Northern Data AG

Northern Data reported Q4 2024 group revenue of EUR 86 million, up 281% year over year, and full-year 2024 revenue of EUR 200.5 million, up 159% year over year. Cloud revenue was EUR 55 million in Q4, up from EUR 48 million in Q3, and full-year Cloud revenue was EUR 121 million, up 722% from 2023. Adjusted EBITDA is now expected to be EUR 60 million to EUR 80 million for 2024, compared with negative EUR 5.5 million in 2023. Year-end cash and cash equivalents were EUR 120 million, full-year operating cash flow was an outflow of EUR 39 million, financing inflow was EUR 903 million, and investing outflow was EUR 987 million, including EUR 850 million for GPU acquisition and deployment. Looking ahead, management expects Cloud revenue to increase further in Q1 2025 as GPUs are fully deployed, and it expects positive operating cash flow for 2025 as a whole.

Aroosh Thillainathan framed 2024 as a year of execution and repositioning toward AI, saying the company has built out its data center and GPU footprint and is now one of only 11 sovereign AI clouds selected by NVIDIA for Grace Blackwell technology. He emphasized Northern Data’s vertically integrated model, its European sovereignty positioning, and its carbon-neutral energy approach, while saying the company is well placed to capitalize on fast-growing generative AI demand. He was upbeat on the mining sale, the US expansion, and the company’s ability to recycle proceeds into growth.

Elliot Jordan focused on the financial payback from the large infrastructure investment, saying the plan to invest close to EUR 1 billion is now showing up in revenue and profitability. He cited 2024 revenue of EUR 200.5 million, Q4 revenue of EUR 86 million, expected adjusted EBITDA of EUR 60 million to EUR 80 million, and year-end cash of EUR 120 million. He also noted full-year operating cash outflow of EUR 39 million, investing outflow of EUR 987 million, including EUR 850 million for GPU acquisition and deployment, and said positive operating cash flow is expected in 2025.

Analysts focused on the mining business sale, asking whether it could be sold separately and what valuation range to expect; management said interest has been in buying the whole business and that the sale is progressing well, while Aroosh referenced market ranges of EUR 30 million to EUR 40 million per exahash up to EUR 80 million to EUR 90 million per exahash. Questions also centered on customer concentration and GPU deployment delays: management said Q4 revenue came from 9 customers, but the base is still concentrated, and they expect to broaden it as more capacity comes online, including 4,000 more GPUs by the end of March. On deployment timing, management said complexity, supplier delays, and co-location constraints pushed some ramp into Q1, but they are confident the final 2,000 clusters will be live by quarter-end.