Q3 2024 Nebius Group NV Earnings Call
Speaker Change: Music You have joined the meeting as an attendee and will be muted throughout the meeting. This meeting is being recorded.
Speaker Change: I'm going to be a good man.
Speaker Change: I'm going to be a little bit more nervous than I thought.
Speaker Change: I'm a little bit scared.
Uebongetna: Hello everyone and welcome to the NVIDIA's Goose 3rd quarter 2020 for earnings call. Our first result call seems we are back to now's back. My name is Uebongetna and I represent the Industrial Relations team.
Uebongetna: You can find our earnings release published on our IR website earlier today.
Uebongetna: Now let me quickly walk you through the Save Harbor Statement.
Uebongetna: The riots remarks that we make during the call regarding our financial performance and operations may be considered forward-looking. And such statements involve a number of risks and uncertainties that could cause actual results to be thermatarily.
Uebongetna: For more information, please refer to refactor's section on our most recent annual report on form 20F filed with the SEC. You can find soon forward-looking statement in our press release.
Uebongetna: During the call, we'll be referring to certain non-gap financial measures. You can find a reconciliation of non-gap to the measures in the earnings release we publish today.
Speaker Change: With that, let me turn the call over to all hosts, Tom Blackwell, our Chief Communications Officer.
Tom Blackwell: Thanks very much Julia and hello to everyone. So let me quickly introduce our other speakers that we have on the line today. So I'm pleased to be happy with me in San Francisco this morning. I'll see you at Cardi Bollish and Chief Business Officer Roman Tronin.
Tom Blackwell: And also joining us for our office in Amsterdam. We have Ofian Navi, ICO, and the CQADEL INCO Chief Product and Infrastructure Officer and CFO Ron Jacobs.
Tom Blackwell: So, you'll probably see and we put down quite a lot of material on our business a couple of weeks ago ahead of the resumption of trading on NANDSDAQ.
Tom Blackwell: And you probably had a chance to have a quick look at Q3 results release this morning. So some of you have actually already sent your questions, which thank you. And to those who haven't, you can submit any further questions via this special Q&A tab.
Tom Blackwell: below at any point during our call and we'll get to them. So my suggestion is that we keep our opening remarks relatively brief, to make sure we have plenty of time to Q&A. And so on that note, let me hand straight over to our cutting.
Speaker Change: Thank you, don't forget to subscribe and share this video with your friends.
Speaker Change: Let me briefly highlight how key points to say the scene for the base for this discussion.
Speaker Change: All ambition is to build one of the world's largest AI infrastructure companies.
Speaker Change: This entails building data centers providing AI compute infrastructure and a wider range of value of the services to the globally-i-industry.
Speaker Change: We have a proven track record with significant expertise in running data centers with hundreds of megabits power loads. So we know what we're doing here.
Speaker Change: We'll ready pushing full steam ahead.
Speaker Change: We secured securing plots for new data centers, ensuring we have stable power supplies, confirming orders for the latest GPUs. We also want you to use software and other related services, accessing the news in the means of the AI industry.
Speaker Change: In short, we're working hard to rapidly put in place the infrastructure that will underpins our future success.
Speaker Change: Let me turn briefly to today's financial and very few minutes before we go to Q&A.
Speaker Change: I will start with how coin structure business.
Speaker Change: As you can see, we're growing rapidly. Revealing grew 5, so we're going to be growing 2.7 times compared to the previous quarter.
Speaker Change: We have a strong cash point in the position. Cash and cash improvements at the September Serges stood at around 2.3 billion US dogs.
Speaker Change: Capital expenditures totaled around $400,000 for the first nine months of 2024. And looking forward, when displayed capital expenditures in the fourth quarter to XXC in this month.
Speaker Change: as we plant the observatory investments in GPU procurement and data center capacity expansion.
Speaker Change: These includes three plantapassage of our existing data center in Finland. We also recently announced a new collection data center facility in Paris with more to come in real hours.
Speaker Change: We expect to have deployed more than 20,000 GPUs by the end of this year. A 3-ly we're just warming up. It's going to be interesting.
Speaker Change: Well, our financial performance has been strong. What's even more important at this stage is what we have been doing on the product side.
Speaker Change: In the last quarter, we introduced a number of strategic product developments, for example.
Speaker Change: We launched the first cloud confusion platform built from scratch specifically for the AGR. This platform offers increased flexibility in performance and will help us to expand further out customer base.
Speaker Change: This model assumes a CELN GPU by a GDF time by hours and now customers can buy both managed services and CELS service with latest H200 GPUs.
Speaker Change: We also launched our Neville's Air Studio
Speaker Change: A hyper-formal school sufficient social service inference platform for users of foundation models and AI application developers.
Speaker Change: These allows businesses of all sizes, big and small to use generate, free, air quickly and easily.
