SHANGHAI - GDS Holdings Limited (NASDAQ: NASDAQ:GDS), a leading developer and operator of high-performance data centers in China and Southeast Asia, reported a revenue increase of 9.1% to RMB 2.67 billion for the first quarter of 2024, in line with analyst estimates. However, the company's earnings per share (EPS) of (RMB1.96) fell short of the consensus estimate by RMB 0.08. Following the earnings release, GDS Holdings' stock experienced a slight decline of 1%.
The company's net revenue growth was driven by the full quarter revenue contribution from additional area utilized in the fourth quarter of 2023 and the contribution from additional area utilized in the first quarter of 2024. Despite the revenue increase, GDS Holdings reported a net loss of RMB 344.9 million (US$47.8 million) for the quarter, an improvement from a net loss of RMB 474.6 million in the first quarter of the previous year. Adjusted EBITDA (non-GAAP) increased by 4.7% YoY to RMB 1,183.4 million (US$163.9 million).
"We continued to execute our business strategies in the first quarter," said Mr. William Huang, Chairman and CEO of GDS. "In China, we delivered the backlog and selectively obtained new bookings with faster move-in rates. On the international front, we won strategic new orders and further strengthened our development pipeline."
For the full year of 2024, the company has provided guidance for total revenues of RMB 11.34-11.76 billion, indicating confidence in sustained growth. This guidance range is consistent with the company's previous forecast and reflects management's preliminary view on the current business situation and market conditions.
GDS Holdings' gross profit margin improved to 21.8% in the first quarter of 2024, up from 20.4% in the same quarter last year. The company's adjusted gross profit margin (non-GAAP) was 52.1%, slightly down from 52.3% in the first quarter of 2023.
The company's CFO, Mr. Dan Newman, commented on the financial results, stating, "In the first quarter, our revenue grew by 9.1% and Adjusted EBITDA by 4.7% year-over-year. We upsized the private equity raise for GDSI from US$587 million, as previously announced, to US$672 million, to accommodate acceleration of customer requirements, which further demonstrates our ability to fund International expansion on a standalone basis."
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