Northern Data (NB2) Q3 2024 earnings summary

Executive summary

• Q3 2024 group revenue reached €59M, up 235% year-over-year, with adjusted EBITDA of €25M, reflecting strong operational execution and customer onboarding.

• Cloud revenue now represents 80% of group revenue, marking a significant shift from mining dominance in 2023.

• Over 19,000 NVIDIA H100 GPUs delivered and deployed, with H200 GPU rollout and key customer onboarding ongoing.

• Strategic partnerships with NVIDIA, Supermicro, and others, plus a €214M capital raise in July 2024, have strengthened market position.

• The company leverages advanced hardware, purpose-built data centers, and renewable energy systems to meet growing AI and HPC market demands.

Financial highlights

• Q3 cloud revenue increased 296% sequentially to €48M, now 80% of group revenue.

• Q3 2024 revenue: €59M, up 235% year-over-year; adjusted EBITDA: €25M.

• Year-to-date capital spend reached €970M, mainly on GPU infrastructure.

• Year-end cash position expected between €100M–€200M, supported by capital raises and operational cash flow.

• Asset sales, including A100 GPUs, expected to generate €20M–€30M in Q4.

Outlook and guidance

• Full-year 2024 revenue guidance reaffirmed at €200M–€240M, with adjusted EBITDA of €50M–€80M.

• 2025 guidance: €520M–€570M revenue and €300M–€350M adjusted EBITDA, with 80% from AI Cloud.

• Cloud business margins expected to rise toward 70% as scale increases; group adjusted EBITDA margin guidance for 2025 is 55%–60%.

• Mining revenue in Q4 projected at €15M–€20M, with improved uptime and profitability.

• Strategic focus on rapid GPU deployment, data center expansion, and investments in technology, infrastructure, and talent.