DALLAS – Applied Digital Corporation (NASDAQ:APLD) reported better-than-expected fiscal second quarter results on Tuesday, with revenue and adjusted earnings surpassing analyst estimates. The company’s shares rose 1% in after-hours trading following the announcement.
The digital infrastructure provider posted adjusted earnings per share of -$0.06 for the quarter ended November 30, beating the analyst consensus of -$0.14. Revenue came in at $63.9 million, up 51% YoY and slightly above estimates of $63.39 million.
Applied Digital’s Cloud Services segment was a key driver of growth, with revenue surging 523% YoY to $27.7 million. The company’s Data Center Hosting business generated $36.2 million in revenue for the quarter.
“We remain in late stage negotiations for our Ellendale campus,” said Applied Digital Chairman and CEO Wes Cummins (NYSE:). “Over the past year, we’ve gained valuable insights into the thorough and deliberate approach hyperscalers take. While their timelines may extend longer than initially expected, we remain steadfast in our commitment to delivering our 400 MW data center campus on time and within budget.”
The company reported a net loss of $138.7 million for the quarter, which included significant non-cash charges related to debt conversion and fair value adjustments. Adjusted EBITDA rose 93% YoY to $21.4 million.
Applied Digital also announced a $5 billion perpetual preferred equity financing facility with Macquarie Asset Management for its high-performance computing business. The company said this agreement positions it to establish itself as a top-tier HPC data center operator in the United States.
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