GDS Holdings Limited Reports First Quarter 2024 Results
GDS Holdings , a major data center developer in China and SE Asia, reported its Q1 2024 results. Net revenue rose 9.1% YoY to RMB2,627.4 million (US$363.9 million). Net loss was RMB344.9 million (US$47.8 million), down from RMB474.6 million YoY. Adjusted EBITDA grew 4.7% YoY to RMB1,183.4 million (US$163.9 million), with a margin of 45.0%. Operating highlights showed a 5.4% increase in total area committed to 668,012 sqm and a 12.5% increase in area in service to 583,229 sqm. Key developments include an upsized private equity raise to US$672 million for GDSI. The company reaffirmed its 2024 financial guidance.
- Net revenue increased by 9.1% YoY to RMB2,627.4 million (US$363.9 million).
- Adjusted EBITDA rose 4.7% YoY to RMB1,183.4 million (US$163.9 million).
- Gross profit increased by 16.7% YoY to RMB573.7 million (US$79.5 million).
- Utilization rate for area in service grew to 74.9%, up from 72.6% YoY.
- Successful upsizing of private equity raise to US$672 million for GDSI.
- Cash reserves of RMB7,641.4 million (US$1,058.3 million).
- Gross profit margin improved to 21.8% from 20.4% YoY.
- Net loss remains significant at RMB344.9 million (US$47.8 million) despite reduction.
- Adjusted EBITDA margin declined slightly to 45.0% from 46.9% YoY.
- High general and administrative expenses of RMB153.4 million (US$21.2 million), a 30.6% increase YoY.
- Net interest expenses increased by 3.9% YoY to RMB503.5 million (US$69.7 million).
- Selling and marketing expenses rose by 5.3% YoY to RMB26.7 million (US$3.7 million).
- Significant debt levels: total long-term debt of RMB42,207.0 million (US$5,845.6 million).
- Commitment rate for area in service slightly decreased to 92.5% from 93.9% YoY.
Insights
The financial data from GDS Holdings Limited indicates a 9.1% year-over-year increase in net revenue to RMB2,627.4 million for Q1 2024. This growth suggests a solid expansion in the company's operations and customer base. However, it's important to note the net loss reduction from RMB474.6 million in Q1 2023 to RMB344.9 million in Q1 2024. Despite an overall improvement, the company is still facing significant losses, which might concern investors.
Adjusted EBITDA increased by 4.7% year-over-year, reaching RMB1,183.4 million. This is indicative of better operational efficiency but is slightly offset by a decrease in Adjusted EBITDA margin from 46.9% to 45.0%. Investors should watch the company's ability to manage operational costs and improve margins over the coming quarters.
Gross profit margin improved from 20.4% in Q1 2023 to 21.8% in Q1 2024, showing effective cost management, though general and administrative expenses increased by 30.6% year-over-year due to international expansion costs. This is a double-edged sword; while expansion can drive future revenue, it also imposes near-term financial strain.
Overall, while the company shows growth and improved efficiencies, the persistent net losses and rising G&A expenses suggest a cautious outlook.
The first quarter results reveal that GDS Holdings has made significant strides in expanding its area in service and area utilized, which increased by 12.5% and 16.0% year-over-year, respectively. These metrics indicate growing demand for the company's data center services, particularly in high-demand regions like Johor for international operations and Langfang for domestic.
The commitment rate for areas in service slightly decreased to 92.5% from 93.9% a year ago, which could imply aggressive expansion outpacing immediate customer commitments. However, the stable pre-commitment rate for areas under construction at 74.4% suggests a steady pipeline of future revenues.
It's also noteworthy that GDS has opted to transfer certain Build-Operate-Transfer (B-O-T) data centers to customers to enhance efficiency. This strategy can be seen as a positive move to optimize operational focus but also reflects the need for maximized asset utilization in a capital-intensive industry.
