Fourth Quarter 2024 Highlights
- Incurred net loss of $265.5 million due primarily to a $224.7
million non-cash mark-to-market adjustment to warrants and other
contingent value right liabilities required by the significant
year-over-year increase in our share price
- Reported operating loss of $39.8 million, a decrease of $43.7
million over fourth quarter 2023
- Generated adjusted EBITDA of $13.3 million, a decrease of $43.4
million over fourth quarter 2023
- Secured $625 million through a convertible note offering with
favorable 0% interest terms
- Strengthened the balance sheet, ending the quarter with cash
and cash equivalents of $836.2 million as of December 31, 2024
- Earned 974 self-mined bitcoin with an average cash cost to
self-mine one bitcoin of $51,035
- Operated total hash rate of 20.1 EH/s, consisting of 19.1 EH/s
self-mining and 1.0 EH/s hosting
Core Scientific, Inc. (NASDAQ: CORZ), a leader in
digital infrastructure for bitcoin mining and HPC, today announced
financial results for the fiscal fourth quarter of 2024. Net loss
was $265.5 million, as compared to a net loss of $195.7 million for
the same period in 2023. Total revenue was $94.9 million, as
compared to $141.9 million for the same period last year. Operating
loss was $39.8 million, as compared to Operating income of $3.9
million for the same period in 2023. Adjusted EBITDA was $13.3
million, as compared to $56.7 million for the same period in the
prior year. Fourth quarter net loss of $265.5 million resulted
primarily from a net $224.7 million non-cash 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 our share price.
"In the fourth quarter, Core Scientific continued to build on
what was a transformational year for our business," said Adam
Sullivan, Core Scientific’s Chief Executive Officer. "We
successfully executed our growth strategy across multiple fronts,
achieving significant milestones in both our HPC and Bitcoin mining
operations. Our infrastructure expansion efforts were particularly
strong - through strategic site acquisitions and existing site
expansions, we increased our total portfolio capacity to 1,300 MW
of powered infrastructure by year-end. Additionally, we
strengthened our financial foundation through an upsized $625
million senior convertible note offering, demonstrating the
market's confidence in our vision and providing us with the capital
to accelerate our growth initiatives."
"Looking ahead in 2025, we are executing on a clear strategy for
accelerated growth, driven by unprecedented demand for HPC
infrastructure and the continued strength of our Bitcoin mining
operations. With our expanded infrastructure capacity,
industry-leading operational expertise, and commitment to
technological innovation, Core Scientific is uniquely positioned to
capture the growing opportunities in AI computing and digital asset
mining. We remain focused on delivering value to our shareholders
and reinforcing our position as an industry leader in scalable,
high-density computing solutions."
Fiscal Fourth Quarter 2024 Financial Results (Compared to
Fiscal Fourth Quarter 2023)
Total revenue for the fiscal fourth quarter of 2024 was $94.9
million, consisting of $79.9 million in Digital asset self-mining
revenue, $6.5 million in digital asset hosted mining revenue and
$8.5 million in HPC hosting revenue.
Digital asset self-mining gross profit for the fiscal fourth
quarter of 2024 was $1.7 million (2% gross margin), compared to
$32.6 million (29% gross margin) for the same period in the prior
year, a decrease of $30.9 million. The decrease in Digital asset
self-mining gross profit was primarily driven by a $32.3 million
decrease in self-mining revenue, the result of a 68% decrease in
bitcoin mined due to the halving and the operational shift to HPC
hosting, partially offset by a 130% increase in the average price
of bitcoin.
Digital asset hosted mining gross profit for the fiscal fourth
quarter of 2024 was $2.3 million (36% gross margin), as compared to
$6.7 million (23% gross margin) for the same period in the prior
year. The decrease in Digital asset hosted mining gross profit was
primarily due to a $23.3 million decrease in hosted mining revenue
driven by the termination of contracts with several customers since
2023 in support of our shift to HPC hosting, partially offset by a
82% decrease in power costs due to lower rates and usage.
HPC hosting gross profit for the fiscal fourth quarter of 2024
was $0.7 million (9% gross margin). HPC hosting revenue includes a
base license fee as well as the direct pass-through of power costs
to our client, with no margin added. HPC hosting costs at our
Austin, Texas data center consist primarily of lease expense, the
direct pass-through of power costs, and direct and indirect
facilities operations expenses, including personnel and benefit
costs and stock-based compensation. The non-GAAP gross margin for
the fiscal fourth quarter of 2024, which excludes the direct
pass-through of power costs, was 13%.
