Chicago, IL., Aug. 29, 2024 (GLOBE NEWSWIRE) -- Applied Systems® today announced that Martin Insurance Group has selected Applied Digital Agency as its foundational management platform to automate policy management and digitally transform its business operations. The agency will leverage Applied’s integrated P&C policy management capabilities to establish consistent marketing and servicing workflows across agency roles, creating greater staff productivity in a single system and reducing the E&O that come wi ...

Financial Data and Key Metrics - Revenue for Q4 2024 was $43.7 million, up from $22 million in Q4 2023, driven by expanded data center hosting capacity and cloud service contracts [14] - Data center hosting segment generated $26.9 million in revenue, while cloud services contributed $16.8 million [14] - Cost of revenue increased to $46.3 million from $15.9 million in Q4 2023, primarily due to higher energy costs and depreciation expenses [15] - Net loss for Q4 2024 was $64.8 million ($0.52 per share), compared to a net loss of $6.5 million ($0.07 per share) in Q4 2023 [16] - Adjusted EBITDA for Q4 2024 was $4.8 million, up from $3.4 million in Q4 2023 [17] - Cash, cash equivalents, and restricted cash stood at $31.7 million, with $125.4 million in debt at the end of Q4 2024 [18] Business Line Performance - Data center hosting: The 106-megawatt Jamestown facility operated at full capacity, while the 180-megawatt Ellendale facility faced power outages due to transformer failures, which were resolved by the end of Q4 [8][9] - Cloud services: Six clusters were online by Q1 2025, with a revenue run rate of $110 million annually, focusing on enterprise demand [29][30] - HPC data centers: 400 megawatts of capacity under development in North Dakota, with a 100-megawatt facility in Ellendale nearing completion [10][11] Market and Strategic Developments - The company signed an LOI with a US-based hyperscaler for 400 megawatts at the Ellendale campus, with technical due diligence completed [11][12] - Three additional campuses totaling 1.4 gigawatts are being marketed, with power availability expected by 2026 [12][40] - The company is focused on securing project-level financing for the Ellendale campus and aligning cloud service financing with industry norms [18][30] Management Commentary on Environment and Outlook - Management expects Q4 2024 to mark the bottom for revenues, with sequential improvements anticipated in Q1 2025 [21] - The company is committed to becoming a development platform for multiple HPC data centers, starting with Ellendale and expanding to additional campuses [20][40] - Strong demand for near-term power and supply chain challenges are key industry dynamics, with the company well-positioned due to its power availability and supply chain expertise [61][62] Other Important Information - The company incurred one-time professional service expenses related to capital-raising initiatives and strategic transactions [13] - Accelerated depreciation of GPU hardware significantly impacted adjusted earnings, with efforts underway to extend depreciation to six years [17][30] Q&A Session Summary Question: Ellendale HPC Campus Progress and Capital Requirements - The Ellendale facility is over 90% complete, with $200 million invested and an estimated total cost of $1 billion for the first 100 megawatts [24][25] - Project-level financing is expected to cover 80-90% of the remaining costs, pending lease finalization [25] Question: Cloud Services Business Growth - Six clusters are online, generating a $110 million annual revenue run rate, with growth constrained until better financing structures are in place [29][44] - The company is focusing on enterprise demand and has hired a new CRO from IBM to drive this market [30] Question: Hyperscaler Lease Timeline - The lease agreement with the hyperscaler is over 90% complete, with final details being ironed out [35][38] Question: Competitive Environment and Strategy - The company differentiates itself by securing power availability first, then ensuring fiber connectivity and latency requirements, giving it an edge in site selection [64][66] - Competition primarily comes from private data center companies with longer track records, but the company’s focus on near-term power and supply chain expertise positions it well [61][62] Question: GPU Financing Structure - Financing interest has grown, with costs dependent on the off-taker (AI labs, enterprises, or hyperscalers) [51] - The company is working on a bankruptcy-remote SPV structure to align financing with customer contracts [53] Question: Cloud AI Business Capacity - The company has over 30 megawatts of ready capacity for deployment across multiple locations, including Jamestown, Denver, and Salt Lake City [73]

Applied Digital Corporation (APLD) came out with a quarterly loss of $0.52 per share versus the Zacks Consensus Estimate of a loss of $0.23. This compares to loss of $0.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -126.09%. A quarter ago, it was expected that this company would post a loss of $0.12 per share when it actually produced a loss of $0.52, delivering a surprise of -333.33%.Over the last four quarters, the comp ...

