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Nov 30, 2022
Applied Digital Q2 2023 Earnings Report
Generated sequential revenue growth and expanded into HPC applications.
Key Takeaways
Applied Digital reported a revenue of $12.3 million for the fiscal second quarter of 2023, with the Jamestown facility operating at full capacity. The company secured first two non-cryptocurrency customers and continued buildout of second and third co-hosting facilities.
Fiscal second quarter 2023 revenue of $12.3 million.
Fiscal second quarter 2023 adjusted EBITDA of $(2.1) million.
100-Megawatt facility in Jamestown, North Dakota operated at full capacity during the quarter.
Signed first two non-cryptocurrency customers for HPC applications at Jamestown, North Dakota, for machine learning and Web3 applications.
Forward Guidance
The company anticipates energizing the Garden City and Ellendale datacenters by the end of February, expecting to reach nearly 500MW of hosting capacity and an annualized adjusted EBITDA run rate of approximately $100 million.
Positive Outlook
- Continued buildout of broader HPC hosting capabilities where the company is in active discussions with additional customers.
- Demand for services from both customer sets remains robust.
- Positioned as a financially strong and leading digital infrastructure provider.
- Garden City site is expected to energize before the end of February.
- Ellendale is expected to energize before the end of February.
Challenges Ahead
- Decline in demand for products and services.
- Volatility of the crypto asset industry.
- Inability to comply with developments and changes in regulation.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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