Northern Data AG

Northern Data reported preliminary Q4 2024 group revenue of EUR 86 million, up 281% year on year, and full-year 2024 revenue of EUR 200.5 million, up 159% year on year. Cloud revenue increased 16% sequentially in Q4 from EUR 48 million to EUR 55 million, and full-year Cloud revenue was EUR 121 million, up 722% from 2023. Mining revenue rose from EUR 12 million in Q3 to EUR 32 million in Q4, up 171% sequentially and 88% year on year. Management said adjusted EBITDA for 2024 is expected to be EUR 60 million to EUR 80 million, improved from negative EUR 5.5 million in 2023, with positive operating cash flow in Q4 but a full-year operating cash flow outflow of EUR 39 million. The company ended the year with EUR 120 million in cash and cash equivalents. For 2025, management expects further Cloud revenue growth in Q1 as all GPUs in the estate are fully deployed, positive operating cash flow for the full year, and continued profitability expansion.

Aroosh Thillainathan framed 2024 as a year of execution that repositioned Northern Data toward AI cloud, emphasizing the company’s vertically integrated model, sovereign AI positioning, and carbon-neutral infrastructure. He highlighted Northern Data’s status as one of 11 sovereign AI clouds globally selected by NVIDIA for Grace Blackwell technology and said the company remains the largest AI cloud platform in Europe. His tone was confident and constructive, with repeated references to strong market demand, limited GPU supply, and the company’s ability to recycle proceeds from the Mining sale into AI growth.

Elliot Jordan focused on the financial payoff from the approximately EUR 1 billion investment plan, saying revenue growth and profitability improvements were achieved as intended. He cited EUR 200.5 million in revenue, expected adjusted EBITDA of EUR 60 million to EUR 80 million, and EUR 120 million in cash and cash equivalents at year-end. He also detailed 2024 cash flow as EUR 903 million of financing inflow, EUR 987 million of investing outflow, including EUR 850 million for GPU acquisition and deployment, and a EUR 39 million full-year operating cash flow outflow. He said Cloud revenue should rise further in Q1 2025 as more GPUs are deployed, and he expects positive operating cash flow for 2025 as a whole.

Analysts focused on the planned sale of the Mining business, customer concentration in the cloud business, GPU deployment delays, and pricing and contract duration in AI cloud. Management said there have been inbound bids for the whole Mining business, that it is progressing well, and that they are not planning to keep ASIC sites for AI repurposing. On customer diversification, Elliott said Q4 revenue came from 9 customers and acknowledged concentration, but said the company will broaden the base as more capacity comes online. On deployment timing, management said delays from complex cluster configuration and supplier/co-location issues pushed some GPU rollouts into Q1, but they are confident the final 2,000 clusters will be live by the end of the quarter.