Applied Digital tops quarterly revenue estimates on demand for cloud services
Shares of the Dallas, Texas-based data center operator jumped 7% in extended trading.
Surging demand for AI, machine learning, blockchain and cloud services has driven increased interest in Applied Digital's offerings.
The company delivers managed cloud infrastructure solutions to a broad range of clients — including AI and machine learning developers, as well as cryptocurrency miners — enabling them to build, scale and operate advanced products and services.
Applied Digital has secured two 15-year lease agreements with CoreWeave (CRWV.O), opens new tab, projected to deliver around $7 billion in revenue over the lease term.
By leasing infrastructure from providers like Applied Digital, companies can efficiently scale its AI-focused cloud services while alleviating substantial upfront capital and operational costs.
The company reported fourth-quarter revenue of $38 million, up 41% from a year ago, compared with estimates of $37.1 million, according to data compiled by LSEG.
For the quarter ended May 31, Applied Digital reported an adjusted loss per share of 3 cents, smaller than the 15 cent loss expected by analysts.
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