Shares of Nebius (NBIS) surged 5.16% in pre-market trading on Thursday, following the release of the company's second-quarter financial results and an upward revision of its Annual Recurring Revenue (ARR) guidance for 2025.

The cloud computing company reported its second-quarter financial performance early Thursday, which appears to have impressed investors. While specific details of the results were not immediately available, the positive market reaction suggests that Nebius may have exceeded expectations or shown strong growth indicators.

Perhaps most notably, Nebius has raised its ARR guidance for 2025, a move that typically signals management's confidence in the company's future performance and growth prospects. Annual Recurring Revenue is a crucial metric for software-as-a-service (SaaS) companies like Nebius, as it provides insight into the predictability and stability of the company's revenue streams. The increase in ARR guidance could indicate that Nebius is experiencing strong customer retention, upselling success, or new customer acquisitions, all of which are positive indicators for the company's long-term outlook.