GDS Holdings Limited (NASDAQ:GDS) Q4 2022 Earnings Conference Call March 15, 2023 8:00 AM ET Company Participants Laura Chen - Head of Investor Relations William Huang - Founder, Chairman and Chief Executive Officer Dan Newman - Chief Financial Officer Conference Call Participants Jonathan Atkin - RBC Yang Liu - Morgan Stanley Gokul Hariharan - J.P. Morgan Frank Louthan - Raymond James Joel Ying - Nomura Edison Lee - Jefferies Operator Hello, ladies and gentlemen, thank you for standing by for GDS Holdings ...

4Q22 & FY22 Earnings Call 15 March 2023 NASDAQ: GDS HKEX: 9698 © GDS 2016 0 DISCLAIMER This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or ...

[4 -> 9] Hello, ladies and gentlemen. Thank you for standing by for GDS Holdings Limited's fourth [9 -> 15] quarter and full year 2022 earnings conference call. At this time, all participants are in [15 -> 19] listen-only mode. After management's prepared remarks, there will be a question-and-answer [19 -> 24] session. Today's conference call is being recorded. I'll now turn the call over to [24 -> 29] your host, Ms. Laura Chen, Head of Investor Relations for the company. Please go ahead, [29 -> 33] Laura. ...

Financial Performance - In Q4 2022, net revenue increased by 9.9% to RMB 2,404.0 million (USD 348.6 million) compared to RMB 2,187.4 million in Q4 2021[4] - For the full year 2022, net revenue rose by 19.3% to RMB 9,325.6 million (USD 1,352.1 million) from RMB 7,818.7 million in 2021[5] - Adjusted EBITDA for Q4 2022 grew by 4.3% to RMB 1,071.5 million (USD 155.3 million), with an adjusted EBITDA margin of 44.6%[4] - The adjusted EBITDA for the full year 2022 increased by 14.8% to RMB 4,251.4 million (USD 616.4 million) compared to RMB 3,703.4 million in 2021[6] - Q4 2022 net loss was RMB 177.9 million ($25.8 million), an improvement from a net loss of RMB 312.9 million in Q4 2021 and RMB 339.7 million in Q3 2022[12] - The company reported a net loss attributable to shareholders of RMB 340,016 thousand for the quarter ended December 31, 2022, compared to RMB 315,888 thousand in the same quarter of 2021[34] - The net loss for the year ended December 31, 2022, was RMB (177,895) thousand, compared to RMB (339,663) thousand for the same period in 2021, representing a decrease of approximately 48%[35] Revenue Breakdown - Service revenue for Q4 2022 was RMB 2,404.0 million ($348.6 million), up 10.0% year-over-year and up 1.5% quarter-over-quarter[9] - The service revenue for 2022 was RMB 9,317.9 million (USD 1,351.0 million), up 19.2% from RMB 7,814.4 million in 2021[15] - Total revenue for the year ended December 31, 2022, was RMB 9,325,631 thousand, up from RMB 7,818,681 thousand in 2021, representing a growth of approximately 19.3%[32] Operational Metrics - The total area signed and pre-signed by customers increased by 12,347 square meters in Q4 2022, reaching 630,716 square meters, a year-on-year increase of 13.3%[7] - The operational area increased by 5,276 square meters in Q4 2022, totaling 515,787 square meters, reflecting a year-on-year growth of 5.7%[7] - The construction area as of December 31, 2022, was 192,713 square meters, with a pre-signing rate of 71.5%[7] - The total area of signed and pre-signed contracts at the end of Q4 2022 was 630,716 square meters, a year-over-year increase of 13.3%[17] - The operational area at the end of Q4 2022 was 515,787 square meters, up 5.7% year-over-year[18] - The construction area at the end of Q4 2022 was 192,713 square meters, representing a year-over-year increase of 19.3%[19] Cost and Expenses - The cost of sales in 2022 was RMB 7,389.8 million (USD 1,071.4 million), representing a 22.4% increase from RMB 