Nebius Group (NBIS) Q3 2024 earnings summary

Executive summary

• Resumed trading on Nasdaq after divesting Russian business and regaining compliance, now focused on building a leading global AI infrastructure company.

• Core AI infrastructure business revenue grew 2.7x quarter-over-quarter and 6.5x year-over-year, now accounting for two-thirds of total revenue.

• Rapid expansion in data center capacity, with new facilities in Finland and Paris, and plans for the U.S. and Europe.

• Strong product development, including a cloud platform for AI and Nebius AI Studio for generative AI.

• Diversified business units (Toloka, Aviride, TripleTen) showing strong growth, strategic partnerships, and new product launches.

Financial highlights

• Q3 2024 revenue reached $43.3 million, up 1.7x sequentially and 766% year-over-year, with core AI infrastructure revenue up 2.7x quarter-over-quarter.

• Cash and cash equivalents at $2.3 billion as of September 30, 2024.

• Capital expenditures were $167.0 million for Q3 and $387.6 million for the first nine months of 2024, with Q4 CapEx expected to exceed this.

• Adjusted EBITDA loss improved to $(51.9) million in Q3 2024 from $(67.6) million in Q3 2023.

• Toloka revenue grew 4x year-over-year; TripleTen student enrollments tripled year-over-year.

Outlook and guidance

• 2025 ARR guidance of $500 million–$1 billion, with potential to exceed midpoint if no buyback is required.

• Capital expenditures in Q4 2024 are expected to exceed the total spent in the first nine months, supporting accelerated GPU procurement and data center expansion.

• Aggressive investment planned in data centers and GPU procurement, with more than 20,000 GPUs expected by year-end.

• Confident in securing next-gen NVIDIA GPUs (Blackwell) for 2025.

• Strategic review underway with Goldman Sachs to accelerate investments in core AI infrastructure.