Nebius Group N.V. Q1 2025: Unraveling Key Contradictions in Revenue Growth, EBITDA, and AI Strategies

Revenue growth and timing, EBITDA turnaround, midterm revenue and margin expectations, impact of software pre-installation on revenue growth, and AI customer differentiation are the key contradictions discussed in Nebius Group N.V.'s latest 2025Q1 earnings call.



Revenue and Demand Growth:
- Nebius Group reported a 400% year-over-year increase in revenue and an annualized run rate revenue growth of nearly 700% for Q1 2025.
- The growth was driven by strong demand for AI compute, particularly in the core infrastructure business, and rapid global expansion.

Capacity and Infrastructure Development:
- Nebius ended the quarter with a solid cash balance of $1.4 billion and continued to invest in infrastructure.
- The company is rapidly building capacity and plans to launch three new locations, aiming to support global demand in the AI compute market.

Strategic Partnerships:
- Nebius announced partnerships with NVIDIA, including the launch of the NVIDIA Blackwell Ultra AI Factory Platform, and Meta Llama.
- These partnerships aim to strengthen Nebius's technology stack and expand its AI cloud capabilities.

Product Launches and Technological Advancements:
- Nebius launched over 50 products across AI Cloud and AI Studio in Q1, including Slurm-based cluster upgrades and enhancements to object storage.
- These efforts are focused on improving capacity availability, reducing downtime, and enhancing the efficiency of AI cloud services.