Investors should consider the long-term benefits of these expansions against the short-term costs and potential risks of overcapacity in specific markets.
The growth in GDS's committed and pre-committed areas indicates robust demand for data center services, driven by the increasing digitalization and data consumption across China and Southeast Asia. The company’s focus on high-performance data centers is critical, especially as industries globally are shifting towards cloud computing and digital transformation.
The increase in area utilized by 16.0% year-over-year underscores the company's ability to attract and retain clients. Their strategy of pre-committing significant portions of their under-construction facilities mitigates risks related to vacant capacity and ensures steady revenue inflows post-completion.
Additionally, the steady increase in adjusted gross profit margin to 52.1% illustrates effective cost management despite aggressive expansion. This is important in a sector where operational efficiency often dictates competitive advantage.
From a tech perspective, maintaining high utilization and commitment rates will be pivotal as the company scales its operations to meet rising data demands, particularly from enterprises undergoing digital transitions.
SHANGHAI, China, May 22, 2024 (GLOBE NEWSWIRE) -- GDS Holdings Limited (“GDS Holdings”, “GDS”, “GDSH” or the “Company”) (NASDAQ: GDS; HKEX: 9698), a leading developer and operator of high-performance data centers in China and South East Asia, today announced its unaudited financial results for the first quarter ended March 31, 2024.
First Quarter 2024 Financial Highlights
- Net revenue increased by
9.1% year-over-year (“Y-o-Y”) to RMB2,627.4 million (US$363.9 million ) in the first quarter of 2024 (1Q2023: RMB2,409.0 million). - Net loss was RMB344.9 million (US
$47.8 million ) in the first quarter of 2024 (1Q2023: net loss of RMB474.6 million). - Adjusted EBITDA (non-GAAP) increased by
4.7% Y-o-Y to RMB1,183.4 million (US$163.9 million ) in the first quarter of 2024 (1Q2023: RMB1,130.0 million). See “Non-GAAP Disclosure” and “Reconciliations of GAAP and non-GAAP results” elsewhere in this earnings release. - Adjusted EBITDA margin (non-GAAP) was
45.0% in the first quarter of 2024 (1Q2023:46.9% ).
First Quarter 2024 Operating Highlights
- Total area committed and pre-committed increased by
5.4% Y-o-Y to 668,012 sqm as of March 31, 2024 (March 31, 2023: 633,611 sqm). - Area in service increased by
12.5% Y-o-Y to 583,229 sqm as of March 31, 2024 (March 31, 2023: 518,517 sqm). - Commitment rate for area in service was
92.5% as of March 31, 2024 (March 31, 2023:93.9% ). - Area under construction was 172,537 sqm as of March 31, 2024 (March 31, 2023: 196,858 sqm).
- Pre-commitment rate for area under construction was
74.4% as of March 31, 2024 (March 31, 2023:74.4% ). - Area utilized increased by
16.0% Y-o-Y to 436,875 sqm as of March 31, 2024 (March 31, 2023: 376,632 sqm). - Utilization rate for area in service was
74.9% as of March 31, 2024 (March 31, 2023:72.6% ).
“We continued to execute our business strategies in the first quarter,” said Mr. William Huang, Chairman and CEO of GDS. “In China, we delivered the backlog and selectively obtained new bookings with faster move-in rates. On the international front, we won strategic new orders and further strengthened our development pipeline.”
