Applied Digital Corporation

Good afternoon and welcome to Applied Digital's fiscal second quarter 2025 conference call. My name is Julian and I'll be your operator for today. For this call, Applied Digital issued its financial results for fiscal second quarter ended November 30th, 2024 in a press release. The copy of which will be furnished in a report on a form 8K filed with the SEC and will be available in the investor relations section of the company's website. Joining us today, All joining us on today's call are Applied Digital's Chairman and CEO, Wes Cummins, and CFO, Saidal Mahmand. 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, you may begin.

Thank you, Julian. Good afternoon, everyone, and welcome to Applied Digital's Fiscal Second Corner 2025 Conference Call. Before management begins formal remarks, we would like to remind everyone that some statements and involve a number of risks and uncertainties. As a result, we caution you that a number of factors, many of which are beyond our control, could cause actual results and events that differ materially from those described in the forward-looking statements. For more detailed risks, uncertainties, and assumptions relating to our forward-looking statements, please see the disclosures in our earnings release and public filings made with the Securities and Exchange Commission, or SEC. We disclaim any obligation or any undertaking to update forward-looking statements to reflect forward-looking statements are made, except as required by law. We also discuss non-GAAP financial metrics and encourage you to carefully read our disclosures and the reconciliation tables to the applicable GAAP measures in our earnings release as you consider these metrics. We refer you to our filings of the SEC for detailed disclosures and descriptions of our business uncertainties and other variable circumstances, including, but not limited to, risks and uncertainties identified under the caption Risk Factors in our annual report on Form 10-K. and our quarterly report on Form 10-Q. You may get Applied Digital's FCC filings for free by visiting the FCC website at www.fcc.gov. I would also like to remind everyone that this call is being recorded and will be made available for replay via link in the Investor Relations section of Applied Digital's website. Now, I'd like to turn the call over to Applied Digital's Chairman and CEO, Wes Cummins. Wes?

Thanks, Matt, and good afternoon, everyone. Thank you for joining our fiscal second quarter 2025 conference call. I want to start by expressing gratitude to our employees for their continued hard work and service in supporting our mission of providing purpose-built infrastructure to the rapidly-growing high-performance computing industry. Before turning the call over to our CFO, Saddam Oman, for a detailed review of our financial results, I'd like to share some recent developments across our businesses. Starting with our data center hosting business, we currently have 286 megawatts of data center capacity for our cryptocurrency clients across two fully contracted locations in North Dakota, which are operating at full capacity. As many of you know, Bitcoin recently hit $100,000, and the demand for our services in this sector remains robust. Next, let's discuss our cloud services business, which provides high-performance computing power for AI applications. This segment continues to experience growth as we fulfill our existing contracts and explore new opportunities in our pipeline. As of the end of the second quarter, we had six clusters online. We are currently evaluating numerous opportunities in this area as we see how next-generation GPUs come to market. In our HPC hosting segment, we continue construction of our 400-megawatt campus in Ellendale, North Dakota. In December, we reached a major milestone with the successful energization of the main substation transformer. Additionally, I'm very pleased to announce that we won the DCD Community Impact Award for our Ellendale Community and Economic Development Initiative. Through the Our Wish program, we're addressing housing shortages and supporting workforce growth in Allendale, North Dakota. This is a significant accomplishment for an emerging firm like ours in the data center space as we were finalists alongside established companies from around the globe, such as Google, NTT Data from India, and Telehouse Europe based in London. Let's now turn to the topic that's on everyone's mind, the lease of our campus in Allendale, North Dakota. Over the past year, We've learned that the hyperscaler contract process is extremely thorough. While we cannot control their speed, we are focusing on what we can control, completing the construction of our 100 megawatt data center on time and within budget. I strongly believe that our Ellendale campus is a valuable asset with 100 megawatts of critical IT load available in 2025. We believe it is in our shareholders' best interest to continue managing what we can and avoid speculating on an exact date. While the process has been long, one of the major benefits of undergoing such a significant diligence process is that we have been engaged with some of the largest finance and investment partners in the world. Today, I'm excited to share we've agreed to form strategic partnership with Macquarie Asset Management. Macquarie Asset Management, the asset management division of Macquarie Group, is a global financial services organization operating in 34 markets with over 20,000 employees. They have been recognized as one of the largest infrastructure investors in the world for the past 12 years, raising over $80 billion in capital last year alone. Macquarie brings extensive experience in infrastructure investments and data centers. They will leverage their infrastructure investing and development expertise along with our growing digital, along with their growing digital ecosystem capabilities to complement Applied Digital's expertise in delivering and servicing data center infrastructure solutions for enterprise and hyperscale companies. The partnership will include a $5 billion perpetual preferred equity financing facility. This facility will allocate up to $900 million to the company's Allendale High Performance Computing Data Center campus and give Macquarie the right of first refusal to invest up to an additional $4.1 billion across Applied Digital's future HPC data center pipeline. The investment will take the form of perpetual preferred and 15% common equity interest in Applied Digital's HPC business segment. McCrory investment in conjunction with future project financing will be used to repaid project level debt and allow the company to recover over an estimated $300 million of its equity investment in the L&L HPC campus. We believe this expanded relationship with McCrory positions Applied Digital for significant growth in the industry, establishing Applied Digital as one of the fastest growing HPC data center owners, operators, and developers in the United States. At today's build cost, we have a significant portion of the equity needed to construct over 2 gigawatts of the HPC data center capacity, including our L&L HPC campus. With an 85% ownership stake in both existing and future HPC assets to a project level preferred equity financing facility sufficient to fund our HPC project pipeline, we believe we are positioned for transformative progress. We're excited to have McCrory support. as we establish ourselves as a leader in the Tier 3 data center infrastructure sector, while continuing to develop and operate large-scale, state-of-the-art data centers for world-class customers at the forefront of the AI revolution. In summary, we're encouraged by the positive trends we're witnessing across our business and remain confident in our growth trajectory. With that, I will now turn the call over to our CFO, Sainal Mohmand, to walk you through our financials and provide an update on guidance. Sainal?