GDS (GDS) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 increased 17.7% year-over-year to RMB 2,965.7 million (US$422.6 million), with adjusted EBITDA up 15.0% to RMB 1,295.7 million (US$184.6 million), driven by strong international expansion and a turnaround in China.

• Net loss narrowed to RMB 231.1 million from RMB 420.8 million a year ago.

• Record gross additional area utilized of over 25,000 sq m in Q3, all organic and in Tier 1 markets, fueled by AI demand.

• International business established as a standalone entity, supported by a US$1 billion Series B equity raise and rapid ramp-up in new markets.

• New customer commitments reached 36,924 sqm (+100 MW), with total area committed up 20.2% year-over-year to 785,692 sqm.

Financial highlights

• Service revenue for Q3 2024 was RMB 2,965.7 million, up 17.7% year-over-year and 4.9% sequentially.

• Adjusted gross profit margin was 50.7%, up 1.2 percentage points year-over-year; adjusted EBITDA margin was 43.7%, down 1.0 point year-over-year.

• Net loss for Q3 2024 was RMB 231.1 million, narrowing from RMB 420.8 million in Q3 2023.

• Operating cash flow for Q3 2024 was RMB 641.5 million; cash balance at September 30, 2024, was RMB 9,408.5 million.

• Total gross debt stood at RMB 49,285.9 million as of Q3 2024.

Outlook and guidance

• FY24 revenue guidance revised to RMB 11,340–11,760 million, up 13.9%–18.1% year-over-year; adjusted EBITDA guidance at RMB 4,950–5,150 million.

• CapEx guidance raised to RMB 11 billion for 2024, including RMB 3 billion for China and RMB 8 billion for international expansion.

• Net additional area utilized in China expected to be around 60,000 sq m for 2024 and sustained at this level next year.

• International business aims for 200 MW new orders in 2025 and 1 GW sales in three years.