Financial Performance - Riot Platforms, Inc. reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of a loss of $0.27 per share, and down from earnings of $0.48 per share a year ago, representing an earnings surprise of 262.96% [1] - The company posted revenues of $142.56 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 10.26%, compared to year-ago revenues of $78.83 million [2] Market Performance - Riot Platforms, Inc. shares have increased approximately 2.5% since the beginning of the year, while the S&P 500 has gained 2.2% [3] Future Outlook - The company's earnings outlook will be crucial for investors, including current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is -$0.19 on revenues of $149.8 million, and -$0.64 on revenues of $668.49 million for the current fiscal year [7] Industry Context - The Technology Services industry, to which Riot Platforms, Inc. belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Riot Platforms reported total revenue of $376.7 million for the full year 2024, a 34% increase from $280.7 million in 2023, primarily driven by higher Bitcoin prices [16] - Gross profit for 2024 was $147.6 million compared to $97.6 million in 2023 [16] - Net income for 2024 was $109.4 million or $0.40 per share, compared to a net loss of $49.5 million or $0.28 per share in 2023 [17] - Non-GAAP adjusted EBITDA for 2024 was $463.2 million, up from $214 million in 2023 [16] - Riot ended 2024 holding 17,722 Bitcoin, a 141% increase from 7,362 Bitcoin at the end of 2023 [16] Business Line Data and Key Metrics Changes - Riot increased its self-mining hash rate from 12.4 exahash to 31.5 exahash, representing a 154% increase in 2024 [13] - Bitcoin production in 2024 was 4,828 Bitcoin, a 20.7% decrease from 2023 due to the halving event [14] - The company achieved a nearly 40% Bitcoin yield in 2024, increasing Bitcoin holdings per million fully diluted shares from $31.8 million to $44.3 million [15] Market Data and Key Metrics Changes - The global Bitcoin network hash rate reached an all-time high of over 750 exahash by 2024 [5] - Bitcoin prices hit new all-time highs of $75,000 and then $100,000 during 2024 [7] Company Strategy and Development Direction - Riot's strategy includes retaining all mined Bitcoin to maximize shareholder value and increase Bitcoin yield [25] - The company is pursuing AI high-performance computing (HPC) opportunities, leveraging its power assets to meet the growing demand for energy in AI applications [29] - Riot plans to grow its Bitcoin mining hash rate by approximately 22% in 2025 while aggressively pursuing AI HPC opportunities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for power from hyperscalers and the strategic positioning of their facilities in Corsicana and Rockdale [32] - The company is focused on operational excellence and improving uptime, with expectations for significant growth in shareholder value [39] - Management highlighted the importance of maintaining a strong balance sheet and leveraging their Bitcoin holdings to capitalize on market opportunities [26] Other Important Information - Riot's engineering business generated $38.5 million in revenue in 2024, down from $64.3 million in 2023, primarily due to delays in a large manufacturing contract [23] - The acquisition of E4A Solutions for $52 million is expected to enhance Riot's engineering capabilities and reduce revenue volatility [20] Q&A Session Summary Question: Insights on HPC opportunity and power availability - Management indicated that power availability in 2025 and beyond is valuable, with significant demand for AI HPC expected [42][44] Question: Engagement with hyperscalers and project development - Management confirmed multiple tracks are being pursued simultaneously to maximize value from potential HPC transactions [46] Question: Land capacity for AI HPC developments - Management stated that Corsicana has ample land for expansion and is actively increasing its land portfolio [52] Question: Economic priorities for potential HPC deals - Management emphasized the importance of financing and blue-chip counterparties to maximize shareholder value in HPC projects [54] Question: Interest in Corsicana and Rockdale power capacity - Management noted that there is general interest from hyperscalers in their power assets, but specific requests have not yet been made [86] Question: Operational goals for Bitcoin mining in 2025 - Management aims to increase hash rate by approximately 22% in 2025, focusing on operational excellence [85] Question: Trends in operational expenses - Management acknowledged elevated G&A expenses due to one-time costs and expects to optimize cash SG&A moving forward [75]

