GDS Holdings Limited Reports Third Quarter 2020 Results
GDS Holdings reported a robust third quarter for 2020, showcasing a 43.0% year-over-year increase in net revenue to RMB1,524.7 million (US$224.6 million). Service revenue also rose by 43.8% year-over-year. However, the company faced a net loss of RMB204.6 million (US$30.1 million), up from RMB108.6 million in Q3 2019. Adjusted EBITDA surged 48.3% to RMB717.1 million (US$105.6 million), maintaining a 47.0% margin. GDS's operational metrics improved, with area committed reaching 357,344 sqm, up 47.4% year-over-year, driven by strong demand for cloud services.
- Net revenue increased by 43.0% YoY to RMB1,524.7 million.
- Service revenue rose by 43.8% YoY to RMB1,522.4 million.
- Adjusted EBITDA grew by 48.3% YoY to RMB717.1 million, with a margin of 47.0%.
- Total area committed and pre-committed reached 357,344 sqm, a 47.4% YoY increase.
- Commitment rate for area in service improved to 95.8%.
- Net loss increased to RMB204.6 million compared to RMB108.6 million in Q3 2019.
SHANGHAI, China, Nov. 16, 2020 (GLOBE NEWSWIRE) -- GDS Holdings Limited (“GDS Holdings”, “GDS” or the “Company”) (NASDAQ: GDS; HKEX: 9698), a leading developer and operator of high-performance data centers in China, today announced its unaudited financial results for the third quarter ended September 30, 2020.
Third Quarter 2020 Financial Highlights
- Net revenue increased by
43.0% year-over-year (“Y-o-Y”) to RMB1,524.7 million (US$224.6 million ) in the third quarter of 2020 (3Q2019: RMB1,066.2 million). - Service revenue increased by
43.8% Y-o-Y to RMB1,522.4 million (US$224.2 million ) in the third quarter of 2020 (3Q2019: RMB1,058.9 million). - Net loss was RMB204.6 million (US
$30.1 million ) in the third quarter of 2020, compared with a net loss of RMB108.6 million in the third quarter of 2019. - Adjusted EBITDA (non-GAAP) increased by
48.3% Y-o-Y to RMB717.1 million (US$105.6 million ) in the third quarter of 2020 (3Q2019: RMB483.7 million). See “Non-GAAP Disclosure” and “Reconciliations of GAAP and non-GAAP results” elsewhere in this earnings release. - Adjusted EBITDA margin (non-GAAP) increased to
47.0% in the third quarter of 2020 (3Q2019:45.4% ).
Operating Highlights
- Total area committed and pre-committed increased by 23,884 square meters (“sqm”) in the third quarter of 2020 to 357,344 sqm as of September 30, 2020, an increase of
47.4% Y-o-Y (September 30, 2019: 242,435 sqm). - Area in service increased by 13,358 sqm in the third quarter of 2020 to 279,618 sqm as of September 30, 2020, an increase of
41.2% Y-o-Y (September 30, 2019: 198,097 sqm). - Area utilized (or area in service which is revenue-generating) increased by 16,589 sqm in the third quarter of 2020 to 209,751 sqm as of September 30, 2020, an increase of
52.2% Y-o-Y (September 30, 2019: 137,820 sqm). - Commitment rate for area in service was
95.8% as of September 30, 2020 (September 30, 2019:91.7% ), and utilization rate was75.0% as of September 30, 2020 (September 30, 2019:69.6% ). - Area under construction was 135,871 sqm as of September 30, 2020 (September 30, 2019: 84,765 sqm).
- Pre-commitment rate for area under construction was
65.9% as of September 30, 2020 (September 30, 2019:71.6% ).
“We recorded another quarter of strong growth, propelled by sustained sales momentum,” said Mr. William Huang, Chairman and Chief Executive Officer. “During the third quarter, we secured approximately 24,000 sqm (net) of new customer commitments. With one quarter left for 2020, we have already exceeded the organic sales performance for the whole of last year. To underpin our growth, we added to our land bank in Beijing and Shenzhen and increased our presence in key locations with strategic acquisitions in Beijing and Shanghai. While celebrating the fourth anniversary of our U.S. IPO and Nasdaq listing on November 2, 2020, we completed our Hong Kong IPO and secondary listing on the Main Board of the Hong Kong Stock Exchange, an important milestone and the beginning of a new chapter for our company.”
