GDS Holdings Limited Reports Fourth Quarter and Full Year 2024 Results

Core Viewpoint - GDS Holdings Limited reported its financial results for the fourth quarter and full year of 2024, highlighting a strategic focus on backlog delivery and asset monetization, while also indicating a positive outlook for future business opportunities driven by AI [4][45]. Financial Highlights for Fourth Quarter 2024 - Net revenue for Q4 2024 was RMB2,690.7 million (US$368.6 million), a 9.1$289.4 million) [6]. - Gross profit reached RMB578.1 million (US$79.2 million), marking a 33.5$191.3 million), an 11.8% increase from RMB1,249.3 million in Q4 2023 [8]. - Adjusted EBITDA (non-GAAP) rose by 13.9% year-over-year to RMB1,297.7 million (US$177.8 million) [10][16]. - Net loss from continuing operations was RMB173.4 million (US$23.8 million), significantly reduced from RMB3,074.6 million in Q4 2023 [10][15]. Financial Highlights for Full Year 2024 - Total net revenue for 2024 was RMB10,322.1 million (US$1,414.1 million), a 5.5$304.5 million), a 13.9% increase from RMB1,951.2 million in 2023 [19]. - Adjusted EBITDA for 2024 was RMB4,876.4 million (US$668.1 million), a 3.0$105.6 million), down from RMB3,926.0 million in 2023 [22]. Operational Highlights - Total area committed and pre-committed increased by 1.8% year-over-year to 629,997 sqm as of December 31, 2024 [10][36]. - Area utilized increased by 11.8% year-over-year to 453,094 sqm [10][40]. - The utilization rate for area in service was 73.8% as of December 31, 2024, slightly down from 73.9% in the previous year [10][41]. Recent Developments - The company completed a Series B equity raise for DayOne Data Centers Limited, resulting in a dilution of GDS's equity interest from 52.7% to 35.6% [2]. - GDS announced a significant transaction to monetize a 70% equity interest in certain data centers, with an implied enterprise value to EBITDA multiple of around 13 times [44]. Business Outlook - For 2025, GDS expects total revenues to be between RMB11,290 million to RMB11,590 million, indicating a year-on-year increase of approximately 9.4% to 12.3% [45]. - Adjusted EBITDA is projected to be between RMB5,190 million to RMB5,390 million, reflecting a year-on-year increase of approximately 6.4% to 10.5% [45].