Applied Digital Corp. NASDAQ: APLD stock has been volatile since it reported earnings after the market closed on October 9. After gaining 4% in after-hours trading, APLD stock moved sharply lower by 12.8% in pre-market trading. However, as of this writing, the stock is up about 6%, but that’s still about 4% below its October 9 closing price.  Applied Digital TodayAPLDApplied Digital$6.89 -0.51 (-6.89%) 52-Week Range$2.36▼$8.78Price Target$9.00Add to WatchlistThat may lead you to believe the company delivere ...

Financial Data and Key Metrics - Revenue increased by 67% to $60.7 million this quarter, driven by cloud services contracts [10] - Data center hosting segment generated $34.8 million in revenue, while cloud services contributed $25.9 million [10] - Depreciation and amortization expenses totaled $34.4 million, up from $8 million in the same period last year [10] - Adjusted EBITDA for the quarter increased significantly to $20 million [11] - Adjusted net loss for the quarter was $21.6 million or $0.15 per basic and diluted share [11] - Cash, cash equivalents, and restricted cash stood at $86.6 million, with $143.6 million in debt and shareholders' equity at $241.8 million [11] Business Line Data and Key Metrics - Data center hosting business has 286 megawatts of capacity across two fully contracted locations in North Dakota, operating at full capacity [8] - Cloud services business has six clusters online, with plans to deploy additional clusters starting in the second half of fiscal year 2025 [9] - Significant progress made on amending lease financing for GPUs, allowing amortization over the expected useful life, improving reported results [9] Market Data and Key Metrics - The company is finalizing a lease with a US-based hyperscaler for the Ellendale HPC campus, with an initial 100-megawatt building and plans to expand to 400 megawatts [7] - Rising demand for proprietary HPC data centers among top-tier industry players, with significant interest from hyperscalers for 2025 and 2026 capacity [14] - The company is exploring opportunities to accelerate the monetization of its over 1.4 gigawatt pipeline [8] Company Strategy and Industry Competition - The company aims to become a platform capable of building and operating multiple HPC data centers at scale [15] - Strategic investments from prominent investors affirm the company's market position and highlight the potential for its strategic plan [15] - The company is positioning itself as a full-stack developer for hyperscalers, leveraging its early investment in the industry [14] Management Commentary on Operating Environment and Future Outlook - The company is encouraged by positive trends across its business and remains confident in its growth trajectory [9] - Management sees significant demand for HPC data centers, with limited capacity available for 2025 and 2026 [14] - The company is making executive team changes to better position itself for expansion and growth [15] Other Important Information - The company incurred $4.1 million in expenses this quarter for facilities not yet generating revenue, with plans to utilize these data centers in the future [11] - The company is exploring heat recirculation solutions for its HPC facilities, with potential applications in agriculture [52] Q&A Session Summary Question: Lease Negotiation Status - The exclusivity period for the lease negotiation has expired, and the company is finalizing the lease document [18] Question: Lease Details for Hyperscaler - The initial lease will be for 100 megawatts, with a reservation on the additional 300 megawatts, expected to be finalized in two separate leases [21] Question: Additional GPU Clusters - The company expects to deploy additional GPU clusters in the second half of fiscal year 2025, with demand influenced by customer preferences for Hopper or Blackwell GPUs [24][25] Question: Demand Environment and Future Data Centers - The company has seen increased interest from hyperscalers for 2025 and 2026 capacity and is working on securing an LOI for a second site, likely in the Dakotas [28][29] Question: Lease Finalization Timeline - The lease finalization is in the clerical phase, with expectations for completion within six to eight weeks [35][36] Question: Economics of Two Leases - The economics of the two leases are expected to be similar, with one structured as a Colo-style lease and the other as a yield on cost model [43][45] Question: Customer Turnover and Pricing in Cloud Services - Pricing for GPU services has remained stable, with customer turnover influenced by market dynamics and enterprise demand [48][50] Question: Heat Recirculation Solutions - The company is exploring heat recirculation solutions for its HPC facilities, with potential applications in agriculture, such as greenhouses or aquafarming [52] Question: Progress on Lease Finalization - The company estimates that 98.5% to 99% of the work on the lease finalization is complete, with the remaining tasks being clerical [55] Question: Yield on Cost and Prepayment for Future Buildings - The company is not disclosing specific yield targets but expects to secure leases and project financing before committing significant CapEx for future buildings [58][59]

