2022-11-20 16:00Financial Performance - Net revenue for Q3 2022 increased by 14.9% year-over-year to RMB2,367.6 million (US$332.8 million) [4] - Adjusted EBITDA for Q3 2022 was RMB1,066.6 million (US$149.9 million), reflecting a 10.9% increase year-over-year [14] - Gross profit for Q3 2022 was RMB492.8 million (US$69.3 million), an 8.2% increase year-over-year [9] - Total net revenue for the three months ended September 2022 was RMB 2,367,593, representing an increase from RMB 2,302,729 in the previous quarter [43] - Gross profit for the same period was RMB 492,805, with a gross margin of approximately 20.8% [43] - Net loss attributable to GDS Holdings Limited shareholders for the three months ended September 2022 was RMB 340,016, compared to a net loss of RMB 375,357 in the previous quarter [43] - Operating expenses for the three months ended September 2022 were RMB 302,122, compared to RMB 287,179 in the previous quarter, indicating a rise of approximately 5.0% [43] - The company reported a net loss before income taxes of RMB 272,280 for the three months ended September 2022, compared to RMB 316,462 in the previous quarter [43] - Basic and diluted loss per ordinary share for the three months ended September 2022 was RMB 0.24, slightly improved from RMB 0.27 in the previous quarter [43] - Net loss for the three months ended September 2022 was RMB (339,663), compared to RMB (375,307) for the three months ended June 30, 2022, representing a decrease of approximately 9% [51] - Adjusted EBITDA for the three months ended September 2022 was RMB 1,066,569, with an adjusted EBITDA margin of 45.0% [52] Customer and Market Metrics - Total area committed and pre-committed by customers reached 618,369 sqm, a 16.0% increase year-over-year [5] - Area utilized by customers increased by 14,184 sqm in Q3 2022, totaling 359,862 sqm, a 19.8% year-over-year increase [19] - Commitment rate for area in service was 95.6% as of September 30, 2022, slightly down from 95.9% a year earlier [19] - The utilization rate for area in service improved to 70.5% compared to 66.1% in Q3 2021 [20] Construction and Development - Area under construction increased to 182,355 sqm, a 16.0% year-over-year increase [18] - The company completed the acquisition of minority equity interest in Beijing 13 and Beijing 14 data centers [23] Financial Position and Debt - As of September 30, 2022, cash was RMB9,092.4 million (US$1,278.2 million) and total short-term debt was RMB5,557.3 million (US$781.2 million) [21] - Total long-term debt amounted to RMB36,136.1 million (US$5,079.9 million), with long-term borrowings (excluding current portion) at RMB22,594.9 million (US$3,176.3 million) [21] - The company obtained approximately RMB 3.6 billion in new project debt facilities during Q3 2022 [7] - The company obtained new project debt facilities of RMB3,584.3 million (US$503.9 million) during Q3 2022 [21] - Total liabilities decreased to RMB 45,736,281 from RMB 50,659,883 year-over-year, a reduction of approximately 9.1% [40] - Total equity increased to RMB 24,533,009, up from RMB 23,148,845, reflecting a growth of about 6.0% [40] Cash Flow and Expenses - Cash flows from operating activities for the nine months ended September 2022 were negative, indicating ongoing challenges in cash generation [46] - Net cash provided by operating activities for the nine months ended September 2022 was RMB 1,950,164, an increase from RMB 795,268 for the same period in 2021 [51] - Total depreciation and amortization for the nine months ended September 2022 was RMB 2,368,631, up from RMB 1,877,722 in the same period of 2021 [51] - Cash and restricted cash at the end of the period for September 2022 was RMB 10,222,666, compared to RMB 9,328,947 at the end of June 2022 [51] - Share-based compensation expense for the three months ended September 2022 was RMB 71,119, down from RMB 88,344 for the three months ended June 30, 2022 [52] - Net interest expenses for the three months ended September 2022 were RMB 444,328, compared to RMB 470,838 for the three months ended June 30, 2022 [52] - Net cash used in investing activities for the nine months ended September 2022 was RMB (9,143,923), compared to RMB (10,961,896) for the same period in 2021 [51] - Payments related to acquisitions and investments for the three months ended September 2022 were RMB (377,184), compared to RMB (328,006) for the three months ended June 30, 2022 [51] Strategic Focus - The company continues to focus on expanding its market presence and enhancing its product offerings through ongoing research and development initiatives [42] - The company emphasizes the use of non-GAAP measures like Adjusted EBITDA to evaluate operating performance, which excludes certain expenses [26] - The company confirmed revised guidance for total revenues in 2022 of RMB9,250 million to RMB9,400 million and Adjusted EBITDA of RMB4,200 million to RMB4,280 million [24] - The company has a 21-year track record of service delivery, primarily serving hyperscale cloud service providers and large internet companies [34]