“Our financial performance was once again robust in the third quarter with
Third Quarter 2020 Financial Results
Net revenue in the third quarter of 2020 was RMB1,524.7 million (US
Cost of revenue in the third quarter of 2020 was RMB1,115.8 million (US
Gross profit was RMB409.0 million (US
Adjusted Gross Profit1 (“Adjusted GP”) (non-GAAP) is defined as gross profit excluding depreciation and amortization, accretion expenses for asset retirement costs and share-based compensation expenses allocated to cost of revenue. Adjusted GP was RMB812.3 million (US
Adjusted GP margin1 (non-GAAP) was
Selling and marketing expenses, excluding share-based compensation expenses of RMB13.6 million (US
General and administrative expenses, excluding share-based compensation expenses of RMB49.8 million (US
Research and development costs were RMB11.0 million (US
Net interest expenses for the third quarter of 2020 were RMB339.2 million (US
Foreign currency exchange loss for the third quarter of 2020 was RMB134 thousand (US
Others, net for the third quarter of 2020 was RMB10.5 million (US
Net loss in the third quarter of 2020 was RMB204.6 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 and gain from purchase price adjustment. Adjusted EBITDA was RMB717.1 million (US
Adjusted EBITDA margin (non-GAAP) was
Basic and diluted loss per ordinary share in the third quarter of 2020 was RMB0.18 (US
Basic and diluted loss per American Depositary Share (“ADS”) in the third quarter of 2020 was RMB1.42 (US
Sales
Total area committed and pre-committed at the end of the third quarter of 2020 was 357,344 sqm, compared with 242,435 sqm at the end of the third quarter of 2019 and 333,461 sqm at the end of the second quarter of 2020, an increase of
Data Center Resources
Area in service at the end of the third quarter of 2020 was 279,618 sqm, compared with 198,097 sqm at the end of the third quarter of 2019 and 266,260 sqm at the end of the second quarter of 2020, an increase of
Area under construction at the end of the third quarter of 2020 was 135,871 sqm, compared with 84,765 sqm at the end of the third quarter of 2019 and 133,208 sqm at the end of the second quarter of 2020, an increase of
Commitment rate of area in service was
Area utilized at the end of the third quarter of 2020 was 209,751 sqm, compared with 137,820 sqm at the end of the third quarter of 2019 and 193,162 sqm at the end of the second quarter of 2020, an increase of
Utilization rate of area in service was
Langfang Land Site 3
During the third quarter of 2020, the Company acquired all the equity interests in a target company which owns the right of use for a new greenfield site (namely Langfang Land Site 3), which is located within the Company’s existing Langfang cluster, close to the LF7 data center. Langfang Land Site 3 has a land area of approximately 34,600 sqm and, once developed, will yield a net floor area of approximately 18,750 sqm according to the initial design. Langfang Land Site 3 is currently held for future development.
Beijing 14 Acquisition
On September 22, 2020, the Company announced that it has extended a legally-binding offer to acquire
BJ14 is one of the largest and highest quality data center assets in the Beijing market. It is located adjacent to the Company’s Beijing 5 data center and 8 kilometers from its BJ10/11/12 data center campus, forming a cluster in the Shunyi District of Beijing which can generate significant operation synergies. BJ14 has a net floor area of over 19,000 sqm. It is fully committed by five hyperscale customers, including a new large internet customer logo. BJ14 is fully operational and is currently approximately
The total enterprise value of the BJ14 Acquisition is approximately RMB3.8 billion, with a further RMB500 million contingent on the acquisition by the target companies of the property interests in the site.
Liquidity
As of September 30, 2020, cash was RMB6,004.5 million (US
Recent Developments
Hong Kong Initial Public Offering
On November 2, 2020, the Company successfully completed its Hong Kong Initial Public Offering of 160,000,000 Class A ordinary shares (the “Shares”), equivalent to 20,000,000 American Depositary Shares (“ADSs”). The Shares began trading on the Main Board of the Hong Kong Stock Exchange on the same day under the stock code “9698”. The public offering price was HK
Huidong Land
In order to supplement its resource supply in the Greater Bay Area, the Company recently entered into a land use right grant contract with the local government to acquire a greenfield site in Huidong County, Huizhou City, Guangdong Province (“Huidong Land”). Huizhou is one of the key areas identified for data center development in the Guangdong Province’s recently published New Infrastructure plan. The site is located within the Greater Bay Data Center Industrial Park, around 24 km away from the Company’s Shenzhen 4 data center. Huidong Land has a land area of approximately 115,000 sqm, and once fully developed, will yield a net floor area of approximately 72,000 sqm according to the initial design.
