Applied Digital Corporation Q2 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

Applied Digital Fiscal Q2 2024 Earnings Summary

  • Revenue: $42.2 million, up significantly vs. $12.3 million in Q2 FY2023, driven by growth in data center and cloud services operations.
  • Net Loss: $10.5 million ($0.10/share), improved from a loss of $26.8 million ($0.28/share) in Q2 FY2023.
  • Adjusted Net Loss: $5.2 million ($0.05/share), compared to $3.8 million ($0.04/share) in Q2 FY2023.
  • Adjusted EBITDA: $10.6 million vs. a loss of $2.2 million in Q2 FY2023.
  • Cash & Cash Equivalents: $34.6 million as of quarter-end, with $42.8 million in debt.
  • Key Headwinds: $5.2 million in amortization/lease costs for non-revenue generating GPUs and colocation assets.

Business Highlights

  • Data Center Hosting Capacity:
    • Jamestown (100 MW): Full capacity for 5th consecutive quarter.
    • Ellendale (180 MW): Full capacity and consistent uptime.
    • Garden City (200 MW): Currently operating at 132 MW; full energization expected by April 2024.
    • Total expected: 500 MW upon full energization.
  • Cloud Services (AI/HPC):
    • Annual contract value now totals $398 million at full capacity.

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Operator: Good morning, and welcome to Applied Digital Fiscal Second Quarter 2024 Conference Call. My name is Sheri and I will be your operator today. Before this call, Applied Digital issued a financial result for the fiscal second quarter ended November 30, 2023, in a press release, a copy of which will be furnished in a report on a Form 8-K filed with the SEC and will be available in the Investor Relations section of the company's website. Joining us on today's call are Applied Digital's Chairman and CEO, Wes Cummins, and CFO, David Rench. Following their remarks, we will open the call for questions. Before we begin, Alex Kovtun from Gateway Group will make a brief introductory statement. Mr. Kovtun, please proceed. Alex Kovtun: Thank you, operator. Good morning, everyone, and welcome to Applied Digital's fiscal second quarter 2024 conference call. Before management begins formal remarks, we would like to remind everyone that some statements we're making today may be considered forward-looking statements under securities laws and involve a number of risks and uncertainties. As a result, we caution you that there are number of factors, many of which are beyond our control, which could cause actual results and events to differ materially from those described in the forward-looking statements. For more detailed risks, uncertainties, and assumptions relating to our forward-looking statements, please see the disclosures in our earnings release and public filings made with the S

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