“In the first quarter, our revenue grew by
First Quarter 2024 Financial Results
Net revenue in the first quarter of 2024 was RMB2,627.4 million (US
Cost of revenue in the first quarter of 2024 was RMB2,053.7 million (US
Gross profit was RMB573.7 million (US
Gross profit margin was
Adjusted Gross Profit (“Adjusted GP”) (non-GAAP) is defined as gross profit excluding depreciation and amortization, operating lease cost relating to prepaid land use rights, accretion expenses for asset retirement costs and share-based compensation expenses allocated to cost of revenue. Adjusted GP was RMB1,368.1 million (US
Adjusted GP margin (non-GAAP) was
Selling and marketing expenses, excluding share-based compensation expenses of RMB7.0 million (US
General and administrative expenses, excluding share-based compensation expenses of RMB41.0 million (US
Research and development costs were RMB10.0 million (US
Net interest expenses for the first quarter of 2024 were RMB503.5 million (US
Foreign currency exchange loss for the first quarter of 2024 was RMB4.5 million (US
Others, net for the first quarter of 2024 was RMB6.2 million (US
Income tax expenses for the first quarter of 2024 were RMB62.4 million (US
Net loss in the first quarter of 2024 was RMB344.9 million (US
Adjusted EBITDA (non-GAAP) is defined as net loss excluding net interest expenses, income tax expenses (benefits), depreciation and amortization, operating lease cost relating to prepaid land use rights, accretion expenses for asset retirement costs, share-based compensation expenses, gain from purchase price adjustment and impairment losses of long-lived assets. Adjusted EBITDA was RMB1,183.4 million (US
Adjusted EBITDA margin (non-GAAP) was
Basic and diluted loss per ordinary share in the first quarter of 2024 was RMB0.24 (US
Basic and diluted loss per American Depositary Share (“ADS”) in the first quarter of 2024 was RMB1.96 (US
Sales
Total area committed and pre-committed at the end of the first quarter of 2024 was 668,012 sqm, compared with 633,611 sqm at the end of the first quarter of 2023 and 670,975 sqm at the end of the fourth quarter of 2023, an increase of
Data Center Resources
Area in service at the end of the first quarter of 2024 was 583,229 sqm, compared with 518,517 sqm at the end of the first quarter of 2023 and 572,555 sqm at the end of the fourth quarter of 2023, an increase of
Area under construction at the end of the first quarter of 2024 was 172,537 sqm, compared with 196,858 sqm at the end of the first quarter of 2023 and 182,746 sqm at the end of the fourth quarter of 2023, a decrease of
Commitment rate for area in service was
Move-In
Area utilized at the end of the first quarter of 2024 was 436,875 sqm, compared with 376,632 sqm at the end of the first quarter of 2023 and 418,748 sqm at the end of the fourth quarter of 2023, an increase of
Utilization rate for area in service was
Liquidity
As of March 31, 2024, cash was RMB7,641.4 million (US
Recent Development
Upsize of Private Equity Capital Raise For GDS International
On March 26, 2024, the Company announced that its wholly-owned subsidiary, DigitalLand Holdings Limited (“GDS International” or “GDSI”), the holding company for GDSH’s international data center assets and operations, had entered into definitive agreements for certain private equity investors to subscribe for US
Business Outlook
The Company confirms that the previously provided guidance of total revenues for the year of 2024 of RMB11,340 – RMB11,760 million, Adjusted EBITDA of RMB4,950 – RMB5,150 million and capex of around RMB6,500 million remain unchanged.
This forecast reflects the Company’s preliminary view on the current business situation and market conditions, which are subject to change.
Conference Call
Management will hold a conference call at 8:00 a.m. U.S. Eastern Time on May 22, 2024 (8:00 p.m. Beijing Time on May 22, 2024) to discuss financial results and answer questions from investors and analysts.
Participants should complete online registration using the link provided below at least 15 minutes before the scheduled start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call.
Participant Online Registration:
https://register.vevent.com/register/BIc30621840efa480d81070e63577e9105
A live and archived webcast of the conference call will be available on the Company’s investor relations website at investors.gds-services.com.