Shanghai 19 Acquisition
The Company recently acquired a data center project in Shanghai (“SH19”), located in the same area as its existing Waigaoqiao data center cluster. SH19 has a net floor area of approximately 12,789 sqm, and is being developed in two phases. SH19 Phase 1, with a net floor area of approximately 7,963 sqm, has just come into service. It is fully committed by one of the Company’s existing top customers. SH19 Phase 2, with a net floor area of approximately 4,826 sqm, is currently under construction. It is expected to come into service in 2H21. The estimated total acquisition and development cost of SH19, including cost to date, cost to complete and acquisition premium, is approximately RMB778 million.
Updated Business Outlook
For the full year of 2020, the Company now expects its total revenues to be in the range of RMB5,700 million to RMB5,750 million, increasing the low end of the original guidance of RMB5,510 million by approximately
Conference Call
Management will hold a conference call at 7:00 p.m. U.S. Eastern Time on November 16, 2020 (8:00 a.m. Beijing Time on November 17, 2020) to discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing:
| United States: | +1-845-675-0437 |
| International: | +65-6713-5090 |
| Hong Kong: | +852-3018-6771 |
| Mainland China: | 400-620-8038 |
| Conference ID: | 6869567 |
Participants should dial in at least 10 minutes before the scheduled start time and provide the Conference ID to the Operator to be connected to the conference. Due to conditions surrounding the outbreak of COVID-19, participants may experience longer than normal hold period before being assisted to join the call. The Company thanks everyone in advance for their patience and understanding.
A telephone replay will be available approximately two hours after the call until November 24, 2020 07:59 AM U.S. ET by dialing:
| United States: | +1-646-254-3697 |
| International: Hong Kong: Mainland China: | +61-2-8199-0299 +852-3051-2780 400-632-2162 |
| Replay Access Code: | 6869567 |
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 GP, adjusted GP margin, adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP financial measures, to evaluate our operating performance, establish budgets and develop operational goals for managing our business. In particular, we believe that the exclusion of the expenses eliminated in calculating adjusted GP and adjusted EBITDA can provide a useful measure of our 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 and gain from purchase price adjustment, 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.
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 RMB 6.7896 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 the largest carrier-neutral data center service provider in China. The Company’s data centers are designed and configured as high-performance data centers with large net floor area and power capacity, high power density and efficiency, and multiple redundancy across all critical systems. The Company’s data centers are strategically located in China’s primary economic hubs where demand for high-performance data center services is concentrated. GDS is carrier and cloud-neutral, which enables its customers to access all the major PRC telecommunications networks, as well as the largest PRC and global public clouds which GDS hosts in many of its facilities. The Company offers colocation and managed services, including an innovative and unique managed cloud value proposition. The Company has a 19-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.
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 annual report to shareholders, 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; 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; 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; security breaches; power outages; and fluctuations in general economic and business conditions in China and globally, the impact of the COVID-19 outbreak, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in the GDS Holdings’ filings with the SEC, including its annual report on form 20-F. 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) 5176-5509
Email: ir@gds-services.com
The Piacente Group, Inc.
