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Applied Digital reports Q1 earnings and revenue beat, shares dip

EditorRachael Rajan
Published 09/10/2024, 21:14
Updated 09/10/2024, 21:21
© Reuters.
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DALLAS - Applied Digital Corporation (NASDAQ:APLD) reported fiscal first quarter revenue that exceeded analyst expectations, though shares slipped 1.2% following the results.

The digital infrastructure company posted revenue of $60.7 million for the quarter ended August 31, up 67% year-over-year and surpassing the consensus estimate of $54.85 million.

Adjusted net loss came in at $21.6 million or $0.15 per share, compared to analyst expectations for a loss of $0.27 per share. The adjusted net loss included $4.4 million in expenses related to facilities and equipment not yet generating revenue.

Adjusted EBITDA was $20.0 million, up from $9.9 million in the same quarter last year. However, this figure was negatively impacted by $4.1 million in expenses for facilities not yet producing revenue.

"After the close of the quarter, our balance sheet significantly improved due to strategic investments from a group of institutional and accredited investors, NVIDIA, and Related Companies," said CEO Wes Cummins.

The company is finalizing a lease agreement with a U.S.-based hyperscaler for its 100 MW facility under construction. It plans to bring an additional 300 MW online through two more buildings at the site.

Applied Digital ended the quarter with $86.6 million in cash and cash equivalents, up from $31.7 million at the end of fiscal 2024.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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