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      Applied Digital (APLD) Stock Is Down Trending After Earnings Report - Stocks Telegraph

      By Fahim Awan

      Published on

      October 10, 2023

      5:26 AM UTC

      Last Updated on

      October 10, 2023

      5:41 AM UTC

      Applied Digital (APLD) Stock Is Down Trending After Earnings Report - Stocks Telegraph

      Applied Digital Corporation (Nasdaq: APLD) stock is experienced a notable decrease in value during the last session, having depreciated by 6.96% to reach a price of $4.81. This decline in the value of Applied Digital stock has ensued following the disclosure of its financial earnings report prior to the commencement of the trading session.

      Applied Digital (APLD) has reported its financial results for the first quarter ending on August 31, 2023. Impressively, total revenues for this quarter reached $36.3 million, marking a remarkable 425% increase from the same period in 2023. The revenue surge was attributed to the company’s activities in Jamestown, North Dakota, along with an expansion of energized MW capacity at the Ellendale, North Dakota facility, and income from their inaugural Cloud Services contract.

      In the inaugural quarter of 2024, operational expenditures surged to $17.1 million, diverging starkly from the $5.0 million reported in Q1 of 2023, primarily propelled by elevated general and administrative outlays. Consequently, the quarter bore a net deficit of $9.6 million, equating to $(0.10) per basic and diluted share. APLD suffered a deficit of $4.7 million, equivalent to a negative earnings per share of (0.05) during the 2023 timeframe.

      Applied Digital showcased substantial progress in its Adjusted EBITDA, escalating from $1.7 million in the corresponding quarter of the previous year to $10.0 million in the recently disclosed quarter. APLD concluded period with cash, cash equivalents, and restricted cash of $31.2 million, however its outstanding debts remained $44.0 million.

      APLD is strategically expanding its Cloud services division, with an order of 34,000 GPUs. Furthermore, the company is actively involved in High-Performance Computing (HPC) datacenter projects, boasting over 300 MW of capacity under development.

      Key milestones include the full energization of the Ellendale, North Dakota facility and the Garden City, Texas facility’s expected activation in the fourth quarter. Applied Digital (APLD) has also forged a facility extension agreement with Oncor Electricity Delivery Company for power transmission and metering, set to be completed by October 23rd, solidifying their commitment to sustainable growth and expansion.

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