What's Going On With Applied Digital Shares Today?

Applied Digital Corp APLD shares are trading lower by around 9% after the company reported Q1 FY24 results and reaffirmed FY24 guidance.  

The company reported revenue of $36.3 million, up 425% Y/Y, which topped the consensus of $34.6 million.

Revenues benefited from its improved operations in Jamestown (North Dakota), increased energized MW capacity at the Ellendale (North Dakota) facility, and first Cloud Services contract revenues. 

In Q1, APLD received and deployed an initial production cluster of 1,024 GPUs in its Cloud Service business.

Adjusted EBITDA came in at $10.0 million in Q1 compared to an adjusted EBITDA loss of $(1.7) million in the prior year. 

Adjusted EPS of less than $0.01 beats the consensus of a loss of $(0.02).

As of August 31, 2023, cash and equivalents stood at $31.2 million. 

"We are finalizing details for our Garden City facility and have a clear path now to reaching 500 MW across our three hosting facilities. The pipeline of Cloud customer opportunities remains strong and we began deploying GPUs for our first customer in that line of business during the quarter. We remain on schedule with developing additional HPC data center capacity and look forward to signing our first anchor tenant soon," said Wes Cummins, Chairman and CEO. 

Outlook Reaffirmed: For FY 2024, the company expects revenue of $385 million – $405 million and adjusted EBITDA of $195 million – $205 million.

Applied Digital will host an investor day on October 12, 2023. 

Price Action: APLD shares are down by 8.5% at $4.73 on the last check Monday.