Revenue Growth - Fiscal fourth quarter 2024 revenue of $43.7 million, up 98% from the fiscal fourth quarter 2023[2][16] - Fiscal 2024 revenue of $165.6 million, a 199% increase from $55.4 million in 2023[3][12] - Total revenue for the three months ended May 31, 2024, was $43.7 million, compared to $22.0 million for the same period in 2023[35] - Cloud Services recognized $29.0 million in revenues during fiscal year 2024[8] Net Loss and Financial Performance - Fiscal 2024 net loss of $149.7 million, compared to $45.6 million in 2023[3][13] - Adjusted net loss for fiscal 2024 was $77.5 million, negatively impacted by $38.5 million of expenses related to non-revenue generating facilities[14] - Net loss attributable to Applied Digital Corporation for the three months ended May 31, 2024, was $64.8 million, compared to $6.5 million for the same period in 2023[35] - Net loss increased to $149.671 million in 2024 from $45.606 million in 2023, reflecting a significant decline in financial performance[37] - Net loss attributable to Applied Digital Corporation (GAAP) for the three months ended May 31, 2024, was $(64,756) thousand, compared to $(6,464) thousand for the same period in 2023[42] Adjusted EBITDA and Non-GAAP Measures - Adjusted EBITDA for fiscal 2024 was $24.5 million, up from $0.8 million in 2023[3][15] - Adjusted EBITDA is defined as EBITDA adjusted for stock-based compensation, non-recurring repair expenses, and other items[32] - Adjusted EBITDA (Non-GAAP) for the three months ended May 31, 2024, was $4,794 thousand, compared to $3,386 thousand for the same period in 2023[42] - Adjusted Net Loss per Diluted Share is calculated as Adjusted net loss divided by weighted average diluted share count[31] - The company cautions investors that non-GAAP financial measures have limits in their usefulness and may not be directly comparable to similarly titled measures used by other companies[28] Cash Flow and Financing - Cash and cash equivalents decreased to $3.3 million as of May 31, 2024, from $29.0 million as of May 31, 2023[34] - Cash flow from operating activities decreased to $11.360 million in 2024 from $58.735 million in 2023, indicating reduced operational cash generation[37] - Cash flow used in investing activities increased to $172.436 million in 2024 from $132.088 million in 2023, driven by higher capital expenditures[37] - Cash flow provided by financing activities rose to $146.757 million in 2024 from $70.628 million in 2023, primarily due to increased borrowings[37] - The Company secured over $150 million in funding post-fiscal year end[4] Assets and Liabilities - Total assets as of May 31, 2024, were $762.9 million, a significant increase from $264.0 million as of May 31, 2023[34] - Property and equipment, net, increased to $340.4 million as of May 31, 2024, from $198.2 million as of May 31, 2023[34] - Total liabilities increased to $638.0 million as of May 31, 2024, from $194.3 million as of May 31, 2023[34] - Operating right-of-use assets obtained by lease obligation amounted to $159.197 million in 2024, indicating expansion in leased assets[39] Operational Updates - The Ellendale Data Center Hosting facility was restored to full operating capacity by June 28, 2024[4][11] - The Company entered into an exclusivity agreement for 400 MW capacity with a U.S.-based hyperscaler[6][9] - The Company currently operates 286 MW of data center hosting capacity[10] Expenses and Adjustments - Adjusted operating loss improved to $26.947 million in 2024 from $50.991 million in 2023, reflecting cost management efforts[41] - Adjusted net loss attributable to Applied Digital Corporation decreased to $45.346 million in 2024 from $77.522 million in 2023, showing progress in reducing losses[41] - Stock-based compensation decreased to $17.108 million in 2024 from $32.072 million in 2023, indicating reduced equity-based expenses[41] - Loss on classification as held for sale was $15.417 million in 2024, impacting the financial results[41] - Interest paid increased significantly to $20.216 million in 2024 from $1.118 million in 2023, reflecting higher debt servicing costs[39] - Depreciation and amortization for the three months ended May 31, 2024, was $31,696 thousand, compared to $2,636 thousand for the same period in 2023[42] - Stock-based compensation for the three months ended May 31, 2024, was $3,597 thousand, compared to $5,195 thousand for the same period in 2023[42] - Non-recurring repair expenses for the three months ended May 31, 2024, were $645 thousand, compared to $0 for the same period in 2023[42] - Diligence, acquisition, disposition, and integration expenses for the three months ended May 31, 2024, were $1,652 thousand, compared to $727 thousand for the same period in 2023[42] - Litigation expenses for the three months ended May 31, 2024, were $929 thousand, compared to $0 for the same period in 2023[42] - Research and development expenses for the three months ended May 31, 2024, were $50 thousand, compared to $0 for the same period in 2023[42] - Loss on change in fair value of debt for the three months ended May 31, 2024, was $4,789 thousand, compared to $0 for the same period in 2023[42] Non-GAAP Measures Update - The company updated its presentation of non-GAAP measures starting in the third quarter of 2024, no longer excluding start-up costs[29]

