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Applied Digital (NASDAQ:APLD) shares jumped 10% in post-market trading after the AI data center builder and operator issued a better-than-expected quarterly report and operational update.
For fiscal Q4, Applied Digital reported a non-GAAP loss attributable to shareholders of $0.03 per share, on revenue of $38M. Analysts, on average, were expecting a non-GAAP loss of $0.16 per share, on revenue of $37.1M.
Applied Digital (NASDAQ:APLD) also announced that partner CoreWeave (CRWV) has exercised a lease option for an additional 150 MW. When the new lease is signed, it will bring the total contracted revenue from the leases to $11B. The third lease agreement, which is currently being finalized, is expected to have substantially the same terms as the two existing leases, the company said.
“Building on the momentum from these leases and the surging demand for AI infrastructure, we’re actively marketing our multi-gigawatt pipeline to a diverse group of customers,” said Wes Cummins, Chairman and CEO of Applied Digital, in a statement.
Applied Digital added that it sees demand for its data center hosting business remaining robust, particularly with bitcoin prices reaching all-time highs.
The company also noted that its board was still reviewing strategic alternatives for its cloud business.