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Applied Digital (APLD) - 2025 Q2 - Quarterly Results
APLDApplied Digital (APLD)2025-01-14 21:14

Revenue Growth - Revenues for the fiscal second quarter 2025 were 63.9million,up5163.9 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 36.2millioninrevenue,withfacilitiesoperatingatfullcapacity[11]−TotalrevenueforthesixmonthsendedNovember30,2024was36.2 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 78.527millionforthesameperiodin2023[36]NetLossandFinancialPerformance−Netlossforthefiscalsecondquarter2025was78.527 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 87.2millionfromthelossonchangeinfairvalueofdebtand87.2 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 143.646million,comparedto143.646 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,comparedto0.80, compared to 0.21 for the same period in 2023[36] - Net loss for the six months ended November 30, 2024, was 142,973thousand,comparedto142,973 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 34,197thousand,comparedto34,197 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 21.4million,up9321.4 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 730thousandinthesameperiodlastyear[40]−AdjustedEBITDAforthesixmonthsendedNovember30,2024,was730 thousand in the same period last year[40] - Adjusted EBITDA for the six months ended November 30, 2024, was 41,355 thousand, compared to 20,950thousandinthesameperiodlastyear[42]FinancingandCapitalStructure−AppliedDigitalenteredintoa20,950 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 450millionofferingof2.75450 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 314.6millionincash,cashequivalents,andrestrictedcash,alongwith314.6 million in cash, cash equivalents, and restricted cash, along with 479.6 million in debt[20] - Cash and cash equivalents increased significantly from 3.339millionasofMay31,2024to3.339 million as of May 31, 2024 to 286.237 million as of November 30, 2024[34] - Cash flow from financing activities was 618,584thousandforthesixmonthsendedNovember30,2024,comparedto618,584 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 762.867millionasofMay31,2024to762.867 million as of May 31, 2024 to 1,543.169 million as of November 30, 2024[34] - Property and equipment, net increased from 340.381millionasofMay31,2024to340.381 million as of May 31, 2024 to 772.664 million as of November 30, 2024[34] - Total liabilities increased from 638.037millionasofMay31,2024to638.037 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 128,154thousandforthesixmonthsendedNovember30,2024,comparedtopositive128,154 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 207,539thousandforthesixmonthsendedNovember30,2024,from207,539 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 11,667thousandindiligence,acquisition,disposition,andintegrationexpensesforthesixmonthsendedNovember30,2024[40]−Thecompanyreportedalossonconversionofdebtof11,667 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]