Recently, Nebius (NBIS, Financial) entered into a strategic collaboration with Weka to offer an innovative GPU-as-a-Service solution. This partnership merges Weka's cutting-edge data storage capabilities with Nebius' comprehensive AI cloud platform. The integration allows users to seamlessly scale computational and storage resources, facilitating high-performance AI model training and precise AI inference with minimal latency. This solution is designed to meet the growing demands for efficient AI processing by providing ultra-fast performance and enabling users to optimize resources as needed.
NBIS Key Business Developments
Release Date: May 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Nebius Group NV (NBIS, Financial) reported a nearly 400% year-over-year revenue growth and a 700% increase in annualized run rate revenue, indicating strong demand for AI compute.
- The company ended the quarter with a solid cash balance of $1.4 billion, allowing continued investment in infrastructure.
- Nebius Group NV (NBIS) expanded its global footprint by adding three new locations, enhancing its capacity to serve customers worldwide.
- The company announced new partnerships with Nvidia and Metalamma, strengthening its AI cloud offering.
- Nebius Group NV (NBIS) received industry recognition, being ranked in the golden tier of the GPU cloud cluster marks rating system by semi-analysis.
Negative Points
- Despite strong revenue growth, Nebius Group NV (NBIS) expects adjusted EBITDA to be negative for the full year, with plans to turn positive in the second half of 2025.
- The company increased its CapEx guidance to approximately $2 billion for 2025, up from the previous $1.5 billion, due to delayed spending and additional investments.
- Nebius Group NV (NBIS) faces challenges in maintaining profitability, with medium-term EBITDA margins expected to range between 20% to 30%.
- The company is heavily reliant on its partnerships and external funding sources, which could pose risks if these relationships change.
- Nebius Group NV (NBIS) is in active discussions with potential strategic partners for its autonomous vehicle platform, indicating a need for additional capital and support to drive growth.
