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 16% quarter over quarter from EUR 48 million, and EUR 121 million for the full year; mining revenue was EUR 32 million in Q4, up 171% quarter over quarter and 88% year over year. Adjusted EBITDA for 2024 is expected to be EUR 60 million to EUR 80 million, versus negative EUR 5.5 million in 2023, and the company said Q4 operating cash flow was positive. Cash and cash equivalents were EUR 120 million at year-end, full-year investing outflow was EUR 987 million including EUR 850 million for GPU acquisition and deployment, and full-year operating cash flow was an outflow of EUR 39 million. Management did not provide formal quarterly or full-year 2025 revenue guidance, but said cloud revenue should increase further in Q1 2025 as all GPUs are fully deployed and more customers are onboarded, and it expects positive operating cash flow in 2025 as a whole.

Aroosh Thillainathan framed 2024 as a successful execution year for Northern Data’s pivot into AI and high-performance computing. He emphasized the company’s positioning as Europe’s largest generative AI cloud platform, its partnership with NVIDIA, and its vertically integrated model spanning data centers, GPUs, and managed services. His tone was confident and optimistic, especially around the scale of the opportunity, the company’s 22,000 to 24,000 GPUs deployed, and the plan to recycle proceeds from the mining sale into AI growth.

Elliot Jordan focused on the financial payoff from the company’s large investment plan, saying Northern Data executed on its goal of close to EUR 1 billion of infrastructure investment. He highlighted 2024 revenue of EUR 200.5 million, expected adjusted EBITDA of EUR 60 million to EUR 80 million, positive Q4 operating cash flow, and year-end cash of EUR 120 million. He also detailed full-year cash flow of EUR 903 million financing inflow, EUR 987 million investing outflow, and EUR 39 million operating cash outflow, while noting that all figures were unaudited and the audited report is expected by the end of March 2025.

Analysts focused on the mining business sale, asking whether it could be sold separately, what valuation to expect, and whether any sites might be retained for HPC use. Management said it is seeing interest in acquiring the whole business, is progressing well on a full sale, and does not plan to keep ASIC facilities for AI repurposing; Aroosh cited market ranges of EUR 30 million to EUR 40 million per exahash and EUR 80 million to EUR 90 million per exahash without committing to a specific valuation. Questions also covered customer concentration and GPU deployment delays; Elliott said Q4 revenue came from 9 customers, concentration remains high, and the company expects to broaden the base as more GPUs come online, while acknowledging supplier and colocation delays pushed some deployments into Q1 but saying final clusters should be live by quarter-end.