GDS(GDS) - 2024 Q3 - Quarterly Report

Financial Performance - Net revenue for Q3 2024 increased by 17.7% year-over-year to RMB2,965.7 million (US $422.6 million) from RMB2,519.0 million in Q3 2023[5] - Net loss for Q3 2024 was RMB231.1 million (US$ 32.9 million), a significant improvement from a net loss of RMB420.8 million in Q3 2023[6][30] - Adjusted EBITDA for Q3 2024 rose by 15.0% year-over-year to RMB1,295.7 million (US $184.6 million) compared to RMB1,126.3 million in Q3 2023[6][31] - Gross profit margin improved to 22.2% in Q3 2024, compared to 17.8% in the same period last year[22] - The company confirmed total revenue guidance for 2024 of RMB 11,340 – RMB 11,760 million and Adjusted EBITDA of RMB 4,950 – RMB 5,150 million[60] Operational Metrics - Total area committed and pre-committed increased by 20.2% year-over-year to 785,692 sqm as of September 30, 2024[8] - Area in service grew by 16.8% year-over-year to 647,468 sqm as of September 30, 2024[9] - Commitment rate for area in service was 92.7% as of September 30, 2024, up from 91.9% in the same period last year[10] - Total area committed and pre-committed at the end of Q3 2024 was 158,910 sqm, an increase of 256.4% YoY and 11.2% Qo-Q[50] - Area in service at the end of Q3 2024 was 51,862 sqm, reflecting a 281.2% YoY increase and 2.1% Qo-Q increase[51] - Area under construction at the end of Q3 2024 was 114,319 sqm, up 189.6% YoY and 5.4% Qo-Q[53] - Commitment rate for area in service was 99.3% at the end of Q3 2024, compared to 100% at the end of Q3 2023[54] - Area utilized at the end of Q3 2024 was 43,165 sqm, a 692.1% YoY increase and 1.1% Qo-Q[55] - Utilization rate for area in service was 83.2% at the end of Q3 2024, compared to 40.1% at the end of Q3 2023[56] International Operations - Net revenue for international operations surged by 636.3% year-over-year to RMB363.2 million (US$ 51.8 million) from RMB49.3 million in Q3 2023[18] - GDS International entered into agreements for US $1.0 billion of Series B convertible preferred shares, implying a value of approximately US$ 1.3 billion for GDSH's equity interest[57][59] - Two new data centers initiated construction in Batam, Indonesia, with a total net floor area of 7,417 sqm, both 100% pre-committed[53] Cash and Debt Position - Cash position as of September 30, 2024, was RMB9,408.5 million (US $1,340.7 million)[36] - Total gross debt for GDSH was RMB43,361.6 million (US$ 6,179.0 million) as of September 30, 2024[40] - Total current assets decreased to RMB 10,983,653 as of December 31, 2023, down from RMB 14,295,612 as of September 30, 2023[82] - Total liabilities decreased to RMB 54,322,887 as of December 31, 2023, from RMB 57,548,895 as of September 30, 2023[82] - Cash and cash equivalents were RMB 7,710,711 as of December 31, 2023, down from RMB 9,408,464 as of September 30, 2023[82] - Gross debt as of December 31, 2023, was RMB 46,417,007, down from RMB 49,285,979 as of September 30, 2023[101] - Cash balance as of December 31, 2023, was RMB 7,710,711, a decrease from RMB 9,408,464 as of September 30, 2023[101] Expenses and Losses - Operating expenses for the three months ended September 30, 2023, included selling and marketing expenses of RMB 38,912, a decrease from RMB 35,020 in the previous quarter[86] - Research and development expenses for the three months ended September 30, 2023, were RMB 10,529, slightly lower than RMB 8,628 in the previous quarter[86] - The company reported a comprehensive loss of RMB 400,570 for the three months ended September 30, 2023[88] - The net loss attributable to GDS Holdings Limited shareholders for the three months ended September 30, 2023, was RMB 434,926, an increase from RMB 205,958 in the previous quarter[86] - The company reported a decrease in net cash increase of RMB (629,845) for the three months ended September 30, 2023[90] - Net interest expenses for the three months ended September 30, 2023, were RMB 503,156, with income tax expenses of RMB 20,945[94] Future Outlook - The company plans to continue its market expansion and product development strategies in the upcoming quarters[100]