Applied Digital (APLD) - 2025 Q1 - Quarterly Results

Financial Performance - Revenues for the fiscal first quarter 2025 were $60.7 million, representing a 67% increase compared to the same period last year[2] - The net loss for the fiscal first quarter 2025 was $4.2 million, or $0.03 per basic and diluted share, an improvement from a net loss of $11.5 million, or $0.11 per share, in the prior year[11] - Adjusted net loss for the fiscal first quarter 2025 was $21.6 million, with an adjusted net loss per diluted share of $0.15, impacted by $4.4 million in expenses related to non-revenue generating facilities[12] - Adjusted EBITDA for the fiscal first quarter 2025 was $20.0 million, up from $9.9 million in the same quarter of the previous year[13] - Total revenue for the three months ended August 31, 2024, was $60.704 million, a 67.2% increase from $36.323 million in the same period last year[31] - Operating income for the same period was $9.483 million, compared to an operating loss of $7.368 million in the prior year[31] - Net loss attributable to common stockholders decreased to $4.291 million, down from $11.457 million year-over-year[31] - Adjusted operating loss income (Non-GAAP) for the three months ended August 31, 2024, was $(14,323) thousand, compared to $1,607 thousand for the same period in 2023[35] - Adjusted operating margin decreased to (24)% for the three months ended August 31, 2024, from 4% in the prior year[35] - Net loss attributable to Applied Digital Corporation (GAAP) improved to $(4,247) thousand for the three months ended August 31, 2024, compared to $(11,457) thousand in the same period last year[35] - EBITDA (Non-GAAP) for the three months ended August 31, 2024, was $37,422 thousand, a significant increase from $(1,312) thousand in the prior year[38] - Adjusted EBITDA (Non-GAAP) rose to $19,993 thousand for the three months ended August 31, 2024, compared to $9,864 thousand in the same period of 2023[38] Cash and Assets - As of August 31, 2024, the Company had $86.6 million in cash and equivalents, up from $31.7 million at the end of fiscal 2024[14] - Total current assets increased to $84.110 million from $30.262 million as of May 31, 2024[26] - Cash and cash equivalents at the end of the period were $58.215 million, up from $3.339 million[26] - The company reported a significant gain of $24.808 million on the classification of held-for-sale assets[31] Expenses and Liabilities - The company incurred depreciation and amortization expenses of $34.316 million, compared to $7.860 million in the prior year[32] - Cash flow used in operating activities was $(75.890) million, a decrease from $4.517 million in the same period last year[32] - The company raised $60.726 million from the issuance of preferred stock during the quarter[32] - Total liabilities rose slightly to $640.604 million from $638.037 million[27] Business Operations - Two additional clusters were added to the Cloud Services Business, increasing the total to six clusters, each with 1,024 GPUs, contributing to $25.9 million in revenue from this segment[7] - The Company is finalizing a lease agreement for a 100 MW facility under construction, with plans to expand total capacity to 400 MW through additional buildings[4][8] - The Company’s 106 MW facility in Jamestown and 180 MW facility in Ellendale are operating at full capacity, with a recent sale of a facility generating $25 million in escrow funds[9] Management and Organizational Changes - Management announced executive changes to enhance the Company's growth management, with new appointments effective October 14, 2024[6] Research and Development - Research and development expenses decreased to $36 thousand for the three months ended August 31, 2024, from $184 thousand in the prior year[35] Other Expenses - Stock-based compensation expense was $(3,072) thousand for the three months ended August 31, 2024, down from $5,641 thousand in the same period last year[35] - Diligence, acquisition, disposition, and integration expenses were $2,888 thousand for the three months ended August 31, 2024, compared to $10 thousand in the same period last year[35] - Loss on abandonment of assets was $628 thousand for the three months ended August 31, 2024, with no comparable figure in the prior year[35] - Gain on classification of held for sale was $(24,808) thousand for the three months ended August 31, 2024, with no comparable figure in the prior year[35]