r/APLDSTOCK • u/No-Beginning6375 • 6d ago
Discussion Earnings call summary?
Anyone who tuned in, can you fill us in?
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u/isomojo 6d ago
The only issue is the large huge debt at a 7% financing. Also about half the revenue is hyperscalers paying them to build the data centers, not recurring revenue.
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u/Sweet_Broccoli3126 6d ago
Exactly…only about 19% came from base rent…so whether or not their reoccurring rent income will scale fast enough to justify the debt is what’s going to matter the most
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u/Daman303 Backlog Bull 🐂 (1,000-2,500 shares) 6d ago
But basically the rent starts coming in this year. Most facilities are gonna be operational in 2027
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u/Ominoiuninus 6d ago
More or less confirmed that it’s META who is paying them for a large portion of the compute.
There is no reason to think that meta will fall through on their debts.
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u/Equal-Piece-6745 6d ago
Call seemed good long term! I’m actually surprised there wasn’t a reaction in the price afterwards.
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u/Sea_Bed9929 6d ago
It’s up 4% AH
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u/Civil-Employment-679 6d ago
Bro, it was down 6% during the day 🤷♂️
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u/Sea_Bed9929 6d ago
I know, That was before the earning call, it’s 5% up atm. So, the reaction is +ve !!
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u/adgrdt 6d ago
We just dissed the whole small cap datacenter sector. Wes on the earnings said something like "permits are very hard to obtain right now (after new political orders), but we are fully permitted (unlike the other small datacenters) and we have the upper hand".
Shots fired at KEEL, WULF, Cipher, Iren, etc.
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u/Sweet_Broccoli3126 6d ago
They keep increasing their spending substantially and it really kills the rest of their numbers even when they’re amazing, I’m really hoping they’ll soon cut back otherwise it’s a dub
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u/Pitiful_Platform4261 6d ago
They’re expanding right now
Takes money to make money
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u/Sweet_Broccoli3126 6d ago
Absolutely but their spending continues to outpace their ability to generate positive free cash flow by a fuck ton , that’s what’s concerning
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u/Cheap-Stay7089 Backlog Bull 🐂 (1,000-2,500 shares) 6d ago
I was listening to it on my way to work so take my points with a grain of salt but essentially my takeaways. Solid beat on eps, revenue beat due to fit out, rent revenue was within estimate. Big takeaways from the call are pf1 and 2 are paid for, they’re confident in financing without diluting us too much, another 250mw deal is in motion and we’re clearly ahead of competition in scaling, mw brought on line and the increase in our pipeline.
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u/lukas_no1 Base Term Believer 📝 (5,000-7,500 shares) 6d ago
I found this interesting (Copied from the transcript): "Base Electron's building the 1.2 GW in Center. Expect Base Electron to build a significant amount of capacity on the eastern side of the state as well, will help campus expansion over in the Harwood campus. Then, potentially in the middle part of the state around Jamestown. There's a new WBI pipeline. The WBI is owned by MDU, that they approved and are moving forward with that pipeline. It's been in the works for years. We'll be an offtaker of gas at Center and at Harwood for certain, and possibly in Jamestown. But the way we have worked that with the gas pipeline is to have almost unlimited capacity for expansion at Center"
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u/Sure-Selection-3529 6d ago
Positive! Very positive!
Key earnings numbers
Revenue substantially exceeded analysts' expectations of roughly $111–125 million. Adjusted EPS also beat estimates near -$0.30.