Production and Mining Performance - Riot Platforms produced 4,828 BTC in FY 2024, representing a 27% decrease from the previous year, while Bitcoin held increased by 141% to 17,722 BTC[12][14]. - The quantity of Bitcoin mined in 2024 was 4,828, a decrease from 6,626 in 2023, reflecting a 27% decline[76]. - Cost to mine one Bitcoin, excluding Bitcoin miner depreciation, was $32,216 in 2024, which is 48.5% of the production value of one Bitcoin mined[76]. - Riot paused the sale of Bitcoin earned from self-mining operations starting January 2024, leading to a 39% BTC yield for FY 2024[9][12]. Financial Performance - The company achieved a revenue of $376.7 million in FY 2024, a 34% increase compared to FY 2023, with an adjusted EBITDA of $463.2 million[12][15]. - Total revenue for 2024 reached $376.658 million, a 34.1% increase from $280.678 million in 2023[86]. - Bitcoin mining revenue significantly increased to $321.002 million, up 69.8% from $188.996 million in 2023[86]. - Operating income for 2024 was $153.590 million, compared to an operating loss of $63.047 million in 2023[86]. - Net income for 2024 was $109.401 million, a substantial recovery from a net loss of $49.472 million in 2023[86]. - Adjusted EBITDA for 2024 was $463.189 million, a significant increase from $214.021 million in 2023[88]. - Fully Costed Gross Profit for 2024 was $(98,150,000), an improvement from $(226,009,000) in 2023[78]. - Gross Margin for 2024 improved to 39%, compared to 26% in 2023[82]. - Basic net income per share improved to $0.40 in 2024, compared to a loss of $0.28 in 2023[86]. Operational Efficiency - Riot's deployed hash rate reached 31.5 EH/s by December 2024, marking a 154% increase year-over-year[12][13]. - Riot's fleet efficiency improved by 21% year-over-year, achieving 21.9 J/TH[12][15]. - The average hash cost was approximately $28 per PH/s per day, compared to an average hash price of $6,977 per BTC in FY 2024[12][20]. - Cash SG&A expenses for 2024 were $141,711,000, up from $68,176,000 in 2023, indicating a 108% increase[80]. - Hash Cost for 2024 was $28.3 per PH/s/day, compared to $10.2 per PH/s/day in 2023, reflecting a 178% increase[85]. Capital Expenditures and Investments - The company completed the acquisition of E4A Solutions for $52 million, enhancing its engineering capabilities and operational synergies[25]. - The company acquired Block Mining for $92.5 million, adding 60 MW of operational capacity and a pipeline to build to a total of 305 MW[9][12]. - Riot's capital expenditures for 2025 are estimated at $198 million, including $110 million for miner purchases, which will increase the total deployed hash rate to 6.5 EH/s by the end of 2025[43]. - The company has secured $594.4 million through the issuance of convertible senior notes due 2030, with net proceeds used to acquire Bitcoin[41]. Power Costs and Strategy - The cost of power remained competitive at 3.4 cents per kWh, contributing to a power curtailment credit of $33.7 million[12][15]. - Total Cost of Power for 2024 was $186,154,000, up from $135,513,000 in 2023, representing a 37% increase[76]. - Net Cost of Power for 2024 was $152,469,000, significantly higher than $64,298,000 in 2023, indicating a 137% increase[76]. - Riot's strategic focus includes optimizing power costs through management strategies at its Rockdale and Corsicana assets[67]. Future Outlook and Strategic Initiatives - The company aims to achieve an average operational uptime of 87% in December 2024, reflecting improvements in operational efficiency[67]. - Riot's BTC treasury strategy has shown a potential delta in value of $149.2 million at a BTC price of $100,000[38]. - The company is aggressively pursuing opportunities in AI and HPC, with a feasibility study expected to be completed by mid-March 2025[67]. - Riot's Corsicana facility has a developed capacity of 400 MW and potential capacity of 1,000 MW, positioning it well for future growth[48]. - The company is targeting an accretive BTC yield in 2025 through prudent capital strategy and operational improvements[67]. Unrealized Losses - The company reported a significant unrealized loss on equity method investments of $69.489 million in 2024[88].

