VNET Reports Unaudited First Quarter 2024 Financial Results

Core Viewpoint - VNET Group, Inc. reported a promising start to 2024, with a 5.1% year-over-year increase in total revenues, driven by strong performance in its wholesale IDC business, which saw a 59.1% increase in revenues [2][3][10]. Financial Highlights - Total revenues for Q1 2024 were RMB1.90 billion (US$262.9 million), up from RMB1.81 billion in Q1 2023 [3][10]. - IDC business revenues increased by 5.2% to RMB1.28 billion (US$177.9 million) [3][10]. - Wholesale IDC revenues surged by 59.1% to RMB361.0 million (US$50.0 million) [3][10]. - Retail IDC revenues decreased by 7.1% to RMB923.7 million (US$127.9 million) [3][10]. - Non-IDC business revenues rose by 5.0% to RMB613.5 million (US$85.0 million) [3][11]. - Adjusted cash gross profit increased by 1.5% to RMB765.5 million (US$106.0 million) with a gross margin of 40.3% [3][12]. - Adjusted EBITDA decreased by 2.9% to RMB539.8 million (US$74.8 million), with an EBITDA margin of 28.4% [3][14]. Operational Highlights - As of March 31, 2024, wholesale IDC capacity in service was 332MW, with a utilization rate of 71.0% [4][10]. - Retail IDC capacity in service was 52,068 cabinets, with a utilization rate of 64.0% [5][6]. - The company secured a new order for approximately 15MW from an existing client, expected to be completed within 2024 [2]. Business Outlook - VNET expects total net revenues for 2024 to be between RMB7,800 million to RMB8,000 million, reflecting a year-over-year growth of 5.2% to 7.9% [17]. - Adjusted EBITDA is projected to be in the range of RMB2,220 million to RMB2,280 million, representing year-over-year growth of 8.9% to 11.8% [17].