GDS Holdings Limited Reports Second Quarter 2024 Financial Results
Intellectia.AI2024-08-21
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.
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