Neocloud firm IREN tops quarterly revenue estimates, shares jump

On November 5, IREN, a Neocloud firm, surpassed quarterly revenue estimates thanks to robust growth in its AI cloud business. The company's shares surged over 9 percent in extended trading. AI cloud revenue for Q1 grew to $200 million, a significant increase from $71 million in the previous quarter. IREN's target of $4 billion in annualized run-rate revenue is now fully contracted and funded, with operational capacity expected by the end of January, later than the initial year-end target.

The company's assets and revenue are backed by contracts with Nvidia, Microsoft, and 13 other customers. Roughly two-thirds of the revenue backlog is tied to investment-grade counterparties. Total revenue for the quarter ended September 30 reached $228 million, outperforming analysts' average estimate of $221.28 million.