Applied Digital (APLD) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue grew 199% year-over-year to $165.6 million, with Q4 2024 revenue at $43.7 million, driven by expanded data center and cloud services.

• Net loss for fiscal 2024 was $149.7 million, with Q4 2024 net loss at $64.8 million, impacted by Ellendale outages and non-revenue-generating facility costs.

• Achieved uninterrupted full capacity at Jamestown for the seventh consecutive quarter, while Ellendale was restored after transformer failures.

• Advanced construction of a 100 MW HPC data center in Ellendale and executed a letter of intent with a U.S.-based hyperscaler for 400 MW.

• Secured over $150 million in new funding post-year-end, including $25 million from the Garden City, Texas facility sale.

Financial highlights

• Q4 2024 revenue was $43.7 million, up from $22 million in Q4 2023, with data center hosting at $26.9 million and cloud services at $16.8 million.

• Fiscal 2024 adjusted EBITDA was $24.5 million, with Q4 2024 adjusted EBITDA at $4.8 million, both up year-over-year.

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

• Cash, cash equivalents, and restricted cash at Q4 2024 end: $29.3 million; debt: $125.4 million.

• Adjusted net loss for Q4 2024 was $45.3 million ($0.36/share); fiscal 2024 adjusted net loss per share was $0.68.

Outlook and guidance

• Q4 2024 is expected to mark the bottom for revenues, with sequential improvements anticipated in Q1 2025.

• Focused on finalizing the lease and project financing for Ellendale, with three new campuses totaling 1.4 GW being marketed for 2026 power availability.

• Anticipates strong long-term shareholder value through expansion and asset-level financing.