Core Scientific Q2 revenue eases past estimates on colocation growth

Overview

• US digital infrastructure provider's Q2 revenue more than doubled yr/yr, beating analyst expectations

• Company posted a large net loss, mainly due to non-cash warrant revaluation

Outlook

• Company did not provide specific guidance for the current quarter or full year in the press release

Result Drivers

• COLOCATION EXPANSION - Q2 results driven by rapid growth in high-density colocation services, with colocation revenue rising to $136.7 mln and leased customer power capacity reaching 1.1 GW

• AMD PARTNERSHIP - New long-term partnership with AMD anchored by 15-year agreements for 530 MW across five sites, supporting up to 2.5 GW of leasable capacity

• IMPROVED MARGINS - Gross margin rose to 43% from 6% a year earlier, reflecting scaling of colocation operations

Company press release: ID:nBw2hR3NWa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the blockchain cryptocurrency peer group is "buy"

• Wall Street's median 12-month price target for Core Scientific Inc is $30.00, about 44.6% above its July 27 closing price of $20.74

Reuters Recommended Reads

• July 28 - Core Scientific signs AI infrastructure deal with AMD

• July 27 - Applied Digital beats quarterly revenue estimates on surging AI infrastructure demand

• July 28 - Meta, BlackRock partner on $14 billion El Paso data center

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)