NEBIUS (NASDAQ: NBIS) shares surged 7.43% in pre-market trading on Tuesday following the release of its impressive first-quarter 2025 financial results. The AI infrastructure company reported better-than-expected earnings and showcased substantial revenue growth, driving investor optimism.

NEBIUS reported first-quarter revenue of $55.3 million, representing a staggering 385% year-over-year increase. While this figure slightly missed the analyst estimate of $57.73 million, the company's adjusted earnings per share of $(0.39) beat the expected $(0.44). The strong performance was primarily attributed to the growth in NEBIUS's core AI infrastructure business, which delivered an annualized run-rate revenue (ARR) of $249 million as of the end of Q1, up 684% year-over-year.

Arkady Volozh, founder and CEO of NEBIUS Group, expressed confidence in the company's trajectory, stating, "We are continuing to see strong dynamics in Q2, with April ARR of approximately $310 million, and have maintained this strong momentum into May." The company also provided an optimistic outlook for the full year 2025, projecting revenue between $500 million and $700 million. Additionally, NEBIUS expects to achieve positive adjusted EBITDA during the second half of 2025, signaling a path towards profitability.

Investors were further encouraged by NEBIUS's strategic developments, including a recent investment from Bezos Expeditions and participation from a Shopify executive. The company has also expanded its locations from one to five over the past three quarters and is actively exploring new sites. With approximately $1.45 billion in cash and cash equivalents at the end of Q1, NEBIUS appears well-positioned to fund its growth initiatives and capitalize on the booming AI infrastructure market.