Speaker Change: Here we provide the full-text solution and use another business model. We sell access to genuine models by tokens.
Speaker Change: Outside, a local infrastructure business, and all other businesses also perform well.
Speaker Change: Hello, sir. Our solutions that provide high quality experts data at scale for the engineering industry. And they grow revenue around 4 times a year.
Speaker Change: A guy, there's one of the most experienced teams developing autonomous driving technology, both for self-driving cars and delivering the world robots.
Speaker Change: Earlier this month, it arrived announced a multi-isitidue partnership with UDEL in the US.
Speaker Change: And we also just rolled out our new generation of deliverer robots offering improved energy, efficiency and many revolution.
Speaker Change: Triple 10 is a leading educational technology player. In the last quarter they increased three times a year over a year in a number of students enrolled in a Facebook bootcamp across the key markets, U.S. and Legend of America.
Speaker Change: In summary, we have been busy developing strong results, but this is just a start, although journey. The big opportunities are still to come. In research, let me wrap up and have that feedback to over to Tom for the Q&A.
Tom Blackwell: Thank you very much, Akari. And so just to remind everyone that you can submit your current questions through the Q&A deck, function below. But we have a few questions that have come in already, so we'll get going.
Tom Blackwell: First question actually relates to the latest status on the buyback and whether that's something that's still under consideration. OFFI can I suggest that you take that question.
Speaker Change: Yes, sure. Thanks, Tom.
Speaker Change: And this is actually a great question because
Speaker Change: It has a direct impact on our 2025 guidance.
Speaker Change: But first, maybe it will be a good idea, just to take a step back and to remind all of us.
Speaker Change: Where the ideas in the Bible actually came from?
Speaker Change: After the day, we're meant, or for the Russian business.
Speaker Change: We viewed a potential buyback of the instrument to provide a legacy share of the and opportunity to exit our building as a specially in the absence of trading.
Speaker Change: And as we all know, it's our latest AGM.
Speaker Change: I will show the advice that potential bybeck within certain parameters.
Speaker Change: And...
Speaker Change: One of them is a maximum twice of 10.5 dollar per cell, which represent the probability of the net cash process of the investment on reduction at clothing.
Speaker Change: It does not tut any value whatsoever.
Speaker Change: To the business that we are actually building.
Speaker Change: I will show you a review of creating enough dark about two weeks ago.
Speaker Change: And we are very happy to see the investment of the International Star Wars.
Speaker Change: We also see strong liquidity levels.
Speaker Change: We hope that this is a sign that our investor see the great opportunity.
Speaker Change: In our own business.
Speaker Change: And if this is the case, and the market for all of ourselves remains long.
Speaker Change: Actually, a bibeck may not be required to accomplish the idea for which it would originally depend.
Speaker Change: In this case, we may actually have the opportunity to allocate much more capital to our AI infrastructure, and deliver our plans even faster.
Speaker Change: But let's try to put this into actual numbers.
Speaker Change: Probably everyone knows. We originally provided a $500 million dollar AR guidance range for the year of 2225.
Speaker Change: In this scenario, the BIPAC will ultimately not be required.
Speaker Change: We actually estimate that we will be able to deliver a boat that made point of different ways.
Speaker Change: The range of 500 million to 1 billion pay a lot.
Speaker Change: And we think that this is actually very exciting.
Speaker Change: and
Speaker Change: Great, thank you very much for that, Nothia. So the next question is really around competition in how we're seeing the market. And Kadeel, come to you on this. And specifically, the question is, So how does nebius differentiate against the hypiscalus and the other private competitors in the GPU cloud space?
Speaker Change: ive
Speaker Change: It can't be well.
Speaker Change: it
Speaker Change: Why actual equation is why we believe that we will be a one among the strongest leading independent GPU cloud providers, right?
Speaker Change: And actually I have usually several answers to this question. First we divide full-steak solution.
Speaker Change: Which means that we have built data centers, we build hardware.
Speaker Change: So, as in Rax inside the data centers, we build AI Cloud Platform on top of it, cool Cloud.
Speaker Change: We build services and we have expertise for build services for those who build models and trade things and trade these models and build applications and we have our own expertise in this area. So we have full-stack solution.
Speaker Change: and these translates into better, attireional efficiency.
Speaker Change: We believe that our course may be lower because of this.
Speaker Change: And our product portfolio is much stronger.
Speaker Change: So, this is a focus of that gives us the first block of differentiation.
Speaker Change: Then um
Speaker Change: This is a platform, the solution we're providing actually, the solution which was built from scratch in the last several months. This is the first full integrated solution for AI infrastructure built.
Speaker Change: and then you just support any unnecessary functions or old code. It's a brand new solution. And what is one of what is specifically targeted for the tasks of the dynamic AI industry.
Speaker Change: So...
Speaker Change: We will burn it.