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
| GDS HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | |||||||
| As of December 31, 2019 | As of September 30, 2020 | ||||||
| RMB | RMB | US$ | |||||
| Assets | |||||||
| Current assets | |||||||
| Cash | 5,810,938 | 6,004,537 | 884,373 | ||||
| Accounts receivable, net of allowance for doubtful accounts | 879,962 | 1,579,257 | 232,599 | ||||
| Value-added-tax (“VAT”) recoverable | 129,994 | 114,245 | 16,826 | ||||
| Prepaid expenses and other current assets | 263,815 | 417,475 | 61,487 | ||||
| Total current assets | 7,084,709 | 8,115,514 | 1,195,285 | ||||
| Property and equipment, net | 19,184,639 | 27,223,398 | 4,009,573 | ||||
| Prepaid land use rights, net | 747,187 | 713,613 | 105,104 | ||||
| Operating lease right-of-use assets | 796,679 | 2,578,471 | 379,768 | ||||
| Goodwill and intangible assets, net | 2,300,468 | 2,957,590 | 435,606 | ||||
| Other non-current assets | 1,378,849 | 2,058,873 | 303,239 | ||||
| Total assets | 31,492,531 | 43,647,459 | 6,428,575 | ||||
| Liabilities, Mezzanine Equity and Shareholders’ Equity | |||||||
| Current liabilities | |||||||
| Short-term borrowings and current portion of long-term borrowings | 1,137,737 | 1,811,363 | 266,785 | ||||
| Accounts payable | 1,675,966 | 3,431,162 | 505,356 | ||||
| Accrued expenses and other payables | 908,199 | 1,147,220 | 168,967 | ||||
| Operating lease liabilities, current | 55,139 | 82,950 | 12,217 | ||||
| Finance lease and other financing obligations, current | 222,473 | 235,703 | 34,715 | ||||
| Total current liabilities | 3,999,514 | 6,708,398 | 988,040 | ||||
| Long-term borrowings, excluding current portion | 8,028,473 | 10,119,004 | 1,490,368 | ||||
| Convertible bonds payable | 2,049,654 | 2,009,785 | 296,009 | ||||
| Operating lease liabilities, non-current | 709,998 | 1,272,835 | 187,468 | ||||
| Finance lease and other financing obligations, non-current | 4,751,121 | 7,978,175 | 1,175,058 | ||||
| Other long-term liabilities | 598,209 | 787,337 | 115,963 | ||||
| Total liabilities | 20,136,969 | 28,875,534 | 4,252,906 | ||||
| Mezzanine equity | |||||||
| Redeemable preferred shares | 1,061,981 | 1,023,643 | 150,766 | ||||
| Redeemable non-controlling interests | 0 | 110,902 | 16,334 | ||||
| Total mezzanine equity | 1,061,981 | 1,134,545 | 167,100 | ||||
| Shareholders' equity | |||||||
| Ordinary shares | 412 | 445 | 66 | ||||
| Additional paid-in capital | 12,403,043 | 16,196,505 | 2,385,487 | ||||
| Accumulated other comprehensive loss | (52,684 | ) | (105,907 | ) | (15,598 | ) | |
| Accumulated deficit | (2,057,190 | ) | (2,453,663 | ) | (361,386 | ) | |
| Total shareholders’ equity | 10,293,581 | 13,637,380 | 2,008,569 | ||||
| Commitments and contingencies | |||||||
| Total liabilities, mezzanine equity and shareholders' equity | 31,492,531 | 43,647,459 | 6,428,575 | ||||
| GDS HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) |
| Three months ended | Nine months ended | ||||||||||||||||||||
| September 30, 2019 | June 30, 2020 | September 30, 2020 | September 30, 2019 | September 30, 2020 | |||||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||
| Net revenue | |||||||||||||||||||||
| Service revenue | 1,058,921 | 1,334,475 | 1,522,353 | 224,218 | 2,934,961 | 4,089,417 | 602,306 | ||||||||||||||
| Equipment sales | 7,267 | 7,730 | 2,396 | 353 | 8,257 | 17,955 | 2,644 | ||||||||||||||
| Total net revenue | 1,066,188 | 1,342,205 | 1,524,749 | 224,571 | 2,943,218 | 4,107,372 | 604,950 | ||||||||||||||
