Fiscal Third Quarter 2024 Highlights
- Incurred net loss of $455.3 million due primarily to a net
$408.5 million non-cash mark-to-market adjustment to our warrants
and other contingent value right liabilities required as a result
of significant quarter-over-quarter increase in the value of our
equity
- Generated operating loss of $41.2 million, an increase of $29.2
million over third quarter 2023
- Realized adjusted EBITDA of $10.1 million
- Customer initiated option exercises resulted in an additional
112 MW during the third quarter and the remaining 120 MW in the
fourth quarter for a total of approximately 500 megawatts of
critical IT load to host high-performance computing (“HPC”),
representing total potential revenue of approximately $8.7 billion
over 12-year contracts
- Completed $460 million convertible note offering and used
approximately $211.2 million of the net proceeds to repay existing
senior debt, reducing interest rate from as high as 12.5% to 3% for
the convertible notes and eliminating restrictive covenants
- Earned 1,115 self-mined bitcoin
Core Scientific, Inc. (NASDAQ:
CORZ), a leader in digital infrastructure for bitcoin mining
and HPC, today announced financial results for the fiscal third
quarter of 2024. Net loss was $455.3 million, as compared to a net
loss of $41.1 million for the same period in 2023. Total revenue
was $95.4 million, as compared to $112.9 million for the same
period last year. Operating loss was $41.2 million, as compared to
a loss of $12.0 million for the same period in 2023. Adjusted
EBITDA was $10.1 million, as compared to $27.8 million for the same
period in the prior year. Third quarter net loss resulted from a
net $408.5 million mark-to-market adjustment in the value of our
tranche 1 and tranche 2 warrants and other contingent value rights
required as a result of the significant quarter-over-quarter
increase in the value of our equity.
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Core Scientific (Nasdaq: CORZ) is a
leader in digital infrastructure for bitcoin mining and
high-performance computing (Photo: Business Wire)
“During the third quarter, we continued to grow our HPC
business, both in terms of contracted power and total capacity,”
said Adam Sullivan, Core Scientific Chief Executive Officer. “To
date, we have contracted approximately 500 megawatts of revenue
generating, critical IT load that we expect to generate a total of
$8.7 billion over the life of the contracts. We were also able to
reallocate 100 megawatts of infrastructure previously designated
for bitcoin mining to our HPC business, increasing our total HPC
hosting capacity to 800 megawatts, with 400 megawatts still
designated to our bitcoin mining business. We expanded our
infrastructure further by securing a new data center in Alabama
with 11 megawatts of critical IT load and the potential for
expansion to 66 megawatts, and we progressed in transitioning two
existing data center sites from bitcoin mining to HPC hosting.
“We view our updated 800 megawatts of gross infrastructure
available for HPC hosting as the foundation for our data center
business, which we will continue to expand by securing additional
power at some of our existing sites and by acquiring new powered
sites that we can contract to new clients. Based on our existing
pipeline of new site opportunities and growing list of potential
new clients, we believe we now have line of sight to a total of
more than one gigawatt of critical IT load to contract,
significantly expanding the value we can create for our
shareholders.”
Fiscal Third Quarter Financial and Operational
Achievements
- Total revenue of $95.4 million, a decrease of $17.6 million
compared to third quarter 2023
- Net loss of $455.3 million, an increase of $414.1 million over
third quarter 2023
- Operating loss of $41.2 million, an increase of $29.2 million
over third quarter 2023
- Adjusted EBITDA of $10.1 million, a decrease of $17.6 million
over third quarter 2023
- Strengthened the balance sheet, ending the quarter with cash
and cash equivalents of $253.0 million as of September 30,
2024
- Operated total hash rate of 23.4 EH/s, consisting of 20.4 EH/s
self-mining and 3.0 EH/s hosting
- Improved average actual self-mining fleet energy efficiency to
24.5 joules per terahash
Fiscal Third Quarter 2024 Financial Results (Compared to
Fiscal Third Quarter 2023)
Total revenue for the fiscal third quarter of 2024 was $95.4
million, and consisted of $68.1 million in Digital asset
self-mining revenue, $16.9 million in digital asset hosted mining
revenue and $10.3 million in HPC hosting revenue.
