Applied Digital (US:APLD)2024-08-28 21:08Revenue Growth - Fiscal fourth quarter 2024 revenue of $43.7 million, up 98% from the fiscal fourth quarter 2023[2][16] - Fiscal 2024 revenue of $165.6 million, a 199% increase from $55.4 million in 2023[3][12] - Total revenue for the three months ended May 31, 2024, was $43.7 million, compared to $22.0 million for the same period in 2023[35] - Cloud Services recognized $29.0 million in revenues during fiscal year 2024[8] Net Loss and Financial Performance - Fiscal 2024 net loss of $149.7 million, compared to $45.6 million in 2023[3][13] - Adjusted net loss for fiscal 2024 was $77.5 million, negatively impacted by $38.5 million of expenses related to non-revenue generating facilities[14] - Net loss attributable to Applied Digital Corporation for the three months ended May 31, 2024, was $64.8 million, compared to $6.5 million for the same period in 2023[35] - Net loss increased to $149.671 million in 2024 from $45.606 million in 2023, reflecting a significant decline in financial performance[37] - Net loss attributable to Applied Digital Corporation (GAAP) for the three months ended May 31, 2024, was $(64,756) thousand, compared to $(6,464) thousand for the same period in 2023[42] Adjusted EBITDA and Non-GAAP Measures - Adjusted EBITDA for fiscal 2024 was $24.5 million, up from $0.8 million in 2023[3][15] - Adjusted EBITDA is defined as EBITDA adjusted for stock-based compensation, non-recurring repair expenses, and other items[32] - Adjusted EBITDA (Non-GAAP) for the three months ended May 31, 2024, was $4,794 thousand, compared to $3,386 thousand for the same period in 2023[42] - Adjusted Net Loss per Diluted Share is calculated as Adjusted net loss divided by weighted average diluted share count[31] - The company cautions investors that non-GAAP financial measures have limits in their usefulness and may not be directly comparable to similarly titled measures used by other companies[28] Cash Flow and Financing - Cash and cash equivalents decreased to $3.3 million as of May 31, 2024, from $29.0 million as of May 31, 2023[34] - Cash flow from operating activities decreased to $11.360 million in 2024 from $58.735 million in 2023, indicating reduced operational cash generation[37] - Cash flow used in investing activities increased to $172.436 million in 2024 from $132.088 million in 2023, driven by higher capital expenditures[37] - Cash flow provided by financing activities rose to $146.757 million in 2024 from $70.628 million in 2023, primarily due to increased borrowings[37] - The Company secured over $150 million in funding post-fiscal year end[4] Assets and Liabilities - Total assets as of May 31, 2024, were $762.9 million, a significant increase from $264.0 million as of May 31, 2023[34] - Property and equipment, net, increased to $340.4 million as of May 31, 2024, from $198.2 million as of May 31, 2023[34] - Total liabilities increased to $638.0 million as of May 31, 2024, from $194.3 million as of May 31, 2023[34] - Operating right-of-use assets obtained by lease obligation amounted to $159.197 million in 2024, indicating expansion in leased assets[39] Operational Updates - The Ellendale Data Center Hosting facility was restored to full operating capacity by June 28, 2024[4][11] - The Company entered into an exclusivity agreement for 400 MW capacity with a U.S.-based hyperscaler[6][9] - The Company currently operates 286 MW of data center hosting capacity[10] Expenses and Adjustments - Adjusted operating loss improved to $26.947 million in 2024 from $50.991 million in 2023, reflecting cost management efforts[41] - Adjusted net loss attributable to Applied Digital Corporation decreased to $45.346 million in 2024 from $77.522 million in 2023, showing progress in reducing losses[41] - Stock-based compensation decreased to $17.108 million in 2024 from $32.072 million in 2023, indicating reduced equity-based expenses[41] - Loss on classification as held for sale was $15.417 million in 2024, impacting the financial results[41] - Interest paid increased significantly to $20.216 million in 2024 from $1.118 million in 2023, reflecting higher debt servicing costs[39] - Depreciation and amortization for the three months ended May 31, 2024, was $31,696 thousand, compared to $2,636 thousand for the same period in 2023[42] - Stock-based compensation for the three months ended May 31, 2024, was $3,597 thousand, compared to $5,195 thousand for the same period in 2023[42] - Non-recurring repair expenses for the three months ended May 31, 2024, were $645 thousand, compared to $0 for the same period in 2023[42] - Diligence, acquisition, disposition, and integration expenses for the three months ended May 31, 2024, were $1,652 thousand, compared to $727 thousand for the same period in 2023[42] - Litigation expenses for the three months ended May 31, 2024, were $929 thousand, compared to $0 for the same period in 2023[42] - Research and development expenses for the three months ended May 31, 2024, were $50 thousand, compared to $0 for the same period in 2023[42] - Loss on change in fair value of debt for the three months ended May 31, 2024, was $4,789 thousand, compared to $0 for the same period in 2023[42] Non-GAAP Measures Update - The company updated its presentation of non-GAAP measures starting in the third quarter of 2024, no longer excluding start-up costs[29]