In the first quarter of 2025, Nebius sent a very strong message to the markets. The company's quarterly revenue increased by 385% compared to the same period last year, reaching $55.3 million. But the real eye-catcher was the annualized revenue (ARR) announced at the end of March. This figure was at $249 million and rose to $310 million just one month later, in April. In other words, we are talking about a 25% increase on a monthly basis. This clearly shows how aggressive the growth momentum is.

The company's Adjusted EBITDA loss was $62.6 million, which was better than the previous year. The loss per share was -0.39 dollars, below the market expectation of -0.45. In other words, although the financial results showed a loss, they were welcomed positively by investors because they were better than expected. In addition, the company's cash reserves are at $1.44 billion, which provides enough ammunition for growth.

The most striking aspect of Nebius is its core business, which provides AI-focused infrastructure solutions. This division now accounts for approximately 75% of the group’s total revenue. Three new data centers were commissioned in the first quarter: Iceland, Kansas City, and New Jersey (still under construction). The company aims to reach a total contracted data center capacity of 100 MW by the end of 2025.

In addition, the transition to NVIDIA’s next-generation Blackwell GPUs has begun. This will enable Nebius to make high-performance AI workloads more efficient and faster. More powerful GPU models will be integrated into the system in the second half of the year.

Nebius is making major strides not only on the hardware side, but also on the software side. The company’s AI Cloud platform was updated with more than 50 new features this quarter. Technical improvements such as improved Slurm orchestration, storage systems offering 10GB read speeds per second, and SDKs for Python and Go have increased the system’s scalability.

The platform called Nebius AI Studio has reached over 60,000 users. LLM fine-tuning can be done through this platform, inference APIs can be used, visual production can be done and integration can be provided with important platforms such as Hugging Face.

Nebius' strategic partnership with $NVDA is remarkable. The company now has the status of "Reference Platform Cloud Partner" and has become one of the first providers to use Blackwell Ultra AI systems. In this way, it strengthens its position in the sector. In addition, it cooperates with strong players such as DDN, VAST Data and WEKA on the data storage side.

Non-core business lines are not idle either. Toloka received investment under the leadership of Bezos Expeditions. Autonomous vehicle platform Avride is starting the robotaxi project with Hyundai. The first target is Dallas, and it is planned to be launched by the end of the year. In addition, Avride's robots are currently actively working in some US universities and Tokyo.

Another business line, TripleTen, operates in the field of educational technologies. This platform has doubled its revenue annually and is now opening up to the corporate market with a B2B business model.

Nebius's projected revenue range for the end of 2025 is $500 to $700 million. The expected annualized revenue from the AI ​​infrastructure is between $750 million and $1 billion. CapEx, or capital expenditures, is planned at $2 billion and, most importantly, EBITDA is expected to enter positive territory in the second half of the year.

The company's founder and CEO Arkady Volozh said in a statement, "We are maintaining strong growth momentum in May," and stated that in the medium term, the company aims to reach billions of dollars in annual revenues and achieve an operating profit of 20-30%.

$NBIS is an AI infrastructure company that is not yet profitable but is growing very quickly and supported by strong partnerships. It is in an ambitious position in this sector with its architecture that reduces GPU costs by 20%, data center investments and software ecosystem. Of course, high growth also means high risk. Therefore, it is important to examine these types of stocks in detail and understand the risks well before investing in them.

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