GDS Holdings Reports Strong Revenue Growth in Q3 2024

GDS Holdings ( (GDS) ) has released its Q3 earnings. Here is a breakdown of the information GDS Holdings presented to its investors.

GDS Holdings Limited is a leading developer and operator of high-performance data centers in China and South East Asia, providing services to a diverse range of clients including hyperscale cloud service providers and large enterprises. In its third quarter of 2024 financial report, GDS Holdings reported a significant increase in net revenue, which rose by 17.7% year-over-year to RMB2,965.7 million, driven by the continued ramp-up of its data centers. Despite reporting a net loss of RMB231.1 million, the company managed to reduce losses compared to the previous year. Adjusted EBITDA also saw a 15.0% increase year-over-year, reaching RMB1,295.7 million, although the adjusted EBITDA margin slightly decreased to 43.7% due to increased corporate expenses related to international business expansion. The company witnessed growth in both its domestic and international operations, with a notable 636.3% increase in international revenue. The total area committed and pre-committed increased by 20.2% year-over-year, showcasing strong demand for GDS’s data center services. Looking forward, GDS Holdings maintains its revenue and adjusted EBITDA guidance for the full year 2024, while revising its capital expenditure forecast upwards to reflect the accelerated expansion of its international business. This strategic focus aims to leverage growth opportunities in international markets, supported by a recent substantial equity raise.