Core Viewpoint - Nebius Group N.V. (NBIS) has experienced significant stock performance, with shares rising over 60.7% year to date, contrasting with declines in the broader technology sector and the internet software industry [1] Financial Performance - Despite the year-to-date surge, NBIS shares have declined 3.8% since February 20, attributed to lower Annual Recurring Revenue (ARR) of 90millionintheDecemberquarterasthecompanyfocusedonsalesandmarketingteamdevelopmentandcustomertransitionstoanewAIplatform[2]−Revenuesforthereportedquarterreached37.9 million, marking a 466% year-over-year increase, driven by a 602% year-over-year growth in the core AI infrastructure business [3] - For the March quarter, the company anticipates an ARR of at least 220million,withfull−year2025ARRexpectedtorangebetween750 million and 1billion[3]LiquidityandFinancialHealth−Thecompanyhasastrongliquidityposition,havingraised700 million in a private placement with notable investors, including NVIDIA, Accel, and Orbis, in December 2024 [6] - At the end of the fourth quarter of 2024, NBIS reported 2.4billionincash,indicatingarobustbalancesheet[6]MarketPositionandOfferings−NebiusoffersanAI−centriccloudplatformdesignedforintensiveAIandmachinelearningworkloads,alongsideotherproductslikeToloka,TripleTen,andAvride[9]−ThecompanylauncheditsfirstU.S.NVIDIAGPUclusterinKansasCity,withaninitialcapacityof5MW,settogolivebytheendofthefirstquarterof2025[10]−AGPUclusterinParisfeaturingNVIDIAH200TensorCoreGPUsbeganoperationsinthereportedquarter,withplanstodeployover22,000NVIDIABlackwellGPUsintheU.S.andFinlandin2025[11]GrowthPotential−TheTotalAddressableMarket(TAM)forGPU−as−a−serviceandAIcloudisprojectedtogrowataCAGRofover35800 billion by 2030 [13] - Nebius' other three business segments have a combined TAM of approximately 150billion[13]EarningsEstimates−TheZacksConsensusEstimateforfirst−quarter2025lossissetat35centspershare,withrevenuesexpectedtodeclineby96.8877.5 million [14]