Core Insights - Riot Platforms, Inc. reported a record total revenue of $376.7 million for the fiscal year ended December 31, 2024, with a net income of $109.4 million, highlighting significant growth in the context of the Bitcoin network's halving and a 67% increase in global hash rate [1][8] - The company mined 4,828 Bitcoin at an average direct cost of $32,216 per coin, which was influenced by a decrease in power credits and the halving event [2][8] - Riot's Bitcoin holdings increased by 141% year-over-year, totaling 17,722 Bitcoin, resulting in a 39% yield for shareholders in 2024 [3] Financial Performance - Total revenue increased from $280.7 million in 2023 to $376.7 million in 2024, primarily driven by a $132 million rise in Bitcoin mining revenue [8] - Bitcoin mining revenue reached $321 million, up from $189 million in the previous year, attributed to higher average Bitcoin prices and increased operational hash rate [8] - The average cost to mine Bitcoin rose significantly from $3,831 in 2023 to $32,216 in 2024, largely due to a 53% decrease in power credits and the halving event [8][15] Operational Highlights - Riot's Corsicana Facility was energized, and the company made strategic acquisitions, including Block Mining and E4A Solutions, enhancing its operational capabilities [2] - The company generated $33.7 million in power credits in 2024, down from $71.2 million in 2023, reflecting the challenges faced in the operational environment [8] - Riot maintained a strong financial position with $439.1 million in working capital, including $277.9 million in cash and $134.3 million in marketable equity securities [8] Future Outlook - Looking ahead to 2025, Riot is exploring opportunities in the AI/HPC sector, leveraging its substantial power capacity at the Corsicana Facility [4] - The company is focused on maximizing the value of its assets and enhancing shareholder value through strategic initiatives [4]

Core Viewpoint - Riot Platforms, Inc. (RIOT) is expected to report its fourth-quarter 2024 results on February 24, with a consensus estimate indicating a loss of 27 cents per share and revenues of $129.3 million, reflecting a 64% year-over-year growth [1][2]. Earnings Estimates - The Zacks Consensus Estimate for the upcoming quarter has remained unchanged, with two upward revisions and one downward revision in the last 30 days [3][4]. - RIOT has a history of earnings surprises, surpassing estimates in two of the past four quarters, with an average negative surprise of 126.5% [6][7]. Revenue Insights - The anticipated revenue for the upcoming quarter is significantly influenced by strong Bitcoin mining revenues, estimated at $114 million, indicating a 70% sequential growth [9]. Stock Performance - RIOT's stock price has increased by 39% over the past six months, while the broader industry has seen a 93% growth, with mixed performances from other crypto-focused stocks [11]. Operational Challenges - The company faces challenges due to the Bitcoin halving event, which has increased mining difficulty without a corresponding rise in Bitcoin prices, leading to operational inefficiencies [15]. - RIOT's Bitcoin production has only increased by 1% year-over-year in January 2025, raising concerns about future profitability [15]. Volatility and Investment Considerations - RIOT exhibits a high beta of 4.23, indicating extreme volatility and potential risks for short-term investors [16]. - The company is advised to adopt a wait-and-watch approach, monitoring quarterly reports, Bitcoin price movements, and efficiency improvements before making further investment decisions [16].

Core Viewpoint - Riot Platforms, Inc. is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending December 2024, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for February 24, 2025, with a consensus estimate of a quarterly loss of $0.27 per share, reflecting a year-over-year change of -156.3%. Revenues are projected to be $129.3 million, representing a 64% increase from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised 1.75% higher in the last 30 days, indicating a collective reassessment by analysts [4]. The Most Accurate Estimate is higher than the Zacks Consensus Estimate, leading to a positive Earnings ESP of +4.94%, suggesting a likelihood of beating the consensus EPS estimate [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3. Stocks with this combination have historically produced a positive surprise nearly 70% of the time [8][9]. Historical Performance - In the last reported quarter, Riot Platforms, Inc. was expected to post a loss of $0.22 per share but actually reported a loss of $0.54, resulting in a surprise of -145.45%. Over the last four quarters, the company has beaten consensus EPS estimates two times [12][13]. Conclusion - While Riot Platforms, Inc. appears to be a compelling candidate for an earnings beat, other factors should also be considered when evaluating the stock ahead of its earnings release [16].

