Applied Digital (US:APLD)2025-01-14 21:14Revenue Growth - Revenues for the fiscal second quarter 2025 were $63.9 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 $36.2 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 $78.527 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 $87.2 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 $143.646 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, compared to $0.21 for the same period in 2023[36] - Net loss for the six months ended November 30, 2024, was $142,973 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 $34,197 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 $21.4 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 $730 thousand in the same period last year[40] - Adjusted EBITDA for the six months ended November 30, 2024, was $41,355 thousand, compared to $20,950 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 $450 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 $314.6 million in cash, cash equivalents, and restricted cash, along with $479.6 million in debt[20] - Cash and cash equivalents increased significantly from $3.339 million as of May 31, 2024 to $286.237 million as of November 30, 2024[34] - Cash flow from financing activities was $618,584 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 $762.867 million as of May 31, 2024 to $1,543.169 million as of November 30, 2024[34] - Property and equipment, net increased from $340.381 million as of May 31, 2024 to $772.664 million as of November 30, 2024[34] - Total liabilities increased from $638.037 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 $128,154 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 $207,539 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 $11,667 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]