Digital asset self-mining gross (loss) profit for the fiscal
third quarter of 2024 was a gross loss of $6.4 million ((9)% gross
margin), as compared to gross profit of $10.5 million (13% gross
margin) for the same period in the prior year, a decrease of $16.9
million. The decrease in Digital asset self-mining gross profit was
primarily driven by a 62% decrease in bitcoin mined due to the
halving and higher network difficulty, partially offset by a 117%
increase in the price of bitcoin and higher depreciation expense
from new more efficient miners being put into service.
Digital asset hosted mining revenue in excess of hosting cost of
revenue for the fiscal third quarter of 2024 was $5.0 million (29%
gross margin), as compared to $5.0 million (17% gross margin) for
the same period in the prior year. The increase in Digital asset
hosted mining gross margin was primarily due to lower Digital asset
hosted mining revenue driven by the termination of contracts with
several customers since September 30, 2023. This was due primarily
to our shift to HPC hosting, offset by lower power costs from lower
rates and reduced allocation of power to hosted customers.
HPC hosting revenue in excess of HPC hosting cost of revenue for
the fiscal third quarter of 2024 was $1.3 million (13% gross
margin). HPC hosting started operations during the fiscal second
quarter of 2024. HPC hosting costs consisted primarily of lease
expense, power costs, payroll and benefits expense and stock-based
compensation expense.
Operating expenses for the fiscal third quarter of 2024 totaled
$40.3 million, as compared to $26.8 million for the same period in
the prior year. The increase of $13.5 million was primarily
attributable to a $4.2 million increase in personnel and related
expenses, $3.7 million of HPC site startup costs incurred during
the current period, higher stock-based compensation of $2.5 million
and a $2.1 million increase in bankruptcy advisor fees.
Net loss for the fiscal third quarter of 2024 was $455.3
million, as compared to a net loss of $41.1 million for the same
period in the prior year. Net loss for the fiscal third quarter of
2024 increased by $414.1 million driven primarily by a net $408.5
million mark-to-market adjustment on our warrants and other
contingent value rights comprising a $414.5 million increase in the
fair value of warrant liabilities, partially offset by a $6.0
million decrease in fair value of contingent value rights. These
mark-to-market adjustments were driven by the increase in our stock
price during the period. Also contributing to the increase in net
loss was a $4.9 million increase in Interest expense, net resulting
from the Bankruptcy Court ordered stay on payment of pre-petition
obligations, including interest during the same period in 2023,
partially offset by $28.3 million in Reorganization items, net with
no comparable activity for the same period in fiscal 2024 due the
Company’s emergence from bankruptcy during the first quarter
2024.
Non-GAAP Adjusted EBITDA for the fiscal third quarter 2024 was
$10.1 million, as compared to Non-GAAP Adjusted EBITDA of $27.8
million for the same period in the prior year. This $17.6 million
decrease was driven by a $17.6 million decrease in total revenue, a
$5.4 million increase in cash operating expenses, a $1.6 million
increase in HPC site startup costs, a $0.4 million decrease in gain
from sales of digital assets, and a $0.2 million decrease in the
change in fair value of digital assets, partially offset by a $6.9
million decrease in cash cost of revenue and a $0.7 million
decrease in impairment of digital assets.
Fiscal Year-to-Date 2024 Financial Results (Compared to
Fiscal Year-to-Date 2023)
Total revenue for the nine months ended September 30, 2024 was
$415.7 million, and consisted of $328.8 million in digital asset
self-mining revenue, $71.1 million in digital asset hosted mining
revenue and $15.9 million in HPC hosting revenue.