Speaker Change: Much more flexible. We can offer better pricing and so on.
Speaker Change: And...
Speaker Change: The third block of differentiation, I would say, comes from the fact that we have a very strong and very good team.
Speaker Change: These team of people, more than 500 specialists, 100 AI specialists, specifically in cloud engineers.
Speaker Change: who are ready to support our growth, who have experienced a building and assistance, which
Speaker Change: Even larger than what we have today and have ambitions to build a much larger systems.
Speaker Change: And...
Speaker Change: This actually translates into faster time to market when we launch new products and better customer support. And then understanding and I'll look around our clients because we are the same, we're like that.
Speaker Change: So this actually is three major things which we say which we see as our convenience of a practitioner. Full sex solution.
Speaker Change: When you specifically tailored a platform which we just launched and ask the people and engineers who will understand the area.
Speaker Change: Thank you very much, Akari. So, I should leave the next question, is there a data center expansion strategy? So, Andrea, I'll come to you on this, and specifically, how we think about it overall, how do we think about geographic locations, and what a potential constraints in terms of growing out this data.
Speaker Change: it
Speaker Change: Thank you so much. Thank you.
Speaker Change: So, we have 3
Speaker Change: ways to source the data center capacity. These are applications. So just write an out the cell analysis data center.
Speaker Change: Bluetooth-euth projects is when someone else builds the data center on their site with their capics according to our design for the one leaf contracts from our south.
Speaker Change: and the Greenfield Projects, one we build a data center from the scratch and iterated our cells.
Speaker Change: Basically, our preference would be windshield. This allows us realize, when you're from the full-facet approach and reach maximum efficiencies, as the teams have decades of...
Speaker Change: Experience, the experience, the data, the building, the design and the building and the recent data centers. But that's a subject to the availability of the capital and the green field projects longer in terms of delivery times.
Speaker Change: So we're going to use all three of these sources, ways to give it a test, but we'll use the applications as a further term solutions.
Speaker Change: Mostly speaking about the next few quarters, while the other two will be kicking in.
Speaker Change: But our first location, our first data center is in Finland.
Speaker Change: Which we already comments the capacity expansion. All great.
Speaker Change: We actually are treating the capacity for the next year. Maybe the first place will be in the next year.
Speaker Change: The last phase of that site will be later 2025. Also, I wanted to mention that it's fully capable of the liquid couldn't just for the near-use and the new trends in that area as well.
Speaker Change: In the midterm, we plan and actively engage in build-to-use iterations. It's a less capital intensive alternative to the green field.
Speaker Change: But still allows us to stick to our design and maintain most of our traditional effectiveness so we'll see.
Speaker Change: But still keeping us more flexible in terms of the of cat phone.
Speaker Change: Talking about geographical locations, we'll defer.
Speaker Change: The finish was our home base, the first eight centers. We couple of months ago, we announced the Paris location, which is kicking in in the directions. As we speak.
Speaker Change: The next one will be announced in US.
Speaker Change: And looking forward, we will be building infrastructure both in Europe and in Europe as
Speaker Change: Mostly
Speaker Change: That's it.
Speaker Change: Okay.
Speaker Change: No, I think that's very good. Thank you very much, Nandade. And so just the people's reference, Nandade referred to our Finnish state center. And there was the pressure release a few weeks ago with the most specific detail around the expansion plans there. And there's also an announcement a few weeks ago about the Paris State Center. People want to refer to that with some more additional details.
Speaker Change: So the next question is actually we've received a few questions around the NVIDIA partnership and relationships so I'm going to combine them into one if that's okay.
Speaker Change: I'm actually under the media. I can stick with you here. So first of all, if the question is really, what's the history as well as current status of the Nvidia partnership and what that brings to an obvious?
Speaker Change: Current status of NVIDIA orders, shipments, and as well as our ability to secure new GPU generations going forward, including the black wells. So let me give you that set of questions if I can.
Speaker Change: Yeah, it's very strong.
Speaker Change: So, I can about our collaboration with the NVIDIA. We have a long-term experience, a theme actually has the long-term experience working within NVIDIA for modern decades, built in the GPU Clouds, and running them at the previous NVIDIA.
Speaker Change: Well, the partnership we are cloud and we am partner official cloud and NCP and we am partner of NVIDIA.
Speaker Change: That helps us to develop.
Speaker Change: There...
Speaker Change: Data Center design, the RAC design to get all the advantages of the Nvidia software part and just to cooperate on both technical and business sites.
Speaker Change: about the physical shipments.
Speaker Change: Well, the GPU with the digital is always a tricky one, but I'm quite sure that we have a good track all.
Speaker Change: Shippens throughout this year.
Speaker Change: And...
Speaker Change: We are feeling constant talking within video that
Speaker Change: The next 21 key to shippings of the new generations secret for us.