6,039.3 million in 2021[15] - Operating expenses for the year ended December 31, 2022, totaled RMB 1,185,080 thousand, compared to RMB 1,021,950 thousand in 2021, indicating an increase of about 16.0%[32] - Interest expense for Q4 2022 was RMB 476.8 million ($69.1 million), a 7.7% increase from Q4 2021 and a 7.3% increase from Q3 2022[12] - The company reported interest expenses of RMB 476,780 thousand for the year ended December 31, 2022[38] Cash and Debt Position - As of December 31, 2022, cash totaled RMB 8,608.1 million (USD 1,248.1 million), while total short-term debt was RMB 6,161.7 million (USD 893.4 million)[20] - The company’s short-term borrowings as of December 31, 2022, were RMB 3,623,967 thousand, a decrease from RMB 5,948,013 thousand in 2021, reflecting a reduction of approximately 39%[31] - The company reported a net cash inflow from financing activities of RMB 4,118,458 thousand for the year ended December 31, 2022[35] - The company experienced a significant increase in operating cash flow, with a net cash provided by operating activities of RMB 1,201,363 thousand for the year ended December 31, 2022[35] Future Outlook - The company expects total revenue for 2023 to be between RMB 9,940 million and RMB 10,320 million, reflecting a year-over-year growth of approximately 6.6% to 10.7%[21] - The company anticipates capital expenditures of approximately RMB 7,500 million for the full year of 2023[21] - The company expects continued growth in the high-performance data center market, driven by increasing demand for cloud computing services in China[30] - Future guidance indicates a cautious outlook due to potential market volatility and regulatory changes impacting operations in China[30] Strategic Initiatives - The company plans to continue expanding internationally while maintaining a strong position in China, as stated by the CEO[7] - The company is focusing on strategic acquisitions and investments to enhance its market position and operational capabilities[30] Financial Metrics and Adjustments - The company utilizes adjusted EBITDA, adjusted EBITDA margin, adjusted gross profit, and adjusted gross margin as key performance indicators to assess operational performance and set business targets[23] - The company emphasizes that adjusted financial metrics are often used by analysts and investors to evaluate financial performance within the industry[24] - The adjusted financial metrics do not replace GAAP measures such as gross profit, net profit (loss), or cash flow from operating activities, and should be considered alongside these measures[25] - Preliminary unaudited financial data may undergo adjustments during the year-end audit, potentially leading to significant differences from the initial figures[27] Asset and Liability Overview - Total assets as of December 31, 2022, amounted to RMB 74,813,954 thousand, an increase from RMB 71,632,443 thousand in 2021, reflecting a growth of approximately 4.5%[31] - Total liabilities as of December 31, 2022, were RMB 50,629,299 thousand, up from RMB 45,736,281 thousand in 2021, representing an increase of approximately 10.4%[31] - The company's total equity as of December 31, 2022, was RMB 23,137,643 thousand, a slight increase from RMB 24,533,009 thousand in 2021, showing a decrease of about 5.7%[31] Research and Development - R&D expenses in Q4 2022 were RMB 10.0 million ($1.4 million), down from RMB 12.4 million in Q4 2021 and RMB 6.7 million in Q3 2022[11] - Research and development expenses for the quarter ended December 31, 2022, were RMB 9,986 thousand, compared to RMB 12,422 thousand in the same quarter of 2021, showing a decrease of approximately 19.6%[32]

