Applied Digital Corporation (NASDAQ:APLD) Q2 2024 Earnings Call Transcript

Wes Cummins: Yeah. So it’s specifically for the enterprise market. So, as a reminder, Kevin, I think we’ve talked about this before, but we’ve never had a single salesperson at our company. And we hired our first salesperson a few months ago. And we’re going to add more to that capability specifically to go after this enterprise market that we see developing now. So that’s our expectation. But previous to that, we’ve never had a salesperson. We’ve had no sales force whatsoever in the company.

Kevin Dede: Understood. And congrats on that. I guess I’m just still a little shaky in how you see that market developing. And I guess sort of your competitive positioning and if demand is so strong, why would a marketing initiative be necessary at all?

Wes Cummins: So, we’ve hired one salesperson, maybe we’ll hire another one, but there’s an idea about going out and making sure people know who we are and what we do because we’ve never done that before in the history of the company. So that’s really the idea. So I don’t think you should be thinking that we’re hiring 20 salespeople, but I do think it’s prudent to get a few salespeople on board, develop that sales organization. And the idea here that we’ve discussed a lot internally is we don’t need it now, but we don’t want to wait until we need it to build it.

Kevin Dede: That makes sense. Okay. Well, thanks for that. [indiscernible] any offense in kind of looking for clarification. Thanks a lot.

Wes Cummins: No, no, no. That’s it though. But yeah, Kevin, we’re discussing it on the call here, but we’ve debated a lot internally where there’s a group of people saying, why would we have sales people, we don’t have anything to sell. And another side that goes, the things that we should develop this before we need it. And I have landed in the latter camp, which is I think it’s a good idea to develop a sales team before you actually need it.

Kevin Dede: I don’t disagree. Right marketing makes it all happen. Well, congrats again on the results, Wes. Thank you very much for taking the questions.

Wes Cummins: Thanks, Kevin. Operator [Operator Instructions] And there are no further questions at this time. I would like to hand the conference back over to Wes for some closing comments.

Wes Cummins: Thanks and thanks everyone for joining. And my last comment is just I want to say thank you to the team in Ellendale. We’re sitting here in January. It’s not the most pleasant climate for them to be continuing construction on our site. So we really appreciate the team and everyone who makes it happen for us. And I look forward to speaking to you next quarter.

Operator: Thank you. That will conclude today’s conference. You may disconnect your lines at this time and thank you for your participation.