Nebius’s 355% Revenue Hike Misses Forecasts. This AI Deal Isn’t Enough to Lift the Stock.

Nebius posted lower-than-expected revenue and a narrower adjusted net loss in its third quarter. (Dreamstime)

Key Points

• Nebius secured a five-year agreement with Meta Platforms to provide AI infrastructure, valued at approximately $3 billion.
• Nebius reported third-quarter revenue of $146.1 million, a 355% increase year-over-year, but missed analyst expectations of $155.1 million.
• The company’s adjusted net loss decreased to $39.7 million from $100.4 million in the prior year period.

Nebius has become the latest artificial-intelligence infrastructure player to land a deal with a Mag 7 technology giant.

The Amsterdam-based company said Monday that it had signed a five-year agreement to deliver AI infrastructure to Meta Platforms, valued at roughly $3 billion.

Nebius also posted a nearly fourfold increase in revenue in its third quarter, but there was more to the print to digest. While the company reported revenue of $146.1 million, a 355% increase from the prior year, this missed the $155.1 million consensus estimate among analysts polled by FactSet.

The company continues to generate losses. However, its adjusted net loss shrank to $39.7 million from $100.4 million in the same period last year.

Nebius announced it was implementing an at-the-market equity program for up to 25 million Class A shares, saying it plans to file a prospectus supplement for this program on Wednesday. “The program enables the Company to access equity funding on an efficient ongoing basis; however, it will remain dilution-sensitive as the Company prepare to finance future growth opportunities,” Nebius added.

Shares gave back their gains from the premarket session and fell 4.3%. The benchmark S&P 500 was down 0.4%.

Industry peer CoreWeave sank 14% after posting its own earnings. While the company logged a narrower-than-expected quarterly loss, it disclosed that a third-party data center developer was behind schedule due to pressures from supply chains.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com