Revenue and Cost Analysis - Revenue increased by $51.9 million (73%) from $70.7 million to $122.6 million for the six months ended November 30, 2024, driven by growth in the Cloud Services Business[208] - Cost of revenues increased by $58.4 million (106%) from $55.0 million to $113.4 million for the six months ended November 30, 2024, primarily due to business growth and increased service provision[210] - Selling, general and administrative expense increased by $7.7 million (21%) from $36.4 million to $44.1 million for the six months ended November 30, 2024, driven by overall business growth[211] Interest and Debt-Related Expenses - Interest expense, net increased by $10.0 million (211%) from $4.8 million to $14.8 million for the six months ended November 30, 2024, primarily due to increases in finance leases and debt obligations[217] - Loss on change in fair value of debt was $85.4 million for the six months ended November 30, 2024, primarily due to changes in the fair value of the conversion option derivative of the 2.75% Senior Unsecured Convertible Note[219] Business Segment Performance - Data Center Hosting Business operating profit increased by $28.5 million (143%) from $19.9 million to $48.4 million for the six months ended November 30, 2024, due to operational improvements and favorable power pricing[225] - Cloud Services Business operating loss increased by $2.7 million from $19.0 million to $21.6 million for the six months ended November 30, 2024, primarily due to amortization expense on finance leases and stock-based compensation[226] - HPC Hosting Business operating loss increased by $7.1 million from $1.7 million to $8.8 million for the six months ended November 30, 2024, largely due to legal expenses and stock-based compensation[227] Non-GAAP Measures and Adjustments - Adjusted Operating Loss and Adjusted net loss attributable to Applied Digital Corporation are non-GAAP measures excluding stock-based compensation, non-recurring expenses, and other items not representative of ongoing costs[231] Capital Raising and Financing Activities - Company issued and sold approximately 2.9 million shares under the Sales Agreement for net proceeds of $16.4 million, net of issuance costs of $0.5 million[176] - Company completed a private offering of $450 million in 2.75% Senior Unsecured Convertible Notes due 2030, with net proceeds of approximately $435.2 million[168][249] - Company entered into a $150 million Macquarie Promissory Note with an 18-month term and 0.25% annual interest rate[171][250] - Company closed on three offerings of Series E Preferred Stock, selling 301,673 shares for net proceeds of $6.9 million[242][180] - Company entered into a $50.0 million Series F Convertible Preferred Stock private placement, with proceeds of $50.0 million before fees[246][181] - Company completed a private placement of 49,382,720 shares of common stock for gross proceeds of approximately $160 million[247] - Company entered into a Standby Equity Purchase Agreement (SEPA) with YA Fund, allowing the sale of up to $250.0 million of common stock over a 36-month period[178][245] Debt Repayment and Asset Sales - Company repaid the CIM Promissory Note in full, including all outstanding principal, accrued interest, fees, and expenses, using proceeds from the Macquarie Promissory Note[164][250] - Gain on classification of held for sale was $24.6 million for the six months ended November 30, 2024, primarily due to the receipt of $25.0 million from the sale of the Garden City facility[214] - Company received $25 million in escrowed funds from the sale of the Garden City hosting facility[177] Future Service Payments - Company received $28.3 million in payments for future cloud services and $59.2 million in payments for future data center hosting services during the six months ended November 30, 2024[252] Stock Conversions - 10,191 shares of Series F Convertible Preferred Stock were converted into approximately 1.5 million shares of common stock during the three months ended November 30, 2024[186] - The remaining 43,000 shares of Series F Convertible Preferred Stock were converted into approximately 6.1 million shares of common stock subsequent to the quarter ended November 30, 2024[186]

