NASDAQ$APLD

Applied Digital Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Generated sequential revenue growth and expanded into HPC applications.

Applied Digital reported a revenue of $12.3 million for the fiscal second quarter of 2023, with the Jamestown facility operating at full capacity. The company secured first two non-cryptocurrency customers and continued buildout of second and third co-hosting facilities.

  • Fiscal second quarter 2023 revenue of $12.3 million.
  • Fiscal second quarter 2023 adjusted EBITDA of $(2.1) million.
  • 100-Megawatt facility in Jamestown, North Dakota operated at full capacity during the quarter.
  • Signed first two non-cryptocurrency customers for HPC applications at Jamestown, North Dakota, for machine learning and Web3 applications.

Headline financials

Total Revenue

$12.3M

Previous: $1.43M+765.4%
EPS (adj)

-$0.04

Previous: $1.57-102.5%
Adjusted EBITDA

-$2.1M

No prior period
Capital Expenditures

-$70.3M

Previous: $9.33M-853.9%
Free Cash Flow

-$96.9M

Previous: -$5.56M-1644.1%
Net Income

-$26.6M

Previous: -$171K-15465.5%
Operating Income

-$26.7M

Previous: -$507K-5161.7%
Gross Profit

$528K

No prior period
Cash & Equivalents

$10.5M

Previous: $14M-25.2%
Total Assets

$167M

No prior period
Stock-Based Comp

$21.8M

No prior period

Revenue & EPS history

Applied Digital · Revenue · Quarterly

$12.3M

Q2 2023+765.4%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

The company anticipates energizing the Garden City and Ellendale datacenters by the end of February, expecting to reach nearly 500MW of hosting capacity and an annualized adjusted EBITDA run rate of approximately $100 million.

Tailwinds

  • Continued buildout of broader HPC hosting capabilities where the company is in active discussions with additional customers.
  • Demand for services from both customer sets remains robust.
  • Positioned as a financially strong and leading digital infrastructure provider.
  • Garden City site is expected to energize before the end of February.
  • Ellendale is expected to energize before the end of February.

Headwinds

  • Decline in demand for products and services.
  • Volatility of the crypto asset industry.
  • Inability to comply with developments and changes in regulation.
  • Cash flow and access to capital.
  • Maintenance of third party relationships.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 17 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+5.3%

Avg return

Earnings day

+11.0%

Avg return

5 days after

+21.6%

Avg return

30 days after

75%

15 / 20 earnings

Positive

+32.6%

Q4 2023

Best reaction

-35.9%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+14.1%+13.2%+48.4%
Q2 2026+7.8%+13.0%+9.4%
Q1 2026+16.0%+28.9%+5.8%
Q3 2025-35.9%-26.4%+4.1%
Q2 2025+7.7%+14.6%+1.9%
Q1 2025-12.2%-3.8%-3.7%
Q4 2024-19.2%-22.8%+73.2%
Q3 2024-9.4%-18.1%+10.7%
Q2 2024-31.5%-35.1%-34.0%
Q1 2024+4.8%-0.8%-5.4%
Q4 2023+32.6%+21.8%-12.2%
Q3 2023+22.8%+40.9%+57.7%
Q2 2023+16.7%+15.1%+83.3%
Q1 2022+14.9%+21.4%+39.3%
Q1 2023+8.7%+20.6%+31.2%
Q2 2022+1.0%+8.7%-15.5%
Q4 2022+4.0%+5.1%-19.7%
Q3 2021+21.1%+41.1%+52.2%
Q4 2021+21.1%+41.1%+52.2%
Q3 2022+21.1%+41.1%+52.2%
Q2 2021
Q1 2021

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