed our acquisition of Weights and Bias. one of the industry's leading platforms for AI developers with more than 1,400 customers. We are confident our combined companies will allow us to provide additional value to our joint customer base. And we have continued to set new technology performance. including being the first to deploy GB200 Grace Blackwell systems at scale. on our AI cloud platform, supporting leading AI developers, Mistral, IBM, and Coase. Overall, our financial performance combined with the continued strong trajectory of customer growth. Technical Achievements demonstrate outstanding execution by our CoreWeave's platform enables the world-leading artificial intelligence company.

Mike: The details of which will be included in our 10-Q.

Mike: We announced and completed our acquisition of weights and biases.

Mike: One of the industry's leading platforms for AI developers with more than 1400 customers.

Mike: We are confident our combined companies will allow us to provide additional value to our joint customer base.

Mike: And we have continued to set new technology performance benchmarks, including being the first to deploy G. P 200, Grace Blackwell systems at scale.

Mike: Born of our AI cloud platform supporting leading AI developers Mistral, I B M and cohere.

Mike: Overall, our financial performance combined with the continued strong trajectory of customer growth.

Mike: Technical achievements demonstrate outstanding execution by our team.

Mike: <unk> platform enables the world's leading artificial intelligence companies to train AI models and run inference at scale.

Mike Entrader: train AI models and run inference at scale.

Mike Entrader: We are just getting started and demand for our platform is robust and accelerating. In particular, we are excited to see the broad-based increase in demand for infrastructure. as well as the accelerating adoption of AI by our enterprise customers. AI growth and adoption remain severely limited by capacity. CoreWeave is scaling as fast as it can to meet the demands of our customers. While the company is scaling at an unprecedented rate, we are aware of the uncertainties caused by the ongoing volatility in the global trade policy environment. However, in spite of the uncertainties, customer demand is accelerating.

Mike: We are just getting started and demand for our platform is robust and accelerating.

Mike: In particular, we are excited to see the broad based increase in demand for inference as well as the accelerating adoption of AI by our enterprise customers.

Mike: AI growth and adoption remains severely limited by capacity constraints.

Mike: We even scaling as fast as it can to meet the demands of our customers.

Mike: While the company is scaling at an unprecedented rate we are aware of the uncertainties caused by the ongoing volatility in the global trade policy environment.

Mike: However in spite of the uncertainties customer demand is accelerating which is reflected in the guidance we are issuing today.

Mike Entrader: which is reflected in the guidance we are issuing.

Mike Entrader: Because this is our first earnings call, I'd like to take a moment to frame our mission and describe our strategy to drive long-term shareholding. CoreWeave is powering AI innovation at scale. Our cloud platform is purpose built for AI workloads, delivering infrastructure as a service with highly differentiated cloud software and services on top. Yesterday, general purpose cloud infrastructure, which is still used to power much of the digital world, was not built to support the scale and complexity of artificial intelligence. These clouds were built to host websites and run SaaS applications, not to run high-performance training and inference work.

Mike: Because this is our first earnings call I'd like to take a moment to frame our mission and describe our strategy to drive long term shareholder value.

Mike: Core we've is powering AI innovation at scale.

Mike: Our cloud platform is purpose built for AI workloads delivering infrastructure as a service with highly differentiated cloud software and services on top.

Mike: Yesterday General purpose cloud infrastructure, which is still used to power much of the digital world was not built to support the scale and complexity of artificial intelligence.

Mike: These clouds were built to host websites and run SaaS applications not to run high performance training and inference workloads.

Mike Entrader: the exponential growth. of our customers' AI products are driving demand for our differentiated services. with a deep understanding of AI customers and work. Our cloud platform has been architected to optimize for the needs of AI at every layer. As inference has become more compute intensive, the ability to run both research and production workloads on the same infrastructure provides our customers with the flexibility to optimize their total cost of ownership. Our cloud software and infrastructure services abstract away the complexity of running infrastructure at massive scale and are significantly differentiated in the market. We believe that CoreWeave does this better than anyone else, and industry experts.

Mike: The exponential growth and success of our customers' products are driving demand for our differentiated services.

Mike: With a deep understanding of AI customers and workloads.

Mike: Our cloud platform.

Mike: Been architected to optimize for the needs of AI at every layer.

Mike: As in France has become more compute intensive the ability to run both research and production workloads on the same infrastructure provides our customers with the flexibility to optimize their total cost of ownership.

Mike: Our cloud software and infrastructure services abstract away the complexity of running infrastructure at massive scale and are significantly differentiated in the market.

Mike: We believe that core we does this better than anyone else and industry experts agree.

Mike Entrader: In March, Semi-Analysis awarded CoreWeave its highest rating, Platinum. based on its ClusterMax rating. We were the only cloud provider to receive this. Semi-analysis highlighted our industry leadership in operating large-scale 10K plus H100 clusters with high reliability. We are proud that we were rated above the established hyperscalers as well as the Neo GPU cloud.

Mike: In March semi analysis awarded core we've its highest reading platinum based.

Mike: Based on its cluster Max rating system, we were the only cloud provider to receive this rating semi analysis highlighted our industry, leading leadership and operating large scale 10-K, plus H 100 clusters with high reliability. We are proud that we were rated.

Mike: Above the established Hyperscale as well as the Neo GPU clouds.

Mike Entrader: Why is all of this important? AI is the greatest technological revolution of our lifetime. And we believe that the company can create tremendous shareholder value by growing its leadership. Today, we benefit from a network of 33 purpose-built AI data centers across the U.S. and Europe, supported by 420 megawatts of active power. Our total contracted power extends to approximately 1.6 gigawatts, providing us with a durable multi-year runway in power capacity. CoreWeave operates at the bleeding edge of technology, ensuring we deliver superior performance and efficiency to our customers every day. The world's most sophisticated AI leaders understand the power of our platform.

Mike: Why is all of this important.

Mike: <unk> is the greatest technological revolution of our lifetime and we believe that the company can create tremendous shareholder value by growing its leadership position.

Mike: Today, we benefit from a network of 33 purpose built AI data centers across the U S and Europe supported by.

Mike: 420 megawatts of active power.

Mike: Our total contracted power extends to approximately 1.6, gigawatts, providing us with a durable multiyear runway in power capacity.

Mike: <unk> operates at the bleeding edge of technology, ensuring we deliver superior performance and efficiency to our customers every day.

Mike: The world's most sophisticated AI leaders understand the power of our platform. This has enabled <unk> to grow at an unprecedented rate.

Mike Entrader: This has enabled CoreWeave to grow at an unprecedented rate. Today, we serve the most important AI companies in the world, and with Weights & Biases acquisition, we welcome nearly 1,400 more AI labs and enterprises as customers.

Mike: We serve the most important AI companies in the world and with weights and biases acquisition, we welcomed nearly 1400 more AI labs and enterprises as customers we.

Mike Entrader: We see immense growth opportunity in our. AI is expected to have a cumulative global economic impact of $20 trillion by 2030. total addressable market is expected to grow to $400 billion by 2022. sees this opportunity, and to serve more customers, CoreWeave has led the way in developing innovative financial mechanisms to expand our platform. Today, to date, we have already raised over $21 billion to expand our infrastructure and data center capacity.

Mike: We see immense growth opportunity in our future.

Mike: <unk> is expected to have a cumulative global economic impact of 20 trillion dollars by.

Mike: By 2030.

Mike: The total addressable market is expected to grow to 400 billion by 2028.

Mike: To seize this opportunity and to serve more customers Corwin has led the way in developing innovative financial mechanism to expand our platform.

Mike: Today to date, we have already raised over $21 billion to expand our infrastructure and data center capacity.

Mike Entrader: The IPO is an important milestone in our financing strategy because it expands our access to pools of low-cost capital to fuel our planned rapid expansion. Additionally, an important company scaling at our pace, CoreWeave is already profitable, and on an adjusted operating and Our business model features strong revenue visibility and attractive, sustainable unit economics.

The IPO was an important milestone in our financing strategy because it expands our access to pools of low cost capital to fuel our planned rapid expansion.

Mike: Additionally, and importantly.

Mike: For companies scale and get our pace <unk> is already profitable and on an adjusted operating income basis.

Mike: Our business model features strong revenue visibility.

Unattractive sustainable unit economics.

Mike Entrader: We continue to focus on four key areas. This includes scaling our capacity, financing our infrastructure, further differentiating our platform, and expanding our go-to-market capabilities. I will focus on each of these areas. First, scaling CoreWeave's capacity. In Q1, we added approximately 300 megawatts. incremental contracted power to our portfolio. In order to efficiently scale our capacity, we will work to secure the power resources necessary. expand our data center footprint. Our capital expenditures are success-based. Substantially, we enter into compute CapEx programs when we sign multi-year contracted revenue that more than covers the cost of the CapEx within the contract This enables us to responsibly scale our debt structures that support this contractual revenue and utilize naturally deleveraging, self-amortizing debt facilities.

We continue to focus on four key areas. This includes scaling our capacity financing our infrastructure further differentiating our platform and expanding our go to market capabilities I will focus on each of these areas first scaling <unk> capacity in Q1, we.

Mike: We added approximately 300 megawatts of incremental contracted power to our portfolio.

Mike: In order to efficiently scale, our capacity, we will work to secure the power resources necessary to expand our data center footprint and deploy industry, leading next generation compute to serve the requirements of the industry.

Mike: Second financing our infrastructure.

Our capital expenditures are success based substantially we enter into compute capex programs. When we sign multi year contracted revenue that more than covers the cost of the capex within the contract terms.