Digital asset self-mining revenue in excess of mining cost of
revenue for the nine months ended September 30, 2024 was $92.7
million (28% gross margin), as compared to $66.0 million (24% gross
margin) for the same period in the prior year, an increase of $26.7
million. The increase in Digital asset self-mining revenue in
excess of Digital asset self-mining cost of revenue was primarily
due to a 18% increase in mining revenue driven by a 128% increase
in the price of bitcoin, a 36% increase in our self-mining hash
rate, driven by our fleet mix and efficiency, and an increase in
the number of mining units deployed, partially offset by a 48%
decrease in bitcoin mined due to the halving and higher network
difficulty.
Digital asset hosted mining revenue in excess of hosting cost of
revenue for the nine months ended September 30, 2024 was $21.7
million (30% gross margin), as compared to $18.1 million (22% gross
margin) for the same period in the prior year, an increase of $3.5
million. The increase in Digital asset hosted mining revenue in
excess of Digital asset hosted mining cost of revenue was primarily
due to due to lower Cost of Digital asset hosted mining services
primarily driven by lower power costs from lower rates and usage,
partially offset by decreased Digital asset hosted mining revenue
from related parties as there were no related party transactions
during fiscal 2024 and by the termination of contracts with several
customers since September 30, 2023, due primarily to our shift to
HPC hosting.
HPC hosting revenue in excess of HPC hosting cost of revenue for
the nine months ended September 30, 2024 was $1.9 million (12%
gross margin). HPC hosting started operations during the fiscal
second quarter of 2024. HPC hosting costs consisted primarily of
lease expense, direct electricity costs, payroll and benefits
expense and stock-based compensation expense.
Operating expenses for the nine months ended September 30, 2024
totaled $88.7 million, as compared to $78.1 million for the same
period in the prior year. The increase of $10.5 million was
primarily attributable a $15.3 million increase in personnel and
related expenses, $4.6 million of HPC advisory startup costs and
$3.7 million site startup costs incurred during the current period,
$2.2 million of bankruptcy advisory fees and a $1.8 million
increase in corporate taxes, partially offset by lower stock-based
compensation of $17.6 million due to cancellations and forfeitures
of equity-based awards.
Net loss for the nine months ended September 30, 2024 was $1.05
billion, as compared to a net loss of $50.8 million for the same
period in the prior year. Net loss for the nine months ended
September 30, 2024 increased by $1.00 billion driven primarily by a
net $1.14 billion mark-to-market adjustment on our warrants and
other contingent value rights comprising a $1.22 billion increase
in the fair value of warrant liabilities, partially offset by a
$79.3 million decrease in fair value of contingent value rights.
These mark-to-market adjustments were driven by the increase in our
stock price during the period. Also contributing to the increase in
net loss was a $33.6 million increase in Interest expense, net
resulting from the Bankruptcy Court ordered stay on payment of
pre-petition obligations, including interest during the same period
in 2023, and a $21.6 million decrease in gain on extinguishment of
debt compared to the same period in the prior year, partially
offset by a decrease of $189.7 million in Reorganization items,
net, which included gains on extinguishment of pre-emergence
obligations of $143.8 million.
Non-GAAP Adjusted EBITDA for the nine months ended September 30,
2024 was $144.2 million, as compared to Non-GAAP Adjusted EBITDA of
$112.9 million for the same period in the prior year. This $31.3
million increase was driven by a $55.3 million increase in total
revenue and a $2.9 million decrease in impairment of digital
assets, partially offset by a $17.2 million increase in cash
operating expenses, a $5.0 million increase in realized losses on
energy derivatives, a $2.4 million decrease in gain from sales of
digital assets, a $1.6 million increase in HPC site startup costs,
a $0.3 million increase in cash cost of revenue, and a $0.2 million
decrease in change in fair value of digital assets.
CONFERENCE CALL AND LIVE WEBCAST
In conjunction with this release, Core Scientific, Inc. will
host a conference call today, Wednesday, November 6, 2024, at 4:30
p.m. Eastern Time that will be webcast live. Adam Sullivan, Chief
Executive Officer; Denise Sterling, Chief Financial Officer; and
Steven A. Gitlin, Senior Vice President Investor Relations, will
host the call.
