The following is a summary of the Applied Digital Corporation (APLD) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Applied Digital Corporation reported Q4 2024 revenue of $43.7 million, up from $22 million in Q4 2023, driven by expanded data center hosting capacity and cloud service contracts.

• The company faced a net loss of $64.8 million, or $0.52 per share, compared to a net loss of $6.5 million in the previous year, largely due to one-time items and increased operational costs.

• Adjusted EBITDA for Q4 2024 stood at $4.8 million, up from $3.4 million in Q4 2023.

Business Progress:

• Applied Digital has made significant strides in expanding their high-performance computing (HPC) data centers, with 400 megawatts of capacity under development across North Dakota.

• The company successfully replaced transformers at the Ellendale facility leading to a restoration of hosting capacity.

• Growth in the cloud services segment continues with the addition of new clusters for AI applications.

Opportunities:

• Executed a letter of intent with a US-based hyperscaler for a 400-megawatt capacity lease at the Ellendale campus which is expected to solidify their position in the HPC data center market.

• Future potential to extend capacity to three additional campuses totaling 1.4 gigawatts.

Risks:

• Challenges include the multi-month outage at Ellendale, impacting financial performance and necessitating significant capital for recovery and expansion.

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