Applied Blockchain, Inc. ($APLD) Earnings (Q1 FY23)

 Applied Blockchain ($APLD) Earnings and Opinion:


Applied Blockchain is a company in the Financial Services sector and operates in the Capital Markets industry. The company designs, develops, and operates datacenters in North America. Applied Blockchain was incorporated in 2001 and is based in Dallas, Texas. The company made its IPO earlier this year in April.

Applied Blockchain Earnings Results:

  • Revenue of $6.92M beating expectations of $6.64M
  • Gross Margin of 24.08% beating expectations of 15.58%
  • Operating Income of -$2.9M beating expectations of -$3.50M
  • Pre-Tax Income of -$4.66M missing expectations of -$4.10M
  • Diluted EPS, GAAP of $-0.05 in line with expectations of $-0.05
Opinion:
Applied Blockchain reported earnings after the markets closed this afternoon. The stock is moving lower after hours, after a pretty solid earnings report. In terms of company performance, Applied Blockchain continues to operate and progress their three datacenter cites. They have a main focus of building to nearly 500MW of hosting capacity by early 2023. They think this building of the 500MW will translate into $100M of annualized adjusted EBITDA. Applied Blockchain is also progressing on its Garden City, Texas and Ellendale, North Dakota as scheduled. To get to the financials, the company had a solid beat on revenues and Gross Margin. They lagged a little bit on the profitability side of things, and the EPS were right in line with expectations. As far as valuation goes, the EV/EBITDA of 3.30 for the current year. The current P/E ratio of around 210. In my opinion,  Applied Blockchain is a company that should be a pass. They seem to be growing fairly well, however the revenues are variable. It will be interesting to see how these datacenters come along. In terms of right now, this company should not be in your portfolio and will have a lot to prove to deserve a spot. It seems that crypto has phased out as well, which could be detrimental to this company. 


*Information from Bloomberg, Yahoo Finance

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