Non-GAAP Disclosure
Our management and board of directors use Adjusted EBITDA, Adjusted EBITDA margin, Adjusted GP and Adjusted GP margin, which are non-GAAP financial measures, to evaluate our operating performance, establish budgets and develop operational goals for managing our business. We believe that the exclusion of the income and expenses eliminated in calculating Adjusted EBITDA and Adjusted GP can provide useful and supplemental measures of our core operating performance. In particular, we believe that the use of Adjusted EBITDA as a supplemental performance measure captures the trend in our operating performance by excluding from our operating results the impact of our capital structure (primarily interest expense), asset base charges (primarily depreciation and amortization, operating lease cost relating to prepaid land use rights, accretion expenses for asset retirement costs and impairment losses of long-lived assets), other non-cash expenses (primarily share-based compensation expenses), and other income and expenses which we believe are not reflective of our operating performance, whereas the use of adjusted gross profit as a supplemental performance measure captures the trend in gross profit performance of our data centers in service by excluding from our gross profit the impact of asset base charges (primarily depreciation and amortization, operating lease cost relating to prepaid land use rights and accretion expenses for asset retirement costs) and other non-cash expenses (primarily share-based compensation expenses) included in cost of revenue.
We note that depreciation and amortization is a fixed cost which commences as soon as each data center enters service. However, it usually takes several years for new data centers to reach high levels of utilization and profitability. The Company incurs significant depreciation and amortization costs for its early stage data center assets. Accordingly, gross profit, which is a measure of profitability after taking into account depreciation and amortization, does not accurately reflect the Company’s core operating performance.
We also present these non-GAAP measures because we believe these non-GAAP measures are frequently used by securities analysts, investors and other interested parties as measures of the financial performance of companies in our industry.
These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, cash flows or our liquidity, investors should not consider them in isolation, or as a substitute for gross profit, net income (loss), cash flows provided by (used in) operating activities or other consolidated statements of operations and cash flow data prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of these non-GAAP financial measures instead of their nearest GAAP equivalent. First, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted GP, and Adjusted GP margin are not substitutes for gross profit, net income (loss), cash flows provided by (used in) operating activities or other consolidated statements of operation and cash flow data prepared in accordance with U.S. GAAP. Second, other companies may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of these non-GAAP financial measures as tools for comparison. Finally, these non-GAAP financial measures do not reflect the impact of net interest expenses, incomes tax benefits (expenses), depreciation and amortization, operating lease cost relating to prepaid land use rights, accretion expenses for asset retirement costs, share-based compensation expenses, gain from purchase price adjustment and impairment losses of long-lived assets, each of which have been and may continue to be incurred in our business.
We mitigate these limitations by reconciling the non-GAAP financial measure to the most comparable U.S. GAAP performance measure, all of which should be considered when evaluating our performance. We do not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, share-based compensation and net income (loss); the impact of such data and related adjustments can be significant. As a result, we are not able to provide a reconciliation of forward-looking U.S. GAAP to forward-looking non-GAAP financial measures without unreasonable effort. Such forward-looking non-GAAP financial measures include the forecast for Adjusted EBITDA in the section captioned “Business Outlook” set forth in this press release.
For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and non-GAAP results” set forth at the end of this press release.
Exchange Rate
This announcement contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.2203 to US
Statement Regarding Preliminary Unaudited Financial Information
The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited financial information.
