Northern Data (NB2) H1 2024 earnings summary

Executive summary

• Achieved significant growth in cloud revenue, driven by deployment of over 12,000 NVIDIA H100 GPUs and onboarding of new customers to the H100 ecosystem in H1 2024.

• Expanded infrastructure with new mining sites in Paraguay and Texas, broke ground on a Pittsburgh data center, and launched a 100% renewable energy mining partnership in Paraguay.

• Completed FY'22 and FY'23 audits, closed the Damoon transaction, and strengthened governance and transparency.

• Selected as a partner for NVIDIA Blackwell and Grace Blackwell, and launched the AI Accelerator to support generative AI startups.

• Strategic investments in data centers and mining facilities supported growth, with significant expansion in GPU infrastructure and new site launches.

Financial highlights

• Q2 2024 revenue reached EUR 26 million, up 22% year-over-year but slightly down sequentially; H1 2024 revenue totaled EUR 55 million, up 49% year-over-year.

• Cloud services revenue rose 56% quarter-over-quarter and 236% year-over-year, reaching EUR 12 million in Q2.

• Mining revenue declined from EUR 22 million in Q1 to EUR 14 million in Q2, mainly due to the Bitcoin halving.

• Achieved break-even adjusted EBITDA for H1 2024.

• On track for FY 2024 revenue target of EUR 200–240 million and adjusted EBITDA of EUR 50–80 million.

Outlook and guidance

• Q3 revenue expected to increase, driven by new cloud and mining capacity; positive adjusted EBITDA anticipated.

• Full-year 2024 guidance: EUR 200–240 million in revenue and EUR 50–80 million in adjusted EBITDA.

• Q4 projected as the strongest quarter, with over EUR 120 million in revenue and full deployment of 20,000 NVIDIA H100 GPUs.

• 2025 guidance: EUR 520–570 million in revenue and EUR 300–350 million in adjusted EBITDA, with high-margin cloud revenue expected to dominate.

• H2 2024 priorities include completion of H100 deployment, H200 acquisition, and upgrades to Pittsburgh and Sweden data centers.