Revenue Growth - Revenues for the fiscal second quarter 2025 were $63.9 million, up 51% from the prior year period[5] - Cloud Services Business generated $27.7 million in revenues, representing a 523% increase compared to the same period in 2023[8] - Data Center Hosting Business generated $36.2 million in revenue, with facilities operating at full capacity[11] - Total revenue for the six months ended November 30, 2024 was $124.572 million, compared to $78.527 million for the same period in 2023[36] Net Loss and Financial Performance - Net loss for the fiscal second quarter 2025 was $138.7 million, impacted by $87.2 million from the loss on change in fair value of debt and $25.4 million from the loss on conversion of debt[5] - Net loss attributable to common stockholders for the six months ended November 30, 2024 was $143.646 million, compared to $21.986 million for the same period in 2023[36] - Basic and diluted net loss per share attributable to common stockholders for the six months ended November 30, 2024 was $0.80, compared to $0.21 for the same period in 2023[36] - Net loss for the six months ended November 30, 2024, was $142,973 thousand, compared to $22,383 thousand in the same period last year[37] - Adjusted net loss attributable to Applied Digital Corporation for the six months ended November 30, 2024, was $34,197 thousand, compared to $5,083 thousand in the same period last year[40] Adjusted EBITDA and Operating Metrics - Adjusted EBITDA for the fiscal second quarter 2025 was $21.4 million, up 93% from the prior year period[5] - Adjusted Operating Loss excludes stock-based compensation, non-recurring repair expenses, and other non-recurring expenses[30] - Adjusted EBITDA is defined as EBITDA adjusted for stock-based compensation, non-recurring repair expenses, and other non-recurring expenses[31] - Adjusted operating loss for the six months ended November 30, 2024, was $19,406 thousand, compared to $730 thousand in the same period last year[40] - Adjusted EBITDA for the six months ended November 30, 2024, was $41,355 thousand, compared to $20,950 thousand in the same period last year[42] Financing and Capital Structure - Applied Digital entered into a $5.0 billion perpetual preferred equity financing facility with Macquarie Asset Management for its HPC business[5] - The Company completed a $450 million offering of 2.75% Convertible Senior Notes due 2030, with net proceeds of approximately $435.2 million[7] - As of November 30, 2024, the Company had $314.6 million in cash, cash equivalents, and restricted cash, along with $479.6 million in debt[20] - Cash and cash equivalents increased significantly from $3.339 million as of May 31, 2024 to $286.237 million as of November 30, 2024[34] - Cash flow from financing activities was $618,584 thousand for the six months ended November 30, 2024, compared to $47,611 thousand in the same period last year[37] Asset and Liability Changes - Total assets increased from $762.867 million as of May 31, 2024 to $1,543.169 million as of November 30, 2024[34] - Property and equipment, net increased from $340.381 million as of May 31, 2024 to $772.664 million as of November 30, 2024[34] - Total liabilities increased from $638.037 million as of May 31, 2024 to $1,052.815 million as of November 30, 2024[34] Cash Flow and Investment Activities - Cash flow from operating activities was negative $128,154 thousand for the six months ended November 30, 2024, compared to positive $9,054 thousand in the same period last year[37] - Cash flow used in investing activities increased to $207,539 thousand for the six months ended November 30, 2024, from $65,606 thousand in the same period last year[37] Non-GAAP Measures and Adjustments - The company updated its presentation of non-GAAP measures starting in the third quarter of 2024, no longer excluding start-up costs[29] - The company incurred $11,667 thousand in diligence, acquisition, disposition, and integration expenses for the six months ended November 30, 2024[40] - The company reported a loss on conversion of debt of $33,612 thousand for the six months ended November 30, 2024[40] - The company reported a loss on change in fair value of debt of $85,439 thousand for the six months ended November 30, 2024[40] Data Center and HPC Developments - Applied Digital is in late-stage discussions to finalize a lease agreement for its 100 MW facility and plans to bring an additional 300 MW online, increasing Ellendale's total HPC capacity to 400 MW[10] - The Company successfully energized the on-site main substation transformer at the Ellendale HPC data center, marking a significant milestone in its development[7]

DALLAS, Jan. 14, 2025 (GLOBE NEWSWIRE) -- Applied Digital Corporation (Nasdaq: APLD) ("Applied Digital" or the "Company"), a designer, builder, and operator of next-generation digital infrastructure designed for high-performance computing (“HPC”) applications, cloud services (“Cloud Services”), and data center hosting (“Data Center Hosting”), reported financial results for the fiscal second quarter ended November 30, 2024. The Company also provided an operational update. Fiscal Second Quarter 2025 Financial ...

Applied Digital (APLD 8.56%) stock is posting big gains in Tuesday's trading. The company's share price was up 9.4% as of 11:30 a.m. ET and had been up as much as 25.1% earlier in the day's trading.Applied Digital is soaring today following news that Macquarie Asset Management will be investing up to $5 billion in the company. The stock is also getting a boost from the latest inflation report from the Bureau of Labor Statistics.Applied Digital surges on investment deal and macroeconomic newsApplied Digital ...

The $5.0 Billion Investment Can Support Over 2 GW of HPC Data Center Development Funds managed by Macquarie Asset Management (“MAM”) to invest up to $900 million in the Company’s Ellendale High Performance Computing (“HPC”) data center campus (the “Ellendale HPC Campus”).Agreement to provide MAM a right to invest up to an additional $4.1 billion across Applied Digital’s future HPC data center pipeline.The MAM investment, in conjunction with future project financing, to be used to repay project-level debt an ...

