Applied Digital Corporation reported its financial results for the fiscal first quarter ended August 31, 2024, with total revenues reaching $60.7 million, marking a 67% increase from the prior year period. This growth was primarily driven by the company's Cloud Services business segment, which generated $25.9 million in revenue as two new clusters came online.
Despite the revenue growth, the company posted a net loss of $4.3 million, or $0.03 per basic and diluted share, and an adjusted net loss of $21.6 million, or $0.15 per diluted share. The adjusted net loss was negatively impacted by $4.4 million in expenses associated with facilities and equipment that were not yet generating revenue.
Adjusted EBITDA for the quarter significantly improved to $20.0 million, up from $9.9 million in the fiscal first quarter 2024, despite a $4.1 million impact from non-revenue generating facilities. Operationally, the company is finalizing a lease agreement with a U.S.-based hyperscaler for its 100 MW HPC facility under construction in Ellendale, North Dakota, and plans to expand total HPC capacity at Ellendale to 400 MW with two additional buildings.
The Data Center Hosting business saw its Jamestown (106 MW) and Ellendale (180 MW) facilities operating at full capacity. Additionally, the sale of the Garden City, Texas hosting facility was finalized in April 2024, with $25 million in escrowed funds released to the company on July 30, 2024. Applied Digital also announced executive changes, with David Rench assuming the role of Chief Administrative Officer and Saidal Mohmand becoming Chief Financial Officer, effective October 14, 2024.
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