By Connor Hart
Applied Digital narrowed its loss in its fiscal third quarter as sales rose, though the top line missed Wall Street's expectations.
The Dallas-based digital infrastructure company had a loss of $35.6 million, or 16 cents a share, for its three months ended Feb. 28, compared with a loss of $62.8 million, or 52 cents a share, in last year's comparable quarter.
On an adjusted basis, Applied Digital reported a loss of 8 cents a share. Analysts surveyed by FactSet expected a per-share loss of 10 cents.
Revenue increased 22% to $52.9 million but came in below the $64.8 million that analysts modeled.
Applied attributed its higher revenue to the continued expansion of its cloud services unit, which notched more than tripled sales to $17.8 million. The company's board approved a plan to sell the arm earlier this month.
Its data center hosting business recorded sales of $35.2 million, representing a 7% decrease from last year.
The company said construction of its 100 megawatt high-performance computing data center in Ellendale, North Dakota, remains on schedule, adding that the building will be ready for service in the second half of the year.
Shares fell 7.3%, to $4.98, in after-hours trading.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
April 14, 2025 16:26 ET (20:26 GMT)
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