Applied Digital (Applied Digital) Gross Margin % : -8.57% (As of Feb. 2024)

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What is Applied Digital Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Applied Digital's Gross Profit for the three months ended in Feb. 2024 was $-3.7 Mil. Applied Digital's Revenue for the three months ended in Feb. 2024 was $43.3 Mil. Therefore, Applied Digital's Gross Margin % for the quarter that ended in Feb. 2024 was -8.57%.

The historical rank and industry rank for Applied Digital's Gross Margin % or its related term are showing as below:

APLD' s Gross Margin % Range Over the Past 10 Years
Min: -11.19 Med: 29.72 Max: 56.97
Current: 18.97

During the past 11 years, the highest Gross Margin % of Applied Digital was 56.97%. The lowest was -11.19%. And the median was 29.72%.

APLD's Gross Margin % is ranked worse than
73.39% of 605 companies
in the Capital Markets industry
Industry Median: 49.2 vs APLD: 18.97

Applied Digital had a gross margin of -8.57% for the quarter that ended in Feb. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Applied Digital was 0.00% per year.

Applied Digital Gross Margin % Historical Data

The historical data trend for Applied Digital's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Applied Digital Gross Margin % Chart

Applied Digital Annual Data

Trend

May03

May04

May05

May06

May07

May08

May20

May21

May22

May23

Gross Margin %

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56.97

-11.19

19.87

Applied Digital Quarterly Data
	May08	Aug08	Nov08	Feb09	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Gross Margin %	Get a 7-Day Free Trial															25.24	27.68	32.83	30.76	-8.57

Competitive Comparison of Applied Digital's Gross Margin %

For the Capital Markets subindustry, Applied Digital's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Applied Digital's Gross Margin % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Applied Digital's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Applied Digital's Gross Margin % falls into.

Applied Digital Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Applied Digital's Gross Margin for the fiscal year that ended in May. 2023 is calculated as

Gross Margin % (A: May. 2023 )	=	Gross Profit (A: May. 2023 )	/	Revenue (A: May. 2023 )
	=	11	/	55.392
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(55.392 - 44.388)	/	55.392
	=	19.87 %

Applied Digital's Gross Margin for the quarter that ended in Feb. 2024 is calculated as

Gross Margin % (Q: Feb. 2024 )	=	Gross Profit (Q: Feb. 2024 )	/	Revenue (Q: Feb. 2024 )
	=	-3.7	/	43.348
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(43.348 - 47.061)	/	43.348
	=	-8.57 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Applied Digital (NAS:APLD) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Applied Digital had a gross margin of -8.57% for the quarter that ended in Feb. 2024 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Applied Digital Gross Margin % Related Terms

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Applied Digital (Applied Digital) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Applied Digital Corp (NAS:APLD) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

3811 Turtle Creek Boulevard, Suite 2100, Dallas, TX, USA, 75219

Website

https://www.applieddigital.com

Applied Digital Corp designs, develops and operates next-generation datacenters across North America to provide digital infrastructure solutions to the rapidly growing high performance computing industry.

Executives

Virginia Moore	director	3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN,INC., DALLAS TX 75219
Richard N Nottenburg	director	1303 EAST ALGONQUIN ROAD, SCHAUMBURG IL 60196
Michael Maniscalco	officer: Chief Technology Officer	3811 TURTLE CREEK BOULEVARD, SUITE 2100, DALLAS TX 75219
Wes Cummins	director, 10 percent owner, officer: CEO & Chairman	4505 LORRAINE AVE, DALLAS TX 75205
David Rench	officer: Chief Financial Officer	3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Regina Ingel	officer: EVP - Operations	3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Chuck Hastings	director	3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Douglas S Miller	director	C/O TELENAV, INC., 4655 GREAT AMERICA PK, SUITE 300, SANTA CLARA CA 95054
Jason Zhang	director	3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Kelli Mcdonald	director	3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Richard S Rosenfeld	officer: CFO	105 STONEBRIDGE ROAD, MONTCLAIR NJ 07042
James A Schwartz	director	28 COTTRELL STREET, MYSTIC CT 06355
Riley Investment Partners Master Fund, L.p.	10 percent owner	11100 SANTA MONICA BOULEVARD, SUITE 810, LOS ANGELES CA 90025
Riley Investment Management Llc	10 percent owner	11100 SANTA MONICA BLVD., SUITE 810, LOS ANGELES CA 90025
Frank L Rees	director, officer: Executive Vice-President