Company Performance - Riot Platforms, Inc. closed at $12.27, reflecting a +0.33% change from the previous trading day's closing, outperforming the S&P 500 which lost 0.01% [1] - Over the last month, the company's shares decreased by 7.98%, underperforming the Business Services sector's gain of 15.7% and the S&P 500's gain of 4.88% [2] Upcoming Earnings - The earnings report for Riot Platforms, Inc. is scheduled for February 24, 2025, with analysts expecting earnings of -$0.27 per share, indicating a year-over-year decline of 156.25% [3] - The consensus estimate projects revenue of $129.3 million, reflecting a 64.02% increase from the same quarter last year [3] Analyst Estimates and Rankings - Recent changes to analyst estimates for Riot Platforms, Inc. indicate short-term business trends, with positive revisions suggesting optimism about the company's outlook [4] - The Zacks Rank system, which assesses stock performance based on estimate changes, currently ranks Riot Platforms, Inc. at 3 (Hold) [6] - Over the last 30 days, the Zacks Consensus EPS estimate has decreased by 28.75% [6] Industry Context - The Technology Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 72, placing it in the top 29% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Points - Riot Platforms, Inc. is an industry leader in vertically integrated Bitcoin mining and has scheduled its fourth quarter and year-end 2024 earnings conference call for February 24, 2025, at 4:30 P.M. EST [1] - The company operates Bitcoin mining facilities in central Texas and Kentucky, along with electrical switchgear engineering and fabrication operations in Denver, Colorado [4] - Riot's vision is to become the world's leading Bitcoin-driven infrastructure platform, focusing on innovative solutions and strong community partnerships [3] Company Overview - Riot Platforms, Inc. is focused on a vertically integrated strategy in Bitcoin mining and digital infrastructure [4] - The company aims to positively impact the sectors, networks, and communities it engages with [3] - For more information about the company, visit their website at www.riotplatforms.com [4]

Company Performance - Riot Platforms, Inc. closed at $11.64, reflecting a +0.26% change from the previous day, outperforming the S&P 500 which fell by 0.95% [1] - The stock has decreased by 3.41% over the past month, underperforming the Business Services sector's gain of 8.87% and the S&P 500's gain of 1.86% [1] Earnings Report Expectations - Riot Platforms, Inc. is projected to report earnings of -$0.27 per share, indicating a year-over-year decline of 156.25% [2] - The consensus estimate anticipates revenue of $129.25 million, representing a 63.96% increase from the same quarter last year [2] Analyst Forecast Revisions - Recent revisions to analyst forecasts for Riot Platforms, Inc. are important as they reflect changes in near-term business trends [3] - Positive revisions in estimates indicate analysts' confidence in the company's performance and profit potential [3] Zacks Rank and Industry Position - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows Riot Platforms, Inc. currently holds a Zacks Rank of 2 (Buy) [5] - The Technology Services industry, part of the Business Services sector, has a Zacks Industry Rank of 85, placing it in the top 34% of over 250 industries [6]

Group 1 - Riot Platforms, Inc. (RIOT) is a notable stock in the Business Services sector, currently outperforming its peers with a year-to-date return of approximately 20.4% compared to the sector average of 7.8% [4] - The Zacks Rank for RIOT is 2 (Buy), indicating a positive earnings outlook and improving analyst sentiment, with the consensus estimate for full-year earnings rising by 27.1% in the past quarter [3][4] - Riot Platforms, Inc. is part of the Technology Services industry, which has an average year-to-date gain of 19.2%, further highlighting RIOT's strong performance within its industry [6] Group 2 - Visa (V) is another stock in the Business Services sector that has shown strong performance, with a year-to-date return of 9.2% and a Zacks Rank of 2 (Buy) [5] - The Financial Transaction Services industry, to which Visa belongs, is currently ranked 139 and has not shown any growth this year, contrasting with the performance of RIOT [6] - Both Riot Platforms, Inc. and Visa are expected to continue their solid performance, making them attractive options for investors interested in Business Services stocks [7]