The data center operator Applied Digital APLD on Wednesday reported a larger-than-expected fourth-quarter loss, impacted by significant spending on plant and equipment that does not yet generate revenue.
Shares of the Dallas, Texas-based company fell 13 percent in extended trading.
Building and maintaining data centers to quickly meet demand is a lengthy and capital-intensive process that requires significant investments over time.
In addition, technology companies have kept their budgets tight to control costs as they look to build their own independent data centers.
For the fourth quarter, Applied Digital reported an adjusted loss per share of 36 cents, higher than the 22 cents expected by analysts, according to LSEG data.
The company said its adjusted loss of $45.3 million in the quarter was negatively impacted by expenses of $15.5 million.
The results follow the sale of shares valued at up to $125 million announced in July (link), which the company hopes will help strengthen its balance sheet following power outages earlier this year.
The outages occurred at the Ellendale, North Dakota, plant and required the replacement of defective transformers.
The company reported fourth-quarter revenue of $43.7 million, while estimates were $37.6 million.
Net loss for the quarter widened to $64.8 million, compared to $6.5 million a year ago.
