GDS (GDS) Q4 2024 earnings summary

Executive summary

• Strong demand for AI inferencing in Tier 1 Chinese markets and data center ramp-up drove record new business, with a 152 MW order in 1Q 2025 and robust pipeline visibility.

• FY24 total revenue increased 5.5% to RMB 10,322.1 million, with adjusted EBITDA up 3% to RMB 4,876.4 million; Q4 2024 revenue rose 9.1% and adjusted EBITDA 13.9% year-over-year.

• DayOne was deconsolidated in 4Q 2024 after an equity raise, now reported as an equity investee, with plans for an IPO within 18 months.

• Net income for 2024 was RMB 3,303.8 million, reversing a net loss in 2023, mainly due to a one-time gain from DayOne deconsolidation.

• Strategic focus remains on Tier 1 markets, selective new business, rapid backlog delivery, and capital recycling through asset monetization.

Financial highlights

• Adjusted EBITDA margin for 2024 was 47.2%; Q4 2024 margin was 48.2%.

• CapEx for 2024 totaled RMB 3 billion; 2025 CapEx guidance is RMB 4.3 billion, including major new orders.

• Year-end 2024 cash balance was RMB 7.9 billion; net debt to annualized adjusted EBITDA was 6.8x.

• FY24 net income from continuing operations was RMB 281.6 million, reversing a loss in FY23.

• Adjusted gross profit margin for FY24 was 51.5%, with Q4 2024 at 51.9%.

Outlook and guidance

• 2025 revenue expected between RMB 11,290–11,590 million (up 9.4–12.3% YoY); adjusted EBITDA guidance is RMB 5,190–5,390 million (up 6.4–10.5% YoY).

• CapEx for 2025 guided at RMB 4.3 billion, with no expected increase in net debt due to asset monetization proceeds.

• Net debt/EBITDA targeted to decline to 5.5x by YE25, driven by operating cash flow, asset monetization, and ABS proceeds.

• Adjusted EBITDA growth for 2026 preliminarily expected in the low teens, driven by new capacity ramp-up.