Applied Digital's revenue soars, loss widens on growing AI investments
APLD•APLD•APLD•APLD•Applied Digital's first-quarter revenue more than quadrupled to $341.9 million, beating the $133.8 million average analyst estimate, while its net loss widened to $221 million.
Revenue rose to $341.9 million from $80.9 million a year earlier. Net loss attributable to common stockholders widened to $221 million, or $0.76 per share, from $18.5 million, or $0.07 per share.
Total costs and expenses climbed to $404.3 million from $90.7 million. Applied Digital said higher spending to prepare data centers for customers, increased stock-based compensation and higher interest expenses contributed to the increase. As of August 31, it had $3.7 billion in cash, cash equivalents and restricted cash, and $6.4 billion in debt.
The company said it increased investments as it worked to meet growing demand for data center services. CEO Wes Cummins said it was focused on developing large-scale AI factory campuses and securing long-term contracts with hyperscalers.