Applied Digital Corporation (APLD) came out with a quarterly loss of $0.03 per share versus the Zacks Consensus Estimate of a loss of $0.28. This compares to loss of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 89.29%. A quarter ago, it was expected that this company would post a loss of $0.23 per share when it actually produced a loss of $0.52, delivering a surprise of -126.09%.Over the last four quarters, the compan ...

On October 9, 2024, Applied Digital Corp (APLD, Financial) released its 8-K filing for the fiscal first quarter ended August 31, 2024. The company, a leader in next-generation digital infrastructure, reported a significant revenue increase, although it faced challenges with net losses. Applied Digital Corp operates across North America, providing digital infrastructure solutions and cloud services, primarily generating revenue from its Data Center Hosting Business.Performance Overview and Challenges Applied ...

Revenue and Financial Performance - Total revenue for the three months ended August 31, 2024, was $60.7 million, a 67.1% increase compared to $36.3 million in the same period in 2023[14] - Net loss attributable to common stockholders improved to $4.3 million for the three months ended August 31, 2024, compared to a net loss of $11.5 million in the same period in 2023[14] - Basic and diluted net loss per share improved to $0.03 for the three months ended August 31, 2024, compared to $0.11 in the same period in 2023[14] - Operating income for the three months ended August 31, 2024, was $9.5 million, compared to an operating loss of $7.4 million in the same period in 2023[14] - Net loss decreased to $4.247 million in August 2024 from $11.854 million in August 2023, showing a significant improvement in financial performance[22] - Revenue increased by $26.6 million (83%) from $32.1 million in Q3 2023 to $58.8 million in Q3 2024, driven by increased data center capacity and the launch of Cloud Services[179] - Adjusted EBITDA was $19.993 million in Q3 2024, representing 33% of revenues, compared to $9.864 million (27% of revenues) in Q3 2023[176] - Adjusted EBITDA for the three months ended August 31, 2024, was $19.9 million, compared to $9.8 million for the same period in 2023[200] - Adjusted operating loss for the three months ended August 31, 2024, was $14.3 million, compared to an adjusted operating income of $1.6 million for the same period in 2023, reflecting a significant decline in performance[199] - Adjusted net loss attributable to Applied Digital Corporation for the three months ended August 31, 2024, was $21.6 million, compared to a net loss of $129,000 for the same period in 2023[199] Costs and Expenses - Cost of revenues increased to $61.1 million for the three months ended August 31, 2024, compared to $25.2 million in the same period in 2023[14] - Cost of revenues increased by $35.8 million (142%) from $25.2 million in Q3 2023 to $61.1 million in Q3 2024, primarily due to higher depreciation, lease expenses, and personnel costs[180] - Selling, general, and administrative expenses decreased by $1.8 million (11%) from $16.2 million in Q3 2023 to $14.3 million in Q3 2024, mainly due to reduced stock-based compensation[182] - Depreciation and amortization expenses increased to $34.316 million in August 2024 from $7.86 million in August 2023[22] - Depreciation expense for the three months ended August 31, 2024, was $3.0 million, compared to $2.2 million for the same period in 2023[45] - Total net lease cost for the three months ended August 31, 2024, was $44.643 million, including $8.962 million in operating lease cost and $35.626 million in finance lease cost[103] - Interest expense, net increased by $5.2 million (243%) from $2.1 million in Q3 2023 to $7.3 million in Q3 2024, driven by higher finance leases and interest-bearing loans[185] Cash Flow and Liquidity - Cash flow from operating activities was negative at $75.89 million in August 2024, compared to a positive $4.517 million in August 2023[22] - Cash flow from financing activities increased to $163.365 million in August 2024 from $23.663 million in August 2023, driven by borrowings and stock issuances[22] - Total cash, cash equivalents, and restricted cash increased to $86.557 million in August 2024 from $31.688 million in May 2024[42] - The company had a working capital deficit of $302.6 million, raising substantial doubt about its ability to continue as a going concern, but subsequent events alleviated this doubt[43] - As of August 31, 2024, the company had unrestricted cash and cash equivalents of $58.2 million and negative working capital of $302.6 million[201] - The company expects to have sufficient liquidity to support operations and meet working capital needs for at least the next 12 months[209] - Liquidity sources include cash on hand, customer payments, debt financing, and access to public capital markets[209] - The company may face challenges in raising additional funds on favorable terms, which could negatively impact financial conditions[209] - Failure to secure necessary financing could force delays, reductions, or termination of operations and development plans[209] - The company's liquidity estimates are based on assumptions that may prove incorrect, potentially leading to faster capital depletion[209] - If capital resources are used sooner than expected, the company may need to seek additional financing earlier than projected[209] - Additional financing