For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Is GDS Holdings (GDS) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.GDS Holdings is one of 270 individual stocks in the Business Services sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. The Zacks Sector R ...

Group 1 - GDS Holdings Limited's stock opened at $28.205 per share, up 4.15%, with a total market capitalization of $5.483 billion as of May 20 [1] - For the fiscal year ending December 31, 2024, GDS reported total revenue of 10.322 billion RMB, representing a year-on-year growth of 5.52%, and a net profit attributable to shareholders of 3.425 billion RMB, showing a significant increase of 179.84% [1] - GDS is set to release its Q1 2025 financial report before the market opens on May 20, with the actual disclosure date subject to company announcements [1] Group 2 - GDS Holdings is a leading high-performance data center operator and service provider in China and Southeast Asia, with data centers located in key economic hubs and non-first-tier cities to meet diverse customer needs [2] - The company offers large-scale, high-density, and efficient data centers with robust power supply and multiple redundancy in critical systems, remaining neutral to operators and cloud service providers [2] - GDS provides managed services, including direct private connections to leading public clouds and innovative hybrid cloud management platforms, serving major clients such as large-scale cloud service providers, internet companies, financial institutions, and multinational corporations [2]

Core Viewpoint - GDS Holdings reported a quarterly earnings of $0.48 per share, significantly exceeding the Zacks Consensus Estimate of a loss of $0.22 per share, marking an earnings surprise of 318.18% [1][2] Financial Performance - The company posted revenues of $375.26 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.20% and showing an increase from $363.89 million year-over-year [2] - Over the last four quarters, GDS Holdings has consistently surpassed consensus EPS estimates four times and topped revenue estimates three times [2] Stock Performance - GDS Holdings shares have increased approximately 14% since the beginning of the year, outperforming the S&P 500's gain of 1.4% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.15 on revenues of $390.46 million, and for the current fiscal year, it is -$0.49 on revenues of $1.59 billion [7] Industry Outlook - The Technology Services industry, to which GDS Holdings belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8]

美股小幅低开 特斯拉涨近2% 智通财经5月20日电，美股三大指数集体低开，道指跌0.13%，纳指跌0.43%，标普500指数跌0.32%。特 斯拉涨近2%，此前马斯克承诺在五年内继续担任特斯拉CEO。哔哩哔哩涨逾4%，Q1营收70亿元，同比 增长24%。万国数据涨7%，公司Q1营收同比增长12%，净利润为7.64亿元。 ...

Financial Data and Key Metrics Changes - In Q1 2025, the company achieved a revenue growth of 12% year on year and adjusted EBITDA growth of 16%, marking the highest growth rate in the past two years [8][19] - The adjusted EBITDA margin for Q1 2025 was 48.6%, compared to 46.9% in Q1 2024, primarily due to lower operating costs [20][21] - The company realized a gain on deconsolidation of subsidiaries sold to the ABS of over RMB1 billion, which was not included in adjusted EBITDA [19][20] Business Line Data and Key Metrics Changes - The gross move-in during Q1 2025 was approximately 20,000 square meters, all in Tier one markets, with a utilization rate of 75.7% [9][10] - The company added 70 MW of new commitments in Q1 2025, bringing the total power committed to over 530 MW, with expectations to exceed 750 MW soon [15][26] Market Data and Key Metrics Changes - The demand environment has improved due to AI developments, particularly for AI inferencing in Tier one markets [10][12] - The company has around 900 MW of capacity held for future developments in Tier one markets, indicating strong positioning for upcoming demand [12][13] Company Strategy and Development Direction - The company is focusing on backlog delivery and new orders with faster moving schedules, particularly in response to AI demand [8][10] - The asset monetization program is progressing well, providing financing flexibility and options to capitalize on new projects [14][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for AI-related services, particularly in Tier one markets, and noted that the company is well-positioned to capture these opportunities [10][12][33] - There are uncertainties regarding AI chip supply in China, but management expects demand to increase as supply stabilizes [12][33] Other Important Information - The company is making good progress with the establishment of an onshore listed Sea REIT, which is expected to create a valuation benchmark for stabilized data centers in China [22][23] - The company maintains its guidance for total revenue and adjusted EBITDA unchanged despite the ABS deconsolidation [25] Q&A Session Summary Question: Update on China demand from hyperscalers and chipset supply - Management noted that demand remains strong, particularly for AI-related services, and they are well-positioned with 900 MW held for future development [31][33] Question: Financial guidance expectations post-ABS deconsolidation - The impact of the ABS transaction closing at the end of Q1 is expected to reduce full-year EBITDA by around RMB130 million, adjusting the growth rate from 11% to 8.5% [34] Question: Comparison of IRR profile or EBITDA yield across different markets - The development yield in new markets is in the low teens, which is higher than current yields in China, indicating a different supply-demand balance [44][45] Question: When will the China business be self-funding? - The company is roughly break-even in terms of free cash flow before financing and expects to generate sufficient cash flow to cover annual CapEx [48] Question: Pricing outlook for the China business - Management maintains confidence in stable pricing for new business across major markets [70]

