Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Northern Data reports surge in Q3 revenue, upholds 2024 forecast

EditorFrank DeMatteo
Published 18/10/2024, 12:10 am
© Reuters.
1NB
-

Frankfurt/Main – Northern Data AG (ETR: ETR:NB2), a key player in AI and High-Performance Computing (HPC) solutions, has reported a significant increase in its third-quarter revenue for 2024, marking a 235% rise from the previous year to EUR 59 million. The company's adjusted EBITDA also saw a substantial increase, reaching EUR 25 million. This growth is attributed to the successful deployment of NVIDIA (NASDAQ:NVDA) GPUs and the expansion of its customer base in its Cloud services segment, which contributed EUR 48 million, accounting for 80% of the quarter's total revenue.

The company's progress is aligned with its strategy to enhance its AI platform, having deployed 19,000 NVIDIA H100 Tensor Core GPUs and planning the rollout of 2,000 NVIDIA H200 Tensor Core GPUs in late Q4. Additionally, Northern Data is progressing with the retrofit of a data center in Pittsburgh, Pennsylvania, with the first 5MW expected to be operational in Q1 2025.

Northern Data remains on track to achieve its full-year 2024 revenue target ranging between EUR 200 million and EUR 240 million, which would triple the revenue of 2023, and an adjusted EBITDA between EUR 50 million and EUR 80 million. The company's financial position has been bolstered by a successful capital raise of EUR 214 million in July, which has funded further strategic investments.

Operational highlights for the company include a partnership with Supermicro to roll out NVIDIA H200 Tensor Core GPUs, enhancing its GenAI offering. The company is also advancing the retrofit of its Pittsburgh data center and evaluating additional acquisition prospects. Its mining operations in Corpus Christi, Texas, came online in Q3 and are on track to achieve the expected 7.9EH/s by year-end.

Aroosh Thillainathan, Founder and CEO of Northern Data Group, expressed confidence in the company's strategic direction, citing the third quarter as a transformative period for the Group. He emphasized the company's commitment to expanding its AI and HPC offerings and meeting its financial targets for 2024.

This report is based on a press release statement and reflects the company's performance and strategic initiatives as it continues to grow and capitalize on the increasing demand for AI and HPC solutions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.