Anthropic reports $16.8 billion Q3 revenue and targets $110 billion annualized
Anthropic disclosed $16.8 billion in Q3 revenue and expects $110 billion in annualized revenue by year-end. Analysts reacted mixed to the figures, with some calling the growth underwhelming relative to expectations.
Anthropic hosted institutional investors in San Francisco for a pre-IPO day, reporting $16.8 billion in Q3 revenue, a 45% increase from Q2. The company stated it is profitable on an adjusted basis with positive free cash flow, 85% adjusted gross margins, and 11% adjusted operating margins, excluding stock compensation, training costs, and revenue shares. Reuters reported Anthropic expects $110 billion in annualized revenue by year-end, implying a 57% growth spurt in Q4 compared to the $70 billion annualized run rate from Q3.
Analysts debated the performance. Abhi Desai of Krypton Research questioned why the market disliked $17 billion in quarterly revenue, asking, "Market doesn't like $17 billion in quarterly revenue from Anthropic at this stage? Seriously?" Geiger Capital called it a flop, contributing to after-hours tech stock selling. Anthropic plans a $2 trillion valuation IPO in coming months and can file with financial disclosures up to 134 days old, meaning Q3 numbers may be the latest public data. Speculation links the revenue forecast to the upcoming release of the Fable 5.5 model.