Shares of Applied Digital (NASDAQ: APLD) briefly soared as much as 19% early Monday, then gave up its gains to trade down modestly as of 11:00 a.m. ET after the company announced mixed quarterly results for its first quarter of fiscal 2024 ended August 31, 2023.

Applied Digital's quarterly revenue soared 425% year over year to $36.3 million, translating to a net loss of $9.6 million, or $0.10 per share (widening from $0.05 per share in the same year-ago period). Analysts, on average, were expecting a narrower net loss of $0.04 per share, but on lower revenue of $33.8 million.

It's not terribly surprising to see yet-to-be-profitable businesses in their early growth stages generating outsized losses on higher-than-expected revenue.

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Source Fool.com