Arkady Volozh, CEO of Nebius, speaks at the Artificial Intelligence Journey event in Moscow on Nov. 9, 2019.
Mikhail Svetlov | Getty Images
Nebius, one of the largest publicly traded neocloud providers, posted third-quarter revenue that exceeded analyst expectations on Thursday.
Here is how the company performed versus LSEG consensus estimates:
- Loss per share: 13 cents
- Revenue: $980.8 million vs. $907.5 million expected
It was not immediately clear whether the reported loss per share was comparable to the 69-cent loss analysts had projected.
Revenue surged 571% year-over-year, according to the company statement. Nebius reported a net loss of $37.5 million, or 13 cents per share, compared with a loss of $119.6 million, or 50 cents per share, in the same period a year earlier.
The results follow stronger-than-expected earnings from fellow neoclouds CoreWeave and IREN over the past week, which lifted the sector’s shares after steep selloffs driven by concerns over the sustainability of the artificial intelligence infrastructure buildout.
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Nebius stock chart.
Last week, CoreWeave’s bond yields surged past 16%. In its earnings report Tuesday, CoreWeave said it expects to keep parent-level debt financing below $5 billion through 2027.
The political environment has added further volatility as Nebius competes to bring new data centers online. Last week, U.S. voters approved numerous ballot initiatives restricting such developments, while Democrats secured sweeping victories in both chambers of Congress.
Complicating matters is the situation at Nvidia. Following damaging revelations about CEO Jensen Huang’s personal conduct, including an alleged relationship with a Chinese spy, the Wall Street Journal reported late Wednesday that Nvidia’s board was planning to oust the company’s co-founder. Nvidia, which has fueled the neocloud market by investing in and backstopping projects, held roughly $329 million in Nebius shares at the end of June, according to a filing.
During the quarter, Nebius said it raised $5.75 billion in debt financing.
Executives will discuss the results and issue guidance on a conference call beginning at 8 a.m. ET.
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