GDS Holdings Limited Reports First Quarter 2025 Results

Core Viewpoint - GDS Holdings Limited reported solid operational and financial performance in Q1 2025, with significant growth in revenue and adjusted EBITDA, driven by strategic execution and increasing demand in Tier 1 markets, particularly due to AI developments [3][31]. Financial Highlights - Net revenue for Q1 2025 was RMB2,723.2 million (US$375.3 million), a 12.0% increase from RMB2,432.2 million in Q1 2024 [4][8]. - Adjusted EBITDA increased by 16.1% year-over-year to RMB1,323.8 million (US$182.4 million), with an adjusted EBITDA margin of 48.6% [8][20]. - Net income for Q1 2025 was RMB764.1 million (US$105.3 million), compared to a net loss of RMB344.9 million in Q1 2024 [8][16]. Operational Highlights - Total area committed and pre-committed increased by 6.7% year-over-year to 649,561 sqm as of March 31, 2025 [8][24]. - Area utilized rose by 14.6% year-over-year to 462,423 sqm, with a utilization rate of 75.7% [8][29]. - The company completed its first data center ABS transaction in China, enhancing financing flexibility and resulting in a gain on deconsolidation of RMB1,057.0 million (US$145.7 million) [3][30]. Cost and Expenses - Cost of revenue for Q1 2025 was RMB2,078.3 million (US$286.4 million), an 8.8% increase from RMB1,911.0 million in Q1 2024 [5][8]. - Gross profit margin improved to 23.7% in Q1 2025, up from 21.4% in the same period last year, attributed to lower operating costs as a percentage of net revenue [6][9]. - Selling and marketing expenses increased by 12.2% year-over-year to RMB26.2 million (US$3.6 million) [10]. Liquidity and Debt - As of March 31, 2025, cash was RMB7,575.7 million (US$1,044.0 million) [21]. - Total short-term debt was RMB4,735.8 million (US$652.6 million), while total long-term debt stood at RMB37,755.8 million (US$5,202.9 million) [22]. Business Outlook - The company maintains its guidance for total revenues in 2025 to be between RMB11,290 million and RMB11,590 million, with adjusted EBITDA expected to be between RMB5,190 million and RMB5,390 million [31].