Riot Platforms (RIOT) Q4 2024 Earnings Call February 24, 2025 04:30 PM ET Company Participants Phil McPherson - VP of Capital Markets & Investor RelationsJason Les - CEO & Executive DirectorColin Yee - Executive VP & CFOJason Chung - Executive VP and Head of Corporate Development & StrategyGregory Lewis - Managing DirectorBrett Knoblauch - Managing DirectorReggie Smith - Executive Director, Equity ResearchMike Grondahl - Head of Equities & Director of ResearchMartin Toner - Managing Director - Institutional ...

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]

Riot Produces 527 Bitcoin in January 2025 CASTLE ROCK, Colo., Feb. 4, 2025 /PRNewswire/ -- Riot Platforms, Inc. (NASDAQ: RIOT) ("Riot" or "the Company"), an industry leader in vertically integrated Bitcoin ("BTC") mining, announces unaudited production and operations updates for January 2025.Bitcoin Production and Operations Updates for January 2025 Riot's Corsicana Facility Projected Hash Rate Growth  Comparison (%)    Metric    January 2025 1    December 2024 1    January 2024    Mon ...