Applied Digital Surpasses Q1 Revenue Expectations on Surging AI Demand
NEW YORK - Applied Digital (APLD) reported first-quarter revenue of $64.2 million, exceeding Wall Street estimates of $50 million, fueled by escalating demand for data center services driven by the rapid expansion of generative AI applications. Shares of the company increased 3.3 percent in extended trading following the announcement.
The strong performance reflects a broader trend of enterprises accelerating the implementation of next-generation AI models, which requires notable high-performance data center infrastructure to support compute-intensive workloads.
Applied Digital’s revenue increased 84 percent year-over-year for the quarter ended August 31, according to data compiled by LSEG. The company’s data Center Hosting Business segment generated $37.9 million in revenue from June to August.
In August, Applied Digital entered into a new lease agreement with CoreWeave (CRWV) for an additional 150 MW in North dakota. This expands the total expected lease size to approximately $11 billion, building on the $7 billion from the initial two 15-year leases with CoreWeave announced earlier this year.
Despite the revenue gains, cost of sales rose 144 percent to $55.6 million, with approximately $25 million attributed to building and preparing facilities for customers in the high-performance computing hosting segment.
Applied Digital also reported an adjusted loss per share of 3 cents, which was narrower than the analysts’ expected loss of 13 cents.
Analysts at Roth Capital recently suggested Applied Digital may secure another high-performance computing (HPC) colocation deal by the end of the year.
