Anthropic Just Released Updated Numbers Ahead of Its Nov. IPO. Revenue Growth Slowed Sharply.
Anthropic’s amended S-1 shows revenue still growing at a breakneck pace, but sequential growth fell from 144% in Q2 to about 47% in Q3. Is that an early sign its pricing power is slipping ahead of a possible $1.5 trillion IPO?
Anthropic, the creator of the AI model Claude, is set to make its much-anticipated public debut with an IPO that could be one of the most significant in history. The company is projected to be valued at around $1.5 trillion, although this figure is less than the $2 trillion that was initially discussed. To support this valuation, Anthropic needs to continue demonstrating the rapid growth highlighted in its recently filed S-1 prospectus with the SEC.
However, the company's latest amendment to the prospectus, which includes third-quarter figures, suggests that recent growth has slowed sharply. This is a cause for concern, especially considering that the company's revenue is now in the double-digit billions range. While a sequential growth rate of 144% in Q2 and 47% from Q2 to Q3 appears impressive, the fact that this growth rate has slowed substantially raises questions about whether Anthropic can sustain its earlier pace of expansion.
The company has cited capacity constraints, a summer slowdown in business activity, and discounts on new models and contractual discounts as potential factors contributing to the slowdown, though the exact impact of each remains unclear. While it is possible that these factors explain the deceleration in growth, there is also a possibility that Anthropic is beginning to lose its pricing power as businesses become less willing to pay for the latest AI models.
If this is the case, revenue growth could continue to decelerate or even reverse, posing a challenge for the company's IPO valuation.
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