Nebius Revenue and Financial Highlights
Revenue Growth and Cash Flow
Nebius revenue grew by a staggering 454% in the latest quarter, reaching $582.3 million. This significant increase is primarily attributed to customer prepayments, with most of the cash coming from advanced payments for computing services.
Financial Summary
- Cash Position: Nebius generated $2.2 billion in cash from operations during the quarter, but also incurred a loss of $190.4 million. The difference highlights the distinction between cash flow and profitability.
- Deferred Revenue: Approximately $1.2 billion of the cash is deferred revenue, representing prepayments for future services. This figure has surged from $1.6 billion at year-end to a substantial $6 billion.
- Customer Prepayments: The company anticipates receiving over $9 billion in customer prepayments this year and holds over $40 billion in customer commitments.
- Expenses: Spending on chips, equipment, and data centers reached $5.7 billion in the quarter, surpassing analyst expectations.
- Operating Loss: The operating loss widened to $175.9 million, compared to $111.2 million previously. However, adjusted EBITDA turned positive at $236.2 million.
- Long-term Debt: Long-term debt has doubled since December, reaching $8.5 billion.
Compute Pricing and Market Impact
A notable revelation from the earnings call is the price Nebius quotes for compute:
- Leases: Medium-term leases bring in $20 million to $25 million per megawatt annually, while short-term leases (up to six months) generate $40 million to $50 million.
- Market Timing: The timing of these disclosures aligns with Wall Street's efforts to establish a financing layer for compute, including Nvidia's $500 billion initiative with asset managers, aiming to provide a public reference price for GPU rental.