GDS Holdings Limited Reports Second Quarter 2024 Results

Core Viewpoint GDS Holdings Limited reported strong financial and operational results for the second quarter of 2024, with significant year-over-year growth in net revenue and adjusted EBITDA, driven by increased demand for data center services in both China and international markets. Financial Highlights - Net revenue for Q2 2024 was RMB2,826.4 million (US$388.9 million), a 14.3% increase from RMB2,472.0 million in Q2 2023, and a 17.7% increase when excluding one-time items [2][4] - Net loss for Q2 2024 was RMB231.8 million (US$31.9 million), slightly higher than the net loss of RMB225.3 million in Q2 2023 [2][5] - Adjusted EBITDA increased by 6.2% year-over-year to RMB1,312.2 million (US$180.6 million), or 14.9% when excluding one-time items [2][5] - Adjusted EBITDA margin was 46.4% in Q2 2024, down from 50.0% in Q2 2023 [2][6] Operational Highlights - Total area committed and pre-committed increased by 18.7% year-over-year to 756,992 sqm as of June 30, 2024 [3] - Area in service grew by 18.8% year-over-year to 630,963 sqm [3] - Commitment rate for area in service was 92.5% as of June 30, 2024, slightly up from 92.4% a year earlier [3] - Area utilized increased by 20.9% year-over-year to 462,673 sqm, with a utilization rate of 73.3% [3][8] Revenue Breakdown - Net revenue from China was RMB2,579.6 million (US$355.0 million), an 8.9% increase year-over-year [4] - International revenue surged to RMB255.5 million (US$35.2 million), a remarkable 690.2% increase from RMB32.3 million in Q2 2023 [4] Cost and Profitability - Cost of revenue for Q2 2024 was RMB2,188.5 million (US$301.2 million), a 13.9% increase from RMB1,921.0 million in Q2 2023 [4] - Gross profit was RMB637.8 million (US$87.8 million), a 15.8% increase year-over-year [4] - Adjusted Gross Profit was RMB1,451.5 million (US$199.7 million), a 10.0% increase year-over-year [4] Business Outlook - The company maintains its guidance for total revenues in 2024 to be between RMB11,340 million and RMB11,760 million, with Adjusted EBITDA expected to be between RMB4,950 million and RMB5,150 million [10]