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Nebius Group NV Q3 2024 Earnings Report
Nebius Group N.V. reported its unaudited financial results for the third quarter ended September 30, 2024, showing significant revenue growth driven by its AI infrastructure business.
Key Takeaways
Nebius Group N.V. announced strong Q3 2024 financial results, with total revenue increasing 1.7 times quarter-over-quarter to USD 43.3 million, primarily due to the rapid growth of its core AI infrastructure business. The company also reported a reduced net loss from continuing operations and a significant increase in cash and cash equivalents.
Total revenue for Q3 2024 reached USD 43.3 million, a 1.7x increase compared to the previous quarter.
The core AI infrastructure business grew 2.7 times quarter-over-quarter and 6.5 times year-over-year.
Cash and cash equivalents stood at USD 2,288.2 million as of September 30, 2024.
Net loss from continuing operations decreased by 46% year-over-year to USD 51.8 million.
Nebius Group NV
Nebius Group NV
Nebius Group NV Revenue by Segment
Revenue by Segment
AI Infrastructure Revenue
CapyFin.com Forward Guidance
Nebius Group anticipates accelerating investments in GPU procurement and data center capacity expansion in Q4 2024 to support business growth, with capital expenditures expected to exceed the amount spent in the first nine months of 2024.
Positive Outlook
- Accelerated investments in GPU procurement to support growth.
- Data center capacity expansion to meet increasing demand.
- Planned accommodation of up to 60,000 GPUs in Finland, with annual revenue potential of over USD 1 billion at full capacity.
- Introduction of Nebius AI Studio and specialized cloud platforms to capitalize on growth opportunities.
- Strategic partnership with Uber for autonomous delivery robots and vehicles.
Challenges Ahead
- Capital expenditures in Q4 2024 are expected to exceed the amount spent in the first nine months of 2024.
- The company's ability to successfully operate and develop its early-stage group following divestment of historical operations.
- Challenges in successfully obtaining required supplies of hardware on acceptable terms.
- Potential difficulties in obtaining further debt or equity financing necessary to achieve objectives.
- Ongoing risks and uncertainties related to the company's operations and market conditions.