Applied Digital Posts Wider Adj. Loss In Q2; Sees FY24 Revenue Below Low End Of Prior Guidance

(RTTNews) - Applied Digital Corporation (APLD) posted a net loss for the second quarter of $10.5 million, or $0.10 per share compared to a net loss of $26.8 million, or $0.28 per share, prior year. Adjusted net loss was $5.2 million or adjusted net loss per share of $0.05 compared to an adjusted net loss of $3.8 million, or $0.04 per share, previous year. On average, seven analysts polled by Thomson Reuters expected the company to report profit per share of $0.01, for the quarter. Analysts' estimates typically exclude special items.

Total revenues in the second quarter were $42.2 million, up 242% from last year. The company said the increase in revenues were driven primarily by a full quarter of revenue generation from the Ellendale facility as well as the Garden City facility beginning revenue generation during the second quarter of 2024. Analysts on average had estimated $57.31 million in revenue.

Due to the delayed delivery of certain networking components for GPU clusters, the company now expects revenue and EBITDA to be below the low end of previously guided range for fiscal 2024.

Separately, Applied Digital has signed a conditional agreement to provide datacenter capacity at its Ellendale, North Dakota campus, subject to finalization of definitive lease documents. The total contract value is approximately $2.2 billion over the 10-year term.

Shares of Applied Digital Corporation are down 17% in pre-market trade on Tuesday.

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