Speaker Change: Okay, um, that's it.
Speaker Change: Thank you, Andrew. So, Roman, I'll come to you. So we've had a couple of questions around GPU pricing and generally how we see the evolution of GPU pricing, and overall how we think about the sustainability of pricing and light of the regular flow of new generation launches. And so on. So Roman perhaps I can come to you to address that.
Speaker Change: Yeah, thank you Tom.
Roman Tronin: So talking about the pricing, I think it's important to talk.
Roman Tronin: In respect to generations.
Roman Tronin: So, for the next generation, GB 200 Black House next year, I think the pricing is not fully set. But we can expect that.
Roman Tronin: There will be
Roman Tronin: The premium and margin at it normally happens at the beginning of generation.
Roman Tronin: For Forppers which is
Roman Tronin: Current Active Generation, everybody is talking about it. I would say that for 800, the most popular model today, the pricing came to some, like...
Roman Tronin: Stable situation at the moment. So there was obviously a very high premium which now reduced, but it still the price of that lead.
Roman Tronin: Have the healthy, unite economics.
Roman Tronin: And we also have H200s, which is not such a big volume, so the market and for them we see the prices also pretty healthy.
Roman Tronin: Uh, important to mention here that we were kind of a little bit late on, uh,
Roman Tronin: I'm a member of the conference generation comparing to some of our competitors. And next year the most of our fleet will be with Blackwells that kind of give us the advantage to...
Roman Tronin: to benefit from being in the beginning of this generation without the large legacy.
Roman Tronin: And...
Roman Tronin: Looking forward, I would say that it's normal that when the generation generations of chiefs are shifting the prices kind of go down. But what we do is
Roman Tronin: What is our angle? We invest a lot on a software layer to...
Roman Tronin: Ah...
Roman Tronin: kind of prolong the life cycle of the previous generation when we can provide the service to the customer, not as a role compute of some chips.
Roman Tronin: But at a service, like our caddy mentioned that he launched our talking to the service platform for inference, and there could be down the road, new services that kind of...
Roman Tronin: I'm going to try to make a little more of the chiefs under the hood and we can extract the value for the customers.
Speaker Change: Great. Thank you very much for coming. And actually I'll stay with you because next.
Speaker Change: Question is really around the clients as of today and what are the sort of typical contract terms and durations for current customers and how we think that will evolve over time.
Speaker Change: So, like just to remind, we started less than, like, less than a year ago. Our first commercial customer.
Speaker Change: I started in Q4 2020-3. As of now, we have something like 40...
Speaker Change: It's important to mention that the customer base is pretty much diversified. We don't have any single nominating client.
Speaker Change: If you talk about the customer profile, most of our customers, AI, and TREAK like Jenny I developers.
Speaker Change: That.
Speaker Change: Like people for whom AI is, you know, red and butter. And we also see that...
Speaker Change: There is a bit.
Speaker Change: Step by step growing, I will explore it to more enterprise customers.
Speaker Change: Talking about the contract, as of today, since the fleet is 8,500, most of our customers must have our contracts under one year.
Speaker Change: Like this is
Speaker Change: The reason for that, on the market customers,
Speaker Change: Don't.
Speaker Change: Feel comfortable to commit for each one panels for more than a year, which is natural. Again, want to remind that next year, the fleet will be mostly around Blackwells. And we expect that the contracts for Blackwells in the next year will be again coming to more long-term arrangements.
Speaker Change: And also important to say that for each 200 still hoppers, but we see a lot of discussions in the pipeline of like one to year contract like health-surprise, healthy duration.
Speaker Change: We also have a lot of undimant customers.
Speaker Change: and this is
Speaker Change: Honestly, the part of our strategy to position us as the most flexible GPU cloud providers today. So we really want our customers to be needs from the platform that led them combine reserves.
Speaker Change: a phase you go like the most flexible in the air capacity planning because this is a real pain of the market that we address.
Speaker Change: And again, so with the black wells, we anticipate the duration of contracts will significantly grow.
Speaker Change: And when the most of the fleet of chiefs will shift to blackwells, the era, the mixed.
Speaker Change: Contract structure in the portfolio will be like shifted to more long term.
Speaker Change: Great, thank you very much, everyone.
Speaker Change: So actually the next question is about our caddy, but since we have our caddy on the line, I'll let him feel it. But the question was, how engaged is our caddy with a business today? And what are his plans for the future? I guess I guess with respect to an obvious.
Speaker Change: [inaudible]
Speaker Change: But seriously, it's a new, totally new venture and it's a new startup. If you look at the team and the enthusiasm and the mood, it's just a nice feeling to be there, but it's...
Speaker Change: It's a very unusual startup. It's a new project on one hand, on the other hand, we start with a huge amount of resources. It's not just a team, it's also the platform which we have.