Operating expenses for the fiscal fourth quarter of 2024 totaled
$43.6 million, as compared to $30.0 million for the same period in
the prior year. The increase of $13.6 million was primarily
attributable to a $5.7 million increase in stock-based
compensation, a $5.0 million increase in personnel and related
expenses due to increased employee headcount to support our
transition to HPC operations, and $2.7 million in post-emergence
bankruptcy advisor fees. During fiscal 2023, pre-emergence
bankruptcy advisor fees were included in Reorganization items,
net.
Net loss for the fiscal fourth quarter of 2024 was $265.5
million, as compared to a net loss of $195.7 million for the same
period in the prior year. Net loss for the fiscal fourth quarter of
2024 increased by $69.8 million driven primarily by a net $224.7
million mark-to-market adjustment on our warrants and other
contingent value rights comprising a $227.4 million increase in the
fair value of warrant liabilities, partially offset by a $2.7
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 $47.0 million decrease in total revenue. These increases
to net loss were partially offset by a decrease of $112.9 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 and a $82.8 million
decrease in Interest expense, net due primarily to the one-time
recognition of interest expense in the fourth quarter of 2023 for
amounts not previously recorded due to our bankruptcy proceedings,
in anticipation of our emergence from bankruptcy and our improved
capital structure throughout 2024.
Non-GAAP Adjusted EBITDA for the fiscal fourth quarter 2024 was
$13.3 million, as compared to Non-GAAP Adjusted EBITDA of $56.7
million for the same period in the prior year. This $43.4 million
decrease was driven by a $47.0 million decrease in total revenue, a
$2.4 million increase in HPC site startup costs, a $2.7 million
increase in cash operating expenses, a $1.5 million decrease in
gain from sales of digital assets, and a $0.8 million decrease in
the change in fair value of digital assets, partially offset by a
$7.9 million decrease in cash cost of revenue, a $1.7 million
decrease in realized losses on energy derivatives and a $1.5
million decrease in impairment of digital assets.
Full Fiscal Year Financial and Operational
Achievements
- Total revenue of $510.7 million, a increase of $8.3 million
compared to 2023
- Operating loss of $19.2 million, a decrease of $28.2 million
over 2023
- Net loss of $1.3 billion, a decrease of $1.1 billion over 2023,
due primarily to a $1.4 billion non-cash mark-to-market adjustment
to warrants and other contingent value right liabilities required
by the significant year-over-year increase in our share price
- Adjusted EBITDA of $157.4 million, a decrease of $12.1 million
over 2023
- Average actual self-mining fleet energy efficiency of 25.1
joules per terahash
Fiscal Year 2024 Financial Results (Compared to Fiscal Year
2023)
Total revenue for the year ended December 31, 2024 was $510.7
million, consisting of $408.7 million in digital asset self-mining
revenue, $77.6 million in digital asset hosted mining revenue and
$24.4 million in HPC hosting revenue.
Digital asset self-mining gross profit for the year ended
December 31, 2024 was $94.4 million (23% gross margin), as compared
to $98.6 million (25% gross margin) for the same period in the
prior year, a decrease of $4.2 million. The decrease in Digital
asset self-mining gross profit was primarily driven by an 8%
increase in cost of revenue due primarily to a $19.9 million
increase in depreciation expense which was driven primarily by new
generation miners placed in service during the current year, and a
$9.3 million increase in employee compensation due to increases in
bonuses and salaries driven primarily by an increase in employee
headcount. The negative impact of the increase in Digital asset
self-mining cost of revenue was partially offset by a 5% increase
in mining revenue driven by a 128% increase in the average price of
bitcoin, a 13% 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 52% decrease in bitcoin mined
due to the halving and the conversion to HPC hosting.
Digital asset hosted mining gross profit for the year ended
December 31, 2024 was $24.0 million (31% gross margin), as compared
to $24.8 million (22% gross margin) for the same period in the
prior year, a decrease of $0.8 million. The decrease in Digital
asset hosted mining gross profit was primarily due to a $34.5
million decrease in Digital asset hosted mining revenue due to the
termination of contracts with several customers since 2023, as we
convert to HPC hosting. The decrease in Digital asset hosted mining
revenue was partially offset by a $33.7 million decrease in Digital
asset hosted mining cost of revenue primarily driven by lower power
costs from lower rates and usage.