may not be available on acceptable terms or at all, posing risks to the company's financial stability[209] - The inability to raise capital as needed would negatively impact the company's ability to pursue its business strategy[209] Debt and Equity Transactions - The company issued 6.1 million shares in an offering, net of costs, during the three months ended August 31, 2024[18] - The company converted $56.2 million of debt into equity during the three months ended August 31, 2024[18] - The company issued $60.726 million in preferred stock in August 2024, with issuance costs of $5.444 million[22] - Long-term debt increased to $106.2 million as of August 31, 2024, up from $79.5 million as of May 31, 2024, primarily due to the CIM Promissory Loan of $105.0 million[59] - Remaining principal payments on long-term debt total $156.7 million, with $112.7 million due in FY28 and $12.0 million from SAFE agreements[60] - During the three months ended August 31, 2024, $48.0 million of Yorkville Convertible Debt was converted into approximately 11.4 million shares of common stock[63] - The CIM Promissory Note balance was $105.0 million as of August 31, 2024, with warrants issued to purchase up to 9,265,366 shares of Common Stock[64] - CIM Warrants were issued in two tranches: 6,300,449 Common Shares (Initial Warrants) at $4.8005 per share and 2,964,917 Common Shares (Additional Warrants) at the same price, with a five-year term[65] - The fair value of the Initial Warrants and Additional Warrants was $4.36 and $3.04 per warrant, respectively, totaling $36.5 million[67] - The Company entered into two SAFE agreements totaling $12.0 million, which may convert into preferred stock or entitle the investor to proceeds in liquidity or dissolution events[70][71] - The Company sold approximately 3.1 million shares for net proceeds of $14.6 million under a $25 million "at the market" sale agreement with Roth Capital Partners[76] - The Company entered into a Sales Agreement allowing the sale of up to $125,000,000 in shares of common stock, with $16.4 million net proceeds from 3.0 million shares sold as of August 31, 2024[77] - The Company entered into a Standby Equity Purchase Agreement (SEPA) with YA Fund, allowing the sale of up to $250.0 million of common stock, with a $2,125,000 commitment fee paid in 456,287 shares of common stock[78][79] - The Company issued approximately 9.6 million shares of common stock under equity incentive plans, with $(2.9) million and $5.6 million of stock-based compensation recognized in the three months ended August 31, 2024 and 2023, respectively[80] - The Company sold 301,673 shares of Series E Redeemable Preferred Stock for proceeds of $6.9 million, with a fixed dividend rate of 9.0% per annum[87][88] - The Series E Preferred Stock has a $25.00 per share liquidation value, with optional redemption fees ranging from 9.00% to 0.00% based on the redemption timing[91] - Series F Convertible Preferred Stock private placement closed on August 30, 2024, for total proceeds of $50.0 million, with a 3.5% fee paid to Northland Securities, Inc.[93] - Series F Convertible Preferred Stock holders are entitled to cumulative preferential dividends at an annual rate of 8.0% of the Stated Value of $1,000 per share[93] - The fair value of Yorkville convertible debt was $30.463 million as of August 31, 2024, calculated on an as-converted basis using quoted market prices[98][99] - The Company recorded a loss on the change in fair value of debt of $6.4 million in its unaudited condensed consolidated statements of operations[99] - The company completed a private placement on September 5, 2024, issuing 49.4 million shares of common stock at $3.24 per share, raising approximately $160 million in gross proceeds[128] - The company received the final $20.0 million of funding associated with the CIM Promissory Note on October 8, 2024, bringing the total balance outstanding under the note to approximately $125 million[131] - The company entered into a Dealer Manager Agreement on September 23, 2024, to offer up to 2.5 million shares of Series E-1 Redeemable Preferred Stock at $25.00 per share[130] - The company converted $17.8 million of Initial YA Notes into approximately 5.8 million shares of common stock and $4.1 million of the May Note into approximately 1.4 million shares of common stock, leaving $6.2 million outstanding across all YA Notes[129] - The company borrowed $125 million under the CIM Promissory Note as of August 31, 2024[202] - During the quarter ended August 31, 2024, the company sold approximately 3.1 million shares for net proceeds of $14.6 million[203] - The company entered into a securities purchase agreement for the private placement of Series F Convertible Preferred Stock, raising $50.0 million[206] - The company closed a private placement of common stock, raising approximately $160 million in gross proceeds[207] - The company received $17.4 million in payments for future cloud services and $26.9 million in payments for future data center hosting services during the three months ended August 31, 2024[207] Segment Performance - Total revenue for the three months ended August 31, 2024, was $60.7 million, with the data center hosting segment contributing $34.8 million and the cloud services segment contributing $25.9 million[118] - The data center hosting segment reported a segment profit of $35.9 million, while the cloud services segment reported a segment