Speaker Change: It's a very hard-working software and a lot of capital. And this is a huge opportunity to build something really, really big here. And the infrastructure space which will...
Speaker Change: We'll go for long and we'll be visible.
Speaker Change: So I'm engaged, it's very interesting, new.
Speaker Change: You get in New Startup.
Speaker Change: And aside of just a few enthusiasm just to remind you that he personally made him being better on this, I would say, you know, something like, 90% of my personal growth is in this company.
Speaker Change: So I do believe that
Speaker Change: We're building something big in series here and we have great prospects and we are very much improved and we...
Speaker Change: We want them to make this thing low.
Speaker Change: Thank you very much, I'm Karim.
Speaker Change: So actually, if you all come to you, we have a question around sort of margins and unideconomics, so specifically a question is, can you elaborate on nebiasis, gross margin and unideconomics for the GPUs? And what are the returns on invested capital or payback expectations that we have?
Speaker Change: think
Speaker Change: This is actually three questions. Yes, sorry. Let's start with the unique economics.
Speaker Change: Our unit economics is actually different from...
Speaker Change: Most of the reference points that investors behave.
Speaker Change: We see that investors compare us to data centers provided on the one hand. All Plain Vanilla GPU and the service players, a bear-metals is recalls them on the other hand.
Speaker Change: Most of them are actually most of this plane, so actually sitting on very long term contracts with the fixed unit economics margin.
Speaker Change: We are neither of these two.
Speaker Change: We are actually a Tony Funstack provider.
Speaker Change: So what of it means?
Speaker Change: Regarding our unit economics, obviously we do not disclose specific numbers.
Speaker Change: But let me try and show you how we think about this.
Speaker Change: To start with, we believe we are more efficient than our appeals.
Speaker Change: Why? We have efficient data centers. We have enough design, hardware, and we have
Speaker Change: do
Speaker Change: But for the more we also create a value for my world called GPU clock.
Speaker Change: This is already part of our unit economy and we anticipate the discharge will go.
Speaker Change: But this is actually another benefit.
Speaker Change: It allows us to sell a wider customer base and we believe that this customer base will drive the demand in the space in the future.
Speaker Change: So this is a few words about the unique economics on the potential returns.
Speaker Change: Now we are going to read this all read.
Speaker Change: But we are here to get access to the new generations of GPUs for which we see a huge demand.
Speaker Change: And with our intention to continue developing our source trust, our Danial Yreddets, our business, we believe that we will be able to even improve our returns on the inverted car.
Speaker Change: Good night.
Speaker Change: And I think that you also asked about the payback expectations.
Speaker Change: So...
Speaker Change: The type of period of the decomposed regeneration of the GPUs can be somewhere around two years for the old ones and much less for the new ones.
Speaker Change: We are better, a little bit, and we're pretty much so to talk about it.
Speaker Change: We will be probably in a much better position.
Speaker Change: To show specifics once in with the play and sales, I will announce the GB200s.
Speaker Change: For sure today.
Speaker Change: We expect to be among the first to do so, hopefully it will not be too long.
Speaker Change: I hope the time for the question.
Speaker Change: No, I think you did. There wasn't need a lot in the question but well, unpacked. Thank you.
Speaker Change: So, let me come back to you.
Speaker Change: There's a question which is basically in the context of our 2025 guidance range. And you help us to understand what is already contractually secure to us is elements that might still be uncertain. So I guess this relates to things like power supply, GPUs, procurement, clients, contracts, etc.
Speaker Change: Yeah, I think there is like really...
Speaker Change: 3 lines of the things
Speaker Change: So
Speaker Change: The growth. So one is the C-capacity, that's undercapacity and like access to the power, the part of it.
Speaker Change: And as Andrea shared before
Speaker Change: We secured the growth for our core facility in Finland.
Speaker Change: And we are now in advance.
Speaker Change: discussions to add more allocation capacities in the US. Like I expect that till the end of the year will disclose more.
Speaker Change: On GPU site, we already mentioned today also that there is a long standing relations with Nvidia and that led us being the source line to bring.
Speaker Change: The state of the art, new and video black hole platform to the customers, and we expect to double down on 2020-25.
Speaker Change: And...
Speaker Change: Klein to I like the months side.
Speaker Change: I think we...
Speaker Change: I have a quiet, good visibility for the end of this year.
Speaker Change: And for the next year, our forecast is mostly based on the capacity available.
Speaker Change: We believe that it's still...
Speaker Change: More supplied real-time model.
Speaker Change: Because given...
Speaker Change: our current
Speaker Change: size and given the total addressable market we don't see real limitations to secure enough demand during the next year.
Speaker Change: So let's...
Speaker Change: Again, three lines. To grow all you need enough disease space, you need secure GPU supply and you need demand. So we feel on three lines.
