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Aug 31, 2024
Applied Digital Q1 2025 Earnings Report
Reported fiscal first quarter 2025 results.
Key Takeaways
Applied Digital reported a 67% increase in revenue to $60.7 million compared to the prior year period, driven by the Cloud Services business segment. The company's net loss was $4.2 million, or $0.03 per share, while adjusted EBITDA reached $20.0 million.
Revenues increased by 67% year-over-year, reaching $60.7 million.
Net loss was $4.2 million, or $0.03 per basic and diluted share.
Adjusted EBITDA was $20.0 million.
Strategic investments from institutional investors, NVIDIA, and Related Companies improved the balance sheet.
Revenue by Segment
Forward Guidance
Applied Digital is finalizing a lease agreement with a U.S.-based hyperscaler for their 100 MW facility and designing two additional buildings to increase total capacity to 400 MW.
Positive Outlook
- Strategic investments from institutional and accredited investors, NVIDIA, and Related Companies improved the balance sheet.
- Finalizing a lease agreement with a U.S.-based hyperscaler for the 100 MW facility.
- Designing two additional buildings to increase Ellendale's total HPC capacity to 400 MW.
- Advanced negotiations with traditional financing institutions to secure funding for projects.
- Executive changes to better position the Company for managing its rapidly expanding growth.
Challenges Ahead
- Net loss of $4.2 million for the quarter.
- Adjusted net loss was negatively impacted by $4.4 million of expenses associated with facilities and equipment not yet generating revenue.
- Cost of revenues increased due to higher depreciation and amortization expense and lease and related expenses.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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