Earnings and Financial Performance - Applied Digital Corporation (APLD) is set to report its second-quarter fiscal 2025 results on Jan 14, with a Zacks Consensus Estimate for revenues of $63 65 million, indicating a year-over-year growth of 50 83% [1] - The consensus mark for loss is pegged at 14 cents per share, unchanged over the past 30 days, compared to a loss of 10 cents per share in the year-ago quarter [1] - APLD shares have appreciated 11% in the trailing 12 months, underperforming the broader Finance sector's return of 22% and the Zacks Financial Miscellaneous Services industry's appreciation of 19 1% [4] Growth Drivers and Strategic Initiatives - APLD benefits from strong top-line growth driven by its next-generation digital infrastructure for High-Performance Computing (HPC) applications, cloud services, and data center hosting [3] - The company is accelerating the monetization of its more than 1 4 gigawatt pipeline and expects to deploy additional clusters in the second half of fiscal 2025 [8] - APLD has a rich partner base, including NVIDIA, Super Micro Computer, Hewlett Packard, and Dell Technologies, which supports its growth prospects [8][12] - The company is finalizing a lease agreement with a U S -based hyperscaler for its 100 MW facility at the Ellendale HPC campus, with plans to increase total capacity to 400 MW [11] Valuation and Market Position - APLD's forward 12-month Price/Sales (P/S) ratio is 5 4X, higher than its median of 2 55X and the industry's 2 62X, indicating a stretched valuation [10] - The company carries a Zacks Rank 3 (Hold), suggesting investors wait for a better entry point to accumulate the stock [13] Operational Highlights - APLD recently refinanced a senior secured credit facility, lowering the overall cost of capital for its Ellendale HPC data center campus, and secured $150 million in debt financing with Macquarie Equipment Capital [9] - The company successfully energized its on-site main substation transformer in Ellendale, and its data center hosting business operates at full capacity with 106 MW in Jamestown, ND, and 180 MW in Ellendale, ND [15] - APLD entered into definitive agreements for a $160 million private placement on Sept 5, 2024, improving its liquidity position [16]

Investment Strategy - The investor manages a family portfolio primarily through a Self Managed Super Fund, focusing on generating alpha potential compared to the S&P 500 [1] - The investment approach is generalist, exploring and analyzing any sector with perceived alpha potential, with holding periods ranging from a few quarters to multiple years [1] - The investor encourages readers to evaluate performance based on the success of recommendations, which serves as a proxy for genuine investing and alpha-generating skill [1] Portfolio and Positions - The investor holds a beneficial long position in VOO through stock ownership, options, or other derivatives [2] - The investor plans to build a starter position in APLD within the next 72 hours [2]

Executive Appointment - Applied Digital Corporation appoints Laura Laltrello as Chief Operating Officer (COO) to strengthen its leadership in next-generation data centers and digital cloud solutions at the forefront of the AI revolution [1] - Laura Laltrello brings nearly 20 years of executive leadership experience, expertise in data center operations, building technologies, and large-scale infrastructure projects [2] - The appointment is expected to enhance the company's strategic vision execution and operational alignment with long-term objectives [3] Laura Laltrello's Background - Most recently, Laura Laltrello served as Vice President and General Manager of Building Automation Services at Honeywell International Inc [3] - She has a proven track record in operations, strategic execution, and profit management, having led transformative projects for global technology leaders [3] - Laura Laltrello holds a Bachelor of Applied Science degree in Applied Mathematics: Operations Research and Economics from Clemson University and completed the Executive Leadership Program at the International Institute for Management Development [3] Employment Inducement Award - Laura Laltrello was granted 600,000 time-based restricted stock units (RSUs) as part of her employment inducement award, with an effective grant date of January 6, 2025 [4] - The RSUs will vest over a three-year period, subject to continuous employment on each applicable vesting date [4] - The award was approved by the company's Board of Directors on December 27, 2024, and granted outside of the company's equity incentive plan in accordance with Nasdaq Rule 5635(c)(4) [5] Company Overview - Applied Digital Corporation develops, builds, and operates next-generation data centers and cloud infrastructure, specializing in accelerated compute, secure and scalable digital hosting, and GPU-as-a-Service solutions [6] - The company's purpose-built facilities are designed to support AI/ML, blockchain, and high-performance computing (HPC) workloads, backed by deep hyperscale expertise and a robust pipeline of available power [6]

Applied Digital Corporation (APLD) shares have appreciated 47.9% in the past six months, outperforming the broader Finance sector’s return of 15.6% and the Zacks Financial Miscellaneous Services industry’s appreciation of 3.9%. This builder and operator of next-generation digital infrastructure designed for High-Performance Computing (HPC) applications, cloud services, and data center hosting has been benefiting from strong top-line growth.In first-quarter fiscal 2025, revenues jumped 67% year over year to ...

DALLAS, Dec. 19, 2024 (GLOBE NEWSWIRE) -- Applied Digital Corporation (Nasdaq: APLD) ("Applied Digital" or the "Company"), a designer, builder, and operator of next-generation digital infrastructure designed for High-Performance Computing (HPC) applications, will host a conference call on Tuesday, January 14, 2025, at 5:00 p.m. Eastern Time to discuss its operations and financial results for the fiscal second quarter ended November 30, 2024. A press release detailing these results will be issued after the m ...