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GDS Holdings reports Q3 revenue miss, shares dip

EditorRachael Rajan
Published 19/11/2024, 11:32 pm
GDS
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SHANGHAI - GDS Holdings Limited (NASDAQ:GDS), a leading data center operator in China and Southeast Asia, reported third quarter revenue that fell short of analyst expectations, sending shares down 1.75% in trading.

The company posted revenue of RMB2.97 billion ($422.6 million) for the quarter ended September 30, 2024, up 17.7% YoY but below the consensus estimate of RMB2.99 billion. Adjusted EBITDA rose 15% YoY to RMB1.30 billion ($184.6 million).

GDS reported a net loss of RMB231.1 million ($32.9 million) for Q3, narrowing from a loss of RMB420.8 million in the same period last year. Loss per ordinary share was RMB0.14 ($0.02), beating analyst expectations for a loss of RMB1.39 per share.

"In China, the accelerated move-in trend continued, as we executed our strategy of delivering the backlog while being selective on new orders," said William Huang, Chairman and CEO of GDS. "Internationally, our recent equity raise is a major step forward, and positions us well to capture the tremendous opportunities for growth in the international markets."

The company's total area committed and pre-committed increased 20.2% YoY to 785,692 square meters. Area utilized rose 20.9% YoY to 481,819 square meters, with a utilization rate of 74.4% for area in service.

GDS maintained its full-year 2024 guidance for total revenues of RMB11,340-11,760 million and Adjusted EBITDA of RMB4,950-5,150 million. However, the company raised its capital expenditure forecast to RMB11,000 million from RMB6,500 million previously, citing an acceleration of business expansion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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