DALLAS, Aug. 28, 2024 (GLOBE NEWSWIRE) -- Applied Digital Corporation (Nasdaq: APLD) ("Applied Digital" or the "Company"), a designer, builder, and operator of next-generation digital infrastructure designed for high-performance computing (“HPC”) applications, cloud services (“Cloud Services”), and data center hosting (“Data Center Hosting”), reported financial results for the fiscal fourth quarter and full year ended May 31, 2024. The Company also provided an operational update. Fiscal Fourth Quarter 2024 ...

DALLAS, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Applied Digital Corporation (Nasdaq: APLD) (“Applied Digital” or the “Company”), a designer, builder, and operator of next-generation digital infrastructure designed for High-Performance Computing (HPC) applications, today announced the appointment of Gary Smith as its new Senior Director of Physical Security. Smith has over 40 years of experience in law enforcement and corporate security and is expected to play a pivotal role in the ongoing safety and integrity of ...

DALLAS, July 30, 2024 (GLOBE NEWSWIRE) -- Applied Digital Corporation (NASDAQ:APLD) ("Applied Digital" or the "Company"), a designer, builder, and operator of next-generation digital infrastructure designed for High-Performance Computing (HPC) applications, announced today that it has met the conditional approval requirements related to the release of the escrowed funds from the sale of its Garden City, Texas facility. The Company has now received the remaining $25 million of the purchase price held in escr ...

The market expects Applied Digital Corporation (APLD) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended May 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, i ...

Oselote Trading at around $7, Applied Digital Corporation (NASDAQ:APLD) has surged by more than 200% since November 2022 as charted below, even outperforming Nvidia (NVDA) last year and nearly catching up at the beginning of this year before dipping. This price action could suggest some investors view the HPC (high-performance computing) data center play as an alternative way to ride the AI story. Data by YCharts Indeed, with Applied Digital Corporation's greenfield approach compared to other data cente ...

Applied Digital TodayAPLDApplied Digital$6.06 +0.11 (+1.85%) 52-Week Range$2.36▼$11.07Price Target$8.40Add to WatchlistApplied Digital Co. NASDAQ: APLD designs, develops and operates next-generation data centers accommodating artificial intelligence (AI) service providers in the high-performance computing (HPC) industry. The AI boom has been driving the demand for more data centers, which is driving demand for next-gen data centers that fall right in Applied Digital's wheelhouse. The company also provides b ...