Q4 2024 Applied Digital Corp Earnings Call Transcript
Key Points
- Applied Digital Corp (APLD) reported a significant increase in revenues for the fiscal fourth quarter of 2024, reaching $43.7 million compared to $22 million in the same period in 2023.
- The company's 106 megawatt Jamestown facility has consistently met expectations, operating at full capacity with uninterrupted uptime for the seventh consecutive quarter.
- Applied Digital Corp (APLD) has made substantial progress in the construction of its 100-megawatt high-performance computing (HPC) data center in Ellendale, North Dakota.
- The cloud services business continues to experience growth, with four clusters online by the end of the fourth quarter and an additional two clusters brought online in the first quarter of 2025.
- The company secured over $150 million in funding from various financiers and the settlement of the Garden City contingency subsequent to the fiscal year-end.
- The Ellendale facility experienced a significant power outage starting in January due to transformer failures, impacting financial performance.
- The company reported a net loss of $64.8 million for the fiscal fourth quarter of 2024, a substantial increase from the $6.5 million net loss in the same period in 2023.
- Cost of revenue for the fiscal fourth quarter of 2024 increased to $46.3 million from $15.9 million in the same quarter of 2023, driven by higher energy costs and increased depreciation and personnel costs.
- Selling and general administrative expenses rose to $31.3 million in the fiscal fourth quarter of 2024, up from $12.3 million in the prior year's comparable period, due to start-up costs and higher personnel expenses.
- The company is still working on finalizing the lease and project financing for the Ellendale campus, which has caused delays in securing additional capital for ongoing construction.
Good afternoon, and welcome to Applied Digital's fiscal fourth quarter 2024 conference call. My name is Shamali, and I will be your operator today. Before this call Applied Digital issued its financial results for the fiscal fourth quarter ended May 31, 2024 in our 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, Matt Glover from Gateway Group will make a brief introductory statement. Mr. Glover, please proceed.
Great. Thank you, Shamali. Good afternoon, everyone, and welcome to Applied Digital's fourth quarter 2024 conference call. Before management begins their formal remarks, we would like to remind everyone that some statements we are making today may be considered forward-looking under securities laws and
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