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NEW YORK - Applied Digital Corporation (NASDAQ:APLD) reported third-quarter earnings that beat analyst expectations, but revenue fell short of estimates, sending shares down 7.3% in after-hours trading.
The next-generation data center company posted adjusted earnings per share of -$0.08 for the quarter ended February 28, 2025, surpassing the analyst consensus of -$0.11. However, revenue came in at $52.9 million, missing the $64.96 million estimate and representing a 22% increase YoY.
Applied Digital’s Cloud Services segment generated $17.8 million in revenue, up 220% from the same quarter last year. However, this marked a sequential decline from $27.7 million in the previous quarter due to technical issues in transitioning some GPU capacity to a multi-tenant model.
The Data Center Hosting segment saw revenue decrease 7% YoY to $35.2 million.
"We are confident in the progress we are making and remain committed to delivering sustainable, long-term value for our investors," said Applied Digital Chairman and CEO Wes Cummins (NYSE:CMI).
The company reported a net loss attributable to common stockholders of $36.1 million, or -$0.16 per share, compared to a loss of $62.8 million, or -$0.52 per share, in the year-ago quarter.
Applied Digital closed a $375 million financing arrangement with Sumitomo Mitsui (NYSE:SMFG) Banking Corporation during the quarter. The company used part of the proceeds to repay its Macquarie Promissory Note and plans to use the remainder to develop data center buildings at its Ellendale HPC Campus.
As of February 28, 2025, Applied Digital had $261.2 million in cash, cash equivalents, and restricted cash, along with $689.1 million in debt.
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