Mike: This enables us to responsibly scale, our debt structures that support this contractual revenue and utilize naturally deleveraging self amortizing debt facilities that allow for us to maintain a relatively low leverage multiples.

Mike Entrader: that allow for us to maintain a relatively low leverage multiple.

Mike Entrader: Third, differentiating our our rapid adoption and scaling of bleeding-edge technology. central to our competitive After being the first to deliver NVIDIA's H100 and H200 GPUs at scale, we were the first to make NVIDIA's GB200 NVL72 instances generally available and begin ramping Blackwell revenue in the first quarter. our superior performance. better scalability, and time to market provides our customers with a competitive advantage. to capture new AI opportunities. We also recently announced that our MLPerf Inference V5.0 results set a new industry benchmark. with NVIDIA's GB200 Grace Blackwell SuperCore. As we continue to build our infrastructure and software different we released our next generation CoreWeave AI object storage.

Third differentiating our platform.

Mike: Our rapid adoption and scaling of bleeding edge technology is central to our competitive advantage.

Mike: After being the first to deliver and videos H, one hundreds and H 200 Gpus at scale. We were the first to make Nvidia is GBP 200 N V. L 72 instances generally available and begin ramping Blackwell revenue in the first quarter.

Mike: Our superior performance better scalability and time to market provides our customers with a competitive advantage to capture new AI opportunities. We also recently announced that our ml perf inference. The 5.0 results set a new industry.

Mike: <unk> benchmark with Nvidia is GBP 200, Grace Blackwell Super chips.

Mike: As we continue to build our infrastructure and software differentiation. We released our next generation core we've AI object storage purpose built for the most demanding training and inference use cases.

Mike Entrader: Purpose built for the most demanding training and inference. Pairing CoreWeave AI Object Storage. CoreWeaves, Kubernetes. provides the most demanding AI customers with an out-of-the-box that is production ready on day one. In the quarter, we also announced support for NVIDIA's AI Enterprise software and NVIDIA's Cloud Function. N.V.C.I. as we continue to enable ecosystem solutions on our platform.

Mike: <unk> core we they object storage with core weaves Kubernetes services provides the most demanding AI customers with an out of the box experience that is production ready on day one.

Mike: In the quarter, we also announced support for Nvidia AI Enterprise software and Nvidia is cloud functions N V C F.

Mike: As we continue to enable ecosystem solutions on our platform.

Mike: Fourth <unk>.

Mike: Expanding <unk> go to market capabilities.

Mike Entrader: There is enormous growing demand for advanced AI. in addition to the enterprises and labs that we serve. CoreWeave has recently expanded its global footprint. This has enabled the company. expand its offerings in new markets, growing our business with current customers while reaching new audiences.

Mike: There is enormous growing demand for advanced AI infrastructure. In addition to the enterprises and the labs that we serve.

Mike: <unk> has recently expanded its global footprint. This has enabled the company to expand its offerings in new markets growing our business with current customers, while reaching new ones.

Mike Entrader: In fact, yesterday, we announced the opening of a new data center in Spain. partnership with Merlin Edge. with Mistral.ai as our anchor client. as demand for AI infrastructure continues to aggressively grow. CoreWeave will succeed based on its ability to execute and solve the world's most demanding AI infrastructure. Today, we have grown our team to about 1,400, including some of the most accomplished and talented in the AI.

Mike: In fact yesterday, we announced the opening of a new data center in Spain.

Speaker Change: In partnership with Merlin edged.

Speaker Change: With Mr. Lee I as our anchor client.

Speaker Change: As demand for AI infrastructure continues to aggressively grow.

Speaker Change: Core we've will succeed based on its ability to execute and solve the world's most demanding AI infrastructure challenges.

Speaker Change: Today, we have grown our team to about 1400, including some of the most accomplished and talented in the AI space.

Mike Entrader: I also want to thank our investors and analysts for your interest in CoreWeave. I look forward to updating you on our progress as we continue to drive innovation and deliver purpose-built cloud platform powering the AI revolution.

Speaker Change: I also want to thank our investors and analysts for your interest in core we've I look forward to updating you on our progress as we continue to drive innovation and deliver purpose built cloud platform powering the AI Revolution.

Nitin Agrawal: I will now turn the call over to Nitin. discuss our Q1 financial performance and our outlooks for the remaining Thanks, Mike, and good afternoon, everyone. It's great to engage with our investors and analysts for the first time as a public company, and I'm looking forward to working with all of you as we scale the company and build shareholder value. We delivered an outstanding Q1, highlighted by exceptional revenue growth of 420% year-over-year and solid operating profitability on an adjusted operating income base. Our confidence in our business is underpinned by strong technology foundation we have built. As Mike highlighted for you, we are powering AI innovation at scale.

Speaker Change: I will now turn the call over to Nick who will discuss our Q1 financial performance and our outlooks for the remainder of the year.

Nick: Thanks, Mike and good afternoon, everyone.

Nick: It's great to engage with our investors and analysts for the first time as a public company and I'm looking forward to working with all of you as we scaled the company and build shareholder value.

Nick: We delivered an outstanding Q1 highlighted by exceptional revenue growth of 420% year over year and solid operating profitability on an adjusted operating income basis.

Our confidence in our business is underpinned by strong technology Foundation, we have built.

As Mike highlighted for you we are powering AI innovation at scale.

Nitin Agrawal: Over the past five years, we have invested significantly in building our CoreWeave cloud platform and scaling our infrastructure while repeatedly demonstrating industry-leading performance.

Nick: For the past five years, we have invested significantly in building, our core <unk> cloud platform and scaling our infrastructure, while repeatedly demonstrating industry leading performance.

Nitin Agrawal: As this is our first earnings as a public company, I will spend a minute reiterating the differentiated technology and robust business model we have built. We generate revenue by offering world-class AI infrastructure and proprietary managed software and application services through our CoreWeave cloud platform. The vast majority of our revenue comes from long-term committed contracts, providing us with strong revenue visibility and attractive unit economics. This visibility in our growth enables us to take a success-based approach to capital investments that are matched to our customer content. typically finance our capital investments by utilizing self-amortizing structures that naturally de-leverage over the time of the contract.

Speaker Change: And this is our first earnings as a public company I will spend a minute reiterating the differentiated technology and robust business model, we have built.

Speaker Change: We generate revenue by offering world class infrastructure, and proprietary managed software and application services to our core <unk> cloud platform.

Speaker Change: Who wants to majority of our revenue comes from long term committed contract, providing us with strong revenue visibility and attractive unit economics.

Speaker Change: This visibility in our growth enables us to take a success based approach to capital investments that are matched to a customer contract.

Speaker Change: We typically finance our capital investments by utilizing self amortizing structures that naturally deleverage over the time of the contract.

Nitin Agrawal: We have shared a supplemental slide in our earnings presentation that illustrates our contract mechanism.

Speaker Change: We have shared a supplemental slide and an earnings presentation that illustrates our contract mechanics.

Nitin Agrawal: Turning now to our Q1 results. Our Q1 revenue was $982 million, up 420% year-over-year. A revenue backlog, which includes remaining performance obligation, RPO, plus other amounts we estimate will be recognized as revenue in future periods under committed customer contracts, was $25.9 billion, up 63% year-over-year. In March, we signed an OpenAI strategic deal, the contract value for which is up to $11.9 billion. Partnering with OpenAI on this net new contract underscores CoreWeave's proven ability to deliver reliable and performant infrastructure services, powering AI innovations for the world's leading AI labs. We also added new enterprise customers and a new hyperscaler and signed a recent $4 billion expansion with a large AI enterprise.

Turning now to our Q1 results.

Speaker Change: Our Q1 revenue was $982 million up 420% year over year.

Speaker Change: Our revenue backlog, which includes remaining performance obligation or <unk> plus other amount, we estimate will be recognized as revenue in future periods under committed customer contracts was $25 9 billion up 63% year over year.

Speaker Change: In March we signed an opening a strategic deal the contract value for which is up to $11 9 billion.

Speaker Change: Partnering with open AI on this net new contract underscores <unk> proven ability to deliver reliable and performance infrastructure services powering innovations for the worlds, leading AI labs.

Speaker Change: Yeah.

We also added new enterprise customers and a new hyper scaler and signed a recent 4 billion dollar expansion with a large enterprise.

Nitin Agrawal: This $4 billion expansion was signed in Q2 and will be reflected in our revenue backlog numbers beginning in Q2. It is not included in our Q1 reported numbers. To be clear, this is additive to the Q1 ending revenue backlog of 25.9 billion. While our revenue backlog is expected to scale rapidly over time, growth rates will fluctuate from period to period given the nature of our committed contract business model, timing and size of new contract signings, and revenue recognition. Operating expenses were $1 billion in Q1.

Speaker Change: This 4 billion expansion was signed in Q2 and will be reflected in our revenue backlog numbers beginning in Q2. It is not included in our Q1 reported numbers.

Speaker Change: To be clear this is additive to the Q1 ending revenue backlog of $25 9 billion.

Speaker Change: While our revenue backlog is expected to scale rapidly over time growth rates will fluctuate from period to period, given the nature of our committed contract business model timing and size of new contract signings and revenue recognition.

Speaker Change: Operating expenses were $1 billion in Q1.

Nitin Agrawal: which include a one-time stock-based compensation expense recognized upon completion of the IP. customer demand continues to grow at an outsized We are ramping our investments in data center and server infrastructure, which contributed to increases in our cost of revenue and technology and infrastructure spent in Q1. In addition, we continue to invest in sales and marketing to grow and diversify our customer base. and in GNA related to public company preparation. The adjusted operating income for Q1 was $163 million, up 550% year-over-year. are adjusted operating income margin for Q1 was 17%, up 3 points year-over-year. Net loss for the first quarter was $315 million compared to a $129 million net loss in Q1 of 2024.

