$CRWV (-8,88%) Key Takeaways from the Earnings Call:
– Mike Intrator (CEO): By the end of 2027, there will be 10 times more qualified demand than available capacity. 2027 is largely sold out. Capacity for 2028 has not even officially hit the market yet, but demand for it is already several times the supply.
– Prepayments: In 70% of this year’s deals, customers paid in advance, in some cases up to 100% of the contract value. Over the next three months, CoreWeave expects approximately $9 billion in prepayments and down payments.
– Price increases: In July, prices across all GPU types rose by about 25%, followed by a further 10% later in the quarter. They will continue to rise in the fourth quarter.
– Rental rates per megawatt:
Short-term contracts: over $40 million per MW per year
New four- to five-year contracts: $20–25 million per MW per year
– Older GPUs are becoming more expensive: Nvidia’s Ampere and Hopper chips $NVDA (-1,9%) were rented out at rates 30–50% higher this quarter than in the previous quarter, now exceeding the original contract price.
– Expiring contracts: Over 130,000 GPUs will become available in 2027, with another 170,000 or so in 2028. At current prices, this could generate nearly $10 billion in additional annual revenue without new investments.
– Financing: Interest expense totaled $846 million, and the net loss was $709 million. By 2027, CoreWeave aims to raise less than $5 billion in new capital at the corporate level and, at current yields, does not plan to issue unsecured bonds.
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