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Applied Digital Corp . [APLD] a leading technology company, announced its financial results for the third quarter of 2023. The company reported a net loss of $11.9 million for the quarter, compared to a net loss of $4.7 million in the same period last year. The quarterly revenue for Q3 2023 was $36.3 million, showing significant growth compared to $6.9 million in Q3 2022.
Despite the increase in revenue, Applied Digital Corp faced challenges in controlling its costs and expenses. The cost of revenues for the quarter amounted to $24.4 million, while selling, general, and administrative expenses reached $17.1 million. The total costs and expenses for the quarter stood at $41.5 million, resulting in an operating loss of $5.1 million.
The strong revenue growth in Q3 2023 can be attributed to the company's focus on its hosting and cloud services. The hosting revenue from nonrelated parties reached $30 million, showing substantial growth compared to $4.3 million in the same quarter last year. The hosting revenue from related parties was $4.2 million, while the newly introduced cloud services revenue accounted for $2.2 million.
Looking at the balance sheet, Applied Digital Corp's total assets increased to $349.2 million, with significant growth in property and equipment, net, operating lease right of use assets, net, and finance lease right of use assets, net. On the other hand, the company's total liabilities increased to $221.2 million, mainly driven by current and long-term debt obligations.
The basic and diluted net loss per share for Q3 2023 was $0.12, compared to $0.05 in Q3 2022. This decrease in earnings per share reflects the larger net loss incurred by the company in the current quarter. The weighted average number of shares outstanding remained relatively stable.
Despite the challenges faced in the current quarter, Applied Digital Corp is optimistic about its future prospects. The company is focused on optimizing its cost structure and improving operational efficiency to achieve profitability in the coming quarters. Additionally, the company aims to further expand its hosting and cloud services to capitalize on the growing demand in the market.
Overall, Applied Digital Corp's financial results for Q3 2023 reflect significant revenue growth but also highlight the need for cost control measures. The company's strategic focus on hosting and cloud services is expected to drive future growth. Investors will be keen to see how Applied Digital Corp manages its costs and realizes its potential in the competitive technology industry.