Speaker Change: Which include a onetime stock based compensation expense recognized upon completion of the IPO.

Speaker Change: As customer demand continues to grow at an outsized rate we are ramping our investments in data center and server infrastructure, which contributed to increases in our cost of revenue and technology and infrastructure spend in Q1.

Speaker Change: In addition, we continue to invest in sales and marketing to grow and diversify our customer base and in G&A related to public company preparation activities.

Speaker Change: Adjusted operating income for Q1 was $163 million up 550% year over year.

Speaker Change: Our adjusted operating income margin for Q1 was 17% up three points year over year.

Speaker Change: Net loss for the first quarter was $315 million compared to a 129 million net loss in Q1 of 2024.

Nitin Agrawal: The increase was driven by the inclusion of a one-time stock-based compensation expense as a result of the IPO. higher interest expense and higher tax. Interest expense for Q1 was $264 million, higher than our expectations due to improvement in our vendor payment terms, which reduced the days between vendor payment and assets being put in service, hence reducing the amount of interest cost capitalized in the quarter. Adjusted net loss for Q1 was $150 million, compared to a $24 million adjusted net loss in Q1 of 2024. The adjusted net loss was impacted by higher than expected interest expense due to the factors described earlier.

Speaker Change: The increase was driven by the inclusion of one time stock based compensation expense as a result of the IPO.

Speaker Change: Interest expense and higher taxes <unk>.

Speaker Change: Interest expense for Q1 was $264 million higher than our expectations due to improvement in our Windsor payment terms, which reduced the DS between <unk> payment and assets being put in service, hence reducing the amount of interest cost capitalized in the quarter.

Speaker Change: Adjusted net loss for Q1 was $150 million compared to a 24 million adjusted net loss in Q1 of 2024.

Speaker Change: The adjusted net loss was impacted by higher than expected interest expense due to the factors described earlier.

Nitin Agrawal: Adjusted EBITDA for Q1 was $606 million, nearly 6x greater than Q1 of 2024, and our adjusted EBITDA margin was 62%, up 6 points year-over-year.

Speaker Change: Adjusted EBITDA for Q1 was 606 million nearly six six greater than Q1 of 2024, and our adjusted EBITDA margin was 62% up six points year over year.

Nitin Agrawal: Turning to Capital Expenditure. CAPEX consists primarily of investments in property and technology and equipment that drive our platform expansion, amplify the value of our software and tech stack, and ultimately fuel our revenue growth. CAPEX is reported net of construction in progress as that represents infrastructure not yet in service. The timing of the data center capacity coming online and the new generations of GPUs being placed into service could drive CAPEX variations quarter to quarter. CapEx in Q1 totaled $1.9 billion.

Speaker Change: Turning to capital expenditures.

Speaker Change: Opex consist primarily of investments in property and technology and equipment that drive our platform expansion amplify the value of our software and tech stack and ultimately fuel our revenue growth.

Speaker Change: Capex is reported net of construction in progress and that represents infrastructure not yet in service.

Speaker Change: In addition.

Speaker Change: The timing of the data center capacity coming online and the new generations of Gpus being placed into service could drive capex, we aviation's quarter to quarter.

Speaker Change: Capex in Q1 totaled $1 9 billion.

Nitin Agrawal: Now let's turn to balance sheet and liquidity. We have designed our capital structure to enable rapid scaling. We have a track record of successfully securing capital to finance our growth and lowering our cost of capital. As we scale our business further, we expect to continue to lower our cost of capital. Our balance sheet and liquidity position are solved. As of March 31st, we had $2.5 billion in cash, cash equivalents, and restricted cash. Outside of payments on OEM vendor financing and self-amortizing debt through committed contract payments, we have no other debt maturities until 2020. Earlier this month, we more than doubled our revolving credit facility from $650 million to $1.5 billion, giving us access to substantial additional liquidity.

Speaker Change: Now lets turn to balance sheet and liquidity.

Speaker Change: We have designed our capital structure to enable rapid scaling.

Speaker Change: We have a track record of successfully securing capital to finance, our growth and lowering our cost of capital.

Speaker Change: As we scale our business further we expect to continue to lower our cost of capital.

Speaker Change: Our balance sheet and liquidity position are solid.

Speaker Change: As of March 31st we had $2 $5 billion in cash cash equivalents and restricted cash.

Speaker Change: Outside of payments on OEM vendor financing and self amortizing debt through committed contract payments, we have no other debt maturities until 2028.

Speaker Change: Earlier this month, we more than doubled our revolving credit facility from $650 million to $1 5 billion, giving us access to substantial additional liquidity.

Nitin Agrawal: This quarter, we recorded an income tax provision despite a net loss due to impacts from non-deductible items and the valuation allowance on net deferred tax assets. Our tax rate might fluctuate significantly in the future due to similar facts.

This quarter, we recorded an income tax provision despite our net loss due to impact from non deductible items.

Speaker Change: And the valuation allowance on net deferred tax assets.

Speaker Change: Our tax rate might fluctuate significantly in the future due to similar factors.

Nitin Agrawal: Now turning to guidance for Q2 and full year 2025. While we acknowledge the general global trade and macro uncertainty and volatility... we haven't observed any impact on customer behavior. In fact, we are seeing an acceleration of customer demand. do see some elevated costs for certain equipment that is felt across the industry. However, these impacts are expected to be relatively moderate. We will continue to monitor the environment closely, and we'll work with suppliers to mitigate.

Speaker Change: Now turning to guidance for Q2 and full year 2025.

Speaker Change: While we acknowledge the general global trade and macro uncertainty and volatility we haven't observed any impact on customer behavior.

Speaker Change: In fact, we are seeing an acceleration of customer demand.

Speaker Change: We do see some elevated costs for certain equipment that is felt across the industry. However, these impacts are expected to be relatively marginal.

Speaker Change: We'll continue to monitor the environment closely and will work with suppliers to mitigate impact.

Nitin Agrawal: As the demand for our product and services continues unabated, we are adjusting our plans to both increase and pull in investments in our platform. to meet this customer demand. Our operations and engineering teams are working relentlessly to deploy more capacity faster for our customers. To be clear, our guidance today reflects not only our increased revenue expectations associated with the higher customer demand, but also our accelerated and increased investment in our platform. and the near-term margin impact of those investments. Our guidance also includes the addition of weights and biases from the date of acquisition close on May 5.

Speaker Change: As the demand for our product and services continues unabated, we are adjusting our plans to both increase and full and investments in our platform to meet this customer demand.

Speaker Change: Our operations and engineering teams are working relentlessly to deploy more capacity faster for our customers.

Speaker Change: To be clear our guidance today reflects not only our increased revenue expectations associated with the higher customer demand, but also our accelerated and increased investment in our platform and the near term margin impact of those investments.

Speaker Change: Our guidance also includes the addition of weights and biases from the date of acquisition closed on May 5th weights.

Nitin Agrawal: Weights and biases will be consolidated within our finance.

Speaker Change: Weights and biases will be consolidated within our financials.

Nitin Agrawal: With the strong demand backdrop, we expect Q2 revenue in the range of $1.06 to $1.1 billion. In addition, we anticipate Q2 adjusted operating income between $140 million to $170 million as we accelerate and pull in our investments to meet customer demand. We expect our interest expense for Q2 to be in the range of $260 to $300 million, impacted by similar factors as in Q1. And we expect our CapEx for the second quarter to be three to three and a half billion dollars, reflecting a strategic decision to accelerate our platform investments to meet customer demand. In addition, we expect stock-based compensation to remain slightly elevated through the year.

Speaker Change: With the strong demand backdrop, we expect Q2 revenue in the range of 1.06 to $1 $1 billion.

Speaker Change: In addition, we anticipate Q2 adjusted operating income between $140 million to $170 million as we accelerate and pull in our investments to meet customer demand.

Speaker Change: We expect our interest expense for Q2 to be in the range of $260 million to $300 million impact.

Speaker Change: Impacted by similar factors as in Q1.

Speaker Change: And we expect our capex for the second quarter to be three to three and a half billion dollars.

Speaker Change: Reflecting our strategic decision to accelerate our platform investments to meet customer demand.

Speaker Change: In addition, we expect stock based compensation to remain slightly elevated through the year.

Nitin Agrawal: for the grants issued in connection with the IPO.

Speaker Change: For the grants issued in connection with the IPO.

Nitin Agrawal: for 2025. We expect revenue to be in the range of $4.9 to $5.1 billion. We expect Adjusted Operating Income in the range of $800 to $830 million and CapEx of $20 to $23 billion due to increased and accelerated investment in our platform to meet customer demand. This F525 guidance reflects the OpenAI contract we signed in March. recent $4 billion expansion with a large AI enterprise and the impact of weights and biases.

Speaker Change: For 2025, we expect revenue to be in the range of $4 nine to $5 1 billion.

Speaker Change: We expect adjusted operating income in the range of $800 million to $830 million and Capex of 20 to 23 billion due to increased and accelerated investment in our platform to meet customer demand.

Speaker Change: This FY 'twenty five guidance reflects the opening I contract we signed in March.

Speaker Change: The recent 4 billion expansion with a large and our price and the impact of weights and biases.

Nitin Agrawal: In closing... We are off to a tremendous start in 2025. We continue to execute and rapidly scale our as you can see from both our financial results and the new performance standards we're setting on our platform.

Speaker Change: In closing we are off to a tremendous start in 2025, we continue to execute and rapidly scale. Our business as you can see from both our financial results and the new performance standards, we are sitting on our platform.