Investors may dial into the call by using the following
telephone numbers: +1 (877) 407-1875 (U.S. toll free) or +1 (215)
268-9909 (U.S. local) five to ten minutes prior to the start time
to allow for registration.
Investors with Internet access may listen to the live audio
webcast via the Investor Relations page of the Core Scientific,
Inc. website, http://investors.corescientific.com or by using the
following link
https://event.choruscall.com/mediaframe/webcast.html?webcastid=HW5MvP6u.
Please allow 10 minutes prior to the call to download and install
any necessary audio software. A replay of the audio webcast will be
available for one year.
A supplementary investor presentation for the fiscal third
quarter 2024 may be accessed at
https://investors.corescientific.com/investors/events-and-presentations/default.aspx.
AUDIO REPLAY
An audio replay of the event will be archived on the Investor
Relations section of the Company's website at
http://investors.corescientific.com and via telephone by dialing +1
(877) 660-6853 (U.S. toll free) or +1 (201) 612-7415 (U.S. local)
and entering Access Code 13749193.
ABOUT CORE SCIENTIFIC
Core Scientific, Inc. (“Core Scientific” or the “Company”) is a
leader in digital infrastructure for bitcoin mining and
high-performance computing. We operate dedicated, purpose-built
facilities for digital asset mining and are a premier provider of
digital infrastructure to our third-party customers. We employ our
own large fleet of computers (“miners”) to earn digital assets for
our own account and to provide hosting services for large bitcoin
mining customers, and we are in the process of allocating and
converting a significant portion of our nine operational data
centers in Alabama (1), Georgia (2), Kentucky (1), North Carolina
(1), North Dakota (1) and Texas (3), and our facility in
development in Oklahoma to support artificial intelligence-related
workloads under a series of contracts that entail the modification
of certain of our data centers to deliver hosting services for
high-performance computing (“HPC”). We derive the majority of our
revenue from earning bitcoin for our own account (“self-mining”).
To learn more, visit www.corescientific.com.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking statements” within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995, including but not limited
to, statements regarding projections, estimates and forecasts of
revenue and other financial and performance metrics, projections of
market opportunity and expectations, the Company’s ability to
scale, grow its business and execute on its growth plans and
hosting contracts, source energy at reasonable rates, the
advantages, expected growth, and anticipated future revenue of the
Company, and the Company’s ability to source and retain talent. You
can identify forward-looking statements by the fact that they do
not relate strictly to historical or current facts. These
statements may include words such as “aim,” “estimate,” “plan,”
“project,” “forecast,” “goal,” “intend,” “will,” “expect,”
“anticipate,” “believe,” “seek,” “target” or other similar
expressions that predict or indicate future events or trends or
that are not statements of historical matters. All forward-looking
statements are subject to risks and uncertainties that may cause
actual results to differ materially, including: our ability to earn
digital assets profitably and to attract customers for our digital
asset and high performance compute hosting capabilities; our
ability to perform under our existing colocation agreements, our
ability to maintain our competitive position in our existing
operating segments, the impact of increases in total network hash
rate; our ability to raise additional capital to continue our
expansion efforts or other operations; our need for significant
electric power and the limited availability of power resources; the
potential failure in our critical systems, facilities or services
we provide; the physical risks and regulatory changes relating to
climate change; potential significant changes to the method of
validating blockchain transactions; our vulnerability to physical
security breaches, which could disrupt our operations; a potential
slowdown in market and economic conditions, particularly those
impacting high performance computing, the blockchain industry and
the blockchain hosting market; the identification of material
weaknesses in our internal control over financial reporting; price
volatility of digital assets and bitcoin in particular; potential
changes in the interpretive positions of the SEC or its staff with
respect to digital asset mining firms; the increasing likelihood
that U.S. federal and state legislatures and regulatory agencies
will enact laws and regulations to regulate digital assets and
digital asset intermediaries; increasing scrutiny and changing
expectations with respect to ESG policies; the effectiveness of our
compliance and risk management methods; the adequacy of our sources
of recovery if the digital assets held by us are lost, stolen or
destroyed due to third-party digital asset services; the effects of
our emergence from bankruptcy and our substantial level of
indebtedness and our current liquidity constraints affecting our
financial condition and ability to service our indebtedness. Any
such forward-looking statements represent management’s estimates
and beliefs as of the date of this press release. While we may
elect to update such forward-looking statements at some point in
the future, we disclaim any obligation to do so, even if subsequent
events cause our views to change.
