Nebius Group N.V. announces fourth quarter and full-year 2024 financial results Nebius B.V., Gustav Mahlerlaan 300, 1082 ME Amsterdam Amsterdam, February 20, 2025 – Nebius Group N.V. (“Nebius Group”, the “Group” or the “Company”; NASDAQ: NBIS),(1) a leading AI infrastructure company, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2024. • In Q4 2024, the Group’s revenue of $37.9 million increased 466% year over year, driven primarily by the core AI infrastructure business, which grew 602% year over year. Adjusted EBITDA loss in Q4 2024 was $75.5 million and net loss from continuing operations was $136.6 million. • For the full year 2024, the Group’s revenue of $117.5 million increased 462% year-over-year. Cash and cash equivalents as of December 31, 2024, stood at $2,449.6 million on a consolidated basis. Full year 2024 adjusted EBITDA loss was $266.4 million and net loss from continuing operations was $396.9 million.
Quarter over quarter they were down -12.47%
Year over year they were up +466%
Very young company in the booming AI infrastructure and services space.
I have a small position and plan to keep it at least for another quarter to see how they progress.
Frankly, I think the earning report was terrible. Revenue decreased QoQ from $43.3 to $37.9, and they missed their own ending ARR guidance. However, it seems that the market has completely ignored the terrible Q4 results, probably because Nebius reiterated their strong 2025 guidance.
Based on the contracts already in place, March analyzed run rate revenue will be at least $220 million, and we have more potential contracts in the pipeline. Given this momentum, as well as the anticipated impact of additional data center capacity that we’re building as well as next-generation Blackwell’s GPU coming online later this year, our projected December, 2025 analyzed run rate revenue of $750 million to $1 billion is well within reach. (Me here: $220 million will be 144% QoQ growth from $90 million ARR at end of Q4.)
That being said, would you be wiling to trust their guidance while they just missed their own guidance in the very first quarterly report as a new born public company? I’m not sure whether I will, but it’s possible that the company is just at too early stage to be able to predict well enough.
Here’s the management’s explanation of the miss in Q4:
December 2024 ARR for Nebius was $90 million, below previous
guidance. This was primarily due to longer lead times for customer
acquisition, while the Company was in the process of building out its sales and marketing teams and also migrating customers over to its new AIcloud platform.
Nevertheless, I believe the GPU-AAS Neo-clouds market is a huge growing market and will be one of the most successful markets in the next few years. Nebius has its unique strength to win market shares. So I will hold my 6% position in NBIS and give it one more quarter to prove itself.
I was surprised to see the autonomous driving section of the press release. Seems like they are making significant progress (first company to receive nationwide permission in Korea!). Has anyone looked at this segment in more detail?
Avride
In Q4, Avride finalized its partnership with Grubhub to deploy robot delivery on U.S. college campuses. The deployment began at Ohio State University, one of the biggest U.S. university campuses looking to enhance performance and reliability of deliveries, with close to 100 robots operating as of January 2025.
In Q4, Avride piloted services under existing strategic partnerships with Uber, launching Uber Eats delivery with Avride’s new generation of robots in downtown Austin and Dallas.
In December 2024, Avride’s delivery robots received certification in Japan, positioning the company to explore opportunities in this dynamic autonomous market. As of Q4, Avride also has a footprint in South Korea, where it became the first company to receive nationwide permission to test autonomous cars on public roads.
During the quarter, Avride continued testing the new generation of its autonomous vehicles on public roads, maintaining an excellent safety record with zero serious incidents per total mileage driven.
Yes, I agree with you. I was not too concerned by the revenue miss in this quarter. The most important thing in their CC was that they reaffirmed the ARR of 750m- 1B. This is huge.
They still have almost 2.5B in cash and cash equivalents, so the fact that they are losing a lot in EBITDA is not concerning. This is a new company in hypergrowth mode. It will be volatile, as we saw yesterday. But I think that they have a very bright future ahead. I think that AV ride itself has the potential to be a massive growth area for them. I think their food delivery robots, and the autonomous vehicles in South Korea, are a huge growth area. As is their AI business.
Its my number 3 holding. Im happy to keep holding.
Jonathan
PS. Edit… The revenue “miss” was explained as a timing issue, so it’s more a delay than a miss.
The CEO is a serial entrepreneur who founded a $30B public company in Russia and ran it for 25 years. It was essentially the Google of Russia.
He’s regarded as one of the most successful innovators in Russia— which is why he was sanctioned ( then cut all ties with Russia, even condemning Russia’s actions in Ukraine. )
After divesting from Russia he started NBIS— essentially starting over and building yet another business that touches the next generation of global innovation— Winning leadership generally continues to win— this is a part of my thesis, and I think NBIS is doing that. 600% annual growth and key partnerships with NVDA, UBER, etc.