Anthropic Wants a $2T IPO on Cooling Growth
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Anthropic is eager to go public. The Claude maker presented its Q3 financials to prospective investors at its San Francisco headquarters, in an effort to target a go-public valuation of up to $2 trillion.
Third-quarter revenue landed at $16.8 billion, reports Bloomberg, citing people who attended. The company is generating positive free cash flow, with an 85% gross margin and an "over 11% positive adjusted operating margin."
After-hours markets did not respond well to those numbers. On Hyperliquid, under the ticker ANTH-USD, prices dropped sharply around the time of the release. The reaction was no better in traditional after-hours trading. CoreWeave (CRWV) continued to fall after dropping 15% during regular trading, as did Micron (MU), Amazon (AMZN), Nvidia (NVDA), and others. CoreWeave appears to be righting the ship, as its up about 4% intraday on Wednesday.
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Wall Street was clearly less enthusiastic than CEO Dario Amodei and the rest of his team hoped. From Q1 to Q2, Anthropic's quarterly revenue rose from $4.73 billion to $11.6 billion, a sequential increase of about 145%. Q3 revenue reached $16.8 billion — an impressive figure, but "only" 45% growth quarter over quarter. The company is still growing, with an expected run rate of $65 billion that could be even higher by year's end, if revenue continues to grow.
That's a big if, especially after Ramp released its latest "Cracks in the AI Thesis" report on Wednesday. The report found that AI spending is "stuttering" among the "top 1% of enterprise firms." According to Ramp's previous reporting, "80% of spend on OpenAI and Anthropic is driven by 1% of firms." Token volume is paradoxically up, as is AI spending in October, but token prices overall are hitting record lows.
With compute costs remaining high, Anthropic's revenue is plateauing. That's hardly what investors want to see before a public offering at a desired valuation higher than Meta's.