Applied Digital shares jump as Q1 revenue jumps to $341.9 million

• Applied Digital (NASDAQ:APLD) reported first-quarter revenue of $341.9 million, more than four times the year-earlier level and above analysts’ $133.8 million estimate.
• Shares rose 3.57% to $24.66 in premarket trading following the results.
• Northland Capital said revenue and cash flow could increase as contracted data center capacity comes online.

Applied Digital (NASDAQ:APLD) reported first-quarter revenue of $341.9 million, more than quadrupling from a year earlier and exceeding analysts’ average estimate of $133.8 million.

The stronger revenue result contrasted with a wider net loss attributable to common stockholders of $221 million, or $0.76 per share, compared with $18.5 million, or $0.07 per share, a year earlier.

Northland Capital said Applied Digital’s revenue and cash flow could rise over the next several years as contracted data center capacity becomes operational and begins contributing revenue.

The company’s quarterly loss widened sharply despite the increase in revenue, highlighting the continued costs associated with expanding its data center infrastructure.

Analyst data compiled by LSEG showed an average Buy rating across 17 analysts and a median price target of $70.

Applied Digital operates data center infrastructure focused on high-performance computing and other large-scale computing workloads.

The shares remain down about 2.9% year to date, compared with an 18.5% gain in the Nasdaq over the same period.