Why it increased by over 30% today
- The share price of Applied Blockchain Inc (NASDAQ: APLD) rose by over 30% before the market today. That is why.
The share price of Applied Blockchain Inc (NASDAQ: APLD) rose by over 30% before the market today. Investors responded positively to the fact that Applied Blockchain provided updates on operations and financial guidance.
These were some of the highlights:
– Updated financial guidance for the fourth quarter of 2022 (ended May 31, 2022) with an increase in revenue at the midpoint from $ 5.95 million to $ 7.2 million.
– The data center in Jamestown, North Dakota, is partially offline due to an unexpected equipment failure at the substation operating the plant; The power supplier is working hard to restore the service, which is expected in early September.
– The construction of Applied Blockchains 200-Megawatt (“MW”) plant in Garden City, Texas continues with several buildings erected and electrical equipment delivered.
– The company is in the design and pre-construction phase of a third co-hosting data center in North Dakota when it is operational. it is expected to bring Applied Blockchain’s total hosting capacity to 500MW.
Guidance update for the fourth quarter of 2022
The Company provided financial guidance for the fourth quarter of 2022 during its third quarter 2022 revenue conference, which included estimated revenues of between $ 5.7 million and $ 6.2 million and estimated adjusted EBITDA of between ($ 4.0) million and ($ 4 million). 6) million.
And since they provided this guidance, the performance of Applied Blockchain’s first Next-Gen co-hosted data center in Jamestown, North Dakota, has been positive and better than management’s assumptions supporting the original guidance. And the company is updating financial guidance for the fourth quarter of 2022 for estimated revenue to a range of $ 7.0 to $ 7.4 million. As the company is still in the process of completing its fourth quarter financial statements, updated adjusted EBITDA guidance cannot reasonably be provided at this time, but adjusted EBITDA is expected to be a smaller loss than original guidance given the higher income.
“Since we reported our results for the third quarter of 2022 in mid-May, our operations have continued at or better than expectations, driving our financial performance above the guidance we previously communicated. has been offline in Jamestown for several weeks, the company has never been in a better position.Our new 200MW hosting agreement with Marathon, announced separately today, not only reinforces the high level of demand for hosting, but the structure of the agreement allows us to accelerate development without equity dilution In addition, our third co-hosting data center is expected to provide us with a clear path to 500 MW online early next calendar year, which we estimate could generate $ 100 million in adjusted EBITDA on an annual basis. “
– Applied Blockchain Chairman and CEO Wes Cummins
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