GDS (GDS) Q2 2024 earnings summary

Executive summary

• Total revenue for 2Q24 increased 17.7% year-over-year to RMB 2,826.4 million ($388.9 million), with adjusted EBITDA up 14.9% to RMB 1,312.2 million ($180.6 million), driven by stabilization in China and strong international execution.

• New customer commitments reached 93,321 sqm (+224 MW), with total area committed up 18.7% year-over-year to 756,992 sqm.

• International segment revenue surged 690.2% year-over-year to RMB 255.5 million, with major agreements in Johor and Batam positioning the company as a market leader in Southeast Asia.

• Secured RMB 2,211.6 million in new debt/refinancing and raised $672 million from Series A Convertible Preferred Shares.

• Net loss for 2Q24 was RMB 231.8 million, a reduction from RMB 344.9 million in 1Q24.

Financial highlights

• Adjusted gross profit margin was 51.4% in 2Q24, with adjusted EBITDA margin at 46.4%.

• China segment revenue rose 8.9% and adjusted EBITDA increased 4.3% year-over-year in 2Q24, excluding one-time items.

• International segment revenue grew 24% quarter-on-quarter and 690.2% year-over-year, with adjusted EBITDA margin at 33.1%.

• Cash balance at end of 2Q24: RMB 9,907.8 million, including RMB 8,395.9 million for China and RMB 1,511.9 million for international.

• Net loss for 2Q24 was RMB 231.8 million, with basic and diluted loss per ordinary share at RMB 0.16.

Outlook and guidance

• Full-year 2024 guidance reaffirmed: total revenue RMB 11,340–11,760 million, adjusted EBITDA RMB 4,950–5,150 million, capex around RMB 6,500 million.

• International backlog of 287 MW expected to be mostly delivered and utilized within 24 months, tripling revenue-generating capacity.

• Maintaining FY 2024 consolidated revenue, adjusted EBITDA, and CapEx guidance, but may raise CapEx guidance at 3Q 2024 results.