Applied Digital's Q2 revenue surges, net loss narrows

Overview

• Data center operator's fiscal Q2 revenue rose 250% yr/yr

• Net loss for fiscal Q2 narrowed 76% yr/yr

Outlook

• Company expects to exceed $1 bln NOI target within next five years

• Applied Digital plans to spin out cloud services in business combination

• Company anticipates increased demand from hyperscalers for new sites

Result Drivers

• HPC HOSTING REVENUE - Revenue from HPC Hosting Business contributed significantly to the 250% revenue increase, with $85 mln generated in the quarter

• POLARIS FORGE 1 MILESTONE - Reached Ready-for-Service at Polaris Forge 1, delivering 100 MW on schedule, contributing $12 mln in lease revenue

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "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 $40.50, about 33.8% above its January 6 closing price of $30.26

Press Release: ID:nGNXDF34n

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