Anthropic held a private investor day recently.
Anthropic held a private investor day recently.
Investors are anxiously awaiting the filing of the registration statement by the frontier artificial intelligence model company Anthropic ahead of a suspected initial public offering that could value the company at $2 trillion.
While that statement remains in limbo (as of Oct. 16), the company reportedly hosted a private investor day recently, with management telling investors it generated $16.8 billion in revenue for the three months ending Sept. 30, according to The Financial Times, which cited anonymous sources.
This represents quarter-over-quarter revenue growth of 50%. The company also reportedly said it was cash flow positive in the recent quarter and profitable on an adjusted basis.
While an AI company reporting these numbers on the eve of its IPO would typically be well received, here's why that may not help Anthropic before its IPO.
Growth slowed in the recent quarter
Anthropic's 50% growth from the prior quarter actually slowed from the quarterly growth Anthropic posted between the first and second quarters of the year, when the company reportedly posted 140% growth. Furthermore, the $16.8 billion in revenue suggests a slower run rate than some investors had expected.
According to MarketWatch, Jefferies analyst Jeffrey Favuzza wrote in a recent research note that the market had been expecting an annual revenue run rate of at least $80 billion, with hopes that the company would reach $105 billion by the end of 2026.
On the plus side, the company is growing revenue fast, while generating positive cash flow and an adjusted profit, although understanding what's being adjusted will be key.
Additionally, Bloomberg Tech Anchor Ed Ludlow wrote on social media site X that the company told investors it had 85% gross margins on a GAAP basis, which would be a big deal if true. Even Nvidia's gross margins have only been in the mid-70s percentile recently.
Averytin News Financial update.