Applied Digital Corporation Q3 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue: $43.3 million for Q3 FY2024, up significantly from $14.1 million in Q3 FY2023, driven by increased data center capacity and cloud services revenue.
  • Segment Breakdown:
    • Data Center Hosting: $37.7 million in revenue
    • Cloud Services: $5.6 million in revenue
  • Net Loss: $(62.8) million ($0.52/share) compared to $(7.0) million ($0.07/share) in Q3 FY2023. The increased loss was driven by:
    • $21.7 million loss on held-for-sale classification (Garden City)
    • $4.5 million impact from Ellendale power outages
    • $4.2 million in accelerated depreciation/amortization on damaged Ellendale equipment
  • Adjusted EBITDA: $(2.3) million, down from $0.9 million in Q3 FY2023.
  • Cloud Services Segment: Operating loss of 21.6%, impacted by $16.5 million in depreciation/amortization. 4,000 GPUs are currently revenue-generating, with 2,000-4,000 more expected to be online by end of May 2024.
  • Balance Sheet:
    • Cash, cash equivalents, and restricted cash: $41.0 million
    • Debt: $61.8 million

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Operator: Good afternoon, and welcome to Applied Digital's Fiscal Third Quarter 2024 Conference Call. My name is Doug, and I will be your operator today. Before this call, Applied Digital issued its financial result for the fiscal third quarter ended February 29, 2024, 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: Great. Thank you, operator. Good morning, everyone and welcome to Applied Digital's fiscal third 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

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