Nebius Group Reports Losses Despite Surge In Revenue

Nebius Group N.V. NBIS shares fell over Thursday, hitting a low of $38.50 before rebounding past $48. Here’s what you need to know.

What To Know: The decline potentially follows the company's release of its fourth-quarter and full-year 2024 financial results, which, despite strong revenue growth, showed deep losses that appear to have shaken investor confidence.

In the fourth quarter of 2024, Nebius reported revenue of $37.9 million, a 466% increase year-over-year, largely driven by a 602% surge in its core AI infrastructure business. However, the company posted an adjusted EBITDA loss of $75.5 million and a net loss from continuing operations of $136.6 million.

For the full year, revenue reached $117.5 million, up 462% from 2023. Despite this, Nebius reported an adjusted EBITDA loss of $266.4 million and a net loss from continuing operations of $396.9 million. The company ended the year with $2.45 billion in cash and cash equivalents, aided by a $700 million equity raise in Q4 to support its AI expansion.

Nebius also fell short of its projected annual recurring revenue (ARR) for fourth quarter 2024, further dampening optimism. The company’s heavy capital spending — $417.6 million and $808.1 million for the year — only deepened concerns about its financial stability.

While Nebius is optimistic about long-term growth, including a projected ARR of $750 million to $1 billion by December 2025, its financial challenges and unfulfilled projections led to the stock's decline.

Price Action: Nebius shares were down 3.17% at $46.25 at the time of writing, according to Benzinga Pro.

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