Nitin Agrawal: The demand for a purpose-built AI cloud platform is stronger than ever, and we see significant opportunity ahead. We will continue to invest to meet the needs of our fast-growing customer base. and build on our industry-leading.

Speaker Change: The demand for a purpose built AI cloud platform is stronger than ever and we see significant opportunity ahead.

Speaker Change: We will continue to invest to meet the needs of our fast growing customer base and build on our industry leading position.

Nitin Agrawal: Thank you to our investors and analysts for your support and engagement. We look forward to updating you on our progress in the Quarters.

Speaker Change: Thank you to our investors and analysts for your support and engagement. We look forward to updating you on our progress in the quarters to come.

Operator: With that, we will move over to Q&A. As a reminder, to ask a question press star 1 on your telephone keypad. We do respectfully ask that you keep your questions to one.

Speaker Change: With that we will move over to Q&A.

Speaker Change: As a reminder to ask a question press star one on your telephone keypad, we do respectfully ask that you keep your questions coupons.

Kate Wise: Our first question comes from the line of Kate Wise with Morgan Stanley. Please go ahead. Excellent.

Speaker Change: Our first question comes from the line of Keith Weiss with Morgan Stanley. Please go ahead.

Kate Wise: Thank you guys for taking the question and congratulations on a outstanding first quarter out of the gate and a really solid start to the year overall. One question is tough. I think a lot of questions that people are going to have on CoreWeave overall in this quarter, but maybe we can start with the top line outperformance. 14% ahead of where consensus was, that's a massive amount of outperformance. We don't typically see that even from recent IPOs. Perhaps you could talk to us a little bit about the mechanism that enables you guys to outperform revenues in a quarter in that kind of way.

Keith Weiss: Excellent. Thank you guys for taking my question and congratulations on a outstanding first quarter out of the gate and really solid start to the year overall.

Speaker Change: One question just tough there as well.

Keith Weiss: A lot of questions that people are going to have on it.

Keith Weiss: Overall in this quarter, but maybe we could start with the top line outperformance.

Keith Weiss: 14% ahead of where consensus was.

Speaker Change: Massive amount of outperformance, we don't typically see that even from recent ipos, perhaps you could talk to us a little bit about the mechanism that enables you guys to outperform revenues in in a quarter and that kind of way what happened differently from kind of your expectations initially that enable that level of outperformance and then.

Mike Entrader: What happened differently from your expectations initially that enabled that level of outperformance? And then maybe if I could just add a follow-up. I can't help but understand the differentiation between what goes into backlog, in particular, the OpenAI contract. What is it about that contract that doesn't put it into RPO, but it does still go into that revenue backlog side of the equation?

Keith Weiss: If I could just add a follow up.

Speaker Change: Help us understand the differentiation between like what.

Speaker Change: It goes into backlog and particularly the open AI contract.

Speaker Change: What is it about that contract that.

Speaker Change: We put it into <unk>, but it does still go into that revenue backlog side of the equation. Thank you.

Mike Entrader: Thank you. Thank you, Keith. We're really excited to have an opportunity to answer questions and field some questions as we kind of introduce the company. With regards to the revenue beat, what you are seeing is a concerted strategic effort by the company to pull in the investment in the infrastructure to be able to build and scale and deliver compute more quickly to the client contracts that we have. And so we've really made the focus on speed of delivery and quality of delivery to be a primary focus for the company. And that beat was really attributed to our ability to kind of drive that motion within our build delivery system.

Yeah.

Keith Weiss: Thank you Keith.

Speaker Change: We're really excited to have an opportunity to answer questions.

Keith Weiss: Yield some some.

Keith Weiss: Some questions as we kind of introduce the company.

Keith Weiss: All right.

Keith Weiss: With regards to the revenue beat.

Keith Weiss: What what what you are seeing is a concerted strategic effort by the company to pull in the investment in the infrastructure to be able to build and scale and deliver compute more quickly.

Keith Weiss: To the client contracts that we have and so.

Keith Weiss: We've really made.

The focus on speed of delivery and quality of delivery to be a primary focus for the company and that beat was really attributed to our ability to kind of drive that.

Keith Weiss: That motion within our build delivery.

Keith Weiss: <unk>.

Nitin Agrawal: And then maybe you want to talk to the second part here? So, thank you, Keith, for your question. The accounting treatment for the OpenAI deal has not yet been finalized, hence we are not including it in the RPO. It is a single large contract at a single site, and hence, given the scale and size of this deal, we have been prudent with the accounting analysis. I want to be clear, the accounting treatment determination does not impact the timing of the revenue, the deal economics, or the cash flow.

Keith Weiss: And then maybe you want to talk to the second part of your sure sure. Thank you Steve for your question the accounting treatment for the opening ideal has not yet been finalized and we are not including it in VR appeal. It is a single large contract at a single site and hence given the scale and size of this deal we are being prudent with.

The accounting analysis I want to be clear the accounting treatment determination does not impact the timing of the revenue the deal economics or the cash flows.

Keith Weiss: Yeah.

Keith Weiss: Yeah.

Tash Wangan: Our next question comes from the line of Tash Wangan with Goldman Sachs. Please go ahead. Hello, thank you very much, and congrats on your first quarter as a public company. Here's to more, hopefully.

Speaker Change: Our next question comes from the line of Kash Rangan with Goldman Sachs. Please go ahead.

Kash Rangan: Hello, Thank you very much and congrats on your first quarter as a public company Here's tomorrow hopefully.

Tash Wangan: I'm curious if you could give us a feel for what the growth and backlog or growth in pipeline, more broadly speaking, looks like among the broader enterprise markets. I think the customer concentration is something that most of us are acutely aware of. When you look at your pipeline, how more broadly diversified is going to be your revenue stream as you look into the future quarters ahead, so investors and analysts can get comfort in the amount of new business that needs to be booked in order to make your forecast for the next couple of quarters. But admittedly, you're off to a great start.

Kash Rangan: Curious if you could give us a feel for what the growth in backlog our growth in pipeline more broadly speaking looks like.

Speaker Change: Among the broader enterprise market. So I think the customer concentration is something that most of us are acutely aware of.

Speaker Change: When you look at your pipeline, how more broadly diversified is going to be your revenue stream as you look into the future quarters that so investors and analysts can get comfort in the amount of new business that needs to be booked in order to make your forecast for the next couple of quarters, but admittedly you're off to a great start you're beating the numbers and so if there is more.

Tash Wangan: You're beating the numbers, and so there's more confidence, which we can sense in the call.

Speaker Change: <unk> reached the consensus call but.

Mike Entrader: But wondering if you could talk a little bit more to the forward-looking metrics that could continue to drive the business. Thank you. Sure, and thank you for the question. Cash, look, there are certain fundamental realities about the client profile that we are addressing with our services, right? They are a relatively small number, almost all of which are clients of ours, of labs and large consumers that will be driving these massive scale contracts. And we have made a concerted effort through the initial days of this company to really focus on bringing those type of consumers that are most demanding and require the largest scale infrastructure and also infrastructure that can be underwritten onto our platform so that they could experience what it is like to work within an environment that has been purpose built to support their specific use case.

Speaker Change: Wondering if you could talk a little bit more to the forward looking metrics that could continue to drive the business. Thank you.

Speaker Change: Sure and thank you for the question.

Speaker Change: Cash look there are certain.

Speaker Change: Fundamental realities about the client profile.

Speaker Change: That we are addressing with our services right. They are a relatively small number almost all of which are clients of ours of labs and large consumers that will be driving these massive scale contracts and we have made a concern.

Speaker Change: <unk> effort through the.

Speaker Change: The initial days of this company to really focus on bringing those type of consumers that are most demanding and required the largest scale infrastructure and and also infrastructure that can be underwritten onto our platform. So that they could experience what it is like to work.

Speaker Change: Within an environment that has been purpose built.

Speaker Change: To support there.

Speaker Change: Are there specific use case.

Mike Entrader: Having said that, we are really excited. It's actually one of the things that we talk about a lot around here. It's a lot of what our sales action is really focused on, bringing on additional enterprise clients onto our infrastructure over time. So over time, my expectation is, is that you will have very, very outsized clients. It's the nature of the business that we're in. Not every single participant in artificial intelligence is going to have the resources to train a foundation model. Having said that, you will see an enormous increase in traction around the enterprise clients.

Having said that we are really excited it's actually one of the things that we talk about a walk around here. It's a lot of what our sales action is really focused on bringing on additional enterprise clients onto our infrastructure over time. So so.

Speaker Change: Over time my expectation is is that you will have very very outsized clients. It's the nature of the business that we're in not every single participant in artificial intelligence is going to have the resources to train a foundation model.

Speaker Change: Having said that you will see an enormous.

Speaker Change: Increase in traction.

Around the enterprise clients and.

Mike Entrader: And, you know, hopefully we'll get to talk more specifically around weights and biases, but bringing them on has been an incredible glide path for us to be able to establish business relationships with really the entire universe of enterprise clients that are large users of this infrastructure, and we are really excited about that.

Speaker Change: Hopefully, we'll get to talk more specifically around <unk>.

Weights and biases, but bringing them on has been an incredible glide path for us to be able to establish business relationships with really the entire universe of enterprise clients that are large users of this infrastructure and we are really excited about that.

Speaker Change: Okay.

