There is a plausible scenario in which Elon Musk's ******* eX (SPCX) reaches its ambitious goal of $100 billion in annual recurring revenue (ARR) by year-end.
SpaceX reiterated its goal of reaching $100 billion in ARR by year-end, a target that may not be as insane as it appeared on the company's earnings call transcript last week.
"As a baseline, 2Q's [ARR] run-rate was just $31 billion, meaning management is aiming to more than triple that in just six months. We see this target as likely very achievable, driven mainly by neocloud and Cursor contribution," Deutsche Bank ******* yst and ******* eX bull Edison Yu said in a note on Monday.
"Neocloud carrying the largest load In 2Q, neocloud revenue was $1.6b billion, all coming from Anthropic (ANTH.PVT); this deal alone should ramp up to $3.75 billion in 3Q in quarterly revenue," Yu explained. "In addition, the Google (GOOG, GOOGL) agreement is set to ramp up next month and hit full $920m/month rate beginning in Oct. Then most recently, ******* eX signed a $6.7bn over six month deal which we suspect could possibly be with the US government. And lastly, we expect one more large neocloud deal to get potentially signed before year-end considering industry compute supply/demand dynamics. Putting it all together, this could generate $45- 50bn of ARR exiting December."
Here's how Yu estimates this number will be reached:
#revenue #deal
SpaceX reiterated its goal of reaching $100 billion in ARR by year-end, a target that may not be as insane as it appeared on the company's earnings call transcript last week.
"As a baseline, 2Q's [ARR] run-rate was just $31 billion, meaning management is aiming to more than triple that in just six months. We see this target as likely very achievable, driven mainly by neocloud and Cursor contribution," Deutsche Bank ******* yst and ******* eX bull Edison Yu said in a note on Monday.
"Neocloud carrying the largest load In 2Q, neocloud revenue was $1.6b billion, all coming from Anthropic (ANTH.PVT); this deal alone should ramp up to $3.75 billion in 3Q in quarterly revenue," Yu explained. "In addition, the Google (GOOG, GOOGL) agreement is set to ramp up next month and hit full $920m/month rate beginning in Oct. Then most recently, ******* eX signed a $6.7bn over six month deal which we suspect could possibly be with the US government. And lastly, we expect one more large neocloud deal to get potentially signed before year-end considering industry compute supply/demand dynamics. Putting it all together, this could generate $45- 50bn of ARR exiting December."
Here's how Yu estimates this number will be reached:
#revenue #deal
2 months ago