Financial Data and Key Metrics Changes - In Q1 2025, the company achieved a revenue growth of 12% year on year and adjusted EBITDA growth of 16%, marking the highest growth rate in the past two years [8][19] - The adjusted EBITDA margin for Q1 2025 was 48.6%, compared to 46.9% in Q1 2024, primarily due to lower operating costs [19][68] - The company realized a gain on deconsolidation of subsidiaries sold to the ABS of over RMB1 billion, which was not included in adjusted EBITDA [19] Business Line Data and Key Metrics Changes - The gross move-in during Q1 2025 was approximately 20,000 square meters, all in Tier one markets, with a utilization rate of 75.7% [8] - The company added 70 MW of new commitments in Q1 2025, bringing the total power committed to over 530 MW, with expectations to exceed 750 MW soon [15][25] Market Data and Key Metrics Changes - The demand environment has improved significantly due to AI developments, particularly in Tier one markets, with a notable mega deal signed in Q1 2025 [9][10] - The company holds around 900 MW of capacity for future developments in Tier one markets, indicating strong positioning to capture upcoming AI demand [12][13] Company Strategy and Development Direction - The company is focused on backlog delivery and new orders with faster-moving schedules, anticipating that around 40% of the current backlog will be delivered by year-end [9] - The asset monetization program is progressing well, providing financing flexibility and options to capitalize on new projects [14][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for AI-related services, particularly in Tier one markets, and noted that the demand for AI inferencing is expected to grow significantly [9][33] - There are uncertainties regarding AI chip supply in China in the short term, but management believes that as supply stabilizes, demand will increase [11][12] Other Important Information - The company is making good progress with the establishment of an onshore listed Sea REIT, which is expected to create a valuation benchmark for stabilized data centers in China [21][64] - The company maintains its guidance for total revenue and adjusted EBITDA unchanged despite the ABS deconsolidation [23] Q&A Session Summary Question: Update on China demand from hyperscalers and chipset supply - Management noted that demand remains strong, particularly driven by AI inference, and they are well-positioned with 900 MW held for future development [33][34] Question: Financial guidance expectations post-ABS deconsolidation - The impact of the ABS transaction closing at the end of Q1 is expected to reduce full-year EBITDA by around RMB130 million, adjusting the growth rate from 11% to 8.5% [35][36] Question: Comparison of IRR profile or EBITDA yield across different markets - The development yield in new markets is in the low teens, which is higher than current yields in China, indicating a different supply-demand balance [42][43] Question: When will the China business be self-funding? - The company is currently break-even in terms of free cash flow before financing and expects to generate sufficient cash flow to cover annual CapEx [46] Question: Pricing outlook for the China business - The pricing for new business in China is stable across major markets, with confidence in maintaining this stability [68]