Mark Murphy: Our next question comes from the line of Mark Murphy with J.P. Morgan. Please go ahead. Hi, Mike and Nitin. This is the audio on for Mark Murphy. Thanks for taking the question. First one is, I believe you mentioned new Hyperscale as a customer, but also new enterprise customers, which is encouraging to hear. Could you unpack that a little bit and perhaps give us some insight into the nature of those customers? What do they look like? Are there in particular verticals and maybe the qualities of the contracts for these for inferencing, training? You know, do they fall in line with the typical duration you're seeing?

Mark: Our next question comes from the line of Mark.

Mark Murphy: Murphy with Jpmorgan. Please go ahead.

Mark Murphy: Hi, Mike.

Speaker Change: They're already on for Mark Murphy, Thanks for taking the question.

Speaker Change: First one is I believe you mentioned, new Hyperscale customer, but also new enterprise customers, which was encouraging to hear could you unpack that a little bit and perhaps give us some insight into the nature of those customers.

Speaker Change: Like are there particular verticals that may be the qualities of the contracts for these for inferencing training do they fall in line with the typical duration youre seeing anything good that could help us maybe understand better the nature of these contracts.

Mark Murphy: Anything that could help us maybe understand better the nature of these contracts?

Mike Entrader: Thanks. Uh, sure. So, um... We've chosen our words carefully, right? We have restrictions and a policy not to really speak about specific clients. So with regards to the hyperscale client, there aren't that many hyperscalers and so, you know, you can look at our website there and assume who the addition is. We're very excited. We believe that that relationship can lead to a tremendous growth for us as they begin to understand, once again, the experience of using the infrastructure that we provide, the software stack that we provide, and all of the benefits that will accrue to them as they use this infrastructure.

Speaker Change: Sure so.

Speaker Change: We've chosen our words carefully right we have.

Speaker Change: Our restrictions and a policy not to really speak about specific clients. So with regards to the the.

Speaker Change: The hyperscale client there aren't that many hyperscale.

Speaker Change: And so.

Speaker Change: You can you can.

Speaker Change:

Look at our website ever and assume.

Speaker Change: Who the who the additionally, we're very excited we believe that that relationship can lead to a tremendous growth for us as they begin to understand once again.

Speaker Change: The experience of using the infrastructure that we provide the software stack that we provide.

Speaker Change: And all of the benefits that will accrue to them as they use this infrastructure.

Mike Entrader: With regards to the customer concentration, since we've gotten a second question on this, at the end of Q1, There was no entity that was more than 50% of our backlog. With the new contract that's coming through, we do not think that that will be the case on a go-forward basis, but once again, we do think that there will be large consumers. With regards to the enterprise clients, you know, we have seen a number of really interesting clients coming from an incredibly broad cross-section of the economy, beginning to come onto our infrastructure and use the solution that we provide as an engine for their companies.

Speaker Change: With regards to the customer concentration.

Speaker Change: We've got and the second question on this at the end of Q1.

Speaker Change: There was no entity that was more than 50% of our backlog.

Speaker Change: That.

Speaker Change: With the new contract that's coming through we do not think that that will be the case on a go forward basis, but once again, we do think that there will be large consumers of this with regards to the enterprise clients.

Speaker Change: We have seen a number of really interesting clients coming from an incredibly broad cross section of the economy, beginning to come onto our infrastructure and use the <unk>.

Speaker Change: The solution that we provide.

Speaker Change: As an engine for.

Nitin Agrawal: And so, you know, we talk about IBM because we put out a press release with them about it, but there really is a much broader traction that's going on, and it is, as I said, one of the things that, across the company, we are most excited about. Got it. It's very helpful. And then, Nitin, I believe you mentioned some elevated costs for certain equipments that are inputs for the data center. It seems like we're still in a constrained environment. Any chance you could maybe give us some ... shed some light on what sort of equipment you saw get a little bit more expensive?

Speaker Change: There are companies and so we talk about IBM, because we put out a press release on with them about it but there really is a much broader traction that's going on and it is as I said one of the things that across the company.

Speaker Change: We are most excited about.

Speaker Change: Yeah.

Speaker Change: Got it very helpful. And then I believe you mentioned some elevated costs for certain equipments that are inputs for the data center. It seems like we're still under constrained environment any chance you could maybe give us some shed some light on what sort of equipment, you saw get a little bit more expensive.

Nitin Agrawal: Thanks. Thanks Mark for your question. That question was more around the tariffs that we were noticing. There was a small amount of increase that we see for certain components, nothing material that we expect. We're closely monitoring the situation with tariffs and, you know, we're working with our suppliers to mitigate any impact while building a resilient, you know, sales, I'll call it, our, you know, supplier pipeline. So at this moment, you know, we don't expect tariffs to have a material impact to our financials, but we are closely monitoring that.

Speaker Change: Yes.

Speaker Change: Thanks, a lot for your question. The question was more around the tariffs that we were noticing there was a small amount of increase that we see for certain component nothing material that we expect with closely monitoring the situation with tariffs and we're working with our suppliers to mitigate any impact while building a resilient.

Speaker Change: On our call it our supply pipeline. So at this moment, we don't expect status to have a material impact to our financials, but we are closely monitoring that situation.

Ramo Linsta: Our next question comes from the line of Ramo Linsta with Barclays. Please go ahead. on a quarterly level. You kind of gave us a full year number that seems to be about where consensus was.

Speaker Change: And our next question comes from the line of.

Speaker Change: Let's start with Barclays. Please go ahead.

Speaker Change: On a quarterly level.

You kind of gave us a full year number that seems to be about where consensus was worth can you talk a little bit about what you saw in Q1 and more longer term.

Ramo Linsta: Can you talk a little bit about what you saw in Q1 and more longer terms since it's your first public company? How should we think about that? Because CapEx is obviously driving revenue in the future as well. We're just trying to make sure we don't have too much noise there. Thank you.

Speaker Change: First public company, how should we think about that because capex is obviously driving revenue in the future as well. We're just trying to make sure. We don't have too much noise Kim Thank you.

Nitin Agrawal: We missed the first part of your question. Would you mind repeating that question? Oh, yeah. Sorry, I was trying to say, how should we think about CapEx, like, you know, Q1, the number was a little bit below consensus for the full year, you kind of have it in line in consensus. Because CapEx is driving revenue, there's obviously going to be kind of fluctuations there. Can you just help us understand maybe what was happening in Q1 and how we should think about CapEx on an ongoing basis? Thank you. Thank you so much.

Speaker Change: Missed the first part of your question would you mind repeating that question.

Speaker Change: Oh, yes, sorry, I was trying to say.

Speaker Change: I was trying to say how should we think about capex.

Speaker Change: Like Q1.

Speaker Change: The number was a little bit below consensus for the full year, you kind of have it in London contents of the call.

Speaker Change: Capex is driving revenue that obviously, you're going to be kind of fluctuations. There can you just help us understand maybe what was happening in Q1, and how we should think about capex.

Speaker Change: The ongoing basis. Thank you. Thank you so much.

Nitin Agrawal: In terms of CapEx, you know, what we are issuing as guidance today reflects our increased and accelerated investment profile in our platform to meet the customer demand. And that's what's reflected in our numbers. You know, our CapEx follows as we invest for committed customer contracts and can be lumpy based on that, as well as in the deployment of our data centers, as well as our infrastructure. As we see strong customer demand, our CapEx guidance increase is following to fulfill that strong customer demand.

Speaker Change: In terms of Capex you know what.

Speaker Change: We are issuing a guidance today reflects our increased and accelerated investment profile in our platform to meet the customer demand and that's what's reflected in our numbers.

Speaker Change: Capex follows as we invest for committed customer contracts and can be lumpy based on that as well as in the deployment of our data centers as well as our infrastructure as we see strong customer demand. Our capex guidance increase is following to fulfill that strong customer demand.

Tyler Reck: Our next question comes from the line of Tyler Reck or Recky with Citi. Please go ahead. Yeah, thank you very much for taking the question.

Speaker Change: Our next question comes from the line of Tyler Radke.

Speaker Change: <unk> with Citi. Please go ahead.

Speaker Change: Yeah.

Speaker Change: Yes. Thank you very much for taking the question.

Tyler Reck: As we think about the interest expense, which came in a bit higher for Q1 and is guided to be, you know, a bit higher for Q2, can you just double-click on the main factors driving that? It sounds like kind of accelerated delivery of some components, but maybe just double-click on that and, you know, I guess if you're seeing kind of improvements in some of the vendor like why wouldn't you see that flow through on the CapEx line here in Q1 and Q2?

Speaker Change: As we think about the interest expense, which came in a bit higher for Q1, and it's guided to be.

Speaker Change: But higher for Q2 can you just double click on.

Speaker Change: The main factors driving that it sounds like kind of accelerated delivery of some components.

Speaker Change: Components, but.

Speaker Change: Maybe just double click on that and.

Speaker Change: I guess, if youre seeing kind of improvements in some of the vendor terms like why wouldn't you see that flow through on the on the Capex line here in Q1 and Q2.

Nitin Agrawal: Thank you so much for your question. In terms of interest expense, we saw improvement in our vendor terms, and as a result of that, we saw a decrease in the number of days when we made the vendor payment to when we put the asset in service. That's lowering the amount of interest cost we capitalized in the quarter. We expect those to continue through the year, which is why you would see a portion of our interest expense being elevated, because less of the interest costs are getting capitalized. In addition, as we build our CapEx portfolio to fulfill the customer demand, you would see higher levels of interest expense associated with the debt with that.

Speaker Change: Thank you so much for your question in terms of interest expense, we saw improvement in our winter terms and as a result of that we saw a decrease in the number of days when we meet the window payment to when we put the asset into service desk lowering the amount of interest cost we capitalized in the quarter, we expect those to continue.

