On August 28, 2024, Applied Digital Corp (APLD, Financial) released its 8-K filing detailing the financial results for the fiscal fourth quarter and full year ended May 31, 2024. Applied Digital Corp designs, develops, and operates next-generation datacenters across North America to provide digital infrastructure solutions to the rapidly growing high-performance computing industry.
Fiscal Fourth Quarter 2024 Financial Highlights
Applied Digital Corp reported revenue of $43.7 million for the fiscal fourth quarter of 2024, significantly exceeding the analyst estimate of $37.61 million. However, the company posted a net loss of $64.8 million, translating to an earnings per share (EPS) of -$0.52, which fell short of the analyst estimate of -$0.22.
The adjusted net loss for the quarter was $45.3 million, impacted by $15.5 million in expenses related to facilities and equipment that were not yet generating revenue. Adjusted EBITDA for the quarter stood at $4.8 million.
Fiscal Year 2024 Financial Highlights
For the full fiscal year 2024, Applied Digital Corp reported revenue of $165.6 million, a substantial increase from $55.4 million in 2023. The net loss for the year was $149.7 million, compared to $45.6 million in the previous year. The adjusted net loss was $77.5 million, negatively impacted by $38.5 million in expenses associated with non-revenue-generating facilities and equipment. Adjusted EBITDA for the year was $24.5 million, up from $0.8 million in 2023.
Operational Highlights and Challenges
Despite the financial losses, Applied Digital Corp made significant operational strides. The company successfully procured new transformers and related components from North American manufacturers, enabling its Ellendale Data Center Hosting facility to operate at full capacity. However, the company faced challenges, including a power outage at the Ellendale facility due to transformer issues, which affected operations for most of the quarter.
"By the end of June, we successfully resolved all transformer issues at our Ellendale Data Center Hosting facility, restoring it to full power capacity. Despite these short-term setbacks, we made significant progress on our key growth initiatives," commented Wes Cummins, Chairman and CEO of Applied Digital.
Financial Metrics and Analysis
Key financial metrics from the income statement, balance sheet, and cash flow statement are summarized below:
| Metric | Q4 2024 | FY 2024 |
|---|---|---|
| Revenue | $43.7 million | $165.6 million |
| Net Loss | $64.8 million | $149.7 million |
| Adjusted Net Loss | $45.3 million | $77.5 million |
| Adjusted EBITDA | $4.8 million | $24.5 million |
These metrics are crucial for understanding the company's financial health and operational efficiency. The significant increase in revenue highlights the company's growth potential, while the net losses indicate areas that need improvement, particularly in managing operational expenses and optimizing non-revenue-generating assets.
Recent Developments and Future Outlook
Applied Digital Corp secured over $150 million in funding from various financings and settled the Garden City contingency. The company also entered into an agreement extending the exclusivity period for leasing its Ellendale, North Dakota HPC data center campus. Additionally, the company received $25 million from the sale of its Garden City, Texas facility.
Looking ahead, the company is optimistic about its growth prospects, particularly in expanding its Cloud Services business and finalizing a lease agreement with a U.S.-based hyperscaler for 400 MW capacity.
For more detailed financial information and analysis, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Applied Digital Corp for further details.
