Anthropic Q3 Revenue Rises 45% YoY to USD 16.8 Billion, as AI Firms Face Profitability Test
IT DAILY ·
✦ AI Summary
Reuters reported that Anthropic's third-quarter revenue was USD 16.8 billion.
That was about 45% higher than the previous quarter's revenue of USD 11.6 billion.
According to attendees at the briefing, Anthropic said it achieved an adjusted profit in the third quarter.
Reuters reported on the 14th, citing attendees at Anthropic's pre-IPO investor briefing in San Francisco, that Anthropic's third-quarter revenue was USD 16.8 billion, or about KRW 22.6 trillion. That was about a 45% increase from the previous quarter's revenue of USD 11.6 billion, or KRW 15.6 trillion.
According to attendees at the briefing, Anthropic said it achieved an adjusted profit in the third quarter. Attention is focused on whether the IPO-bound Anthropic can prove both growth and profitability.
However, AI services have the characteristic of incurring model inference costs as usage and revenue increase. As a result, it is also noted that revenue growth alone is not enough to judge the sustainability of the business.
The basis for judging business sustainability is the size of residual profit left after paying computing costs out of revenue secured through customer growth, and whether that residual profit can cover R&D and personnel expenses.
According to the Reuters report, an 'adjusted profit' cannot be viewed as the same as an operating profit in the generally accepted accounting principles or as a net profit. Profitability assessments can vary depending on which cost items are excluded in the adjustment process, and interpretations of profitability can also differ depending on whether excluded costs are one-time or recurring. Cost burdens are also continuing.
Anthropic recorded about USD 4.6 billion in revenue last year, but its operating loss last year exceeded USD 8 billion, or about KRW 10.8 trillion. In addition, it has set aside at least USD 518 billion, or about KRW 699.5 trillion, in commitments for cloud, computing, and infrastructure spending over the next 10 years. However, not all of those long-term commitments will be incurred as expenses immediately.
Even so, the execution of those spending commitments is drawing attention because it will need to be supported by future revenue and cash generation. Accordingly, the key points to check are whether the computing resources secured in preparation for rising demand are actually converted into paid usage, and whether service pricing and operating efficiency can keep pace with rising costs.
The IPO is expected to provide an opportunity for the company's financial structure to be examined more closely from the outside. According to Reuters, the possible timing of Anthropic's listing was indicated as after the U.S. midterm elections in November.
Still, it is too early to generalize Anthropic's case as an improvement in profitability across AI companies overall. This is because customer mix, service pricing, model development costs, and computing contracts differ from company to company. To assess sustainable earnings, it is necessary to look at the difference between pre-adjustment and post-adjustment profit and loss, gross margin that reflects computing costs, operating cash flow, and the payment schedule for long-term infrastructure commitments as improvement indicators. Whether rapid growth can translate into sustainable earnings should be judged by concurrent improvement in these related metrics.
Source: IT DAILY · Lee Jae-young
Original: https://www.itdaily.kr/news/articleView.html?idxno=242203
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Source: IT DAILY
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