Nebius Group’s stock plummeted over 9% following its Q4 and full-year financial results, which revealed significant net losses despite substantial revenue growth.
The company reported $37.9 million in revenue for the fourth quarter of 2024, a 466% increase year-over-year, primarily driven by a surge in its AI infrastructure business. However, it also 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 growth, Nebius reported an adjusted EBITDA loss of $266.4 million and a net loss from continuing operations of $396.9 million.
The company’s underwhelming ARR results and significant financial losses raised investor concerns about its path to profitability. Heavy capital spending of $417.6 million and $808.1 million for the year also deepened doubts about its financial stability.
Nebius is optimistic about long-term growth, including a projected ARR of $750 million to $1 billion by December 2025. However, its current financial challenges and unfulfilled projections led to the stock’s decline.
Source: https://www.benzinga.com/trading-ideas/movers/25/02/43867034/nebius-group-reports-losses-despite-surge-in-revenue