Core Viewpoint - The company reported a strong financial performance in Q1 2025, with significant year-on-year growth in revenue and adjusted EBITDA, indicating robust operational execution and strategic focus on new orders and delivery of contracted but unbilled space [1][2]. Financial Performance - In Q1 2025, net revenue increased by 12.0% year-on-year to RMB 2,723.2 million (USD 375.3 million) [1]. - The net profit for Q1 2025 was RMB 764.1 million (USD 105.3 million), a significant turnaround from a net loss of RMB 344.9 million in Q1 2024 [1]. - Adjusted EBITDA grew by 16.1% year-on-year to RMB 1,323.8 million (USD 182.4 million), with an adjusted EBITDA margin of 48.6% [1][2]. Operational Metrics - As of March 31, 2025, the total contracted and pre-contracted area was 649,561 square meters, up 6.7% from 608,645 square meters a year earlier [1]. - The billable area reached 462,423 square meters, reflecting a 14.6% increase from 403,609 square meters in the previous year [1]. - The billing rate for operational area was 75.7%, compared to 73.5% as of March 31, 2024 [1]. Strategic Focus - The company emphasized a cautious approach to new orders while actively delivering on contracted but unbilled space, showcasing a commitment to operational excellence [2]. - The acquisition of large-scale new orders across two regions highlights the growing demand in the first-tier market driven by advancements in artificial intelligence [2]. - The completion of China's first data center asset-backed securities transaction has enhanced the company's financing flexibility [2].

GDS Holdings Limited 萬國數據控股有限公司* （於開曼群島以GDS Holdings Limited的名稱註冊成立及以不同投票權控制的有限公司， 並以GDS WanGuo Holdings Limited於香港經營業務） （股份代號：9698） 年度股東大會登記日期 香港交易及結算所有限公司、香港聯合交易所有限公司（「香港聯交所」）及香港中央結算有限公 司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因 本公告全部或任何部分內容所產生或因依賴該等內容而引致的任何損失承擔任何責任。 萬國數據控股有限公司*（「本公司」）以不同投票權控制。股東及有意投資者務請留意投資不同 投票權架構公司的潛在風險，特別是不同投票權受益人的利益未必總與股東整體利益一致，而 不論其他股東如何投票，不同投票權受益人會對股東決議案的結果有重大影響。我們的美國存 託股（每股美國存託股代表八股A類普通股）於美國納斯達克全球市場上市，股份代號為GDS。 由JP Morgan Chase Bank, N.A.（作為美國存託股的存託人）發行並代表A類普通股 的美國存託股（「美國存託股」）的持有人並 ...

