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Yahoo
9 hours ago
- Business
- Yahoo
Nebius' Q2 Loss Widens Y/Y, Revenues Rise on AI Demand, Stock Up
Nebius Group N.V. NBIS reported second-quarter 2025 adjusted net loss of $91.5 million, 49% wider than a loss of $61.6 million incurred a year ago. The company's revenues surged 625% year over year to $105.1 million. The increase in sales was primarily driven by strong performance in the company's core business and excellent execution by the TripleTen team. With R&D hubs across Europe, North America and Israel, Nebius' core business is an AI cloud platform designed for intensive workloads, powered by in-house developed software and hardware. Nebius provides AI builders with the compute power, storage, managed services and tools required to build, fine-tune and deploy their models. The Group also operates businesses under distinct brands, including Avride (autonomous driving technology) and TripleTen (a leading U.S.-based edtech platform for tech career reskilling). The Group also holds equity interests in other companies, including ClickHouse and Toloka. In the second quarter, following the completion of the investment transaction in Toloka—an AI development platform—Nebius ceased to hold majority voting power in the company. As a result, Toloka is no longer included in Nebius' consolidated financial statements and is now accounted for as an equity method investment. Toloka's results from prior periods have been reclassified as discontinued operations. As of June 30, 2025, there were outstanding employee stock options to purchase up to 7.5 million additional shares, with a weighted average exercise price of $87.83 per share, along with unvested restricted share units (RSUs) covering approximately 6.7 million shares. Following the earnings announcement, shares of the company jumped 19% in the trading session yesterday. Shares of the company have surged 59.4% in the past six months compared with the Zacks Internet - Software and Services industry's growth of 12.4%. Image Source: Zacks Investment Research Other Details NBIS reported an adjusted EBITDA loss of $21 million for the second quarter, narrower than the $58.1 million loss in the prior-year quarter. The company achieved positive EBITDA in its core AI infrastructure business earlier than previously projected. Sales, general and administrative expenses decreased 10% year over year to $68.2 million. Total operating costs and expenses increased 71% to $216.3 million As of June 30, 2025, NBIS' net income from operations was $502.5 million against a loss of $116.9 million in the year-ago period. Balance Sheet and Cash Flow As of June 30, 2025, NBIS had $1,679.3 million of cash and cash equivalents compared with $1,447 million as of March 31, 2025. Outlook Nebius continues to see strong momentum in its business, with demand for AI compute remaining exceptionally high. The company updated its full-year outlook. It raised its guidance for annualized run rate (ARR) revenue from the previous range of $750 million to $1 billion to a new range of $900 million to $1.1 billion. This increase is based on closed contracts for both existing and upcoming capacity, along with anticipated sales for the remainder of 2025. For core business revenue, the company is maintaining its guidance of $400 million to $600 million. For group revenue, the company has reaffirmed its previous guidance of $450 million to $630 million. This excludes the 2025 revenue guidance of $50 million to $70 million previously provided for Toloka. Nebius Group N.V. Price, Consensus and EPS Surprise Nebius Group N.V. price-consensus-eps-surprise-chart | Nebius Group N.V. Quote Adjusted EBITDA, as previously stated, is expected to be slightly positive at the group level by year-end, though the company still anticipates a full-year loss. NBIS maintained its capital expenditure guidance of approximately $2 billion for 2025. NBIS's Zacks Rank Nebius currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here. Recent Performance of Other Companies Tyler Technologies, Inc. TYL reported better-than-expected second-quarter 2025 results. The company reported second-quarter non-GAAP earnings of $2.91 per share, which beat the Zacks Consensus Estimate by 4.7% and increased 21.3% year over year. Tyler Technologies' second-quarter revenues increased 10.2% year over year to $596.1 million. The top line topped the Zacks Consensus Estimate of $586.2 million by 1.7%. Shares of TYL increased 4.3% in the past year. Red Violet, Inc. RDVT came out with quarterly earnings of 28 cents per share, in line with the Zacks Consensus Estimate. This compares to earnings of 28 cents per share a year ago. Red Violet posted revenues of $21.8 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.51%. This compares to year-ago revenues of $19.1 million. Shares of RDVT have gained 58.1% in the past year. RingCentral RNG came out with quarterly earnings of $1.06 per share, beating the Zacks Consensus Estimate of $1.02 per share. This compares to earnings of 91 cents per share a year ago. RingCentral posted revenues of $620.4 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.43%. This compares to year-ago revenues of $592.91 million. Shares of RNG lost 9.2%in the past year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ringcentral, Inc. (RNG) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report Red Violet, Inc. (RDVT) : Free Stock Analysis Report Nebius Group N.V. (NBIS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
4 days ago
- Business
- Globe and Mail
NBIS Q2 Earnings Coming Up: How Should You Play the Stock?
