Nebius Group announces second quarter 2024 financial results

For the full disclosure announcement, including key financials, please click here (PDF).

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Nebius Group, a Nasdaq-listed tech company building AI infrastructure businesses, today announced its unaudited financial results for the second quarter ended June 30, 2024.

Q2 2024 Financial and Operational Highlights

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Nebius Group is a technology company based in Europe that is seeking to build one of the largest commercially available AI infrastructure businesses. The company’s core business is an AI-centric cloud platform built for intensive AI workloads, which offers full-stack infrastructure, including large-scale GPU clusters, cloud platforms and tools and services, for AI developers.

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In addition to our core Nebius AI infrastructure business, we are developing three other businesses that operate under their own distinctive individual brands:

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• Toloka AI – a data partner for all stages of AI development from training to evaluation;
• TripleTen – a leading edtech player in the US and certain other markets, re-skilling people for careers in tech;
• Avride – one of the most experienced teams developing autonomous driving technology for self-driving cars and delivery robots.

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Nebius AI

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• In Q2 2024, Nebius AI remained a key contributor to Nebius Group's total revenue.
• Nebius AI's cloud revenue grew almost 60% QoQ, with ARR (Annual Recurring Revenue) exceeding USD 80 million as of July 2024.
• This growth was driven by the scaling of GPU capacity sales across markets, and the expansion and diversification of the client base, particularly through the introduction of a self-service option in early Q2 2024, allowing customers to access GPU resources without traditional sales channels.
• Nebius AI now serves over 30 managed clients, including prominent names such as Mistral AI, Luma AI (Luma Dream Machine), JetBrains (IntelliJ IDEA) and others.
• In Q2 2024, Nebius AI began to expand its computing capacity at the Group’s Finnish data center to meet growing demand, which is expected to triple the facility's capacity upon completion in the first half of 2026. During Q2 2024, we secured the necessary construction permits and began procuring hardware.
• In the beginning of July 2024, Nebius AI signed an agreement to rent a colocation data center in Paris. The addition of this second facility will allow us to expand the total DC capacity by approximately 25%. We plan to bring this new data center on stream by November 2024.

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Toloka AI

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• In Q2 2024, Toloka AI rolled out data production for a large-scale Generative AI project with a global Big Tech customer, first piloted in Q1 2024. This is an important milestone in establishing Toloka’s presence on the Generative AI market.
• With GenAI projects making up around 80% of revenue in Q2 2024, the expanded data production volumes led to a five-fold revenue increase Q-o-Q and a two-fold increase Y-o-Y.
• Gross margin for GenAI stood at around mid- to high forties in Q2 2024, and Toloka expects to improve it going forward through expanding the capabilities of its technology platform, focusing on production efficiency, automation, and the use of synthetic data and auto-labeling.
• Toloka’s operational capacity has significant potential for rapid expansion into new domains and languages. Having over 5,000 experts already onboarded to Mindrift, an expert contracting platform launched in April 2024, Toloka is able to add approximately 1,500 new experts monthly. Our new Mindrift platform is also instrumental in optimizing costs related to experts onboarding.

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TripleTen

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• In June 2024 TripleTen was named as best overall provider in Fortune magazine’s ranking of software engineering bootcamps.
• TripleTen’s Q2 2024 revenue was driven by a threefold Y-o-Y increase in the number of students enrolled in its bootcamp across key markets in the USA and Latin America.
• Bookings, representing the total value of anticipated payments from students who have made an initial payment for a course, have grown fourfold Y-o-Y, positioning TripleTen to reach a run-rate bookings value of over USD 60 million by year-end.
• In Q2 2024, TripleTen expanded its B2C offerings by launching an immersive study track in Cybersecurity, which is expected to drive student base growth and future bookings.
• Additionally, in its pursuit of quality education balanced with cost optimization, TripleTen integrated an AI Tutor, an AIpowered study assistant, into all its study tracks. This feature facilitates learning progress while reducing service expenses associated with on-demand tutoring.

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Avride

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• In Q2 2024, Avride focused on developing new generations of platforms for autonomous cars and delivery robots, with plans to expand its operating fleet based on these platforms and to add new models of cars and robots later in 2024.
• The team also began on-road testing of newly redesigned autonomous driving technologies for both types of vehicles.
• Avride is negotiating with several food- and ridetech companies to broaden its commercial reach, aiming to scale operations within and outside the US market. As part of the planned new partnerships, Avride intends to integrate over a hundred additional robots into commercial delivery services by the year-end.