DALLAS - Applied Digital Corporation (NASDAQ:APLD), specializing in next-generation digital infrastructure, has announced the appointment of Rachel H. Lee as an independent director to its Board of Directors, effective today. Lee's appointment follows the resignations of former directors Kelli McDonald and Virginia Moore.
With a background spanning seventeen years in finance and investment, Lee brings substantial experience to the Applied Digital Board. She has recently served as a Partner and Head of the Consumer Private Equity practice at Ares Management (NYSE:ARES) Corporation, where she oversaw deal activity ranging from origination to monetization.
Prior to her tenure at Ares Management Corporation, Lee worked in the investment banking division at J.P. Morgan, engaging in various transactions such as leveraged buyouts, mergers and acquisitions, and financing across multiple industries. She is also a holder of B.S. degrees in Corporate Finance and Accounting from the University of Southern California.
Wes Cummins (NYSE:CMI), CEO & Chairman of Applied Digital, expressed confidence in Lee’s potential contributions to the company's growth, particularly as a data center provider. "We are pleased to welcome Rachel Lee to our Board of Directors," Cummins stated. "We look forward to the important contributions she will make as we continue to capitalize on the growing opportunities."
Lee also commented on her new role, expressing enthusiasm for joining the company at a pivotal time and contributing to its expansion in digital infrastructure.
Applied Digital designs and operates data centers across North America, catering to the high-performance computing industry's increasing demands.
The company took the opportunity to express gratitude to McDonald and Moore for their service on the Board during their tenure.
This announcement is based on a press release statement by Applied Digital Corporation.
InvestingPro Insights
As Applied Digital Corporation (NASDAQ:APLD) welcomes Rachel H. Lee to its Board of Directors, the company's stock performance and financial stability remain critical for investors. According to InvestingPro data, Applied Digital currently holds a market capitalization of $535.78 million. Despite the company's significant revenue growth over the last twelve months, amounting to a staggering 312.24%, analysts are cautious about the company's profitability. The InvestingPro Tips indicate that analysts do not expect the company to be profitable this year, and the stock has experienced notable volatility recently, with a price total return of -34.87% year-to-date as of 2024.
Investors should also note the company's P/E Ratio, which stands at -13.71, reflecting market skepticism about future earnings. Moreover, the stock's high EBITDA valuation multiple suggests that the market may be pricing in optimistic growth projections. With Rachel H. Lee's expertise in finance and investment, her role on the board may be pivotal in steering the company towards a more stable fiscal position, especially considering the company's short-term obligations currently exceed its liquid assets, as highlighted by an InvestingPro Tip.
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