HPC hosting gross profit for the year ended December 31, 2024
was $2.7 million (11% gross margin). The non-GAAP gross margin for
the year ended December 31, 2024, was 15%, which excludes the
direct pass-through of power costs.
Operating expenses for the year ended December 31, 2024 totaled
$132.2 million, compared to $108.1 million for the same period in
the prior year. The increase of $24.1 million was primarily
attributable to a $21.9 million increase in personnel and related
expenses due to increased employee headcount to support our
transition to HPC operations, a $5.1 million increase in
professional services, $4.8 million of post-emergence bankruptcy
advisory fees and a $2.0 million increase in advertising and
marketing, partially offset by lower stock-based compensation of
$9.9 million due to cancellations and forfeitures of equity-based
awards. During fiscal 2023, pre-emergence bankruptcy advisor fees
were included in Reorganization items, net.
Net loss for the year ended December 31, 2024 was $1.3 billion,
as compared to a net loss of $246.5 million for the same period in
the prior year. Net loss for the year ended December 31, 2024
increased by $1.1 billion driven primarily by a net $1.4 billion
mark-to-market adjustment on our warrants and other contingent
value rights comprising a $1.5 billion increase in the fair value
of warrant liabilities, partially offset by a $82.1 million
decrease in fair value of contingent value rights. These non-cash
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 $20.6 million decrease in gain on extinguishment of debt
compared to the same period in the prior year, partially offset by
a decrease of $302.6 million in Reorganization items, net, which
included gains on extinguishment of pre-emergence obligations of
$238.4 million, and a $49.2 million decrease in Interest expense,
due to lower average debt balances during the year.
Non-GAAP Adjusted EBITDA for the year ended December 31, 2024
was $157.4 million, as compared to Non-GAAP Adjusted EBITDA of
$169.5 million for the same period in the prior year. This $12.1
million decrease was driven by a $20.0 million increase in cash
operating expenses, a $4.1 million increase in HPC site startup
costs, a $3.9 million decrease in gain from sales of digital
assets, a $3.4 million increase in realized losses on energy
derivatives, and a $1.1 million decrease in change in fair value of
digital assets, partially offset by a $8.3 million increase in
total revenue, a $7.6 million decrease in cash cost of revenue, and
a $4.4 million decrease in impairment of digital assets.
CONFERENCE CALL AND LIVE WEBCAST
In conjunction with this release, Core Scientific, Inc. will
host a conference call today, Wednesday, February 26, 2025, at 4:30
pm Eastern Time that will be webcast live. Adam Sullivan, Chief
Executive Officer, Denise Sterling, Chief Financial Officer and Jon
Charbonneau, 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=ymDjLEm1.
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 fourth
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, software solutions and services 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 ten facilities in Alabama (1), Georgia (2), Kentucky
(1), North Carolina (1), North Dakota (1), Oklahoma (1) and Texas
(3) 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, 2024,
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.