| Cost of revenue | (791,963 | ) | (981,103 | ) | (1,115,784 | ) | (164,337 | ) | (2,195,215 | ) | (2,986,967 | ) | (439,933 | ) | |||||||
| Gross profit | 274,225 | 361,102 | 408,965 | 60,234 | 748,003 | 1,120,405 | 165,017 | ||||||||||||||
| Operating expenses | |||||||||||||||||||||
| Selling and marketing expenses | (32,596 | ) | (29,755 | ) | (35,157 | ) | (5,178 | ) | (90,233 | ) | (95,217 | ) | (14,024 | ) | |||||||
| General and administrative expenses | (105,524 | ) | (156,679 | ) | (203,460 | ) | (29,966 | ) | (290,527 | ) | (477,182 | ) | (70,281 | ) | |||||||
| Research and development expenses | (6,193 | ) | (10,243 | ) | (11,020 | ) | (1,623 | ) | (15,032 | ) | (30,007 | ) | (4,420 | ) | |||||||
| Income from operations | 129,912 | 164,425 | 159,328 | 23,467 | 352,211 | 517,999 | 76,292 | ||||||||||||||
| Other income (expenses): | |||||||||||||||||||||
| Net interest expenses | (241,038 | ) | (300,649 | ) | (339,245 | ) | (49,965 | ) | (682,061 | ) | (900,759 | ) | (132,667 | ) | |||||||
| Foreign currency exchange loss, net | (2,796 | ) | (4,587 | ) | (134 | ) | (20 | ) | (5,554 | ) | (17,340 | ) | (2,554 | ) | |||||||
| Gain from purchase price adjustment | 0 | 55,154 | 0 | 0 | 0 | 55,154 | 8,123 | ||||||||||||||
| Others, net | 4,602 | 10,988 | 10,481 | 1,544 | 9,122 | 24,385 | 3,592 | ||||||||||||||
| Loss before income taxes | (109,320 | ) | (74,669 | ) | (169,570 | ) | (24,974 | ) | (326,282 | ) | (320,561 | ) | (47,214 | ) | |||||||
| Income tax benefits (expenses) | 678 | (26,378 | ) | (35,065 | ) | (5,165 | ) | (12,139 | ) | (77,152 | ) | (11,363 | ) | ||||||||
| Net loss | (108,642 | ) | (101,047 | ) | (204,635 | ) | (30,139 | ) | (338,421 | ) | (397,713 | ) | (58,577 | ) | |||||||
| Net loss attributable to redeemable non-controlling interests | 0 | 0 | 1,240 | 183 | 0 | 1,240 | 183 | ||||||||||||||
| Net loss attributable to GDS Holdings Limited shareholders | (108,642 | ) | (101,047 | ) | (203,395 | ) | (29,956 | ) | (338,421 | ) | (396,473 | ) | (58,394 | ) | |||||||
| Accretion to redemption value of redeemable non-controlling interests | 0 | 0 | (7,142 | ) | (1,052 | ) | 0 | (7,142 | ) | (1,052 | ) | ||||||||||
| Net loss available to GDS Holdings Limited shareholders | (108,642 | ) | (101,047 | ) | (210,537 | ) | (31,008 | ) | (338,421 | ) | (403,615 | ) | (59,446 | ) | |||||||
| Change in redemption value of redeemable preferred shares | 0 | 0 | 0 | 0 | (17,760 | ) | 0 | 0 | |||||||||||||
| Cumulative dividend on redeemable preferred shares | (13,386 | ) | (13,442 | ) | (13,284 | ) | (1,957 | ) | (26,858 | ) | (39,951 | ) | (5,884 | ) | |||||||
| Net loss available to GDS Holdings Limited ordinary shareholders | (122,028 | ) | (114,489 | ) | (223,821 | ) | (32,965 | ) | (383,039 | ) | (443,566 | ) | (65,330 | ) | |||||||
| Loss per ordinary share | |||||||||||||||||||||
| Basic and diluted | (0.11 | ) | (0.10 | ) | (0.18 | ) | (0.03 | ) | (0.35 | ) | (0.37 | ) | (0.05 | ) | |||||||
| Weighted average number of ordinary share outstanding | |||||||||||||||||||||
| Basic and diluted | 1,126,969,256 | 1,190,834,806 | 1,257,370,403 | 1,257,370,403 | 1,089,589,663 | 1,210,075,809 | 1,210,075,809 | ||||||||||||||
| GDS HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) |
| Three months ended | Nine months ended | |||||||||||||||
| September 30, 2019 | June 30, 2020 | September 30, 2020 | September 30, 2019 | September 30, 2020 | ||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||
| Net loss | (108,642 | ) | (101,047 | ) | (204,635 | ) | (30,139 | ) | (338,421 | ) | (397,713 | ) | (58,577 | ) | ||
