Summary by Futu AI
Applied Digital reported revenue of $165.6 million for fiscal year 2024, a 199% increase from $55.4 million in FY2023. The growth was driven by increased capacity across data centers and the launch of cloud services. However, the company posted a net loss of $149.7 million, widening from $45.6 million last year.Operating expenses rose significantly to $264.6 million from $99.4 million, including a $15.4 million loss on assets held for sale. Interest expense jumped to $26.8 million from $2.0 million due to increased debt. The company also recorded losses on fair value changes of debt instruments. Adjusted EBITDA improved to $24.5 million from $0.8 million last year.Applied Digital ended the year with $3.3 million in cash and negative working capital of $355.3 million. The company raised funds through stock offerings, convertible notes, and asset sales to support operations and expansion plans. Management believes it has sufficient liquidity for at least the next 12 months but may need additional financing to fund long-term growth initiatives.
