Applied Digital Co., Ltd. (NASDAQ:APLD) stock is falling after the company reported worse-than-expected fiscal 2024 third-quarter financial results.
Revenue increased 208% year-over-year to $43.3 million, missing consensus of $51.9 million.
Revenues benefited from increased capacity across our three data center hosting facilities and revenue from our cloud services division, which began offering services during the year.
Adjusted EBITDA loss was $2.3 million, compared to adjusted EBITDA of $0.9 million in the prior year period.
Adjusted EPS loss was $(0.24), below the EPS consensus of $(0.10).
As of February 29, 2023, cash, cash equivalents and restricted cash were $41 million.
“During the quarter, Applied Digital faced several challenges that impacted our financial performance due to facility outages in our data center hosting business,” said Wes Cummins, Chairman and CEO. Despite significant setbacks, we have made significant progress on key growth initiatives: developing our cloud services business and establishing a purpose-built 100 MW HPC data center in Ellendale.”
“Furthermore, we are pleased to announce a pivotal advancement: We have entered into an exclusive rights and LOI with a US-based hyperscaler for a 400 MW capacity lease at the Ellendale HPC campus. .”
Please also read: Applied Digital prepares for print in Q3.The Most Accurate Analysts Revise Estimates Ahead of Earnings Releases
price action:APLD stock was down 5.54% at $2.90 pre-market at last check on Friday.
