GDS Holdings Limited Reports Second Quarter 2024 Financial Results

authorIntellectia.AI2024-08-21
7
GDS.O
Illustration by Intellectia.AI

GDS Holdings Limited Reports Second Quarter 2024 Financial Results

GDS Holdings Limited, a leading developer and operator of high-performance data centers in China and Southeast Asia, has reported its unaudited financial results for the second quarter ended June 30, 2024.

Key Financial Metrics

Financial Metric Q2 2024 Q2 2023 Y-o-Y Change Wall Street Consensus
Total Revenue $388.9M $388.9M +14.3% $389.37M
Net Loss $31.9M $31.0M +2.8% Not Provided
Adjusted EBITDA $180.6M $169.9M +6.2% Not Provided
EPS (Loss) -$0.02 -$0.02 Unchanged -$0.26

Financial Interpretation: GDS Holdings demonstrated a strong year-over-year revenue increase of 14.3% to $388.9M, slightly missing the Wall Street consensus of $389.37M. Adjusted EBITDA increased by 6.2% year-over-year, signifying improved operational efficiency despite rising costs. The company's net loss widened slightly, reflecting its ongoing investments in business expansion.

Segment Revenue Performance

Segment Q2 2024 (USD) Q2 2023 (USD) Y-o-Y Change
China $355.0M $347.0M +8.9%
International $35.2M $5.1M +690.2%

Segment Performance Interpretation: The robust performance in the international segment, with a remarkable 690.2% year-over-year increase, underscores the company's strategic success in capturing demand in rising global data center hubs. The China segment also showed consistent growth of 8.9%.

Key Operational Data

Operational Metric Q2 2024 Q2 2023 Y-o-Y Change
Total Area Committed (sqm) 756,992 637,661 +18.7%
Area in Service (sqm) 630,963 531,216 +18.8%
Commitment Rate (%) 92.5% 92.4% +0.1%
Area Under Construction (sqm) 226,272 196,703 +15.0%
Utilization Rate (%) 73.3% 72.1% +1.2%

Management Comments

"Disciplined execution, with a strong focus on our strategic objectives, drove solid results in the second quarter," stated William Huang, Chairman and CEO of GDS. CFO Dan Newman added, "Supported by our strengthened financial position, especially from the equity raise for our International business, we are well-aligned with our growth initiatives to deliver long-term value for our stakeholders."

Dividends and Share Repurchase Program

No new dividends or share repurchase programs were announced in this release.

Forward Guidance

The company reaffirmed its guidance for fiscal year 2024, expecting total revenues between RMB 11,340 million and RMB 11,760 million, and Adjusted EBITDA between RMB 4,950 million and RMB 5,150 million, maintaining its growth outlook amidst the evolving market landscape.

Stock Price Movement

Following the earnings release, GDS Holdings stock experienced a slight increase of 5.13%, reflecting a positive market reception to the company's performance and forward guidance.

For detailed financial statements and further analysis, refer to the full earnings release document.

Share