Exhibit 99.1 GDS Reports Fourth Quarter and Full Year 2022 Results 1 GDS Holdings Limited Reports Fourth Quarter and Full Year 2022 Results Shanghai, China, March 15, 2023 – GDS Holdings Limited ("GDS Holdings", "GDS" or the "Company") (NASDAQ: GDS; HKEX: 9698), a leading developer and operator of high-performance data centers in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2022. Fourth Quarter 2022 Financial Highlights · Net revenue increase ...

GDS Holdings Limited (NASDAQ:GDS) Q3 2022 Earnings Conference Call November 22, 2022 7:00 PM ET Company Participants Laura Chen - Head Investor Relations William Huang - Founder, Chairman & Chief Executive Officer Dan Newman - Chief Financial Officer Jamie Khoo - Chief Operating Officer Conference Call Participants Yang Liu - Morgan Stanley Tina Hou - Goldman Sachs Gokul Hariharan - J.P. Morgan Michael Elias - Cowen Frank Louthan - Raymond James Sara Wang - UBS Mingran Li - CICC Operator Hello, ladies and g ...

Financial Performance - For Q3 2022, GDS Holdings reported a net revenue of RMB 2,367.6 million (USD 332.8 million), representing a year-over-year increase of 14.9%[5] - The service revenue for Q3 2022 also increased by 14.9% to RMB 2,367.6 million (USD 332.8 million) compared to Q3 2021[8] - The adjusted EBITDA for Q3 2022 grew by 10.9% to RMB 1,066.6 million (USD 149.9 million), with an adjusted EBITDA margin of 45.0%[5] - The gross profit for Q3 2022 was RMB 492.8 million (USD 69.3 million), an increase of 8.2% compared to Q3 2021[9] - The gross profit margin for Q3 2022 was 20.8%, down from 22.1% in Q3 2021[9] - Net loss for Q3 2022 was RMB 339.7 million (USD 47.7 million), compared to a net loss of RMB 301.1 million in Q3 2021 and RMB 375.3 million in Q2 2022[11] - Total net revenue for the nine months ended September 30, 2022, was RMB 6,921,597 thousand, representing an increase from RMB 5,631,304 thousand for the same period in 2021, a growth of approximately 22.9%[32] - The net loss attributable to shareholders for the three months ended September 30, 2022, was RMB 340,016 thousand, compared to a net loss of RMB 375,357 thousand for the same period in 2021, a reduction of approximately 9.4%[34] - The total comprehensive loss for the three months ended September 30, 2022, was RMB 559,415 thousand, compared to RMB 517,594 thousand for the same period in 2021, indicating an increase of approximately 8.1%[34] Operational Metrics - The total area signed and pre-signed by customers increased by 30,315 square meters to 618,369 square meters, a year-over-year increase of 16.0%[6] - The operational area increased by 6,128 square meters to 510,511 square meters, reflecting a year-over-year growth of 12.4%[6] - The pre-signing rate for the area under construction reached 71.5%, up from 62.1% in the previous year[7] - The billing area increased by 14,184 square meters to 359,862 square meters, a year-over-year increase of 19.8%[7] - Total contracted and pre-contracted area at the end of Q3 2022 was 618,369 square meters, up 16.0% year-over-year and 5.2% quarter-over-quarter[14] - Operating area at the end of Q3 2022 was 510,511 square meters, a 12.4% increase year-over-year and a 1.2% increase quarter-over-quarter[15] - The company achieved a pre-contracted rate of 71.5% for the area under construction at the end of Q3 2022, compared to 62.1% in Q3 2021[15] Expenses and Financing - In Q3 2022, general and administrative expenses were RMB 125.4 million (USD 17.6 million), an increase of 21.9% year-over-year and 26.9% quarter-over-quarter[10] - R&D expenses in Q3 2022 were RMB 6.7 million (USD 0.9 million), down from RMB 9.0 million in Q3 2021 and RMB 9.4 million in Q2 2022[11] - GDS Holdings secured approximately RMB 3.6 billion in new project debt financing during Q3 2022[6] - The company incurred equity incentive expenses of RMB 71,119 thousand for the three months ended September 30, 2022, down from RMB 91,760 thousand in the same period of 2021, a decrease of 22.5%[38] - The company reported interest expenses of RMB 444,328 thousand for the three months ended September 30, 2022, compared to RMB 392,072 thousand for the same period in 2021, an increase of 13.3%[38] Cash and Assets - Cash as of September 30, 2022, was RMB 9,092.4 million (USD 1,278.2 million), with total short-term debt of RMB 5,557.3 million (USD 781.2 million)[19] - As of September 30, 2022, total assets amounted to RMB 71.63 billion, a decrease from RMB 74.88 billion as of December 31, 2021[31] - Cash reserves stood at RMB 9.97 billion, compared to RMB 9.09 billion in the previous year[31] - Total liabilities reached RMB 45.74 billion, down from RMB 50.66 billion as of December 31, 2021[31] - The company reported a total equity of RMB 24.53 billion, an increase from RMB 23.15 billion in the previous year[31] - The net value of property and equipment was RMB 40.62 billion, a decrease from RMB 45.87 billion[31] - The total current liabilities amounted to RMB 13.47 billion, an increase from RMB 11.29 billion[31] - The company’s goodwill and intangible assets net value was RMB 8.36 billion, slightly up from RMB 8.18 billion[31] - The total equity attributable to shareholders was RMB 24.47 billion, compared to RMB 23.05 billion in the previous year[31] Guidance and Future Outlook - The company confirmed its revised guidance for total revenue in 2022 to be between RMB 9,250 million and RMB 9,400 million, with adjusted EBITDA between RMB 4,200 million and RMB 4,280 million[20] - The company is focused on expanding its data center operations to meet broader client requirements beyond its primary locations[28] Performance Metrics and Adjustments - The company utilizes adjusted EBITDA, adjusted EBITDA margin, adjusted gross profit, and adjusted gross profit margin as key performance indicators to assess operational performance and set business goals[22] - The company emphasizes that adjusted non-GAAP financial metrics should not be solely relied upon for assessing operational performance, cash flows, or liquidity[24] - The preliminary unaudited financial data presented may undergo adjustments during the year-end audit, potentially leading to significant differences[27] Company Profile and Services - The company operates high-performance data centers strategically located in major economic centers in China, catering to the concentrated demand for such services[28] - The company has a 21-year track record in service delivery, successfully meeting the needs of some of China's largest and most demanding clients for data center outsourcing[28] - The company provides a range of value-added services, including managed network services and hybrid cloud services through direct private links to leading public clouds[28] - The company is neutral to operators and cloud service providers, allowing clients access to all major telecom networks in China[28]

GDS Holdings Limited (NASDAQ:GDS) Q2 2022 Earnings Conference Call August 23, 2022 8:00 AM ET Company Participants Laura Chen - Head Investor Relations William Huang - Founder, Chairman & Chief Executive Officer Dan Newman - Chief Financial Officer Jamie Khoo - Chief Operating Officer Conference Call Participants Michael Elias - Cowen Tina Hou - Goldman Sachs Bora Lee - RBC Capital Markets Yang Liu - Morgan Stanley Frank Louthan - Raymond James Operator Hello, ladies and gentlemen. Thank you for standing by ...