Applied Digital misses quarterly revenue estimate amid power disruption at data center

By Thomson Reuters Apr 11, 2024 | 3:25 PM

(Reuters) – Data-center services provider Applied Digital missed Wall Street estimates for third-quarter revenue on Thursday, pressured by a power disruption at its Ellendale data center unit in January.

Shares of the Dallas, Texas-based company fell 14% in aftermarket trading.

In February, Applied Digital said revenue from its Ellendale data center hosting facility would take a hit in the third quarter, after it began experiencing a power outage on Jan. 18, resulting in complete outage the following day.

“During the quarter, Applied Digital encountered several challenges that impacted our financial performance due to facility power outages in our datacenter hosting business” said Wes Cummins, CEO of Applied Digital.

The company posted revenue of $43.3 million for the quarter ended Feb. 29, compared with analysts’ average estimate of $51.92 million, according to LSEG data.

(Reporting by Priyanka.G and Jaspreet Singh in Bengaluru; Editing by Ravi Prakash Kumar and Krishna Chandra Eluri)