Although the Company believes that in making such
forward-looking statements its expectations are based upon
reasonable assumptions, such statements may be influenced by
factors that could cause actual outcomes and results to be
materially different from those projected. The Company cannot
assure you that the assumptions upon which these statements are
based will prove to have been correct. Additional important factors
that may affect the Company’s business, results of operations and
financial position are described from time to time in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2023,
Quarterly Reports on Form 10-Q and the Company’s other filings with
the Securities and Exchange Commission. The Company does not
undertake any obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise, except as may be required by applicable law.
Core Scientific, Inc.
Condensed Consolidated Balance
Sheets
(in thousands, except par
value)
(Unaudited)
September 30,
2024
December 31,
2023
Assets
Current Assets:
Cash and cash equivalents
$
253,019
$
50,409
Restricted cash
783
19,300
Accounts receivable
6,244
1,001
Digital assets
—
2,284
Prepaid expenses and other current
assets
17,810
24,022
Total Current Assets
277,856
97,016
Property, plant and equipment, net
550,432
585,431
Operating lease right-of-use assets
74,733
7,844
Other noncurrent assets
18,830
21,865
Total Assets
$
921,851
$
712,156
Liabilities and Stockholders’
Deficit
Current Liabilities:
Accounts payable
$
6,504
$
154,751
Accrued expenses and other current
liabilities
31,726
179,636
Deferred revenue
9,944
9,830
Operating lease liabilities, current
portion
7,486
77
Finance lease liabilities, current
portion
2,380
19,771
Notes payable, current portion
17,941
124,358
Contingent value rights, current
portion
533
—
Total Current Liabilities
76,514
488,423
Operating lease liabilities, net of
current portion
65,335
1,512
Finance lease liabilities, net of current
portion
4
35,745
Convertible and other notes payable, net
of current portion
474,596
684,082
Contingent value rights, net of current
portion
6,458
—
Warrant liabilities
1,017,299
—
Other noncurrent liabilities
11,040
—
Total liabilities not subject to
compromise
1,651,246
1,209,762
Liabilities subject to compromise
—
99,335
Total Liabilities
1,651,246
1,309,097
Commitments and contingencies
Stockholders’ Deficit:
Preferred stock; $0.00001 par value;
2,000,000 and nil shares authorized at September 30, 2024 and
December 31, 2023, respectively; none issued and outstanding at
September 30, 2024 and December 31, 2023
—
—
Common stock; $0.00001 par value;
10,000,000 shares authorized at September 30, 2024 and December 31,
2023; 279,821 and 386,883 shares issued and outstanding at
September 30, 2024 and December 31, 2023, respectively
3
36
Additional paid-in capital
2,740,279
1,823,260
Accumulated deficit
(3,469,677
)
(2,420,237
)
Total Stockholders’ Deficit
(729,395
)
(596,941
)
Total Liabilities and Stockholders’
Deficit
$
921,851
$
712,156
Core Scientific, Inc.