Consolidated Balance
Sheets
(in thousands, except par
value)
(Unaudited)
December 31,
2024
December 31,
2023
Assets
Current Assets:
Cash and cash equivalents
$
836,197
$
50,409
Restricted cash
783
19,300
Accounts receivable
1,025
1,001
Digital assets
23,893
2,284
Prepaid expenses and other current
assets
42,064
24,022
Total Current Assets
903,962
97,016
Property, plant and equipment, net
556,342
585,431
Operating lease right-of-use assets
114,472
7,844
Other noncurrent assets
24,039
21,865
Total Assets
$
1,598,815
$
712,156
Liabilities and Stockholders’
Deficit
Current Liabilities:
Accounts payable
$
19,265
$
154,751
Accrued expenses and other current
liabilities
69,230
179,636
Deferred revenue
18,134
9,830
Operating lease liabilities, current
portion
9,974
77
Finance lease liabilities, current
portion
1,669
19,771
Notes payable, current portion
16,290
124,358
Total Current Liabilities
134,562
488,423
Operating lease liabilities, net of
current portion
97,843
1,512
Finance lease liabilities, net of current
portion
3
35,745
Convertible and other notes payable, net
of current portion
1,073,990
684,082
Contingent value rights, net of current
portion
4,272
—
Warrant liabilities
1,097,285
—
Other noncurrent liabilities
11,040
—
Total liabilities not subject to
compromise
2,418,995
1,209,762
Liabilities subject to compromise
—
99,335
Total Liabilities
2,418,995
1,309,097
Commitments and contingencies
Stockholders’ Deficit:
Preferred stock; $0.00001 par value;
2,000,000 and nil shares authorized at December 31, 2024 and
December 31, 2023, respectively; none issued and outstanding at
December 31, 2024 and December 31, 2023
—
—
Common stock; $0.00001 and $0.0001 par
value at December 31, 2024 and December 31, 2023, respectively;
10,000,000 shares authorized at December 31, 2024 and December 31,
2023; 292,606 and 386,883 shares issued and outstanding at December
31, 2024 and December 31, 2023, respectively
3
36
Additional paid-in capital
2,915,035
1,823,260
Accumulated deficit
(3,735,218
)
(2,420,237
)
Total Stockholders’ Deficit
(820,180
)
(596,941
)
Total Liabilities and Stockholders’
Deficit
$
1,598,815
$
712,156
Core Scientific, Inc.
Consolidated Statements of
Operations
(in thousands, except per
share amounts)
(Unaudited)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Revenue:
Digital asset self-mining revenue
$
79,900
$
112,169
$
408,740
$
390,333
Digital asset hosted mining revenue from
customers
6,504
29,760
77,554
102,005
Digital asset hosted mining revenue from
related parties
—
—
—
10,062
HPC hosting revenue
8,521
—
24,378
—
Total revenue
94,925
141,929
510,672
502,400
Cost of revenue:
Cost of digital asset self-mining
78,215
79,571
314,335
291,696
Cost of digital asset hosted mining
services
4,170
23,058
53,558
87,245
Cost of HPC hosting services
7,777
—
21,709
—
Total cost of revenue
90,162
102,629
389,602
378,941
Gross profit
4,763
39,300
121,070
123,459
Change in fair value of digital assets
(805
)
—
(1,052
)
—
Gain from sale of digital assets
—
1,535
—
3,893
Impairment of digital assets
—
(1,542
)
—
(4,406
)
Change in fair value of energy
derivatives
—
(3,918
)
(2,757
)
(3,918
)
Losses on exchange or disposal of
property, plant and equipment
(149
)
(1,442
)
(4,210
)
(1,956
)
Operating expenses:
Research and development
5,016
1,876
11,830
7,184
Sales and marketing
2,870
3,886
9,969
7,019
General and administrative
35,706
24,237
110,448
93,908
Total operating expenses
43,592
29,999
132,247
108,111
Operating (loss) income
(39,783
)
3,934
(19,196
)
8,961
Non-operating expenses (income), net:
Loss (gain) on debt extinguishment
—
1,070
487
(20,065
)
Interest expense, net
1,136
83,921
37,070
86,238
Reorganization items, net
—
112,852
(111,439
)
191,122
Change in fair value of warrants and
contingent value rights
224,716
—
1,369,157
—
Other non-operating (income) expense,
net
(469
)
1,448
(325
)
(2,530
)
Total non-operating expenses, net
225,383
199,291
1,294,950
254,765
Loss before income taxes
(265,166
)
(195,357
)
(1,314,146
)
(245,804
)
Income tax expense
375
336
859
683
Net loss
$
(265,541
)
$
(195,693
)
$
(1,315,005
)
$
(246,487
)
Net loss per share, basic and diluted
$
(0.60
)
$
(0.51
)
$
(4.39
)
$
(0.65
)
Weighted average shares outstanding, basic
and diluted
306,146
385,074
255,832
379,863
Core Scientific, Inc.