Speaker Change: Through the year, which is why you would see a portion of our interest expense being elevated because less of the interest costs are getting capitalized. In addition, as we build our capex and our portfolio to fulfill the customer demand you would see higher levels of interest expense associated with the debt with that so those are the two factors, which I will.

Nitin Agrawal: So those are the two factors which I would say are impacting our interest.

Speaker Change: C are impacting our interest expense.

Nitin Agrawal: At the same time, what we are also witnessing is our cost of capital incrementally coming down. IPO was a great step for us in doing that, and we are going to consistently drive our cost of capital down.

Speaker Change: At the same time, what we are also witnessing is our cost of capital incrementally coming down I feel was a great step for us in doing that and we're going to consistently drive our cost of capital down.

Brad Zelnick: Our next question comes from the line of Brad Zelnick with Deutsche Bank. Please go ahead. Great.

Speaker Change: Our next question comes from the line of Brad Zelnick with Deutsche Bank. Please go ahead.

Brad Zelnick: Oh, great. Thank you so much for taking the question and congrats on a really strong entrance into the public market.

Brad Zelnick: Thank you so much for taking the question and congrats on a really strong entrance into the public market and Q1 outperformance. Nitin, I appreciate you're not guiding on cash flow and all the reasons why it's so difficult. about the cadence and range of. Thanks very much.

Speaker Change: Q1.

Speaker Change: Outperformance Nitzan I appreciate youre not guiding on on cash flow and all of the reasons why it's so dynamic but any thoughts you can leave us with as we think about the cadence and range of outcomes from here. Thanks very much.

Nitin Agrawal: Yeah, so I think the best way to think about us in terms of, you know, cash flows is going to be our CapEx, as well as the profile of the contracts that we continue to sign. So the two factors that you have to keep in mind here is the RPO element, which signing of contracts, you know, timing and size of those contracts, the payment terms of those contracts can be lumpy, alongside with the CapEx bill associated with those could be lumpy. We'll do our best to partner with you to give you as much advanced visibility associated with that, but we do expect those things to be lumpy in our business.

Speaker Change: Yeah. So I think the best way to think about us in terms of.

Speaker Change: Cash flows is going to be our capex as well as the profile of the contracts that we continue to sign so the two factors that you have to keep in mind here is the <unk> element, which signing of contract timing.

Speaker Change: Timing and size of those contracts the payment terms of those contracts can be lumpy alongside with the capex build associated with those could be lumpy. We will do our best to partner with you to give you as much advance visibility associated with that but we do expect those things to be lumpy in our business.

Brett Bill: Our next question comes from the line of Brett Bill with Jefferies. Please go ahead. Thanks.

Brent Thill: Our next question comes from the line of Brent Thill with Jefferies. Please go ahead.

Brent Thill: Thanks, Tom Mike on the software strategy can you expand long term, what you think youll do versus what the Hyperscale legible theaters a lot of questions about how that will overlap or maybe maybe it doesn't.

Mike Entrader: Mike, on the software strategy, can you expand long-term what you think you'll do versus what the hyperscalers will do? There's a lot of questions about how that will overlap or maybe it doesn't.

Mike Entrader: And for Nitin, one of the questions just beyond hyperscalers, when you think about the pipeline and what you're seeing outside just the main core, are you starting to see a broader opening of others that are willing to step in beyond the household names we all know? Thanks for taking the questions. So, so, uh, I'll, I'll tackle the, uh, the software stack, um, um, you know, um, When you think about the requirements for AI, when you think about the type of computing that is required for AI, in order to build the software stack. to make it the incredibly expensive infrastructure as performant as possible, you have to kind of go back to a blank sheet of paper and reconstitute how you're going to support that infrastructure for your clients.

For NIM and one of the questions just beyond hyperscale or as we think about.

Brent Thill: The pipeline and what Youre seeing outside just the main core are you starting to see a broader.

Brent Thill: Opening of of others that are willing to step in and beyond the household names we all know.

Brent Thill: Thanks for taking the questions.

Brent Thill: Okay.

Brent Thill:

Brent Thill: Yeah.

Brent Thill: So so I'll tackle the software stack.

Brent Thill:

Brent Thill: When when you think about the.

Brent Thill: The requirements for.

Brent Thill: When you think about the type of computing that is required for AI.

Brent Thill: In order to build the software stack.

Brent Thill: To make it the incredibly expensive infrastructure as performance as possible you have to kind of go back to a blank sheet of paper and reconstitute.

Brent Thill: How you are going to support.

Brent Thill: That infrastructure for your clients.

Mike Entrader: And our intention here, initially, when we founded the company, was start from the bottom of the stack and work our way up. The acquisition of weights and bias allows us to also provide software solutions that are at the very top of the stack for artificial intelligence. Our strategy is going to be to populate that software stack with tools that are purpose-built and specifically designed to drive efficiency, to drive the quality of the experience, to abstract away the complexity associated with running this type of infrastructure. With regards to what the other clouds are going to do or how they're going to tackle the problem, I'm not sure.

And our intention here.

Brent Thill: Initially when we founded the company will start from the bottom of the stack and work our way up the acquisition of weights and bias.

Brent Thill: Allows us to also provide software solutions that are at the very top of the stack for artificial intelligence.

Brent Thill: Our strategy is going to be to populate that software stack with tools that are purpose built and specifically designed to drive efficiency to drive the quality of the experience.

Brent Thill: To abstract away the complexity associated with running this type of infrastructure.

Brent Thill: With regards to what the other clouds are going to do or how they're going to tackle the problem.

Brent Thill: I'm not sure they're going to come up with their own strategies.

Mike Entrader: They're going to come up with their own strategies. But we have really drawn a very direct line between how we build our software and the performance of the infrastructure that we are required to run. And we will continue to do that.

Brent Thill: But we have really drawn a very direct line between how we build our software on the performance of the infrastructure that we are required to work and we will continue to do that.

Nitin Agrawal: To answer your question on the pipeline of customers, Mike alluded to it in his prepared remarks. We're very excited to see the acceleration of AI adoption curve in the enterprise, and we're seeing that in our pipeline as well as in our signed contracts.

Brent Thill: And to answer your question on the pipeline of customers, Mike alluded to it in his prepared remarks, we're very excited to see the acceleration of adoption curve in the enterprise and we're seeing that in our pipeline as well as in our signed contract in.

Greg Moskowitz: In addition to inference being, you know, a larger portion of what our AI labs are using our infrastructure for, both those factors are very encouraging for us in terms of the AI adoption curve and the use of purpose-built infrastructure underlying Our next question comes from the line of Greg Moskowitz with Mizzouho. Please go ahead. Okay, thank you very much for taking my question.

Brent Thill: In addition to inference being a larger portion of what our labs are using our infrastructure for both of those factors are very encouraging for us in terms of the adoption curve and the use of purpose built infrastructure underlying dose.

Speaker Change: Our next question comes from the line of Gregg Moskowitz with Mizuho. Please go ahead.

Gregg Moskowitz: Okay. Thank you very much for taking my question.

Greg Moskowitz: Mitten, the adjusted operating margin guidance for next quarter and the full year is a good amount below what consensus was expecting. Are you able to approximately size for us how much these accelerated investments are impacting the margin? I also just wanted to ask if this changes your views of the longer-term structural margin leverage at CoreWeave, which I believe was somewhere around the 27 to 28% range by 2020.

Gregg Moskowitz: The adjusted operating margin guidance for next quarter and the full year is a good amount below where consensus was expecting are you able to approximately size for us how much. These accelerated investments are impacting the margin I also just wanted to ask if this changes your views of the longer term structural margin leverage at currently which I believe was.

Speaker Change: Somewhere around the 27% to 8% range by 2027. Thank you. Thank.

Nitin Agrawal: Now, thank you so much for your question. And as we kind of discussed earlier on, as we build large-scale infrastructure online, there is a period of time where we incur certain amount of costs before the revenue starts generating. year is what's impacting our margins. As we've discussed in the call earlier on, we are accelerating and increasing the investments that we are making in our platform, which is having a near-term impact on our margins. To contextualize this for you, we are going to have, we're expecting to have deployed power by the end of the year, more than doubled of what our life-to-date deployed power is on our platform.

Speaker Change: Thank you so much for your question and as we've kind of discussed earlier on as we build scale infrastructure online. There is a period of time, where we incur certain amount of costs before the revenue starts generating the scale of infrastructure that we are bringing online. This year is what's impacting our <unk>.

Speaker Change: Margins as we've discussed in the call earlier on we are accelerating and increasing the investments that we're making in our platform, which is having a near term impact on our margins to contextualize. This for you. We are going to have we're expecting to have deployed our by the end of the year more than doubled.

Speaker Change: Of what our life to date deployed power is on our platform and that is the scale of the infrastructure build that we are executing for this year to meet the customer demand.

Nitin Agrawal: And that is the scale of the infrastructure build that we are executing for this year to meet the customer demand.

Michael Turret: Our next question comes from the line of Michael Turret with Wells Fargo. Please go ahead. Hey, great. Thanks very much. I appreciate you taking the questions. Sales and marketing expense for CoreWeave is small relative to the scale of the overall business. But Mike, you mentioned expanding go-to-market is one of the key priorities. Maybe speak to how you're thinking about go-to-market as the business scales and the opportunity to tap into broader enterprise.

Michael <unk>: Our next question comes from the line of Michael <unk> with Wells Fargo. Please go ahead.

Michael <unk>: Hey, great. Thanks, very much appreciate you taking the questions.