Condensed Consolidated
Statements of Operations
(in thousands, except per
share amounts)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Revenue:
Digital asset self-mining revenue
$
68,138
$
83,056
$
328,840
$
278,164
Digital asset hosted mining revenue from
customers
16,878
27,020
71,050
72,245
Digital asset hosted mining revenue from
related parties
—
2,828
—
10,062
HPC hosting revenue
10,338
—
15,857
—
Total revenue
95,354
112,904
415,747
360,471
Cost of revenue:
Cost of digital asset self-mining
74,555
72,603
236,120
212,125
Cost of digital asset hosted mining
services
11,914
24,882
49,388
64,187
Cost of HPC hosting services
9,041
—
13,932
—
Total cost of revenue
95,510
97,485
299,440
276,312
Gross (loss) profit
(156
)
15,419
116,307
84,159
Change in fair value of digital assets
(206
)
—
(247
)
—
Gain from sale of digital assets
—
363
—
2,358
Impairment of digital assets
—
(681
)
—
(2,864
)
Change in fair value of energy
derivatives
—
—
(2,757
)
—
Loss on disposal of property, plant and
equipment
(509
)
(340
)
(4,061
)
(514
)
Operating expenses:
Research and development
2,841
2,253
6,814
5,308
Sales and marketing
3,151
1,041
7,099
3,133
General and administrative
34,356
23,511
74,742
69,671
Total operating expenses
40,348
26,805
88,655
78,112
Operating (loss) income
(41,219
)
(12,044
)
20,587
5,027
Non-operating (income) expenses, net:
Loss (gain) on debt extinguishment
317
(374
)
487
(21,135
)
Interest expense, net
7,072
2,196
35,934
2,317
Reorganization items, net
—
28,256
(111,439
)
78,270
Change in fair value of warrant and
contingent value rights
408,520
—
1,144,441
—
Other non-operating (income) expense,
net
(2,003
)
(1,090
)
144
(3,978
)
Total non-operating expenses, net
413,906
28,988
1,069,567
55,474
Loss before income taxes
(455,125
)
(41,032
)
(1,048,980
)
(50,447
)
Income tax expense
134
114
484
347
Net loss
$
(455,259
)
$
(41,146
)
$
(1,049,464
)
$
(50,794
)
Net loss per share:
Basic
$
(1.17
)
$
(0.11
)
$
(3.71
)
$
(0.13
)
Diluted
$
(1.17
)
$
(0.11
)
$
(3.71
)
$
(0.13
)
Weighted average shares outstanding:
Basic
292,486
382,483
253,058
378,107
Diluted
292,486
382,483
253,058
378,107
Core Scientific, Inc.
Segment Results
(in thousands, except
percentages)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Digital Asset Self-Mining
Segment
(in thousands, except
percentages)
Digital asset self-mining revenue
$
68,138
$
83,056
$
328,840
$
278,164
Cost of digital asset self-mining
74,555
72,603
236,120
212,125
Digital Asset Self-Mining gross (loss)
profit
$
(6,417
)
$
10,453
$
92,720
$
66,039
Digital Asset Self-Mining gross margin
(9
)%
13
%
28
%
24
%
Digital Asset Hosted Mining
Segment
Digital asset hosted mining revenue from
customers
$
16,878
$
29,848
$
71,050
$
82,307
Cost of digital asset hosted mining
services
11,914
24,882
49,388
64,187
Digital Asset Hosted Mining gross
profit
$
4,964
$
4,966
$
21,662
$
18,120
Digital Asset Hosted Mining gross
margin
29
%
17
%
30
%
22
%
HPC Hosting Segment
HPC hosting revenue
$
10,338
$
—
$
15,857
$
—
Cost of HPC hosting services
9,041
—
13,932
—
HPC Hosting gross profit
$
1,297
$
—
$
1,925
$
—
HPC Hosting gross margin
13
%
—
%
12
%
—
%
Consolidated
Consolidated total revenue
$
95,354
$
112,904
$
415,747
$
360,471
Consolidated cost of revenue
$
95,510
$
97,485
$
299,440
$
276,312
Consolidated gross (loss) profit
$
(156
)
$
15,419
$
116,307
$
84,159
Consolidated gross margin
—
%
14
%
28
%
23
%
Core Scientific, Inc. and Subsidiaries
Non-GAAP Financial Measures (Unaudited)
Adjusted EBITDA is a non-GAAP financial measure defined as our
net income or (loss), adjusted to eliminate the effect of (i)
interest income, interest expense, and other income (expense), net;
(ii) provision for income taxes; (iii) depreciation and
amortization; (iv) stock-based compensation expense; (v)
Reorganization items, net; (vi) change in fair value of energy
derivatives; (vii) change in the fair value of warrant and
contingent value rights, (viii) business or site startup costs
which are not reflective of the ongoing costs incurred after
startup, (ix) bankruptcy advisory costs incurred related to
reorganization which are not reflective of the ongoing costs
incurred in post-emergence operations, and (x) certain additional
non-cash items that do not reflect the performance of our ongoing
business operations. For additional information, including the
reconciliation of net income (loss) to Adjusted EBITDA, please
refer to the table below. We believe Adjusted EBITDA is an
important measure because it allows management, investors, and our
Board of Directors to evaluate and compare our operating results,
including our return on capital and operating efficiencies, from
period-to-period by making the adjustments described above. In
addition, it provides useful information to investors and others in
understanding and evaluating our results of operations, as well as
provides a useful measure for period-to-period comparisons of our
business, as it removes the effect of net interest expense, taxes,
certain non-cash items, variable charges and timing differences.
