Anthropic · Fortune Technology
Anthropic’s third quarter results mean IPO math and history are not on its side, analysts say
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Anthropic’s IPO is looking like an increasingly expensive and risky bet after the company released third quarter financial results yesterday that showed its rate of revenue growth slowing and its expenses climbing at a faster pace compared to prior quarters.
Key facts
- Against the roughly $35.3 billion in revenue Anthropic booked over the past four quarters, a valuation range of $1.5 trillion to $2 trillion, would mean investors paying between $43 and $57 for every
- In the third quarter, Anthropic’s revenue rose nearly 47% from the previous quarter, while compute and infrastructure expenses climbed about 77% to $9.9 billion
- Each company had at least $100 million in revenue over the 12 months before listing, adjusted for inflation to 2025 dollars
- To justify a valuation north of $1.4 trillion, Anthropic needs a path toward annual after-tax profits of at least $100 billion, Ritter told Fortune
Summary
Even that may be too pricey, according to analysts. Against the roughly $35.3 billion in revenue Anthropic booked over the past four quarters, a valuation range of $1.5 trillion to $2 trillion, would mean investors paying between $43 and $57 for every dollar of sales the company generated in the past 12 months. To justify a valuation north of $1.4 trillion, Anthropic needs a path toward annual after-tax profits of at least $100 billion, Ritter told Fortune. In the third quarter, Anthropic’s revenue rose nearly 47% from the previous quarter, while compute and infrastructure expenses climbed about 77% to $9.9 billion.