Applied Blockchain to diversify customer base, revenue stream after mixed fiscal Q1

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Applied Blockchain (NASDAQ:APLD) is looking to diversify its customer base and revenue stream as “we see significant potential with future new customers that can use our co-hosting facilities for other HPC applications,” Wes Cummins, the datacenter developer’s CEO and Chairman, said in a statement after fiscal Q1 2023 results came in mixed Tuesday.

“We believe this will provide them with significant cost savings compared to their current offerings and we have been encouraged with the acceleration in conversations with these types of customers and expect to have a pilot running with a customer as early as this month for a GPU based machine learning application,” Cummins said.

If the effort proves to be successful, the APLD will then likely scale the project early in 2023, he added.

Elsewhere, the company’s outlook for 500 megawatts of hosting capacity by early 2023 remains intact as it continues to operate its three datacenter sites. And construction of its next two datacenters at Garden City, Texas and Ellendale, North Dakota have progressed.

Turning to the first quarter, Applied Blockchain (APLD) GAAP EPS of -$0.05 missed the Wall Street consensus of -$0.04, but improved from -$0.31 a year before. On the flip side, revenue of $6.92M topped the average analyst estimate of $6.64M.

Its operating loss stood at $4.18M compared with -$13.04M in the year-ago period.

Adjusted EBITDA loss deepened to $1.8M from $698K in August 2021.

Earlier, Applied Blockchain GAAP EPS of -$0.05 misses by $0.01, revenue of $6.92M beats by $0.28M.