GDS Holdings Limited Reports Third Quarter 2024 Financial Results

GDS Holdings Limited Reports Third Quarter 2024 Financial Results

Shanghai, China – November 19, 2024 – GDS Holdings Limited ('GDS'), a prominent developer and operator of high-performance data centers in China and Southeast Asia, announced its unaudited financial results for the third quarter ended September 30, 2024.

Key Financial Metrics

GDS Holdings experienced a significant 17.7% year-over-year increase in net revenue, driven primarily by the continued ramp-up of data centers and robust business growth. Despite a net loss of $32.9 million, improvements included a 15.0% rise in adjusted EBITDA to $184.6 million, highlighting efficient operational performance.

Revenue Performance by Segment

The China segment showed steady growth with a 6.1% increase, while the International sector demonstrated remarkable expansion with a 636.3% increase in revenue, underscoring strategic international advancements.

Operational Highlights

• Total committed and pre-committed area rose by 20.2% YoY to 785,692 sqm.
• Area in service increased by 16.8% YoY to 647,468 sqm.
• Commitment rate for area in service reached 92.7%.
• Area under construction rose to 234,741 sqm, reflecting a 19.8% YoY increase.

Comments from Company Officers

William Huang, Chairman and CEO, highlighted the company's strong execution of its strategic initiatives in China and emphasized the significance of international equity raises to fuel GDS's global ambitions. CFO Dan Newman pointed to the $1 billion equity raise as a critical step in supporting expansive global plans, affirming the company's intrinsic value to shareholders.

Recent Developments

• GDS announced a $1 billion equity subscription by institutional investors into GDS International, delineating its strategic pivot toward intensified global operations.

Business Outlook

The company reaffirmed its revenue guidance for 2024, projecting total revenue between RMB 11,340 – RMB 11,760 million and an adjusted EBITDA between RMB 4,950 – RMB 5,150 million. Capital expenditure projections increased due to accelerated international growth.

Stock Price Movement

Following the earnings release, GDS's stock price reflected a positive market response with a 6.97% increase in value.

In summary, GDS Holdings continues to leverage its strong foothold in China while strategically amplifying its international presence, setting a robust foundation for future growth amidst continued expansion of its data center operations.

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