loss of $15.8 million for the three months ended August 31, 2024[119] - Total segment profit for the three months ended August 31, 2024, was $17.1 million, compared to $0.8 million for the same period in 2023[119] - Data Center Hosting segment operating profit increased by $26.9 million (298%) from $9.0 million in Q3 2023 to $35.9 million in Q3 2024, largely due to the Garden City facility sale[189] - Cloud Services segment operating loss increased by $8.4 million from $7.4 million in Q3 2023 to $15.8 million in Q3 2024, driven by higher amortization and occupancy costs[190] - HPC Hosting segment operating loss increased by $2.2 million (290%) from $0.8 million in Q3 2023 to $2.9 million in Q3 2024, due to stock-based compensation and payroll expenses[191] - Data Center Hosting Business operates at full capacity with 106 MW in Jamestown and 180 MW in Ellendale, North Dakota as of August 31, 2024[147] - Cloud Services Business recognized $25.9 million in revenue during the fiscal quarter ended August 31, 2024[149] - HPC Hosting Business is negotiating a 400 MW capacity lease with a US-based hyperscaler, including a 100 MW facility under construction in Ellendale, North Dakota[150] Asset and Liability Management - Total stockholders' equity increased to $241.8 million as of August 31, 2024, compared to $127.9 million as of August 31, 2023[18][19] - The company received $25 million in connection with the sale of its Garden City facility[14] - Restricted cash related to letters of credit totaled $28.3 million, held in money market funds[39] - Property and equipment increased to $495.6 million as of August 31, 2024, up from $354.8 million as of May 31, 2024, driven by construction in progress which rose to $313.6 million from $190.2 million[45] - Deferred revenue balance decreased to $16.9 million as of August 31, 2024, from $39.4 million at the beginning of the period, primarily due to revenue recognition of $60.4 million[48] - Customer deposits balance decreased to $13.7 million as of August 31, 2024, from $15.4 million at the beginning of the period, with $2.8 million received and $1.5 million refunded during the quarter[49] - The Company had letters of credit totaling $28.3 million as of August 31, 2024, with restricted cash held in separate accounts[61] - Future minimum lease payments as of August 31, 2024, total $318.554 million, with $150.292 million for operating leases and $168.262 million for finance leases[105] - The Company has a minimum commitment of approximately $68.1 million related to the energy services agreement for its Jamestown, North Dakota co-hosting facility[108] - The Company has entered into leases which are executed but not yet commenced with total minimum payments of approximately $18.9 million[106] - As of August 31, 2024, the company had total assets of $937.7 million, with the data center hosting segment accounting for $143.1 million and the cloud services segment accounting for $338.8 million[124] - The company received the remaining $25 million of the purchase price held in escrow related to the sale of its Garden City hosting facility, which was included in the gain on classification of held for sale[116] - Company sold Garden City hosting facility for up to $87.3 million, with $25 million released from escrow after meeting conditional approval requirements[147][148][161] Legal and Regulatory Matters - The Company is involved in a putative securities class action lawsuit, with potential material impact on results of operations if an unfavorable outcome occurs[111][112] - A derivative action was dismissed without prejudice on June 5, 2024, with no pending or threatened lawsuits as of August 31, 2024, that could materially affect the Company's operations[114][115] Revenue Recognition and Customer Contributions - Revenue recognition for data center hosting and cloud services is based on fixed rates over the term of agreements, with advanced payments recorded as deferred revenue[32][33] - Revenue from Customer A decreased to 48% of total revenue for the three months ended August 31, 2024, down from 68% in the same period in 2023, while Customer G contributed 16% of revenue in 2024[47] - Gain on classification of held for sale was $24.8 million in Q3 2024, primarily due to $25.0 million released from escrow funds related to the sale of the Garden City facility[183] Stock-Based Compensation and Equity Plans - Stock-based compensation expense was $2.9 million for the three months ended August 31, 2024[18] - The Company issued approximately 9.6 million shares of common stock under equity incentive plans, with $(2.9) million and $5.6 million of stock-based compensation recognized in the three months ended August 31, 2024 and 2023, respectively[80] Future Commitments and Agreements - The Company entered into a CIM Promissory Note for initial borrowing of $15 million, with potential subsequent borrowings of up to $110 million and an additional $75 million accordion feature[151][153] - YA Fund converted $64.0 million of YA Notes into 16.2 million shares of common stock, with $6.2 million principal amount outstanding as of August 31, 2024[155] - Company entered into a Standby Equity Purchase Agreement with YA Fund for up to $250.0 million of common stock, with a commitment fee of $2,125,000 paid in shares[162][163] - Series F Preferred Stock offering closed on August 30, 2024, raising $50.0 million with an annual dividend rate of 9.0%[165][166]