Speaker Change: Sales and marketing expense for quarter was small relative to the scale of the overall business, but Mike you mentioned expanding go to market as one of the key priorities maybe speak to how youre thinking about go to market as the business scales and the opportunity to tap into broader enterprise and just as a small second part for net and we're getting a getting a few questions on the <unk> balance.

Michael Turret: And just as a small second part for Nitin, we're getting a few questions on the RPO balance, the core metric down sequentially, but you mentioned the $4 billion expansion and the opening eye contribution. So maybe just touch on some of the moving pieces there, given the focus on that metric. Thank Yeah, so, so, um, When you think about the sales and marketing strategy at the company, you've watched us build the sales and marketing to focus on these incredibly large clients that need to build and contract for term exposure to massive scale computing, right? And that has been the primary target of how we've built the company, how we have financed the company, where our sales and marketing team have focused.

Speaker Change: The core metric down sequentially, but you mentioned the $4 billion expansion and the opening of <unk> contribution. So maybe just touch on some of the moving pieces there given the focus on that metric. Thank you.

Speaker Change: Yes, so so.

Speaker Change: <unk>.

Speaker Change: When you think about the sales and marketing.

Speaker Change: <unk> of the company.

Speaker Change: You've watched us build the sales and marketing to focus on these incredibly large clients that need to build and contract for term exposure to massive scale computing right.

Speaker Change: And that has been the primary target of how we've built the company.

Speaker Change: How we finance the company.

Speaker Change: Where our sales and marketing team have focused.

Mike Entrader: But what you're seeing, and once again, going back to Weights & Biases, it's a great example of how we, over the next several years, will continue to extend our client universe down this long tail of enterprise clients that need very substantial, very efficient, very effective computing environments. And that will be a fundamental change that's required for us to make over the next several years to support this. And it's really kind of highlighting something, which is, we always say at CoreWeave that we're client-led, right? And so the clients that needed the infrastructure initially were these massive scale companies.

Speaker Change: But what youre seeing in once again going back to weights and biases. It's a great example of how we over the next several years will continue to extend our client.

Speaker Change: Universe down this long tail of enterprise clients that need very substantial very efficient very effective computing environments.

Speaker Change: And you know that that will be a.

Speaker Change: A fundamental.

Speaker Change: Change that's required for us to make over the next several years to support this and and it's.

Speaker Change: It's really kind of highlighting something which as you know.

Speaker Change: We always say at core wave that where clients left right and so the clients that needed the infrastructure initially where these massive scale companies and now as the enterprise clients become more active we are going to be led by them down that long tail and we will build the.

Nitin Agrawal: And now, as the enterprise clients become more active, we are going to be led by them down that long tail. And we will build the organization and continue to build the organization. And as I said, Weights & Biases is a great step in that direction of building the organization to be able to effectively form relationships and introduce them to our solution, and then ultimately to bring them on as clients. To answer your question on revenue backlog, a revenue backlog, which includes remaining performance obligation thus other amounts we could estimate will be recognized as revenue in future periods under our Committed Customer Contracts was 25.9 billion for the quarter up 63% year-over-year.

Speaker Change: <unk> organization and continue to build the organization and as I said weights and biases a great step in that direction of building the organization to be able to effectively.

Speaker Change: Form relationships.

Speaker Change: And introduce them to our solution and then ultimately to bring them on as clients.

Speaker Change: To answer your question on revenue backlog, our revenue backlog, which includes remaining performance obligation plus other amounts we will estimate will be recognized as revenue in future periods and are committed customer contracts was $29 $25 9 billion for the quarter up 63%.

Speaker Change: <unk> year over year.

Nitin Agrawal: As Keith asked earlier on, the OpenAI contract is not in the RPO number yet, as we're still working through the accounting treatment of it, while it does not impact the timing of revenue or any of the economics associated with the deal. that will reach $29 billion based on the contracts that have been executed, but the $4 billion was not executed in Q1. But it will show up there. That contract is complete, and we are working on delivery and performance of that contract already.

Speaker Change: As Keith asked earlier on the opening on contract is not in the <unk> number yet as we're still working through the accounting treatment of it while it does not impact the timing of revenue or any of the economics associated with the deal.

Speaker Change: Only that will reach 29 billion based on the contracts that have been executed but it just the $4 billion was not executed in Q1, but it is a it will show up there.

Speaker Change: That contract is complete and we are working on delivery.

Speaker Change: And performance of that contract already.

Brad Fields: Our next question comes from the line of Brad Fields with Bank of America. Please go ahead. Great, thank you so much. I wanted to ask a question about these large expansions. What drives that type of an expansion deal? on demand for the next generation of GPUs? Is it based on just expansion of large models? CoreWeave. new models that are coming in. I'm just trying to get a sense for. What are the catalysts?

Brad Sills: Our next question comes from the line of Brad Sills with Bank of America. Please go ahead.

Brad Sills: Oh, great. Thank you so much I wanted to ask a question about these large expansion deals.

Speaker Change: What drives that type of an expansion deal is it.

Brad Sills: Based on demand for the next generation of <unk>.

Brad Sills: Of Gpus is it based on just expansion of large models that are on.

Brad Sills: Core we've is it new models that are coming in I'm, just trying to get a sense for.

Brad Sills: What are the catalyst here for those types of deals what's your visibility what is what does the cycle look like as you negotiated one of those deals.

Mike Entrader: Brad, it's a great question, because it kind of provides an opportunity to talk about some of the important trends that we are seeing within the compute space, and CoreWeave has a unique position. in that we serve so many of the important consumers of AI infrastructure, we have the ability to understand how they're consuming it, what they're using it for, as they move from training into inference. And that's one of the most exciting components of the use profile that a company like CoreWeave is able to see. So when we have clients come to us to, we call it layering, right, to expand their footprint with us, they start out with a contract and then they have the experience of working on a purpose-built environment, and then they come back again and again and again and layer one contract for infrastructure on top of the other.

Brad Sills: Hi, Brad.

Speaker Change: It's a great question.

Brad Sills: Because it kind of.

Brad Sills: <unk> provides an opportunity to talk about some of the important trends that we're seeing.

Brad Sills: Within the compute space.

Brad Sills: <unk> has a unique position.

Brad Sills: And that we serve so many of the important consumers of AI infrastructure, we have the ability to to.

Brad Sills: To understand how they're consuming it and what they are using it for as they move from a training <unk>.

Brad Sills: <unk> inference, and and that's one of the most exciting components of the.

Brad Sills: Use profile that that.

Brad Sills: A company like core <unk> was able to see so.

Brad Sills: One one.

Brad Sills: When we have a.

Brad Sills: Clients come to us.

Brad Sills: Two.

Brad Sills: We call it layer it right to expand their their their footprint with us they start out with a contract and then then they they are they have the experience of working on a purpose built environment and then they come back again, and again and again and layer one contract for infrastructure on top of the other.

Mike Entrader: And what we see is initially infrastructure is being used to move the model training forward. And then as that infrastructure is supplanted by new infrastructure, more state-of-the-art infrastructure, the original infrastructure, which remains under contract, gets moved into other use cases for either training smaller models or being used for inference. And we really have a front-row seat on that. And so when folks come to us to get access to the infrastructure, they're buying state-of-the-art infrastructure or one-generation-old infrastructure, and that kind of enters into these long-term contracts that are the foundation for how we've gone about building our business.

Brad Sills: And what what we see is initially infrastructure is being used to move.

Brad Sills: The.

Brad Sills: The model training forward and then as that infrastructure.

Brad Sills: Is supplanted by new infrastructure more state of the art infrastructure.

Brad Sills: The original infrastructure, which remains under contract.

Brad Sills: Gets moved into other use cases for either training smaller models or being used for inference.

Brad Sills: And we really have a front row seat on that and so when when folks come to us.

Brad Sills: To get access to the the infrastructure.

Brad Sills: There you go.

Brad Sills: And buying a state of the art infrastructure, we're one generation old infrastructure and that kind of enters into these long a term contracts that are the foundation for how we've gone about building our business. They are the foundation for how we go about financing our business.

Mike Entrader: They are the foundation for how we go about financing our business. And they come to us because we have proven to have an incredible environment to run their models, to train their models, to run their inference, and we have also had a proven track record of extraordinary execution being able to bring the infrastructure up online in a performant configuration. That's very helpful.

Brad Sills: And they come to us because we have proven to have an incredible environment to run their in their models to train their models to run their entrance and we are also having proven track record of extraordinary execution being able to bring the infrastructure up online in a performing configuration.

Brad Sills: Very helpful. Thank you Mike.

Mike Sykos: And our next question comes from the line of Mike Sykos with Needham & Company. Please go ahead. Hey guys, thanks for taking the questions here. I'll let go of the congratulations. I know if I come back to your comments here in the Q&A, or even Mike's comments in the prepared remarks, as far as this broad-based demand for inference, you're seeing the acceleration of AI adoption curve at the enterprise level. What would you point us to from a metric standpoint? Like, was there potentially more on-demand revenue this quarter that we just don't have visibility into? Again, I know we're looking at the RPO figure down 3% sequentially, and the $4 billion, it'll hit in Q2.

Mike: And our next question comes from the line of Mike <unk> with Needham and company. Please go ahead.

Mike: Hey, guys. Thanks for taking the questions here I'll Echo the congratulations I know if I come back to your comments here in the Q&A button or even.

Mike: My comments in the prepared remarks as far as this broad based demand for important so you're seeing the acceleration of the adoption curve at the enterprise level.

Speaker Change: What would you point us to.

Mike: From a metric standpoint.

Mike: Or is there potentially more on demand revenue this quarter that we just don't have visibility in queue. Please.

Mike: I know, we're looking at this <unk> figure down 3% sequentially in the 4 billion that'll hit in Q2.