Segment Results
(in thousands, except
percentages)
(Unaudited)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Digital Asset Self-Mining
Segment
(in thousands, except
percentages)
Digital asset self-mining revenue
$
79,900
$
112,169
$
408,740
$
390,333
Cost of digital asset self-mining:
Power fees
37,249
42,810
160,833
165,848
Depreciation expense
25,432
27,746
108,499
88,628
Employee compensation
10,417
4,419
26,129
16,853
Facility operations expense
3,580
3,359
13,274
14,055
Other segment items
1,537
1,237
5,600
6,312
Total cost of digital asset
self-mining
78,215
79,571
314,335
291,696
Digital Asset Self-Mining gross profit
$
1,685
$
32,598
$
94,405
$
98,637
Digital Asset Self-Mining gross margin
2
%
29
%
23
%
25
%
Digital Asset Hosted Mining
Segment
Digital asset hosted mining revenue from
customers
$
6,504
$
29,760
$
77,554
$
112,067
Cost of digital asset hosted mining
services:
Power fees
2,738
14,834
35,408
62,366
Depreciation expense
359
3,195
3,604
6,806
Employee compensation
689
1,531
4,933
6,337
Facility operations expense
266
1,164
2,765
5,285
Other segment items
118
2,334
6,848
6,451
Total cost of digital asset hosted mining
services
4,170
23,058
53,558
87,245
Digital Asset Hosted Mining gross
profit
$
2,334
$
6,702
$
23,996
$
24,822
Digital Asset Hosted Mining gross
margin
36
%
23
%
31
%
22
%
HPC Hosting Segment
HPC hosting revenue:
License fees
$
5,873
$
—
$
17,498
$
—
Maintenance and other
(9
)
—
73
—
Licensing revenue
5,864
—
17,571
—
Power fees passed through to customer
2,657
—
6,807
—
Total HPC hosting revenue
8,521
—
24,378
—
Cost of HPC hosting services:
Depreciation expense
3
—
3
—
Employee compensation
1,037
—
2,514
—
Facility operations expense
3,943
—
11,907
—
Other segment items
137
—
478
—
Cost of licensing revenue
5,120
—
14,902
—
Power fees passed through to customer
2,657
—
6,807
—
Total cost of HPC hosting services
7,777
—
21,709
—
HPC Hosting gross profit
$
744
$
—
$
2,669
$
—
HPC Hosting licensing gross margin
13
%
—
%
15
%
—
%
HPC Hosting gross margin
9
%
—
%
11
%
—
%
Consolidated
Consolidated total revenue
$
94,925
$
141,929
$
510,672
$
502,400
Consolidated cost of revenue
$
90,162
$
102,629
$
389,602
$
378,941
Consolidated gross profit
$
4,763
$
39,300
$
121,070
$
123,459
Consolidated gross margin
5
%
28
%
24
%
25
%
Core Scientific, Inc. Non-GAAP
Financial Measures (Unaudited)
Adjusted EBITDA is a non-GAAP financial measure defined as our
net 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) unrealized fair value adjustment on energy derivatives; (vii)
change in the fair value of warrant and contingent value rights,
(viii) HPC organizational startup costs which are not reflective of
the ongoing costs incurred after startup, (ix) post-emergence
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 December
31,
Year Ended December
31,
2024
20231
2024
20231
Adjusted EBITDA
Net loss
$
(265,541
)
$
(195,693
)
$
(1,315,005
)
$
(246,487
)
Adjustments:
Interest expense, net
1,136
83,921
37,070
86,238
Income tax expense
375
336
859
683
Depreciation and amortization
26,041
31,203
113,205
96,003
Stock-based compensation expense
24,202
17,478
51,924
58,892
Unrealized fair value adjustment on energy
derivatives
—
2,262
(2,262
)
2,262
Losses on exchange or disposal of
property, plant and equipment
149
1,442
4,210
1,956
HPC organizational startup costs
—
—
4,611
—
Post-emergence bankruptcy advisory
costs
2,662
—
4,822
—
Loss (gain) on debt extinguishment
—
1,070
487
(20,065
)
Reorganization items, net
—
112,852
(111,439
)
191,122
Change in fair value of warrants and
contingent value rights
224,716
—
1,369,157
—
Other non-operating expenses (income),
net
(469
)
1,448
(325
)
(2,530
)
Other
2
369
123
1,474
Adjusted EBITDA
$
13,273
$
56,688
$
157,437
$
169,548
1 Certain prior year amounts have
been omitted for consistency with the current year
presentation.
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version on businesswire.com: https://www.businesswire.com/news/home/20250226238202/en/
Investors: ir@corescientific.com
Media: press@corescientific.com
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