Speaker Change: Pretty comfortable
Speaker Change: No, that's great. I suppose I could point out that we have one blackwell already secured, but definitely more to come in 2025.
Speaker Change: So, the next question is around what are the remaining links back into Russia following the divestments? So, I actually probably I can take that one. I think the simple answer is that while the remaining links are no longer there.
Speaker Change: In reality, we're thinking about it actually the sort of the separation started back in early 2022, when we embarked on the process to do the divestment.
Speaker Change: But when that divestment came to a completion in July of this year, that sort of severed all the remaining links at that stage. So just to kind of put that into some context, what that means.
Speaker Change: We don't have any assets in Russia, we don't have any revenue in Russia, we don't have an employee's, and that is sort of technological data level and so on, both the sort of the delinx are broken at this stage. So, actually, it was a clean and comprehensive break.
Speaker Change: I think it's also just, it's probably good to just point out that this is not just our own assessments or self-assessment here. So first of all, the divestment transaction, which I referred to.
Speaker Change: which was the largest corporate exit from Russia since the start of the war. It had brought support from Western regulators and so on. And also the resumption of trading on NASDAQ, which that followed a fairly extensive review process.
Speaker Change: And eventually they concluded that we were in full compliance of the listing criteria, which is another word, the Russian access was considered to be got at that point.
Speaker Change: So, I'll rest your chapters over, but we look forward to the next chapter and find it we're very excited about.
Speaker Change: So, next question, if you're all come back to you. So, it's how long will your cash balance is last? And what are your investment plans for 2016 and beyond? And will you need to raise more external capital beyond that and how and in what form and again apologies? It's a few questions
Speaker Change: I guess that you meant 226.026? Yes, it's actually 226 indeed. We are almost no plans for 2,16 next year.
Speaker Change: 欸...
Speaker Change: But for the future, it's very early for us to play with you by far, is our complex investment into our economy business.
Speaker Change: And they saw so for this reason
Speaker Change: Our cash deficiency period, the event of the day is basically a functional. How a growth we want to be in our investment in data centers and in GPUs.
Speaker Change: Now, given the strong demands for our product is in services that we see in the market.
Speaker Change: We are planning virtually to invest aggressively.
Speaker Change: But on the other end, it is important for us, and we actually make sure that we maintain sufficient liquidity.
Speaker Change: To cover our cash dam for a reasonable period of time.
Speaker Change: And...
Speaker Change: But I think that it was mentioning in this context as we actually previously disclown it.
Speaker Change: that we are exploring together with Goldman Sachs, our financial advisor, different strategic options to even accelerate our investment in our AI in PuffPatch.
Speaker Change: Inexuliable public status of the WIDAS with...
Speaker Change: And we have access to white range of instruments and options.
Speaker Change: So, to some I rise
Speaker Change: We plan to move aggressively into the AI infrastructure infrastructure.
Speaker Change: On the same time to keep sufficient cash.
Speaker Change: For our boundaries and while exploring other potential options.
Speaker Change: To make sure that you're ready.
Speaker Change: even move faster in our plans.
Speaker Change: That's great. Thank you.
Speaker Change: So, actually the next question is around the ARR guidance range of 500 million to be in for next year. I think, obviously I actually, to some degree covered this in his first answer, but let me just kind of add a couple of points on top of that.
Speaker Change: Again, that guidance took into a range of possible scenarios, including timing of the GB200 delivery, but also actually the key factor here is availability of capital. So there's a couple of things to think about here.
Speaker Change: So, as it now, we have around $2 billion on the balance sheet and question as how much of this we can allocate to CapEx. And so here are a couple of points.
Speaker Change: We've made reference to a potential with holding tax that we have, that we may have to cover and so depending on how the discussions of the Dutch tax authorities go, that could be a reasonable share of that that has been allocated for a potential tax payment that could be reallocated towards what's capx.
Speaker Change: And there's also ASO-Fair appointed out LA, I think the key point here is that there could be a scenario when we don't have any impact from a potential buy-back, which would mean that we have an opportunity to allocate a lot more capital to the AI infrastructure capics.
Speaker Change: and deliver on our fans even faster. But again, I think we'll have covered that well in his first answer. So in that scenario, we're able to reallocate, you know, we estimate that we'll be able to deliver above the midpoint of the 500-1 billion ARL guidance range that we gave for year in 2025.
Speaker Change: Okay, very good. So moving on. The next question, actually, I'll see if I can come back to you. So it's around really what's the strategy for the...
Speaker Change: So I think no one called business units and other any monetization plans for the portfolio company. So again, just to clarify here, we're probably talking about a V-ride, triple-10, and telecut.
Speaker Change: Yes.
Speaker Change: So
Speaker Change: First, we truly believe that each one of these businesses is among the leaders in that country.
Speaker Change: Each one of them has great work.