Applied Digital Reports Fiscal First Quarter 2025 Results DALLAS, TX – October 9, 2024 -- Applied Digital Corporation (Nasdaq: APLD) ("Applied Digital" or the "Company"), a designer, builder, and operator of next-generation digital infrastructure designed for highperformance computing ("HPC") applications, cloud services ("Cloud Services"), and data center hosting ("Data Center Hosting"), reported financial results for the fiscal first quarter ended August 31, 2024. The Company also provided an operational ...

Applied Digital Corporation APLD will release earnings results for its first quarter, after the closing bell on Wednesday, Oct. 9.Analysts expect the Dallas, Texas-based company to report a quarterly loss at 29 cents per share, versus a year-ago loss of 12 cents per share. Applied Digital projects to report revenue of $54.85 million for the quarter, according to data from Benzinga Pro.On Sept. 5, Applied Digital entered agreements for a $160 million private placement financing priced at market, from a group ...

Applied Digital Corporation (APLD) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended August 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on October 9, 2024, might help the stock move higher if these key numbers ar ...

The investment will help Applied Digital build data centers optimized for high-performance computing.Fool.com contributor Parkev Tatevosian discusses what the news could mean for Nvidia (NVDA 3.24%) and Applied Digital (APLD 6.08%) stock investors. *Stock prices used were the afternoon prices of Sept. 5, 2024. The video was published on Sept. 7, 2024. ...

Applied Digital Corporation (APLD) shares rallied 65.7% in the last trading session to close at $5.37. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 16.9% loss over the past four weeks.The upswing in share price can be attributed to the $160 million funding announced by APLD on Thursday. The funding came from a group of institutional and accredited investors, including NVIDIA.This company is expected to pos ...