Applied Digital Corp (NASDAQ:APLD) stock plunges 22.89% (As on January 16, 11:15:26 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the second quarter of FY 24. Garden City facility was energized in October, and the company remains on track to reach 500 MW across the three hosting facilities in the near term. The company broke ground on the first 100 MW high-performance compute facility in Ellendale, North Dakota. The pipeline of opportunities in the Cloud Services segment remains robust, and the company continued to deploy GPUs for existing customer agreements during the quarter. As of November 30, 2023, the Company’s 106 MW facility in Jamestown, North Dakota and 180 MW facility in Ellendale, North Dakota were fully operational. During the quarter ended November 30, 2023, the Company entered into a long-term Retail Electric Service Agreement with TerraForm Power to provide energy to the Company’s 200 MW Garden City, Texas facility and the Company began energizing the facility. Applied Digital ended the fiscal quarter with cash, cash equivalents, and restricted cash of $34.6 million and $42.8 million in debt outstanding. Since the quarter closed, the company have received an additional $11.1 million in customer prepayments and $23.1 million in net proceeds from the ATM offering. The ATM offering is now complete.

APLD in the second quarter of FY 24 has reported the adjusted loss per share of $0.05 cents, missing the analysts’ estimates for the adjusted earnings per share by $0.06. The company had reported the adjusted revenue growth of 242 percent to $42.2 million in the second quarter of FY 24, missing the analysts’ estimates for revenue by $13.46 million. The increase in revenues were driven primarily by a full quarter of revenue generation from the Company’s Ellendale facility as well as the Garden City facility beginning revenue generation during the fiscal second quarter of 2024. Net loss for the fiscal second quarter 2024 was $10.5 million. This compares to a net loss of $26.8 million for the fiscal second quarter 2023. Adjusted EBITDA, a non-GAAP measure, for the fiscal second quarter 2024 was $10.6 million compared to an Adjusted EBITDA loss of $2.2 million for the fiscal second quarter 2023. The Company experienced a net decrease in cash, cash equivalents, and restricted cash during the six months ended November 30, 2023 of $8.9 million. Net cash received from operating activities of $9.1 million, driven by the recurring operations of the business.