Speaker Change: That said.
Speaker Change: As we accept time and again.
Speaker Change: The majority of our little focus in the capital is being allocated towards our core AI infrastructure.
Speaker Change: And for this reason, we are very flattered with our strategic development of our puzzle business.
Speaker Change: So, it's one example. This may include the real spy act to some of the businesses.
Speaker Change: Joining forces with strategic power.
Speaker Change: Oh, speaking external interest.
Speaker Change: It's a joke.
Speaker Change: Indu Great
Speaker Change: We'll be close to us, but our focus, our main focus, both from...
Speaker Change: and the capital, if I will call a in a collection, be it.
Speaker Change: Very good. Thank you. So, actually next question is...
Speaker Change: which I can take, which is around sort of thinking around investor relations, going forward and so specifically some points.
Speaker Change: Do we expect to see broker research coming out soon? And just more generally, what are the plans around investor relations over the coming months to sort of as we reintroduce our company to the markets? So.
Speaker Change: Indeed, we had a fairly lengthy sort of slightly strange period where we were dark, while we were finishing the divestment and putting in place all of the infrastructure for this new company. We were very pleased to get back onto Nazdack and that sort of sparks very much in New chapter and a return to...
Speaker Change: I would say slightly more normal life and exciting but maybe a bit more normal.
Speaker Change: Definitely we're starting to re-engage with the various banks in terms of trying to sort of re- initiate self-site coverage research coverage that's a process that's underway right now and to expect to see more coming out sort of over the coming months.
Speaker Change: Go back into a more normalized sort of I up here, it's quarterly reporting going forward. We're going to look out for our set at conferences and that's the comfort isn't so on sort of over the coming months. And so yeah, so I think, you know, it wouldn't.
Speaker Change: It's a apologies for the sort of the black-out period for some time, but we're back and we'll be doing that. We also had a lot of inbound interests from investors, and so we're going to be doing a lot of one-on-one calls also. But I'm coming weeks, so I'm feel free to get in touch with all of us and we'll engage as much as we can, at a busy time, but we'll find time. So that's on the IR side.
Speaker Change: Well, if you are able to see some of the questions about the Clickhouse State, which remind people we have an approximately 28% clickhouse.
Speaker Change: Question is can we give more details on that business, how it's performing, and what is the revenue of clicks down in this airplane to go public? So probably not all of that we can address but if you have perhaps that you can comment on that today's event weekend.
Speaker Change: Actually it's very simple. Retreat, our thinking is glucose is a distant investment.
Speaker Change: So, first of all, we don't have any immediate plans for weeks.
Speaker Change: We will continue to learn it.
Speaker Change: Now, if there may not be a cello, do.
Speaker Change: We are not in a position to provide any more details on the business. Not about it.
Speaker Change: And projects, plans, business plans, etc.
Speaker Change: It's not for us to say, but we can say, and we are actually very happy to say that.
Speaker Change: To have understanding the business is well regarded by partners and other marketer participants.
Speaker Change: So we have very happy about this.
Speaker Change: Thank you, OFFEA. Next question, under the outcome view, and this one, it's around actually power supply and power access. And do we think that we have sufficient access to support future computing means and GPU requirements as under the Kareneko?
Speaker Change: Thanks Tom. Well, I would say that the first term, as I mentioned.
Tom Blackwell: We are relying on the rented capacity, plus the expansion of our finished data center, and then switch into the green field and build the field.
Tom Blackwell: projects against subject to the available capital. But generally, in the midterm, we don't see...
Tom Blackwell: We don't see problems for the growth, to support the growth, even if we are talking just growing the magnitudes.
Tom Blackwell: So the only change in times would be, might be the next.
Tom Blackwell: We both waters, but I truly believe that we are in a very good position not to be blocked by the that's in the capacity of a ability.
Tom Blackwell: That's in short
Speaker Change: Ok, thank you. Thank you.
Speaker Change: So actually the next question is about the U.S. And so what expansion plans do you have in the United States? Do you already have corporate customers in the U.S. say in generally how do you see development at all and maybe I can come to you to have a crack at that?
Speaker Change: I think that
Speaker Change: We can
Speaker Change: Say that we have a very great focus on the Earth already. We see that organically many of our customers coming from U.S. We don't have yet so much awareness here. We just started but already the...
Speaker Change: a big portion of our customers coming from U.S. and in the previous questions we said that
Speaker Change: The big part of our customers, I folks company, is it like obviously many of them here?
Speaker Change: So we developed in the team.
Speaker Change: We're planning to expand capacity here as Andre mentioned already. So like, yeah, I think it will be super important part of the game.
Speaker Change: Fantastic. And actually next question, clicked to the other side of the pond to Europe. And so I'm cutting me back and come to you on this one, which is what's the rationale for building the infrastructure apparently in Europe and just generally how do we sort of see the opportunity in Europe?