About GDS Holdings Limited
GDS Holdings Limited (NASDAQ: GDS; HKEX: 9698) is a leading developer and operator of high-performance data centers in China and South East Asia. The Company’s facilities are strategically located in primary economic hubs where demand for high-performance data center services is concentrated. The Company also builds, operates and transfers data centers at other locations selected by its customers in order to fulfill their broader requirements. The Company’s data centers have large net floor area, high power capacity, density and efficiency, and multiple redundancies across all critical systems. GDS is carrier and cloud-neutral, which enables its customers to access the major telecommunications networks, as well as the largest PRC and global public clouds, which are hosted in many of its facilities. The Company offers co-location and a suite of value-added services, including managed hybrid cloud services through direct private connection to leading public clouds, managed network services, and, where required, the resale of public cloud services. The Company has a 23-year track record of service delivery, successfully fulfilling the requirements of some of the largest and most demanding customers for outsourced data center services in China. The Company’s customer base consists predominantly of hyperscale cloud service providers, large internet companies, financial institutions, telecommunications carriers, IT service providers, and large domestic private sector and multinational corporations.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “aim,” “anticipate,” “believe,” “continue,” “estimate,” “expect,” “future,” “guidance,” “intend,” “is/are likely to,” “may,” “ongoing,” “plan,” “potential,” “target,” “will,” and similar statements. Among other things, statements that are not historical facts, including statements about GDS Holdings’ beliefs and expectations regarding the growth of its businesses and its revenue for the full fiscal year, the business outlook and quotations from management in this announcement, as well as GDS Holdings’ strategic and operational plans, are or contain forward-looking statements. GDS Holdings may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) on Forms 20-F and 6-K, in its current, interim and annual reports to shareholders, in announcements, circulars or other publications made on the website of the Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause GDS Holdings’ actual results or financial performance to differ materially from those contained in any forward-looking statement, including but not limited to the following: GDS Holdings’ goals and strategies; GDS Holdings’ future business development, financial condition and results of operations; the expected growth of the market for high-performance data centers, data center solutions and related services in China and South East Asia; GDS Holdings’ expectations regarding demand for and market acceptance of its high-performance data centers, data center solutions and related services; GDS Holdings’ expectations regarding building, strengthening and maintaining its relationships with new and existing customers; the continued adoption of cloud computing and cloud service providers in China and South East Asia; risks and uncertainties associated with increased investments in GDS Holdings’ business and new data center initiatives; risks and uncertainties associated with strategic acquisitions and investments; GDS Holdings’ ability to maintain or grow its revenue or business; fluctuations in GDS Holdings’ operating results; changes in laws, regulations and regulatory environment that affect GDS Holdings’ business operations; competition in GDS Holdings’ industry in China and South East Asia; security breaches; power outages; and fluctuations in general economic and business conditions in China, South East Asia and globally, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in GDS Holdings’ filings with the SEC, including its annual report on Form 20-F, and with the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release and are based on assumptions that GDS Holdings believes to be reasonable as of such date, and GDS Holdings does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
GDS Holdings Limited
Laura Chen
Phone: +86 (21) 2029-2203
Email: ir@gds-services.com
Piacente Financial Communications
Ross Warner
Phone: +86 (10) 6508-0677
Email: GDS@tpg-ir.com
Brandi Piacente
Phone: +1 (212) 481-2050
Email: GDS@tpg-ir.com
GDS Holdings Limited
__________________________
1 Refers to GDSH’s assets and operations in Mainland China, including third party data centers in Hong Kong and Macau.
2 Refers to GDSH’s assets and operations outside Mainland China, excluding third party data centers in Hong Kong and Macau.