Nebius Group N.V. NBIS will report its second-quarter 2025 results on Aug. 7, before market open. The Zacks Consensus Estimate for the bottom line in the to-be-reported quarter stands at a loss of 42 cents. The estimate has remained unchanged in the past 30 days. The consensus estimate for total revenues is pinned at $95.05 million. Based in Amsterdam, Nebius is positioning itself as a specialized AI infrastructure company. Its core operation is Nebius, which is an AI-powered cloud platform designed for intensive AI and ML workloads in both owned and colocation data center capacity. It resumed trading as a public company in October 2024. What Our Model Predicts for NBIS' Q2 Our proven model does not conclusively predict an earnings beat for NBIS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. NBIS has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank stocks here. Factors to Focus on Ahead of NBIS' Q2 Earnings Accelerating demand for its AI infrastructure services is likely to have driven the top-line performance in the to be reported quarter. On the last earnings call, NBIS had highlighted that annualized recurring revenues or ARR for April were $310, providing a strong start for the second quarter. Due to strong April ARR, Nebius was confident in achieving its full-year ARR guidance of $750 million to $1 billion for 2025. Nebius is focused on boosting its data center footprint and its GPU deployments as part of its strategy to ramp up installed capacity across the United States and Europe. Establishing facilities in the United States means lower latency while serving domestic clients and boosting the advantages of the AI-native cloud. It added three new regions, including a strategic data center in Israel, in the last reported quarter. Collaboration with Saturn Cloud and deeper NVIDIA (NVDA) integration bodes well. It announced the general availability of NVIDIA GB200 Grace Blackwell Superchip capacity for its customers in Europe in June 2025. In the first quarter, Nebius significantly upgraded its AI cloud infrastructure through improvements to its Slurm-based cluster. Nebius is making substantial investments in improving its object storage capabilities, and the upgraded storage system ensures that big data sets can be easily accessed and saved quickly during model training, directly lowering time-to-result for end users. Nebius expanded integrations with external AI platforms like Metaflow, D Stack and SkyPilot, enabling customers to migrate tools with nominal friction. These factors are likely to have contributed to gaining more clients in the to be reported. Nonetheless, the intense competition from behemoths remains a concern, along with profitability issues. Nebius is a relatively new entrant in the AI cloud infrastructure space, which boasts behemoths like Amazon AMZN and Microsoft MSFT, and other upcoming players like CoreWeave CRWV. Amazon Web Services and Microsoft's Azure cloud platform together dominate more than half of the cloud services market. Nebius Group N.V. Price and EPS Surprise Nebius Group N.V. price-eps-surprise | Nebius Group N.V. Quote Despite its exceptional top-line growth, NBIS remains unprofitable, with management reaffirming that adjusted EBITDA will be negative for the full year 2025. Though it added that adjusted EBITDA will turn positive at 'some point in the second half of 2025.' NBIS has also raised its 2025 capital expenditure forecast to approximately $2 billion from the previous estimate of $1.5 billion, primarily due to some planned fourth-quarter spending shifting into the early first quarter. Higher capex can be a concern if revenues do not keep up the required pace to sustain such high capital intensity. Moreover, NBIS also highlighted that it will be deconsolidating Toloka as its voting share dropped below 50% due to investments from Jeff Bezos and Mikail Parakhin. Since the transaction closed in May 2025, NBIS will update its financials and guidance, excluding Toloka in its second quarter earnings report. Analysts have significantly revised their earnings estimates downward for NBIS' bottom line over the past 60 days. NBIS Stock Performance Nebius shares have risen 59.6% over the past six months, outperforming the Zacks C omputer & Technology sector and the Zacks Internet Software Services industry's growth of 6.8% and 10.4%, respectively. The S&P 500 Composite has returned 2.5% over the same time frame. Price Performance Image Source: Zacks Investment Research The gain is better than its peers, like Microsoft (up 29.6%) and Amazon (down 10.4%). On the other hand, CoreWeave, which is another hypergrowth pure play AI infrastructure company, has registered gains of 165%. NBIS' Stretched Valuation NBIS stock is also not so cheap, as its Value Style Score of F suggests a stretched valuation at this moment. In terms of Price/Book, NBIS shares are trading at 4.04X, almost the same as the Internet Software Services industry's ratio of 4.03, but it could mean more risk than opportunity. What to Do With NBIS Stock Before Q2? Intense competition, ongoing profitability issues, and high capex pressure weigh on short-term prospects. The recent Toloka deconsolidation adds uncertainty to future guidance. Given these risks and limited near-term upside, investors could benefit from offloading NBIS ahead of the second quarter results. Investors looking to invest should wait for a better entry point. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Nebius Group N.V. (NBIS): Free Stock Analysis Report CoreWeave Inc. (CRWV): Free Stock Analysis Report
CNA
5 days ago
- Business
- CNA
India's Bharti Airtel launches cloud, AI services for businesses, telcos
Bharti Airtel's digital unit Xtelify on Monday announced a new cloud platform and AI-powered software offerings for businesses and telecom operators, alongside partnerships with Singtel, Globe Telecom and Airtel Africa. Airtel Cloud offers a range of services including, infrastructure- and platform-as-a-service with secure migration and scaling, the company said in a statement. The new AI-powered software platform for telcom operators features a data engine, workforce tools and customer engagement modules to improve service and lift average revenue per user (ARPU) - a key metric for the sector, India's No. 2 telecom operator added. As part of the plan, Airtel has partnered with Singtel, Globe Telecom and Airtel Africa to deploy the platform, enabling applications such as AI-driven workforce optimisation, omni-channel customer service and real-time customer engagement. India has been stepping up efforts to pilot local cloud data storage. The country's cloud services market was estimated at $8.3 billion in 2023 and is expected to grow to $24.2 billion by 2028, according to a 2024 report by International Data Corporation. The market is so far largely dominated by foreign firms. Last month, Airtel announced a partnership with AI-powered search engine Perplexity, offering a 12-month free subscription to its 360 million customers. ($1 = 87.5700 Indian rupees)
Yahoo
13-07-2025
- Business
- Yahoo
CoreWeave (CRWV) Becomes First to Launch RTX PRO 6000 in the Cloud—Is This a Game-Changer?