Moreover, we have included Adjusted EBITDA in this earnings release
because it is a key measurement used by our management internally
to make operating decisions, including those related to operating
expenses, evaluate performance, and perform strategic and financial
planning.
The above items are excluded from our Adjusted EBITDA measure
because these items are non-cash in nature or because the amount
and timing of these items are not related to the current results of
our core business operations which renders evaluation of our
current performance, comparisons of performance between periods and
comparisons of our current performance with our competitors less
meaningful. However, you should be aware that when evaluating
Adjusted EBITDA, we may incur future expenses similar to those
excluded when calculating this measure. Our presentation of this
measure should not be construed as an inference that its future
results will be unaffected by unusual items. Further, this non-GAAP
financial measure should not be considered in isolation from, or as
a substitute for, financial information prepared in accordance with
accounting principles generally accepted in the United States
(“GAAP”). We compensate for these limitations by relying primarily
on GAAP results and using Adjusted EBITDA on a supplemental basis.
Our computation of Adjusted EBITDA may not be comparable to other
similarly titled measures computed by other companies because not
all companies calculate this measure in the same fashion. You
should review the reconciliation of net loss to Adjusted EBITDA
below and not rely on any single financial measure to evaluate our
business.
The following table reconciles the non-GAAP financial measure to
the most directly comparable U.S. GAAP financial performance
measure, which is net loss, for the periods presented (in
thousands):
Three Months Ended September
30,
Nine Months Ended September
30,
2024
20231
2024
20231
Adjusted EBITDA
Net loss
$
(455,259
)
$
(41,146
)
$
(1,049,464
)
$
(50,794
)
Adjustments:
Interest expense, net
7,072
2,196
35,934
2,317
Income tax expense
134
114
484
347
Depreciation and amortization
28,691
24,233
87,164
64,800
Stock-based compensation expense
20,288
14,861
27,722
41,414
Unrealized fair value adjustment on energy
derivatives
—
—
(2,262
)
—
Loss on disposal of property, plant and
equipment
509
340
4,061
514
HPC advisory startup costs
—
—
4,611
—
Bankruptcy advisory costs
1,863
—
2,160
—
Loss (gain) on debt extinguishment
317
(374
)
487
(21,135
)
Reorganization items, net
—
28,256
(111,439
)
78,270
Change in fair value of warrant and
contingent value rights
408,520
—
1,144,441
—
Other non-operating expenses (income),
net
(2,003
)
(1,090
)
144
(3,978
)
Other
—
368
121
1,105
Adjusted EBITDA
$
10,132
$
27,758
$
144,164
$
112,860
1 Certain prior year amounts have been reclassified for
consistency with the current year presentation.
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version on businesswire.com: https://www.businesswire.com/news/home/20241106108210/en/
Investors: ir@corescientific.com
Media: press@corescientific.com
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