NASDAQ$APLD

Applied Digital Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Generated sequential revenue growth and energized a 200 MW hosting facility in Garden City, Texas.

Applied Digital reported a 242% increase in revenue compared to the previous year, driven by the Ellendale and Garden City facilities. The company is on track to reach 500 MW across its three hosting facilities. However, due to delayed delivery of networking components, the company expects revenue and EBITDA to be below the low end of its previously guided range for fiscal year 2024.

  • Total revenue reached $42.2 million.
  • Net loss was $10.5 million.
  • Adjusted EBITDA amounted to $10.6 million.
  • Energized 200 MW hosting facility in Garden City, Texas.

Headline financials

Total Revenue

$42.2M

Previous: $12.3M+242.0%
EPS (adj)

-$0.05

Previous: -$0.04-25.0%
Capital Expenditures

-$13.2M

Previous: -$70.3M+81.2%
Free Cash Flow

-$10.5M

Previous: -$96.9M+89.1%
Net Income

-$10.5M

Previous: -$26.6M+60.4%
Operating Income

-$8.17M

Previous: -$26.7M+69.4%
Gross Profit

$13M

Previous: $528K+2358.5%
Cash & Equivalents

$9.22M

Previous: $10.5M-12.3%
Total Assets

$481M

Previous: $167M+187.1%
Stock-Based Comp

$4.8M

Previous: $21.8M-78.0%

Revenue & EPS history

Applied Digital · Revenue · Quarterly

$42.2M

Q2 2024+242%vs Q2 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

Due to the delayed delivery of certain networking components for GPU clusters, the company now expects its revenue and EBITDA to be below the low end of its previously guided range for fiscal year 2024. The company expects to exit fiscal year 2024 at an annual revenue run rate of approximately $500 million and an annualized adjusted EBITDA run rate of approximately $250 million.

Tailwinds

  • Deliveries of key networking components improved significantly in recent weeks.
  • Expected fiscal year 2024 exit revenue run-rate represents a year-over-year growth of approximately 360%.
  • Expected fiscal year 2024 adjusted EBITDA run-rate represents a year-over-year growth of approximately 935%.
  • Growth without any further equity dilution.
  • Remains well-positioned to capitalize on growing opportunities from traditional customers and emerging HPC applications.

Headwinds

  • Delayed delivery of certain networking components for GPU clusters.
  • Revenue expected to be below the low end of the previously guided range for fiscal year 2024.
  • EBITDA expected to be below the low end of the previously guided range for fiscal year 2024.
  • Delay had a significant impact on the timing of commissioning clusters.
  • Delay had a significant impact on revenue and EBITDA.

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 2024

Historical avgQ2 2024

+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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