Shares of APPLIED DIGITAL CORP (APLD) plummeted by 6.75% on October 9, 2024, following the company's fiscal first-quarter 2025 earnings report. Despite reporting a 67% year-over-year increase in revenue, reaching $60.7 million, APLD posted a net loss of $4.2 million or $0.03 per diluted share.

The company's adjusted net loss, a non-GAAP measure, was $21.6 million or $0.15 per diluted share, negatively impacted by $4.4 million in expenses associated with facilities and equipment that were not yet generating revenue. APLD's adjusted EBITDA, another non-GAAP metric, stood at $20.0 million, also affected by $4.1 million in expenses from facilities not yet operational.

While APLD announced a $160 million private placement financing and strategic investments from NVIDIA and Related Companies, investors seemed to focus on the company's profitability challenges and the negative impact of expenses related to non-operational facilities. The market reaction suggests concerns over APLD's ability to achieve profitability despite its revenue growth initiatives.