| GDS HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | ||||||
| As of December 31, 2023 | As of March 31, 2024 | |||||
| RMB | RMB | US$ | ||||
| Assets | ||||||
| Current assets | ||||||
| Cash | 7,710,711 | 7,641,439 | 1,058,327 | |||
| Accounts receivable, net of allowance for credit losses | 2,545,913 | 3,215,183 | 445,298 | |||
| Value-added-tax (“VAT”) recoverable | 214,385 | 261,508 | 36,218 | |||
| Prepaid expenses and other current assets | 512,644 | 984,569 | 136,361 | |||
| Total current assets | 10,983,653 | 12,102,699 | 1,676,204 | |||
| Non-current assets | ||||||
| Property and equipment, net | 47,499,494 | 47,769,269 | 6,615,967 | |||
| Prepaid land use rights, net | 22,388 | 22,234 | 3,079 | |||
| Operating lease right-of-use assets | 5,436,288 | 5,454,977 | 755,506 | |||
| Goodwill and intangible assets, net | 7,765,055 | 7,713,120 | 1,068,255 | |||
| Other non-current assets | 2,739,812 | 2,651,738 | 367,261 | |||
| Total non-current assets | 63,463,037 | 63,611,338 | 8,810,068 | |||
| Total assets | 74,446,690 | 75,714,037 | 10,486,272 | |||
| Liabilities, Mezzanine Equity and Equity | ||||||
| Current liabilities | ||||||
| Short-term borrowings and current portion of long-term borrowings | 2,833,953 | 4,304,289 | 596,137 | |||
| Accounts payable | 3,424,937 | 3,363,353 | 465,819 | |||
| Accrued expenses and other payables | 1,318,336 | 1,297,951 | 179,764 | |||
| Operating lease liabilities, current | 180,403 | 188,624 | 26,124 | |||
| Finance lease and other financing obligations, current | 547,847 | 1,589,172 | 220,098 | |||
| Total current liabilities | 8,305,476 | 10,743,389 | 1,487,942 | |||
| Non-current liabilities | ||||||
| Long-term borrowings, excluding current portion | 26,706,256 | 26,806,770 | 3,712,695 | |||
| Convertible bonds payable | 8,434,766 | 8,453,350 | 1,170,775 | |||
| Operating lease liabilities, non-current | 1,395,981 | 1,372,415 | 190,077 | |||
| Finance lease and other financing obligations, non-current | 7,894,185 | 6,946,898 | 962,134 | |||
| Other long-term liabilities | 1,586,223 | 1,600,155 | 221,619 | |||
| Total non-current liabilities | 46,017,411 | 45,179,588 | 6,257,300 | |||
| Total liabilities | 54,322,887 | 55,922,977 | 7,745,242 | |||
| Mezzanine equity | ||||||
| Redeemable preferred shares | 1,064,766 | 1,066,615 | 147,724 | |||
| Total mezzanine equity | 1,064,766 | 1,066,615 | 147,724 | |||
| GDS Holdings Limited shareholders' equity | ||||||
| Ordinary shares | 516 | 527 | 73 | |||
| Additional paid-in capital | 29,337,095 | 29,403,448 | 4,072,331 | |||
| Accumulated other comprehensive loss | (974,393 | ) | (1,029,619 | ) | (142,601 | ) |
| Accumulated deficit | (9,469,758 | ) | (9,815,585 | ) | (1,359,443 | ) |
| Total GDS Holdings Limited shareholders' equity | 18,893,460 | 18,558,771 | 2,570,360 | |||
| Non-controlling interests | 165,577 | 165,674 | 22,946 | |||
| Total equity | 19,059,037 | 18,724,445 | 2,593,306 | |||
| Total liabilities, mezzanine equity and equity | 74,446,690 | 75,714,037 | 10,486,272 | |||
| GDS HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) | ||||||||
| Three months ended | ||||||||
| March 31, 2023 | December 31, 2023 | March 31, 2024 | ||||||
| RMB | RMB | RMB | US$ | |||||
| Net revenue | ||||||||
| Service revenue | 2,408,449 | 2,556,490 | 2,627,367 | 363,886 | ||||
| Equipment sales | 509 | 0 | 0 | 0 | ||||
