CoreWeave, Inc. (Ticker: CRWV) experienced a decline in its stock price following the release of mixed fourth-quarter financial results. The primary factor behind the drop was a disappointing performance outlook. Revenue for the quarter reached $2.08 billion, surpassing expectations of $1.97 billion and marking a 112% increase compared to the same period last year.
However, the company's adjusted operating profit was $21 million, falling short of Wall Street's forecast of $24 million and significantly lower than the $163 million reported in the prior-year period.
In the first quarter, combined depreciation and interest expenses accounted for 81% of CoreWeave's total revenue, up from 77% in the fourth quarter.
The company's stock showed volatility immediately after the earnings release. Subsequently, during the earnings conference call, CoreWeave provided a weaker-than-expected performance guidance, projecting second-quarter revenue between $2.45 billion and $2.6 billion and adjusted operating profit in the range of $30 million to $90 million. This announcement led to a sharp decline in the stock price.
In pre-market trading on Friday, the company's shares fell by 6.4%. Prior to this, as of Thursday's close, the stock had recorded an 80% year-to-date gain.
Comments