Core Scientific Posts $233M Q3 Revenue as Colocation Hits $215M

Miami-based Core Scientific, Inc. said Thursday that third-quarter revenue rose to $232.9 million from $81.1 million a year earlier and $164.2 million in the prior quarter, as high-density colocation revenue climbed nearly 60% sequentially to $215.4 million.

Colocation accounted for most of the total. Digital asset self-mining revenue was $12.3 million and hosted mining revenue was $5.2 million. The company said it was billing for 485 megawatts of capacity as of Sept. 30, up from 395 megawatts at the end of June, representing more than $700 million in average annualized colocation revenue under generally accepted accounting principles.

Profit, cash and spending

Gross profit was $123.3 million. Net income was $1.18 billion, or 47 cents a diluted share, compared with a net loss of $144.0 million a year earlier. The company said the swing was driven primarily by a non-cash gain from the change in the fair value of warrants. Adjusted EBITDA, a non-GAAP measure Core Scientific emphasizes, more than tripled sequentially to $133.6 million, or a 57% margin, from $41.1 million in the second quarter.

Capital expenditures were $985.1 million in the quarter. Liquidity and debt-service reserve accounts totaled about $1.74 billion as of Sept. 30, including cash, digital assets, revolver availability and restricted cash. Chief Executive Officer Adam Sullivan said the company is nearing full delivery under its first colocation agreement while construction under a second is underway across five campuses.

Outlook comments

On the earnings call, management said it expects a double-digit sequential increase in fourth-quarter revenue as more capacity moves into billing, according to a Motley Fool transcript that matched the release’s headline figures. Core Scientific shares trade on the Nasdaq Global Select Market under the ticker CORZ.

Sources: Core Scientific Investor Relations, The Motley Fool