Applied Digital Corporation Announces Fiscal Fourth Quarter and Full Year 2024 Financial Results
Intellectia.AI2024-08-29
Applied Digital Corporation Announces Fiscal Fourth Quarter and Full Year 2024 Financial Results
Overview Dallas, Aug. 28, 2024—Applied Digital Corporation (NASDAQ: APLD), a designer, builder, and operator of next-generation digital infrastructure for high-performance computing applications, cloud services, and data center hosting, reported its financial results for the fiscal fourth quarter and full year ended May 31, 2024.
Fiscal Fourth Quarter Highlights
| Financial Metric | Q4 2024 | Q4 2023 | YoY Change | Consensus Estimate |
|---|---|---|---|---|
| Revenue | $43.7M | $22.1M | +98% | $37.61M |
| EPS | -$0.52 | -$0.07 | N/A | -$0.22 |
| Adjusted EPS | -$0.36 | $0.00 | N/A | N/A |
| Net Loss | -$64.8M | -$6.5M | N/A | N/A |
| Adjusted Net Loss | -$45.3M | -$0.1M | N/A | N/A |
| Adjusted EBITDA | $4.8M | $3.4M | +41% | N/A |
Interpretation: Applied Digital significantly surpassed revenue expectations, achieving a 98% year-over-year increase. However, the company's EPS fell below expectations, highlighting ongoing operational challenges and high expenses.
Segment Revenue Performance
| Segment | Revenue Q4 2024 | Prior Guidance | Performance vs Guidance |
|---|---|---|---|
| Cloud Services | $29.0M | N/A | N/A |
| Data Center Hosting | $14.7M | N/A | N/A |
Interpretation: The Cloud Services segment contributed the most to the revenue, underlining the company's strategic focus on expanding this division. Data Center Hosting also showed strong performance despite operational setbacks earlier in the year.
Key Developments and Operational Highlights
- New Funding : Secured over $150 million in various financings.
- Data Center Improvements : Ellendale Data Center Hosting facility now operates at full capacity after resolving transformer issues.
- LOI Extension : Extended exclusivity for Ellendale HPC data center campus lease.
- Escrow Funds Released : $25 million from the sale of the Garden City, Texas facility was received.
Management Commentary Wes Cummins, Chairman and CEO, commented, “Despite short-term setbacks, we made significant progress in our key growth initiatives, especially the expansion of our Cloud Services business. We are finalizing an LOI for 400 MW capacity with a U.S.-based hyperscaler, including our ongoing construction of a 100 MW facility and two future buildings. We believe fiscal fourth quarter marked a low point in our revenues and expect sequential improvements as we enter Q1 of fiscal 2025.”
Dividends and Share Repurchase Program There were no announcements regarding dividends or a share repurchase program.
Forward Guidance The company did not provide specific financial guidance but indicated expected revenue improvements in the upcoming quarter.
Stock Price Movement After the earnings release, Applied Digital's stock price experienced a decline of approximately 5.81%.
In summary, Applied Digital Corporation displayed robust revenue growth despite operational challenges, particularly within its Cloud Services segment. The company anticipates improved financial performance moving forward, driven by strategic expansions and infrastructure enhancements.
Share