Shares of Applied Digital popped Monday as strong demand for its data center services led to impressive full-year guidance for fiscal 2024.
For the fourth quarter of fiscal 2023, the company posted revenue of $22.04 million, compared to Street expectations of $22.68 million, and a loss of $0.07 per share, compared to expectations of $0.05 loss.
Despite those misses, Applied Digital is calling for a fiscal 2024 revenue range of $385 million to $405 million, well above analysts' average expectations of $308.8 million.
Shares of the company rocketed more than 13% higher to $8.77.
The company pointed to artificial intelligence as increasing demand for its data storage and high-power computing (HPC) system services.
Earlier this year, Applied Digital launched its AI cloud offering and had already inked deals for the service, including one worth $180 million.
"We will accelerate our focus on non-crypto use cases and leverage capabilities of our next-generation proprietary data center assets for HPC applications," CEO Wes Cummins said in a statement.
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