Benzinga - by Lekha Gupta, Benzinga Editor.
Applied Digital Corporation (NASDAQ:APLD) shares are trading lower after the company reported worse-than-expected third-quarter FY24 financial results.
Revenue of $43.3 million, up 208% Y/Y, missed the consensus of $51.9 million.
Revenues benefited from an increased capacity across the three datacenter hosting facilities and revenue recognition from its Cloud services segment (which began providing service during this year).
Adjusted EBITDA loss came in at $(2.3) million compared to an adjusted EBITDA of $0.9 million in the prior year.
Adjusted EPS loss of $(0.24), missed the consensus of EPS of $(0.10).
As of February 29, 2023, cash, cash equivalents, and restricted cash stood at $41.0 million.
Wes Cummins, Chairman and CEO, said, “During the quarter, Applied Digital encountered several challenges that impacted our financial performance due to facility power outages in our datacenter hosting business. Despite these short-term setbacks, we made significant progress with our key growth initiatives in the development of our Cloud Services business and the establishment of our special purpose built 100 MW HPC datacenter in Ellendale.”
“Moreover, we are pleased to announce a pivotal advancement. We have entered into exclusivity and executed an LOI with a US-based hyperscaler for a 400 MW capacity lease of our Ellendale HPC campus.”
Also Read: Applied Digital Gears Up For Q3 Print; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
Price Action: APLD shares are down 5.54% at $2.90 premarket on the last check Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.