Nebius revenue grew 454%. Most of the cash came from customers paying in advance

Nebius rents out computing power. It buys Nvidia chips, puts them in data centres, and charges companies to train and run AI models on them. The trade calls this a neocloud.

It is based in Amsterdam, listed on Nasdaq, and was spun out of the Russian internet company Yandex in 2024. On Wednesday it reported second-quarter results, and the shares closed 34% higher.

Revenue reached $582.3m, up 454% on a year earlier. The AI cloud unit, which is most of the business, grew 514% to $575m, Bloomberg reported. Analysts had expected $572.75m in total, according to LSEG data.

Those are the numbers everyone reported. The more interesting ones are further down the statement.

The cash is not profit

Nebius generated $2.2bn of cash from operations in the quarter. It also lost $190.4m. Both figures are correct, and the gap between them is the story.

About $1.2bn of that cash...

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