Applied Digital shares plunged more than 20% in early trade on Tuesday after the provider of digital infrastructure solutions reported fiscal second quarter earnings that came in below expectations.
For the quarter ended November 30, 2023, revenue was $42.2 million, far below expectations of $54.8 million.
Its adjusted net loss was $5.2 million or $0.05 per share, greater than the $0.00 per share expected by Wall Street analysts.
Operational highlights from the quarter included energizing its 200-megawatt hosting facility in Garden City, Texas, and commencing construction of its 100-megawatt high-performance computing (HPC) in Ellendale, North Dakota.
“Our second quarter results demonstrate the continued execution of our growth strategy and the meaningful progress we’ve made across our business,” Applied Digital CEO Wes Cummins said in a statement.
“Looking ahead, we remain well-positioned to capitalize on the growing opportunities from both traditional customers and emerging HPC applications as a leading next-gen datacenter provider with differentiated capabilities to meet the sophisticated and demanding requirements for businesses and enterprises to run AI workloads and other emerging HPC applications.”
Shares of Applied Digital traded down 24% at US$5.70 shortly after Tuesday’s opening bell.