| Total net revenue | 2,408,958 | 2,556,490 | 2,627,367 | 363,886 | ||||
| Cost of revenue | (1,917,271 | ) | (2,124,173 | ) | (2,053,693 | ) | (284,433 | ) |
| Gross profit | 491,687 | 432,317 | 573,674 | 79,453 | ||||
| Operating expenses | ||||||||
| Selling and marketing expenses | (37,841 | ) | (35,208 | ) | (33,628 | ) | (4,657 | ) |
| General and administrative expenses | (289,496 | ) | (309,077 | ) | (310,835 | ) | (43,050 | ) |
| Research and development expenses | (9,785 | ) | (12,800 | ) | (9,980 | ) | (1,382 | ) |
| Impairment losses of long-lived assets | 0 | (3,013,416 | ) | 0 | 0 | |||
| Income (loss) from operations | 154,565 | (2,938,184 | ) | 219,231 | 30,364 | |||
| Other income (expenses): | ||||||||
| Net interest expenses | (484,427 | ) | (482,378 | ) | (503,476 | ) | (69,731 | ) |
| Foreign currency exchange (loss) gain, net | (6,975 | ) | 847 | (4,527 | ) | (627 | ) | |
| Others, net | 25,793 | 30,519 | 6,234 | 863 | ||||
| Loss before income taxes | (311,044 | ) | (3,389,196 | ) | (282,538 | ) | (39,131 | ) |
| Income tax (expenses) benefits | (163,568 | ) | 224,552 | (62,393 | ) | (8,641 | ) | |
| Net loss | (474,612 | ) | (3,164,644 | ) | (344,931 | ) | (47,772 | ) |
| Net income attributable to non-controlling interests | (1,730 | ) | (1,310 | ) | (896 | ) | (124 | ) |
| Net loss attributable to GDS Holdings Limited shareholders | (476,342 | ) | (3,165,954 | ) | (345,827 | ) | (47,896 | ) |
| Cumulative dividend on redeemable preferred shares | (12,895 | ) | (13,679 | ) | (13,458 | ) | (1,864 | ) |
| Net loss available to GDS Holdings Limited ordinary shareholders | (489,237 | ) | (3,179,633 | ) | (359,285 | ) | (49,760 | ) |
| Loss per ordinary share | ||||||||
| Basic and diluted | (0.33 | ) | (2.16 | ) | (0.24 | ) | (0.03 | ) |
| Weighted average number of ordinary share outstanding | ||||||||
| Basic and diluted | 1,467,200,367 | 1,469,982,015 | 1,469,982,015 | 1,469,982,015 | ||||
| GDS HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | ||||||||
| Three months ended | ||||||||
| March 31, 2023 | December 31, 2023 | March 31, 2024 | ||||||
| RMB | RMB | RMB | US$ | |||||
| Net loss | (474,612 | ) | (3,164,644 | ) | (344,931 | ) | (47,772 | ) |
| Foreign currency translation adjustments, net of nil tax | 47,939 | 117,674 | (56,025 | ) | (7,759 | ) | ||
| Comprehensive loss | (426,673 | ) | (3,046,970 | ) | (400,956 | ) | (55,531 | ) |
| Comprehensive income attributable to non-controlling interests | (1,495 | ) | (1,678 | ) | (97 | ) | (13 | ) |
| Comprehensive loss attributable to GDS Holdings Limited shareholders | (428,168 | ) | (3,048,648 | ) | (401,053 | ) | (55,544 | ) |
| GDS HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | ||||||||
| Three months ended | ||||||||
| March 31, 2023 | December 31, 2023 | March 31, 2024 | ||||||
| RMB | RMB | RMB | US$ | |||||
| Net loss | (474,612 | ) | (3,164,644 | ) | (344,931 | ) | (47,772 | ) |
| Depreciation and amortization | 843,359 | 916,135 | 856,739 | 118,657 | ||||
| Amortization of debt issuance cost and debt discount | 44,692 | 20,310 | 38,562 | 5,341 | ||||
| Share-based compensation expense | 84,865 | 80,765 | 76,646 | 10,615 | ||||
| Impairment losses of long-lived assets | 0 | 3,013,416 | 0 | 0 | ||||
| Others | (641 | ) | (202,342 | ) | 12,227 | 1,693 | ||
