NASDAQ$RIOT

Riot Platforms Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Riot's Q3 results demonstrated ongoing execution of its long-term strategic plan to grow and thrive post-halving.

Riot Platforms reported a total revenue of $51.9 million, mined 1,106 Bitcoin, and achieved a new all-time record hash rate capacity of 10.9 EH/s. The company's power strategy drove down the average cost to mine to negative $6,141 per Bitcoin. Riot finished the quarter with $290 million in cash on hand and 7,327 Bitcoin, representing a combined total of nearly $500 million in liquidity.

  • Total revenue reached $51.9 million, compared to $46.3 million in Q3 2022.
  • The average cost to mine Bitcoin was negative ($6,141), compared to $8,227 per Bitcoin for the same period in 2022.
  • Bitcoin Mining revenue was $31.2 million, driven by higher Bitcoin production and prices.
  • Data Center Hosting revenue was $5.1 million, while Engineering revenue reached $15.5 million.

Headline financials

Total Revenue

$51.9M

Previous: $46.3M+12.1%
EPS (adj)

-$0.25

Previous: -$0.24-4.2%
Bitcoin Produced

1.1K

Previous: 1.0K+6.1%
Capital Expenditures

-$148M

Previous: -$130M-14.3%
Free Cash Flow

-$194M

Previous: -$166M-16.4%
Net Income

-$45.3M

Previous: -$36.6M-23.9%
Operating Income

-$47.8M

Previous: -$40M-19.5%
Gross Profit

$51.9M

Previous: $46.3M+12.1%
Cash & Equivalents

$290M

Previous: $255M+13.8%
Total Assets

$1.46B

Previous: $1.45B+0.4%
Stock-Based Comp

$13.5M

Previous: $3.56M+279.6%

Revenue & EPS history

Riot · Revenue · Quarterly

$51.9M

Q3 2023+12.1%vs Q3 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Riot · $46.7M total across 2 segments · Q3 2023

  • Bitcoin Mining
    $31.2M+41.2%
  • Engineering
    $15.5M-1.9%

Forward guidance

Riot expects to achieve a total self-mining hash rate capacity of 12.5 EH/s in the fourth quarter of 2023, as Building G is brought back online. Upon full deployment of an initial miner order by mid-2024, Riot’s total self-mining hash rate capacity is expected to reach 20.2 EH/s.

Tailwinds

  • Building G hash rate is returning and will continue to ramp back to its full capacity of 2.4 EH/s by the end of the year.
  • Initial order of 33,280 Bitcoin miners for its Corsicana Facility has recently been updated to replace approximately 6,000 M56S++ miners with approximately 6,000 MicroBT M66 miners
  • Upon full deployment of this initial order by mid-2024, Riot’s total self-mining hash rate capacity is expected to reach 20.2 EH/s.
  • Riot secured an option to purchase up to 66,560 additional miners from MicroBT consisting of the M56S++, M66, and M66S models on terms not to exceed the initial order.
  • Assuming full exercise of Riot’s additional purchase option, the additional 66,560 miners would add approximately 16.1 EH/s of incremental hash capacity to Riot’s self-mining capacity.

Headwinds

  • Due to the impact of damage incurred to Building G during the severe winter storm in Texas in December 2022, Riot expects to achieve a total self-mining hash rate capacity of 12.5 exahash per second (“EH/s”) in the fourth quarter of 2023, as Building G is brought back online.
  • Integration of acquired businesses may not be successful, or such integration may take longer or be more difficult, time-consuming or costly to accomplish than anticipated
  • Failure to otherwise realize anticipated efficiencies and strategic and financial benefits from our acquisitions
  • The impact of COVID-19 on us, our customers, or on our suppliers in connection with our estimated timelines
  • We may not be able to realize the anticipated benefits from immersion-cooling

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-1.5%

Avg return

Earnings day

-1.2%

Avg return

5 days after

+9.1%

Avg return

30 days after

35%

14 / 40 earnings

Positive

+37.3%

Q4 2018

Best reaction

-20.3%

Q2 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+7.9%+27.3%+69.6%
Q4 2025-4.3%-13.8%-21.7%
Q3 2025-5.6%-10.1%-23.5%
Q1 2025+7.8%+0.9%+3.9%
Q4 2024-6.7%-7.1%-22.2%
Q3 2024-15.0%-17.4%+16.4%
Q2 2024-10.1%-19.9%-27.4%
Q1 2024+1.9%+6.5%-3.7%
Q4 2023-1.7%+11.3%-24.5%
Q3 2023-6.6%-5.9%+35.1%
Q2 2023-12.2%-14.2%-35.9%
Q1 2023-6.4%-3.1%-9.7%
Q4 2022+3.3%+0.5%+62.7%
Q3 2022-7.9%-7.8%-27.1%
Q2 2022-7.7%-27.0%-23.9%
Q1 2022-10.8%+3.9%-28.7%
Q4 2021+23.6%+31.6%+0.4%
Q3 2021-16.5%-18.1%-41.5%
Q2 2021+9.6%+12.4%-16.3%
Q1 2021-1.8%-12.2%+31.4%
Q4 2020+1.0%-10.1%-46.6%
Q3 2020-5.5%+9.0%+142.5%
Q2 2020-4.0%+0.3%-21.8%
Q1 2020-13.5%+12.4%+67.6%
Q4 2019+2.3%-0.8%+56.6%
Q3 2019-1.3%-1.3%-13.7%
Q2 2019+2.8%-6.6%-3.8%
Q1 2019+22.6%+24.2%-25.6%
Q4 2018+37.3%+26.0%+25.4%
Q3 2018-15.5%-15.5%-13.7%
Q2 2018-20.3%-20.0%-43.4%
Q1 2018+5.9%-7.6%-12.9%
Q4 2017-6.0%-9.0%+30.1%
Q3 2017-2.0%+13.5%+221.6%
Q2 2017-1.3%-3.2%+5.3%
Q1 2017-3.3%+0.3%+8.6%
Q4 2016-2.0%-3.5%-7.6%
Q3 2016+0.4%+5.6%+46.4%
Q2 2016+4.1%+1.3%+24.7%
Q1 2016-3.2%
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2010

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