IREN (IREN) Q4 2024 earnings summary

Executive summary

• Achieved record Adjusted EBITDA of $54.7 million in FY24, up from $1.4 million in FY23, with EBITDA of $19.6 million versus a loss of $123.2 million in FY23.

• Installed Bitcoin mining capacity increased to 15 exahash, with guidance to reach 20 exahash by next month and 30 exahash by year-end, fully funded and on track.

• AI Cloud Services business launched, generating $3.1 million in revenue, with 816 NVIDIA H100 GPUs fully utilized and a strong customer pipeline.

• Data center capacity at 300 megawatts, targeting 510 megawatts by December 2024, supported by 2,310 megawatts of secured grid-connected power and over 1 gigawatt in global development pipeline.

• Maintained strong financial position with $404.6 million in cash and no debt facilities as of June 30, 2024.

Financial highlights

• Adjusted EBITDA reached $54.7 million, up from $1.4 million in FY23, with a margin of 29% versus 2% last year.

• Bitcoin mining revenue rose to $184.1 million from $75.5 million, with 9,491 Bitcoin mined at an average realized price of $44,000, an 89% price increase year-over-year.

• Net cash increased by $336.4 million, closing at $404.6 million, driven by strong operating cash flows and daily Bitcoin liquidation.

• Total equity increased to $1,097.3 million, with $823 million raised from share sales and no external debt.

• FY24 net loss after income tax narrowed to $29.0 million from $171.9 million in FY23.

Outlook and guidance

• Guidance reiterated for 20 exahash by next month and 30 exahash by year-end, with options to expand to 50 exahash in 2025 via Bitmain S21 Pro miner purchase options.

• 510 megawatts of operating data centers expected online by December 2024, with further expansion planned.

• Fully funded for planned expansion, with ongoing procurement and construction at key sites.

• Continued focus on prudent capital allocation for AI cloud growth, emphasizing contract quality and prepayments.

• AI Cloud Services expected to grow, with redeployment of GPU capacity and new pilots launching.