Investing.com -- Nebius Group N.V. (NASDAQ:NBIS), a leading AI infrastructure company, reported a 385% YoY increase in revenue for the first quarter of 2025, despite falling short of analyst expectations. The company’s stock surged 7.8% following the announcement.
Nebius Group’s revenue for Q1 2025 reached $55.3 million, up from $11.4 million in the same quarter last year, but slightly below the consensus estimate of $57.7 million. The significant growth was primarily driven by the company’s core AI infrastructure business.
The company’s adjusted EBITDA loss narrowed to $62.6 million, a 12% improvement from the $70.9 million loss reported in Q1 2024. However, net loss from continuing operations widened to $113.6 million, compared to $80.5 million in the prior-year quarter.
Arkady Volozh, founder and CEO of Nebius Group, commented on the results in the company’s inaugural quarterly shareholder letter: "Our strong revenue growth demonstrates the increasing demand for our AI infrastructure solutions. We’re focused on scaling our operations while improving efficiency to drive long-term value for our shareholders."
Operating expenses as a percentage of revenue decreased significantly, from 827% in Q1 2024 to 334% in Q1 2025, indicating improved operational efficiency. The company’s cash used in operating activities increased to $197.8 million, up from $69.8 million in the same period last year.
In a separate announcement, Nebius Group revealed a strategic investment in its AI data solutions business, Toloka, led by Bezos Expeditions with participation from Shopify (NASDAQ:SHOP)’s CTO, Mikhail Parakhin. This investment is expected to accelerate Toloka’s growth and enhance its strategic focus in the rapidly expanding AI data solutions market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.