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

Earnings DecryptTuesday, May 20, 2025 11:48 am ET
2min read
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.

NBIS Total Revenue YoY, Total Revenue


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.