CoreWeave, Inc. (NASDAQ:) is one of the . On July 9, the company announced that it is the first cloud platform to make NVIDIA RTX PRO 6000 Blackwell Server Edition instances generally available. Attaining up to 5.6x faster LLM inference and 3.5x faster text-to-video generation than the previous generation, the RTX PRO 6000 Blackwell Server Edition is suitable for inference models up to 70B parameters. The GPU architecture combines NVIDIA's cutting-edge compute with CoreWeave's purpose-built AI Cloud Platform, helping customers achieve a cost-efficient solution along with strong performance for building and scaling AI applications. With the launch of the RTX PRO 6000, CoreWeave now offers the widest range of NVIDIA Blackwell infrastructure on the market that customers can choose based on their unique needs. 'CoreWeave is built to move at the speed of innovation, and with the new RTX PRO 6000-based instances, we're once again first to bring advanced AI and graphics technology to the cloud. This is a major step forward for customers building the future of AI, as it gives them the ability to optimize and scale on GPU instances that are ideal for their applications, and a testament to the speed and reliability of our AI cloud platform.' -Peter Salanki, Co-Founder and Chief Technology Officer of CoreWeave. CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes. While we acknowledge the potential of CRWV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None.
Yahoo
12-07-2025
- Business
- Yahoo
Is MongoDB Rapidly Becoming the Go-To Database for AI Workloads?
MongoDB MDB has been steadily benefiting from the rising demand for AI-powered applications. In the first quarter of fiscal 2026, MongoDB reported revenues of $549 million, marking a 22% year-over-year increase. Atlas, its cloud platform, accounted for 72% of the total revenues, up 26% year over year. While enterprise adoption of AI is still in its early stages, MongoDB believes its integrated architecture will position it to capture long-term revenue growth as more developers build custom, high-value AI applications on its company's document model is well-suited for handling fast-changing, unstructured data required by real-world AI. The acquisition of Voyage AI strengthened this capability further, with Voyage 3.5 improving embedding accuracy and cutting storage costs significantly. Companies like LG Uplus are using their AI tools to support thousands of agents with faster, more accurate responses, reinforcing MongoDB's position in the AI has added Anthropic's Model Context Protocol (MCP) across all its databases, including Atlas, to simplify development and database tasks using AI. MCP lets AI agents like Claude, Cursor and GitHub Copilot access tools and data through a client-server model. With the MongoDB MCP Server now in public preview, developers can use natural language to query or explore data, streamlining workflows and boosting also aims to reduce AI hallucinations and increase accuracy through its advanced rerankers and domain-optimized embedding models. These tools rank LLM outputs based on contextual relevance, significantly improving reliability. MongoDB is seeing rising competition from Snowflake SNOW and Elastic ESTC, both of which are expanding their AI capabilities in the cloud database introduced native support for vector search and retrieval-augmented generation (RAG) workloads, and even after being acquired by MongoDB, Voyage AI's models will still be available to Snowflake and to Voyage AI's other has expanded its AI capabilities with the Elasticsearch Relevance Engine, enabling native vector search, hybrid search and seamless integration with LLMs. With tools for contextual grounding and RAG workflows, Elastic helps developers build secure, production-ready AI applications using its data. MDB shares have lost 11.8% in the year-to-date (YTD) period, underperforming the Zacks Internet – Software industry's growth of 15.8% and the Zacks Computer and Technology sector's return of 7.7%. Image Source: Zacks Investment Research From a valuation standpoint, MongoDB stock is currently trading at a forward 12-month Price/Sales ratio of 7.03X compared with the industry's 5.79X. MDB has a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is pegged at 64 cents per share, which has remained unchanged over the past 30 days, indicating an 8.57% year-over-year decline. MongoDB, Inc. price-consensus-chart | MongoDB, Inc. Quote MongoDB currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Snowflake Inc. (SNOW) : Free Stock Analysis Report MongoDB, Inc. (MDB) : Free Stock Analysis Report Elastic N.V. (ESTC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