Speaker Change: Well, there's all sorts of corporate say we Dutch company traded on us next. You're in company historically.
Speaker Change: Then after this big split we inherited a big data center which is in Finland which is in the also in Europe which we are now tripling and will be pretty big facility.
Speaker Change: We also
Speaker Change: We have a recent launch, Paris, Paris is also in Europe. And we are discussing several greenfield and projects which will be also.
Speaker Change: In particular, in you, not only.
Speaker Change: So Europe definitely have some advantages for us in terms of competition and easy access to stable power supplies and cheap power supplies. But at the same time.
Speaker Change: although we started on infrastructure in Europe.
Speaker Change: We are building global business
Speaker Change: First of all, we have global customers. We're in half of our customers today. I think we can come and out there for Europe.
Speaker Change: You guys first of all
Speaker Change: and going forward with definitely a looking.
Speaker Change: We can just actually react to extend our geography to become a global AI infrastructure provider.
Speaker Change: and in particular in US and there will be some news following very soon.
Speaker Change: About the expansions here, in terms of infrastructure but also we've already announced that we follow our customers and the open of several offices in US.
Speaker Change: And so from this Candleus and the Yorkis coming soon, it's mostly on the sales and services offices. Again, infrastructure, I'm moving.
Speaker Change: 3S, not only Europe and the customer services moving to US, but again, not only just Europe, not only just US, it will be global network of data centers and global service provider. We are looking into other regions as well, pretty, active.
Speaker Change: So, yes.
Speaker Change: Great, sorry, I had a demutica at you. I thought that was... Yeah, that's essentially... So just watch coming... ...and also, it's a usual conversation.
Speaker Change: Very good. So actually, a moment may be at some point there's a question about how you see custom and needs and sort of use cases of all things. So I'd obviously say this is a rapidly developing industry so any color that you can add.
Speaker Change: Yeah, this is actually the brilliant question of answer. So I think that the main, like the most significant shift that we see now is a lot of scenarios coming. So if
Speaker Change: A lot of
Speaker Change: Compute is concerned to serve in customers, which is like we consider as a great development of the market and we move forward in general as a industry. And for us I believe this shift is also super important because
Speaker Change: Since we are very much in the software platform, when it comes to more complex scenarios, we can create much more ways of our customers.
Speaker Change: Another thing to mention is that the number of scenarios like the verticals.
Speaker Change: Also diversifying. So we see, for example, a lot of customers coming from light science, biotech, health tech. We see a lot of interest in robotics.
Speaker Change: Other like video generation now like long minding. So we think that there will be a lot of...
Speaker Change: sectors and niches who are AI is narrating and our mission here is the support.
Speaker Change: Those people who deal the products.
Speaker Change: with the infrastructure and move, develop the blood from together with them.
Speaker Change: Great. Thank you. And actually, maybe Roman, let me stay with you because there's a kind of a follow-on from this one, which is sort of how you think about the evolution of the customer base going forward.
Roman Tronin: Thank you.
Roman Tronin: Yes, I think that mostly we already covered it. So there are a few dimensions like one, the structure of the contract we said that.
Roman Tronin: Market sectors perspective. I think that again we see more and more of your side portfolio scenarios and the types of kind of.
Roman Tronin: Ahhhh
Roman Tronin: types of tasks that people address with AI and
Roman Tronin: I think, again, the next big thing is when AI will start the adopted more in enterprises, like the market will go from...
Roman Tronin: Like now most of the customers I, I native, and then we'll see a lot of a lot of adoption in enterprises, so it will be important. Shift, maybe during the next year.
Roman Tronin: ok.
Speaker Change: Very good. And Amy, welcome to this specific question here about do you have the capability to support heterogeneous GPS?
Speaker Change: So first of all, I would like to just mention that we are following the demand that we see on the market.
Speaker Change: And as the market develops, we will be developing, we are developing what we can provide. So at this point of time, NVIDIA is the state of our solution, but in our RNG, we have a lot of...
Speaker Change: different.
Speaker Change: ... um... orphans.
Speaker Change: In development and we'll just follow the demand and we'll
Speaker Change: Try to deliver the best.
Speaker Change: possible solution to the customers.
Speaker Change: Great. So we're kind of coming up at time here. There were a few questions remaining that were around this GPUs. How many we have an operation now? How many we anticipate to have by year end? And what the outlook is going into 2025?
Speaker Change: I'll refer people to the various materials that we disclose a couple of weeks ago because we go into quite a bit of detail around some of the specific capacity numbers there. So, any guilt not be refined, the answer to those questions there, but if you have any follow-ups, don't hesitate to come to us.
Speaker Change: But otherwise, we're coming up at 6 a.m. in San Francisco time. So let me thank everybody, management and all of our investors, potential current for joining us.