What are the key takeaways from NBIS's 2023 earnings reports?

Nebius Group N.V. (NBIS) reported its fourth-quarter (Q4) and full-year 2024 financial results on February 20, 2025. Here are the key takeaways from its 2024 earnings reports:

1. **Revenue Growth**: NBIS's revenue for Q4 2024 was $37.9 million, a 466% increase year-over-year, driven primarily by the core AI infrastructure business, which grew 602% year over year. For the full year 2024, the Group’s revenue of $117.5 million increased 462% year-over-year.
2. **Financial Performance**: The company reported an adjusted EBITDA loss of $75.5 million and a net loss from continuing operations of $136.6 million for Q4 2024. For the full year 2024, the adjusted EBITDA loss was $266.4 million, and the net loss from continuing operations was $396.9 million.
3. **Capital Raise**: In December 2024, NBIS secured $700 million in equity financing from prominent investors, including NVIDIA, Accel, and Orbis Investment Management, to accelerate the rollout of its full-stack AI infrastructure. This funding supports the company's focus on advanced AI capabilities and enhanced liquidity.
4. **Strategic Growth Plans**: NBIS is positioning itself as a leader in the AI infrastructure market, with plans to significantly increase its annualized run rate. The company aims for an annualized run rate (ARR) of $220 million by March 2025, with a target of $750 million to $1 billion by December 2025. Despite these ambitious targets, the company faced longer lead times in closing deals and customer migration issues, which impacted its quarterly performance.
5. **Market Reaction**: The stock experienced a significant drop of over 9% following the release of its Q4 and full-year 2024 results, reflecting investor concerns over the company's immediate financial performance and future guidance.

In conclusion, NBIS has shown strong revenue growth, driven by its core AI infrastructure business. However, the company has yet to achieve profitability, as evidenced by the adjusted EBITDA losses and net losses reported in Q4 2024. The capital raise in December 2024 provides the company with the financial resources to pursue its strategic growth plans, but the success of these plans will depend on NBIS's ability to manage operational challenges and maintain customer momentum.