Nebius Group N.V. Q1 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Q1 2025 Financial Performance Highlights

  • Revenue grew nearly 400% year-over-year, reflecting surging demand for AI compute.
  • Annualized run-rate revenue (ARR) increased nearly 700% year-over-year.
  • April ARR reached $310 million, showing strong momentum heading into Q2.
  • Cash balance ended Q1 at $1.4 billion.
  • CapEx for 2025 raised to approximately $2 billion (up from prior $1.5 billion guidance), driven by timing shifts and opportunistic expansion (including a new Israel data center).
  • Adjusted EBITDA remains negative, but the company expects to turn positive in the second half of 2025; the core infrastructure business is expected to reach positive adjusted EBITDA in Q3.
  • Full-year ARR guidance of $750 million to $1 billion reaffirmed.
  • Full-year revenue guidance maintained at $500 million to $700 million.

Strategic & Operational Highlights

  • Strong demand for high-performance GPU infrastructure, particularly from AI-native companies in the U.S.
  • Rapid expansion of data center capacity across the U.S., Europe, and the Middle East.
  • New data center locations added: New Jersey, Kansas City, Iceland, Finland, and planned expansion into Israel.
  • Partnerships strengthened with NVIDIA, Meta (Llama), VAST, WEKA, DDN, Metaflow, SkyPilot, and others.

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Neil Doshi: [Audio Gap] CEO and members of the management team. Our remarks today will include forward-looking statements, which are based on assumptions as of today. Actual results may differ materially as a result of various factors, including those set forth in today's earnings press release and in our annual report on Form 20-F filed with the SEC. We undertake no obligation to update any forward-looking statement. During the call, we will present both GAAP and certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release. The earnings press release and accompanying shareholder letter and an investor presentation on our website at group.nebius.com/investor-hub. We ask that you enter your questions into the webcast portal, and we will be reviewing and consolidating the questions for Q&A. And now I'd like to turn the call over to Arkady and the team, who will go over a few slides that we've presented for this investor presentation. Arkady Volozh: Yes. Thanks. Thanks, Neil. Thank you, everyone, for joining our Q1 2025 results call. I will start with saying that demand for AI compute was very strong in first quarter. And actually, our results show it. Our revenue grew nearly 400% year-over-year, and our annualized run rate revenue grew nearly 700%. We saw great momentum in our core infrastructure business. We ended the quarter with a solid cash balance of $1.4 billion and we actually continue to invest in our i

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