| Changes in operating assets and liabilities | (626,843 | ) | 285,750 | (764,215 | ) | (105,842 | ) | |
| Net cash (used in) provided by operating activities | (129,180 | ) | 949,390 | (124,972 | ) | (17,308 | ) | |
| Purchase of property and equipment and land use rights | (2,042,103 | ) | (1,067,581 | ) | (1,595,107 | ) | (220,921 | ) |
| Payments related to acquisitions and investments | (151,255 | ) | (85,925 | ) | 0 | 0 | ||
| Net cash used in investing activities | (2,193,358 | ) | (1,153,506 | ) | (1,595,107 | ) | (220,921 | ) |
| Net proceeds from financing activities | 3,874,415 | 376,895 | 1,621,969 | 224,640 | ||||
| Net cash provided by financing activities | 3,874,415 | 376,895 | 1,621,969 | 224,640 | ||||
| Effect of exchange rate changes on cash and restricted cash | 24,942 | 4,705 | (9,909 | ) | (1,372 | ) | ||
| Net increase (decrease) of cash and restricted cash | 1,576,819 | 177,484 | (108,019 | ) | (14,961 | ) | ||
| Cash and restricted cash at beginning of period | 8,882,066 | 7,740,395 | 7,917,932 | 1,096,621 | ||||
| Reclassification as assets of disposal group classified as held for sale | (2,240 | ) | 53 | 0 | 0 | |||
| Cash and restricted cash at end of period | 10,456,645 | 7,917,932 | 7,809,913 | 1,081,660 | ||||
| GDS HOLDINGS LIMITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for percentage data) | ||||||||
| Three months ended | ||||||||
| March 31, 2023 | December 31, 2023 | March 31, 2024 | ||||||
| RMB | RMB | RMB | US$ | |||||
| Gross profit | 491,687 | 432,317 | 573,674 | 79,453 | ||||
| Depreciation and amortization | 730,908 | 797,284 | 755,960 | 104,699 | ||||
| Operating lease cost relating to prepaid land use rights | 8,356 | 10,615 | 10,634 | 1,473 | ||||
| Accretion expenses for asset retirement costs | 1,726 | 1,640 | 1,488 | 206 | ||||
| Share-based compensation expenses | 26,699 | 29,066 | 26,324 | 3,645 | ||||
| Adjusted GP | 1,259,376 | 1,270,922 | 1,368,080 | 189,476 | ||||
| Adjusted GP margin | 52.3 | % | 49.7 | % | 52.1 | % | 52.1 | % |
| GDS HOLDINGS LIMITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for percentage data) | ||||||||
| Three months ended | ||||||||
| March 31, 2023 | December 31, 2023 | March 31, 2024 | ||||||
| RMB | RMB | RMB | US$ | |||||
| Net loss | (474,612 | ) | (3,164,644 | ) | (344,931 | ) | (47,772 | ) |
| Net interest expenses | 484,427 | 482,378 | 503,476 | 69,731 | ||||
| Income tax expenses (benefits) | 163,568 | (224,552 | ) | 62,393 | 8,641 | |||
| Depreciation and amortization | 843,359 | 916,135 | 856,739 | 118,657 | ||||
| Operating lease cost relating to prepaid land use rights | 26,704 | 27,494 | 27,603 | 3,823 | ||||
| Accretion expenses for asset retirement costs | 1,726 | 1,640 | 1,488 | 206 | ||||
| Share-based compensation expenses | 84,865 | 80,765 | 76,646 | 10,615 | ||||
| Impairment losses of long-lived assets | 0 | 3,013,416 | 0 | 0 | ||||
| Adjusted EBITDA | 1,130,037 | 1,132,632 | 1,183,414 | 163,901 | ||||
| Adjusted EBITDA margin | 46.9 | % | 44.3 | % | 45.0 | % | 45.0 | % |
FAQ
How did GDS Holdings (GDS) perform financially in Q1 2024?
What is the Adjusted EBITDA for GDS Holdings (GDS) in Q1 2024?
How much did GDS Holdings' (GDS) gross profit increase in Q1 2024?
What was GDS Holdings' (GDS) net loss in Q1 2024?
What is the total area committed by GDS Holdings (GDS) as of Q1 2024?
Has GDS Holdings (GDS) updated its financial guidance for 2024?
