In This Article:
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Revenue: $63.9 million, up 51% over the prior comparable period.
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Data Center Hosting Revenue: $36.2 million.
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Cloud Services Revenue: $27.7 million.
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Cost of Revenues: Increased by $22.6 million to $52.4 million.
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General and Administrative Expenses: Increased by $9.5 million to $29.8 million.
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Depreciation and Amortization Expense: Increased to $26.4 million from $13.4 million in the same period of 2024.
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Interest Expense: Increased by $4.9 million to $7.5 million.
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Net Loss Attributable to Common Stockholders: $138.7 million or $0.66 per share.
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Adjusted Net Loss: $12.6 million or $0.06 per share.
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EBITDA: Increased 93% to $21.4 million.
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Cash, Cash Equivalents, and Restricted Cash: $314.6 million.
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Total Debt: $479.6 million.
Release Date: January 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Applied Digital Corp (NASDAQ:APLD) reported a 51% increase in revenues for the fiscal second quarter of 2025, driven by growth in their cloud services business.
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The company has successfully energized the main substation transformer for their 400 megawatt campus in Ellendale, North Dakota, marking a significant milestone.
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Applied Digital Corp (NASDAQ:APLD) announced a strategic partnership with Macquarie Asset Management, which includes a $5 billion perpetual preferred equity financing facility.
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The partnership with Macquarie positions Applied Digital Corp (NASDAQ:APLD) for significant growth, with plans to construct over two gigawatts of HPC data center capacity.
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The company has been recognized with the DCD Community Impact Award for their Ellendale Community and Economic Development Initiative, highlighting their positive community impact.
Negative Points
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The company reported a net loss attributable to common stockholders of $138.7 million for the quarter.
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Interest expenses increased significantly to $7.5 million, driven by an increase in finance leases and interest-bearing loans.
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The hyperscaler contract process has been lengthy and thorough, causing delays in finalizing agreements.
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Applied Digital Corp (NASDAQ:APLD) faces challenges with electricity availability for data centers, with a potential shortfall predicted by 2028.
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The company is dealing with a moving target in terms of investment and cash recovery from their Ellendale campus, complicating financial planning.
Q & A Highlights
Q: Can you provide any color on where due diligence processes stand with potential hyperscalers? Would there come a point where you would reenter exclusivity with any of these counterparties? A: The exclusivity with the first potential customer expired, and we opened the site for additional customers. The process is more accelerated now as everything is prepared for easy access. We are not currently in exclusivity with any party but are progressing well with multiple discussions. - Wesley Cummins, CEO