Talha Qureshi
2 min read
In This Article:
Nebius Group N.V. (NASDAQ:NBIS) reported results for the fiscal first quarter of 2025 on Tuesday and logged a 385% year-over-year increase in revenue which reached $55.3 million. This was primarily driven by an explosive growth in its core AI infrastructure business. At the end of Q1 2025, the annualized run-rate revenue (ARR) for its core infrastructure business reached $249 million, reflecting a 684% increase compared to the previous year.
Arkady Volozh, Founder and CEO of Nebius Group N.V. (NASDAQ:NBIS), noted that the company is witnessing continued growth in Q2, reflected by April 2025 ARR of $310 million. However, regardless of the growth, the Adjusted EBITDA was negative, with a loss of $62.6 million compared to a loss of $70.9 million a year ago.
Volozh, in his shareholder letter for Q1 2025, highlighted that the company is on track to achieve $750 million to $1 billion in ARR by the end of the year, and he expects the EBITDA to turn positive in the second half of 2025.
In addition, Nebius Group N.V. (NASDAQ:NBIS) has been expanding its global footprint to drive growth. Volozh noted that in just three quarters, the company has expanded from a single location in Finland to five locations across Europe, the United States, and the Middle East.
Previously, on May 19, DA Davidson analyst Alexander Platt raised his price target on the stock from $35 to $45, while maintaining a Buy rating. Platt noted the company’s regional expansion strategy to be one of the factors behind his rating upgrade.
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