Mike Sykos: But I think we're just trying to get comfort with what is it you guys are seeing, because you obviously have a lot more visibility into the... and the interest from weights and biases as an example. I'm just, yeah, I'm a sanity check.

Mike: I think we're just trying to get comfort with.

Speaker Change: What is it you guys are seeing because you obviously have a lot more visibility into the pipe and the interest from Wheaton biases. As an example, we just added a sanity check that.

Mike Entrader: Sure, so I want to make sure that there's clarity on a couple of points here, and then I'll tackle your question. So once again, the RPO is not incrementally down, right? When you take the RPO and you add it to the OpenAI contract, you go from 15-ish building up to $25 billion last quarter, right? And so there was a massive 60% increase in our RPO. In addition to that, there's another $4 billion that will be entered into the backlog, which includes both RPO and the OpenAI contract, that will all cumulatively lead to $29 billion worth of revenue obligations to the company, and we're very excited about that.

Mike: So I'm gonna.

Mike: I want to make sure that there's clarity on a couple of points here and then I'll tackle your your from your question.

Mike: So once again the <unk>.

Mike: <unk> is not incrementally down right.

Mike: The.

Mike: When you take the <unk> and you added to the opening of high contract you go from <unk>.

Mike: <unk>.

Mike: Building up to 25 billion last quarter right and so there was a massive 60% increase in euro.

Mike: In addition to that there is a another $4 billion that will be entered into.

Mike: The backlog, which includes both <unk> and the the open AI contracted.

Mike: That will all cumulatively lead to $29 billion worth of.

Mike: Revenue obligations to the company and we're very excited about that it moves us forward.

Mike Entrader: It moves us forward, and it continues to extend the contractual obligations that we have with our client to deliver infrastructure and for them to pay for infrastructure. And so we're very, very excited about that.

Mike: Continues to extend.

Mike: The contractual obligations that we have with our clients to deliver infrastructure and for them to pay for infrastructure and so where we're where we're very very excited about that now when you when you turn to inference.

Mike Entrader: Now, when you turn to inference... of all of the trends. Inference for me is the most exciting and the reason that inference is so exciting for me is because it represents the monetization of artificial intelligence and the investments that are being made in artificial intelligence. And so as clients move from training and training and training into training and inference, what that represents is that the clients that are using our infrastructure are having an opportunity to sell their products into the market and to generate revenue. And that is what is needed in order for artificial intelligence to continue to expand and grow and be successful.

Mike: Of all of the trends.

Mike: Inference for me is the most exciting and.

Mike: And the reason that inference is so exciting for me is because it represents the monetization.

Mike: Of artificial intelligence and the investments that are being made in artificial intelligence and so as clients move from training and training and training into training and inference. What that represents is that the clients that are using our infrastructure are having an opportunity to sell their products into.

Mike: The market and to generate revenue and that is what is needed in order for artificial intelligence to continue to expand and grow and be successful and so like I said of all the trends that's probably the most exciting is to see inference get real traction.

Mike Entrader: And so, like I said, of all the trends, that's probably the most exciting is to see inference get real traction.

Ben Wright: Operator, I think we have time for one last question. Our final question comes from the line of Ben Wright with Milius Research. Okay, thanks for... Thanks for squeezing me in there. Hopefully you can hear me okay. Wanted to ask about CapEx a little more just with regard to the $3 billion increase versus our expectations. Was there anything in there for higher costs, though, or mix of GPUs that you weren't expecting? I know it's due to higher demand and some of the backlog. And would be helpful is if you, you know, just with regard to the CapEx being $3 billion more than expected, you know, how that's going to be funded, you know, and, you know, obviously we're, I don't know if cash flow, you know, estimates might go down given the lower op bank in the current quarter.

Mike: Operator, I think we have time for one last question.

Speaker Change: Our final question comes from the line of Ben right with <unk>.

Mike: This research.

Ben: Hey, Thanks for squeezing thanks.

Speaker Change: Thanks for squeezing me in there hopefully you can hear me okay.

Ben:

Ben: I wanted to ask about Capex, a little more.

Ben: Just with regard to the 3 billion increase versus our expectations.

Ben: Was it particularly.

Ben: Was there anything in there for higher costs, though.

Ben: Or mix of Gpus that you weren't expecting I know its due to higher demand in and some of the backlog and and then if I could just sneak in is it knitting.

Ben: You know what I think.

Ben: It would be helpful is if you.

Just with regard to the Capex being 3 billion more than expected you know, how how that's going to be funded.

Ben: And.

Ben: Obviously, we I don't know if cash flow.

Ben: Estimates.

Ben: Might go down given the lower Op, Inc. In the current quarter. So.

Ben Wright: So just, you know, the source of funding too for that incremental CapEx.

Ben: Just you know the source of funding to for that incremental capex. Thanks.

Mike Entrader: Hey, Ben. So, look, when you see an increase in CapEx for us, you're seeing an indication that there are clients that are coming in and executing contracts with us that will require us to spend and build, spend more capital to build more infrastructure because they have signed a contract with us. It is a success-based virtuous spiral that you're seeing. We're not spending $3 billion more because, you know, something increased in price. We don't see anything, you know, remotely that would warrant that anywhere within the supply chains, which we have been working diligently to diversify and make more resilient in the current environment.

Speaker Change: Hey, Brian So look.

Speaker Change: When you see an increase in Capex for us Youre seeing a indication that there are clients that are coming in and executed contracts with us that will require us to spend and build.

Speaker Change: Spend more.

Speaker Change: Our capital to build more infrastructure, because they have signed a contract with us. It is a success base a virtuous spiral that youre that youre seeing.

Speaker Change: We.

Speaker Change: We're not spending $3 billion more because you know.

Speaker Change: Something increased in price, we don't see anything.

Speaker Change: Mostly that would warrant that anywhere within the supply chain, which we have been working diligently to diversify and make more resilient.

Speaker Change: In the current environment, but you know that is a.

Nitin Agrawal: But, you know, that is a real articulation of new uptake, new clients coming on board to buy more infrastructure from us over the balance. Just to add to that, what we are seeing is increase in CapEx is fundamentally driven by increased customer demand and that is what is reflected in our increased revenue guidance for the quarter as well as for the year.

Speaker Change: Uh huh.

Speaker Change: Real articulation of new uptake, new clients coming onboard to buy more infrastructure from us over the balance of the year.

Speaker Change: Yeah.

Speaker Change: Just to add to that what we are seeing an increase in capex is fundamentally driven by increased customer demand and that is what is reflected in our increased revenue guidance for the quarter as well as for the year.

Speaker Change: Okay.

Mike Entrader: Okay, so I'll make a quick closing remark here. So thank you for taking the time to join us for our first quarterly earnings call. Speaking personally, it's incredibly exciting for the company. It's incredibly exciting for me to have an opportunity to do this. It's an enormous accomplishment. And to all of the other people who have helped to build CoreWeave, both the employees, the investors, the clients, the suppliers, thank you. Very much appreciate it. It's an exciting time at this company. There is a tremendous amount going on as we continue to innovate and build the infrastructure required to push the boundaries of artificial intelligence.

Speaker Change: Okay. So I'll make a quick closing remark here.

So thank.

Speaker Change: Thank you for taking the time to join US for our first quarterly earnings call.

Speaker Change: Speaking personally it is incredibly exciting for the company is incredibly exciting for me to have an opportunity to do this it's.

Speaker Change: It's an enormous accomplishment and to all of the other people who have helped to build core we've both employees are there.

Speaker Change: Investors are the clients suppliers. Thank you very much appreciate.

Speaker Change: It's an exciting time at this company there is a tremendous amount going on as we continue to innovate and build the infrastructure required to push the boundaries of artificial intelligence a.

Mike Entrader: A couple of things that I'd like to leave you with that are important to understand about where we are today and where we are going. First, we had an amazing quarter. We delivered 420% revenue growth over the year, or year over year. And we just closed another $4 billion contract that is additive to our revenue backlog. Demand remains relentless. and we are raising our revenue guidance. These are incredible things to be able to...

Speaker Change: A couple of things that I'd like to leave you with that are important to understand about where we are today and where we're going.

Speaker Change: First we had an amazing quarter.

Speaker Change: We delivered 420% revenue growth over the year or a year over year.

And we just closed another $4 billion contract that is additive to our revenue backlog.

Speaker Change: Demand remains relentless and we are raising our revenue guidance. These are incredible things to be able to say.

Mike Entrader: Second, we continue to fuel this growth through success-based financing that is aligned with customer contracts. We're marrying them up, we're financing them, and we're building them, and we're delivering.

Speaker Change: Second we continue to fuel this growth through success based financing.

Speaker Change: That is aligned with customer contracts were marrying them up we're financing them at we're building them and we're delivering them.

Mike Entrader: Third, you are watching a company that is deeply technical. We're building and innovating up and down the stack to differentiate our platform and enable perhaps the most important technological revolution of our lifetime. Thank you.

Third you are watching a company that is deeply technical.

Speaker Change: We are building and innovating up and down the stack to differentiate our platform and enable perhaps the most important technological revolution of our lifetime.

Mike Entrader: We look forward to updating you on our progress next quarter.

Speaker Change: Thank you we look forward to updating you on our progress next quarter.

Speaker Change: Okay.

Speaker Change: Okay.

Operator: This concludes the conference call today. Thank you for joining. You may now disconnect.

Speaker Change: This concludes the conference call today. Thank you for joining you may now disconnect.

Operator: We are back in the sub-conference.

Speaker Change: We are back at the conference.

Speaker Change: Yeah.