Nebius Group Reports Significant Q2 Growth
Nebius Group (NASDAQ: NBIS) has reported a 454% increase in revenue year-over-year, reaching $582 million for the second quarter of 2023. The company’s adjusted EBITDA stood at $236 million, bolstered by the signing of four AI cloud contracts, each valued over $1 billion. The AI cloud business alone generated approximately $575 million in Q2, demonstrating a substantial rise from the previous year.
Looking ahead, Nebius anticipates full-year revenue between $3 billion and $3.4 billion for 2026, alongside projected year-end annual recurring revenue of $7 billion to $9 billion. As of now, the company boasts over $40 billion in customer commitments and expects more than $9 billion in customer prepayments during 2026.
Despite continued strong demand, challenges remain, such as potential oversupply in the AI infrastructure market and a valuation currently around $60 billion, translating to a price-to-sales ratio of 18 times expected revenues.
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