On October 9, 2023, Applied Digital Corp (APLD, Financial), a leading designer, builder, and operator of next-generation digital infrastructure, announced its financial results for the fiscal first quarter ended August 31, 2023. The company reported a significant sequential revenue growth of 65% and reaffirmed its fiscal 2024 full-year guidance.
Financial Performance and Operational Highlights
APLD reported a total revenue of $36.3 million for the fiscal first quarter 2024, marking a significant increase of 425% from the fiscal first quarter 2023. The increase in revenue was attributed to the company's operations in Jamestown, North Dakota, the increase in energized MW capacity at the Ellendale, North Dakota facility, and revenue from the company’s first Cloud Services contract.
However, the company recorded a net loss of $11.9 million for the fiscal first quarter 2024, compared to a net loss of $4.7 million for the fiscal first quarter 2023. The adjusted EBITDA for the fiscal first quarter 2024 was $10.0 million, compared to an adjusted EBITDA loss of $1.7 million for the fiscal first quarter 2023.
Management Commentary
“The first quarter represented a strong start to the fiscal year and continued momentum for Applied Digital as we made meaningful progress across our business,” said Applied Digital Chairman and CEO Wes Cummins. “We remain confident about our growth prospects as a differentiated provider of HPC data center infrastructure. Demand for our services from both traditional customers and emerging HPC applications remains robust, and we remain excited about the year ahead.”
Balance Sheet and Cash Flows
As of the end of the fiscal first quarter, Applied Digital had cash, cash equivalents, and restricted cash of $31.2 million and $44.0 million in debt outstanding. The company experienced a net decrease in cash, cash equivalents, and restricted cash during the fiscal first quarter 2024 of $12.4 million.
Guidance for Fiscal 2024
For the full-year fiscal 2024, Applied Digital reaffirms its previously announced guidance of total revenue in the range of $385 million – $405 million, and Adjusted EBITDA in the range of $195 million – $205 million.
Investor Day
Applied Digital will host an Investor Day on Thursday, October 12, 2023, in New York, NY. Presentations will be made by Chairman and CEO Wes Cummins, CFO David Rench, and other senior leaders of the Company.
