Applied Digital (NASDAQ:APLD) shares are trading higher after the company reported fourth-quarter financial results Wednesday after market close.
APLD stock is on the move, climbing higher. See real-time price here.
What Happened: Applied Digital reported fourth-quarter revenue of $38.01 million, up 41% year-over-year. The revenue total missed a Street consensus estimate of $40.84 million according to data from Benzinga Pro.
The company's revenue came mainly from its Data Center Hosting Business, which operates data centers to provide space for crypto mining customers. The company's 106 megawatt and 180 megawatt facilities in North Dakota were operating at full capacity in the quarter.
Applied Digital said demand for these services "remains robust" with Bitcoin (CRYPTO: BTC) prices hitting all-time highs.
The company reported a loss of 3 cents per share, beating a Street consensus estimate of a loss of 15 cents per share.
Full fiscal year revenue was $144.2 million for the company, up 6% year-over-year. The company reported and adjusted loss of 6 cents per share for the full fiscal year.
What's Next: The company said it signed two 15-year lease agreements with CoreWeave Inc (NASDAQ:CRWV) to deliver 250 megawatts of critical IT load from its North Dakota data center campus.
Applied Digital said these lease agreements are expected to generate around $7 billion in contracted revenue over the 15-year lease terms.
Since the end of the quarter, CoreWeave exercised its lease option for an additional 150 megawatts.
Together, the updated lease terms will bring in around $11 billion over the 15-year lease terms.
"These long-term leases mark a defining moment for Polaris Forge 1, one of North America's most ambitious data center projects," Applied Digital CEO Wes Cummins said.
The first 100 megawatt facility is scheduled to be operational in the fourth quarter of 2025 with a second 150 megawatt facility up in mid-2026 and a third 150 megawatt facility in 2027.
"We believe Polaris Forge 1 will serve as a launchpad for the future of AI infrastructure."
Cummins said the company is working on building strong relationships with all the major hyperscalers to position the company well for future projects.
"We're confident that our multi-gigawatt pipeline and proven design and construction expertise, combined with hyperscalers that appear to be more active than ever in securing land, power, and data center capacity, should continue to drive our growth."
APLD Price Action: Applied Digital stock is up 9.65% to $11 in after-hours trading versus a 52-week trading range of $3.01 to $15.42.
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