CORRECTED-Data center firm Applied Digital Q1 revenue beats estimates (Oct 9)

Overview

• Applied Digital fiscal Q1 revenue up 84% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q1 beats consensus

• Company finalized new lease with CoreWeave for 150 MW at Polaris Forge 1

Outlook

• Company expects Polaris Forge 1 to generate $11 bln in revenue over 15 years

• Applied Digital aims for $500 mln annualized NOI once Polaris Forge 1 is operational

• Company targets $1 bln NOI within five years

Result Drivers

• LEASE AGREEMENT - Finalized a new lease with CoreWeave for an additional 150 MW at Polaris Forge 1, securing $11 bln in prospective lease revenue

• HPC HOSTING - Revenue increase primarily driven by $26.3 mln from tenant fit-out services in HPC Hosting Business

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the blockchain & cryptocurrency peer group is "buy"

• Wall Street's median 12-month price target for Applied Digital Corp is $23.00, about 21.5% below its October 8 closing price of $27.94

Press Release: ID:nGNX4rqVNS

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