Financial Performance - For Q1 2025, GDS Holdings reported a net revenue of RMB 2,723.2 million (USD 375.3 million), representing a year-over-year increase of 12.0% from RMB 2,432.2 million[12]. - The net profit for Q1 2025 was RMB 764.1 million (USD 105.3 million), a significant turnaround from a net loss of RMB 344.9 million in Q1 2024[12]. - Adjusted EBITDA for Q1 2025 grew by 16.1% year-over-year to RMB 1,323.8 million (USD 182.4 million), with an adjusted EBITDA margin of 48.6%[12]. - Gross profit for Q1 2025 was RMB 644.8 million (USD 88.9 million), up 23.7% from RMB 521.2 million in Q1 2024, with a gross margin of 23.7%[14]. - Adjusted gross profit for Q1 2025 was RMB 1,455.4 million (USD 200.6 million), reflecting a 14.6% increase from RMB 1,270.1 million in the prior year[15]. - The net profit for Q1 2025 was RMB 764.1 million (USD 105.3 million), a significant improvement from a net loss of RMB 344.9 million in the same period last year[19]. - Adjusted EBITDA for Q1 2025 was RMB 1,323.8 million (USD 182.4 million), representing a 16.1% increase from RMB 1,140.7 million in Q1 2024[20]. - The adjusted EBITDA margin for Q1 2025 was 48.6%, up from 46.9% in the same period last year, primarily due to a decrease in cash operating costs as a percentage of net income[22]. Operational Metrics - The total contracted and pre-contracted area as of March 31, 2025, was 649,561 square meters, an increase of 6.7% compared to 608,645 square meters a year earlier[12]. - The billing area increased by 14.6% year-over-year to 462,423 square meters as of March 31, 2025[12]. - The operating area billing rate improved to 75.7% from 73.5% in the same period last year[12]. - The total signed and pre-signed area at the end of Q1 2025 was 649,561 square meters, a year-over-year increase of 6.7%[24]. - The operational area at the end of Q1 2025 was 610,685 square meters, reflecting an 11.2% year-over-year increase[26]. - The company reported a billing area of 462,423 square meters at the end of Q1 2025, a 14.6% year-over-year increase[27]. Cash Flow and Debt - As of March 31, 2025, the company had cash of RMB 7,575.7 million (USD 1,044.0 million) and total short-term debt of RMB 4,735.8 million (USD 652.6 million)[23]. - Cash reserves decreased from RMB 7,867,659 thousand to RMB 7,575,709 thousand between December 31, 2024, and March 31, 2025[49]. - Total liabilities increased from RMB 49,979,995 thousand to RMB 49,015,114 thousand during the same period[49]. - The company reported a cumulative loss of RMB (6,044,372) thousand as of March 31, 2025[49]. - Long-term borrowings, excluding the current portion, were RMB 21,905,985 thousand as of December 31, 2024[49]. Strategic Initiatives - The company maintains its revenue guidance for 2025 at RMB 11,290 million to RMB 11,590 million and adjusted EBITDA guidance at RMB 5,190 million to RMB 5,390 million[30]. - The company anticipates growth in the high-performance data center market in Southeast Asia and expects to strengthen relationships with new and existing customers[45]. - The company plans to focus on expanding its service offerings and enhancing operational efficiency to improve profitability in the upcoming quarters[51]. Non-GAAP Metrics - The company utilizes adjusted EBITDA, adjusted EBITDA margin, adjusted gross profit, and adjusted gross profit margin as non-GAAP financial metrics to assess operational performance and set business goals[35]. - The company does not include gains or losses from discontinued operations in adjusted EBITDA and adjusted EBITDA margin, focusing on ongoing business performance[36]. - The adjusted EBITDA and adjusted gross profit metrics are presented as they are frequently used by analysts and investors to evaluate financial performance within the industry[37]. - The company emphasizes that non-GAAP financial metrics should not be considered in isolation from GAAP metrics, as they have limitations[37]. Research and Development - Research and development expenses for Q1 2025 were RMB 7.9 million (USD 1.1 million), down from RMB 10.0 million in the same quarter last year[16]. Interest and Other Expenses - Interest expenses for Q1 2025 decreased by 4.5% year-over-year to RMB 441.5 million (USD 60.8 million) due to lower borrowing levels and interest rates[17]. - The interest expense for the period was RMB 462,508 thousand, which is 19.0% of net revenue[60]. - The depreciation and amortization expenses for the three months ended March 31, 2024, were RMB 782,672 thousand, which is 32.1% of net revenue[60]. Asset Management - The company completed an asset-backed securities transaction in Q1 2025, resulting in a net cash gain of RMB 583.3 million (USD 80.4 million) after reinvestment[29]. - The company holds long-term equity investments valued at RMB 7,544,555 thousand as of December 31, 2024[49]. - The net value of property and equipment was RMB 40,204,133 thousand as of December 31, 2024[49]. Market Position - The company operates high-performance data centers strategically located in major economic centers, catering to significant demand for data center services[42]. - The company provides a range of managed services, including hybrid cloud services and managed network services, to meet the needs of large clients[43]. - The company has a 24-year track record in service delivery, successfully meeting the demands of some of China's largest clients for data center outsourcing[43].

1Q25 Earnings Call 20 May 2025 NASDAQ: GDS HKEX: 9698 0 © GDS 2016 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 other sim ...