| Foreign currency translation adjustments, net of nil tax | 29,165 | 15,158 | (58,832 | ) | (8,665 | ) | 96,037 | (53,223 | ) | (7,839 | ) | |||||
| Comprehensive loss | (79,477 | ) | (85,889 | ) | (263,467 | ) | (38,804 | ) | (242,384 | ) | (450,936 | ) | (66,416 | ) | ||
| Comprehensive loss attributable to redeemable non-controlling interests | 0 | 0 | 1,240 | 183 | 0 | 1,240 | 183 | |||||||||
| Comprehensive loss attributable to GDS Holdings Limited shareholders | (79,477 | ) | (85,889 | ) | (262,227 | ) | (38,621 | ) | (242,384 | ) | (449,696 | ) | (66,233 | ) | ||
| GDS HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | |||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||
| September 30, 2019 | June 30, 2020 | September 30, 2020 | September 30, 2019 | September 30, 2020 | |||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||
| Net loss | (108,642 | ) | (101,047 | ) | (204,635 | ) | (30,139 | ) | (338,421 | ) | (397,713 | ) | (58,577 | ) | |
| Depreciation and amortization | 299,349 | 390,197 | 450,851 | 66,403 | 822,562 | 1,160,074 | 170,860 | ||||||||
| Amortization of debt issuance cost and debt discount | 31,992 | 42,758 | 23,957 | 3,528 | 85,504 | 81,092 | 11,944 | ||||||||
| Share-based compensation expense | 51,886 | 66,699 | 88,607 | 13,050 | 114,820 | 222,449 | 32,763 | ||||||||
| Gain from purchase price adjustment | 0 | (55,154 | ) | 0 | 0 | 0 | (55,154 | ) | (8,123 | ) | |||||
| Others | (19,435 | ) | (27,522 | ) | (8,727 | ) | (1,285 | ) | (40,508 | ) | (61,475 | ) | (9,054 | ) | |
| Changes in operating assets and liabilities | (89,931 | ) | (129,894 | ) | (357,996 | ) | (52,727 | ) | (422,634 | ) | (940,978 | ) | (138,591 | ) | |
| Net cash provided by (used in) operating activities | 165,219 | 186,037 | (7,943 | ) | (1,170 | ) | 221,323 | 8,295 | 1,222 | ||||||
| Purchase of property and equipment and land use rights | (1,114,350 | ) | (1,021,925 | ) | (2,140,979 | ) | (315,332 | ) | (2,460,830 | ) | (5,688,582 | ) | (837,838 | ) | |
| Payments related to acquisitions and investments | (36,090 | ) | (326,971 | ) | (606,963 | ) | (89,396 | ) | (63,203 | ) | (944,196 | ) | (139,065 | ) | |
| Net cash used in investing activities | (1,150,440 | ) | (1,348,896 | ) | (2,747,942 | ) | (404,728 | ) | (2,524,033 | ) | (6,632,778 | ) | (976,903 | ) | |
| Net proceeds from financing activities | 887,546 | 5,268,130 | 1,154,008 | 169,967 | 5,656,923 | 7,026,400 | 1,034,877 | ||||||||
| Net cash provided by financing activities | 887,546 | 5,268,130 | 1,154,008 | 169,967 | 5,656,923 | 7,026,400 | 1,034,877 | ||||||||
| Effect of exchange rate changes on cash and restricted cash | 109,558 | 23,900 | (151,479 | ) | (22,310 | ) | 222,878 | (101,992 | ) | (15,021 | ) | ||||
| Net increase (decrease) of cash and restricted cash | 11,883 | 4,129,171 | (1,753,356 | ) | (258,241 | ) | 3,577,091 | 299,925 | 44,175 | ||||||
| Cash and restricted cash at beginning of period | 5,849,956 | 3,897,372 | 8,026,543 | 1,182,182 | 2,284,748 | 5,973,262 | 879,766 | ||||||||
| Cash and restricted cash at end of period | 5,861,839 | 8,026,543 | 6,273,187 | 923,941 | 5,861,839 | 6,273,187 | 923,941 | ||||||||
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FAQ
What were GDS Holdings' Q3 2020 financial results?
How did GDS's adjusted EBITDA perform in Q3 2020?
What is GDS Holdings' net revenue growth for Q3 2020?
What factors contributed to GDS's revenue growth in Q3 2020?
What was the commitment rate for GDS's area in service as of Q3 2020?
