Nebius Group N.V.

Welcome to Nebious Group's Q1 2026 Earnings Conference Call. The presentation will be followed by a Q&A session. If you would like to ask a question, you can click the Ask a Question tab in the top right of the live stream player. Then just type in your question and click Submit. You can submit questions at any time during the presentation, and the Nebious Management team will try and answer them during the Q&A portion of the call. I will now hand over to Gili Naftalovich, head of investor relations, to start the call.

Hi, everyone, and welcome to Nebious' first quarter 2026 earnings conference call. Joining us on the call today are co-founder and CEO Arkady and our CFO, Dot El, along with the broader Nebious executive management team. Now, I'll quickly cover the safe harbor. Some of the statements that we make today regarding our business operations and financial performance may be considered forward-looking. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties. Actual results could differ materially. Please refer to our Form 20F, which has a list of our risk factors. We undertake no obligation to update any forward-looking statements. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in today's earnings press release, which is distributed and available to the public through our investor relations website, located at nebius.com. And now I'd like to turn the call over to Arkady.

Thanks, Gili, and welcome everyone to our call. We have had a great start to the year. We're building an AI-native hyperscaler, and I would say we're developing it across four dimensions. The first is capacity and scale. Second, product and functionality. Third dimension is customers and demand. And finally, capital, our fourth dimension. All our focus is on execution across all four of these dimensions. Let me put our results of the quarter in this context. First, on capacity. As you see, we are building big. Last quarter, we told you that we already contracted more than 2 gigawatts of power while targeting more than 3 gigawatts by the end of the year. Three months later, today, we have already contracted more than 3.5 gigawatts. and we are now targeting at least 4 gigawatts of contracted power this year. Today, we announced a new site in Pennsylvania to support 1.2 gigawatts of power once fully live. This is our second-owned gigawatt-scale site in the United States. Our platform is most efficient when we own the full stack, and we are building towards that. Our own contracted capacity now accounts for more than 75% of our total power. But more importantly, we continue to build our full-stack platform. And this is our second dimension. What does it mean? It means we don't just offer compute. We offer cloud services. Services that span across the AI lifecycle. From bare metal to multi-denancy to inference to agentic and more. And we have made significant progress on that front. And it's not just developing our platform and launching S3 version 3.5 this quarter. Our three acquisitions this year, Tavili, Agen, and Clarify, demonstrate the uniqueness of what we're building. All three companies bring industry-leading engineers and researchers to Nebius. Agen AI and Clarify stands in our inference optimization solution. Eigen was recognized as the number one speed inference provider by NVIDIA. While Eigen optimizes at the model level, Clarify optimizes at the system level. And they both strengthen our in-house token factory offering. We also acquired Tavini earlier this year, extending our platform reach to agentic search, an increasingly significant part of the market. This exposition brought us a range of abilities of what this new class of developers need. We also expanded our technology partnership with NVIDIA. We again achieved NVIDIA exemplar cloud status, this time on our GBC-funded for training workloads. We're among a small group of providers to achieve this status across multiple GPU generations. At our core, we're a technology company. We have top AI engineers and deep proprietary expertise across every layer of the stack, both hardware and software. We're quickly becoming a magnet for top talent. We're happy with our ability to enlarge our offerings through strategic acquisitions. Our clients appreciate the full extent of our offering. This is not common, in our market. This is our strengths, and this is our uniqueness, and we believe this is what will enable us to win. Demand is our third dimension, and it continues to be increasingly strong, but more importantly, our full-stack platform allows us to capture and service a large and diverse range of hundreds of customers, not just several big diameter alternatives. Our pipeline generation in the first quarter grew 3.5 times over the fourth quarter. And this is a record for us. And the demand is broadening across industries. Today, we typically see several customers competing for every GPU we bring online. We're building to support this demand with scale and discipline. New customers across a number of use cases are using our full range of offerings to solve their most challenging problems. For example, European fintech leader Revolut recently began using our token tech. In physical AI, 1x Technologies is using our cloud platform to build general-purpose robots. In life sciences, our cloud platform is enabling startups to build more powerful models that accelerate drug discovery and advance the fight against the disease in ways that were previously impossible. And beyond technology sectors, larger companies in industries such as manufacturing, energy, heavy equipment, and pharmaceuticals are increasingly engaging with us. Demand is high. Everything we build with is sold. That is what is driving us to build more and to raise our 2026 CapEx guidance to between $20 and $25 billion, which is up from our prior range of $16 to $20 billion. This increase reflects investments in our 2027 capacity that will come online early next year. We expect these investments to contribute positively to revenue in the first half of 2027, where we already have customer commitments in place. Meta is one such customer. We need to invest to fully realize this. This requires Canada, which is our fourth dimension. We're doing a very good job in tapping the market at scale. We raised significant capital this year, more than $6 billion. More than $4 billion of that came from converts and $2 billion from NVIDIA equity investment. This leaves us with a strong cash position of more than $9 billion. More importantly, We have laid the foundation to raise substantial further capital this year. There are a variety of ways for us to do this. There is our recent Meta contract. First, let me just say that we are very proud of our relationship with Meta, and there is tremendous respect between our tech teams. Formerly, this is a $27 billion contract with Meta, but in fact, it's worth a lot more for us. This contract alone can unlock billions of dollars of capital for our own multi-tenant cloud at attractive rates that may not otherwise be available to us. On top of this, we also have our first contract with Mentum and our Microsoft agreement that will provide additional financing opportunities. Obviously, there are many other untapped options for us to finance our public cloud build-out. From the significant prepayments we get from customers, to asset-backed financing of our payment of contracts, to corporate debt, and so on. So, to close. It has been a great quarter. We're even more focused on what is ahead. We will continue to execute, expanding capacity, building our cloud platform, expanding our customer reach, and financing growth diligently. Everything we build, we sell. And we are still in the very early days. I want to thank our team for the incredible work day after day and night after night. And to thank our shareholders for your continued support. And with that, let me hand it over to Doug.