NBIS Nebius Group N.V.

Operator (Operator): Welcome to Nebius Group's Q1 2026 Earnings Conference Call. I will now hand over to Gili Naftalovich, Head of Investor Relations, to start the call. Gili Naftalovich (Head of Investor Relations): Hi, everyone, and welcome to Nebius's first quarter 2026 earnings conference call. Joining us on the call today are Co-Founder and CEO, Arkady; and our CFO, Dado, along with the broader Nebius 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 20-F, which is 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. Arkady Volozh (Co-Founder and CEO): 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 are developing it across four dimensions. The first is capacity and scale; second, product and functionality; third 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 owned 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-tenancy 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 Aether version 3.5 this quarter. Our three acquisitions this year, Tavily, Eigen and Clarifai demonstrate the uniqueness of what we're building. All three companies bring industry-leading engineers and researchers to Nebius. Eigen AI and Clarifai strengthened our inference optimization solutions. Eigen was recognized as the number one speed inference provider by NVIDIA. While Eigen optimizes at the model level, Clarifai optimizes at the system level, and they both strengthen our in-house Token Factory offering. We also acquired Tavily earlier this year, extending our platform reach to agentic search, an increasingly significant part of the market. This acquisition brought us rarer capabilities 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 GB300 for training workloads. We are 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 offering through strategic acquisitions. Our clients appreciate the full extent of our offering. This is not common in our market. These are 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 bare-metal offtakers. Our pipeline generation in the first quarter grew 3.5x 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 exampl ... [transcript truncated at 5,000 chars — full text available via API]