Applied Digital (APLD) Q4 2024 earnings summary

Executive summary

• Fiscal Q4 2024 revenue was $43.7 million, up 98% year-over-year, but net loss increased to $64.8 million due to power outages and expansion costs; significant progress was made in cloud services and HPC data center construction.

• Fiscal 2024 revenue grew 199% to $165.6 million, driven by expanded data center capacity and the launch of Cloud Services.

• A letter of intent was executed with a U.S.-based hyperscaler for a 400 MW lease at Ellendale, with technical due diligence completed and lease finalization underway.

• The Jamestown facility operated at full capacity for the seventh consecutive quarter, while transformer replacements restored Ellendale's hosting capacity by quarter-end.

• Over $150 million in new funding secured post-year-end, including $25 million from the Garden City sale escrow release.

Financial highlights

• Fiscal Q4 2024 revenue was $43.7 million, up from $22 million year-over-year, driven by expanded hosting and cloud services.

• Fiscal 2024 adjusted EBITDA was $24.5 million, up from $0.8 million in 2023; Q4 adjusted EBITDA was $4.8 million, up from $3.4 million in Q4 2023.

• Cost of revenue rose to $46.3 million in Q4 and $148.3 million for fiscal 2024, reflecting higher energy, depreciation, and personnel costs.

• Net loss was $64.8 million ($0.52/share) in Q4 and $149.7 million ($1.31/share) for fiscal 2024; adjusted net loss was $45.3 million ($0.36/share) in Q4 and $77.5 million ($0.68/share) for the year.

• Cash, cash equivalents, and restricted cash at quarter-end: $31.7 million; at year-end: $29.3 million.

Outlook and guidance

• Q4 is expected to mark the bottom for revenues, with sequential improvements anticipated in Q1 fiscal 2025.

• Focus remains on finalizing the hyperscaler lease and expanding Cloud Services.

• Three additional campuses totaling 1.4 GW are being marketed, with power available in 2026 and new buildings in design for 300 MW capacity.