VNET(US:VNET)2025-05-28 10:07Financial Performance - Total net revenues for Q1 2025 increased by 18.3% year-over-year to RMB2.25 billion (US$309.5 million) from RMB1.90 billion in Q1 2024[6] - Net revenues from the wholesale IDC business surged by 86.5% year-over-year to RMB673.2 million (US$92.8 million) from RMB361.0 million in the same period of 2024[24] - Adjusted EBITDA for Q1 2025 rose by 26.4% year-over-year to RMB682.4 million (US$94.0 million), with an adjusted EBITDA margin of 30.4%, up 1.9 percentage points from the previous year[21] - Adjusted cash gross profit for Q1 2025 was RMB967.8 million (US$133.4 million), reflecting a 26.4% increase from RMB765.5 million in Q1 2024[17] - Net loss attributable to VNET Group, Inc. in Q1 2025 was RMB237.6 million (US$32.7 million), compared to a net loss of RMB187.0 million in Q1 2024[22] - Net revenues for the three months ended March 31, 2025, were RMB 2,246,220, a slight decrease of 0.01% compared to RMB 2,246,389 for the previous quarter[44] - Gross profit increased to RMB 565,341 for the three months ended March 31, 2025, representing a 12% increase from RMB 504,856 in the previous quarter[44] - Operating profit for the same period was RMB 248,531, up 5% from RMB 236,995 in the previous quarter[46] - Adjusted EBITDA for the three months ended March 31, 2025, was RMB 682,409, with an adjusted EBITDA margin of 30.4%[46] - The company reported a net loss attributable to VNET Group, Inc. of RMB 237,558 for the three months ended March 31, 2025, compared to a net loss of RMB 11,096 in the previous quarter[44] Cash and Assets - Total cash and cash equivalents, restricted cash, and short-term investments amounted to RMB5.79 billion (US$797.8 million) as of March 31, 2025[25] - Cash and cash equivalents rose significantly to RMB 3,949,940 (approximately US$ 544,316) from RMB 1,492,436, marking an increase of 164%[42] - As of March 31, 2025, total assets increased to RMB 38,832,661 (approximately US$ 5,351,283), up from RMB 32,357,042 as of December 31, 2024, representing a growth of 20%[42] - Cash, cash equivalents, and restricted cash at the end of the period increased to RMB 5,767,658, up from RMB 2,081,073 at the beginning of the period[48] Liabilities and Borrowings - Total current liabilities increased to RMB 10,114,177 (approximately US$ 1,393,771) from RMB 9,343,415, reflecting a rise of 8%[42] - Long-term borrowings grew to RMB 8,958,785 (approximately US$ 1,234,554) from RMB 7,767,390, indicating an increase of 15%[42] - The company incurred interest expenses of RMB 100,653 for the three months ended March 31, 2025, compared to RMB 77,125 in the previous quarter[44] Capacity and Customer Base - As of March 31, 2025, total capacity in service reached 573MW, an increase of 88MW quarter-over-quarter[13] - Capacity utilized by customers increased by 84MW quarter-over-quarter to 437MW as of March 31, 2025[13] - The company reported a total of over 7,000 enterprise customers across various industries, showcasing a diversified customer base[38] - Monthly recurring revenue (MRR) per retail cabinet was RMB8,898 in Q1 2025, compared to RMB8,794 in Q4 2024[13] Future Outlook and Investments - The company expects total net revenues for 2025 to be between RMB9,100 million to RMB9,300 million, representing year-over-year growth of 10% to 13%[28] - The company anticipates continued growth in the data center services market, aligning with its strategic expansion plans[39] - The company plans to invest in research and development to enhance its service offerings, indicating a focus on innovation and market competitiveness[39] - The company plans to issue 2030 Convertible Notes, with proceeds expected to be RMB 3,084,519[48] Research and Development - Research and development expenses decreased to RMB 43,603 for the three months ended March 31, 2025, down 22% from RMB 56,098 in the previous quarter[44] Financial Reporting - The company utilizes non-GAAP financial measures to provide additional insights into its operating performance, including adjusted EBITDA and adjusted cash gross margin[34] - The unaudited financial information is preliminary and may be subject to adjustments, highlighting the importance of final audit results[37]