GDS Holdings Ltd (GDS) Q3 2024 Earnings Call Highlights: Strong International Growth and ...

GuruFocus.com11-20

Revenue Growth: 18% year-on-year increase in 3Q 2024. Adjusted EBITDA Growth: 15% year-on-year increase in 3Q 2024. China Segment Revenue: 6.1% year-on-year increase in 3Q 2024. China Segment Adjusted...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGDS Holdings Ltd (GDS) Q3 2024 Earnings Call Highlights: Strong International Growth and ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-20 15:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/gds-holdings-ltd-gds-q3-070232458.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue Growth: 18% year-on-year increase in 3Q 2024.\nAdjusted EBITDA Growth: 15% year-on-year increase in 3Q 2024.\nChina Segment Revenue: 6.1% year-on-year increase in 3Q 2024.\nChina Segment Adjusted...</p>\n\n<a href=\"https://finance.yahoo.com/news/gds-holdings-ltd-gds-q3-070232458.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"GDS","symbol_name":"万国数据","start_time":0,"source_url":"https://finance.yahoo.com/news/gds-holdings-ltd-gds-q3-070232458.html","article_id":"2484150073","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/VXyVQ5lwdDYJfhPfQF4okw--~B/aD0xMjQ7dz0zNzQ7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/9f5bc460d3d9a3276b14049b89ffec87"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2484150073","pubTimestamp":1732086152,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Revenue Growth: 18% year-on-year increase in 3Q 2024.Adjusted EBITDA Growth: 15% year-on-year increase in 3Q 2024.China Segment Revenue: 6.1% year-on-year increase in 3Q 2024.China Segment Adjusted EBITDA: 3.6% year-on-year increase in 3Q 2024.International Segment Revenue: 42% quarter-on-quarter increase in 3Q 2024.China CapEx: Revised up to RMB3 billion for 2024.International CapEx: Revised up to RMB8 billion for 2024.Cash Balance: Decreased to RMB7.8 billion at the end of 3Q 2024.Net Debt to Adjusted EBITDA: 7.4 times at the end of 3Q 2024.Series B Convertible Preferred Shares: $1 billion raised, expected to close by year-end.CapEx Guidance for FY 2024: Raised to RMB11 billion.GDS Holdings Ltd  achieved a revenue growth of 18% and adjusted EBITDA growth of 15% year on year, reflecting strong performance in challenging market conditions.GDS Holdings Ltd  is pursuing a China REIT strategy to enhance liquidity, reduce leverage, and capture new sales opportunities, with plans to launch ","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"GDS":"万国数据"},"translate_title":"万国数据控股有限公司(GDS)2024年第三季度收益看涨期权亮点：强劲的国际增长和...","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GDS":1},"content_text":"Revenue Growth: 18% year-on-year increase in 3Q 2024.\nAdjusted EBITDA Growth: 15% year-on-year increase in 3Q 2024.\nChina Segment Revenue: 6.1% year-on-year increase in 3Q 2024.\nChina Segment Adjusted EBITDA: 3.6% year-on-year increase in 3Q 2024.\nInternational Segment Revenue: 42% quarter-on-quarter increase in 3Q 2024.\nInternational Segment Adjusted EBITDA: 15% quarter-on-quarter increase in 3Q 2024.\nTotal Area Utilized: 11.6% year-on-year increase.\nChina CapEx: Revised up to RMB3 billion for 2024.\nInternational CapEx: Revised up to RMB8 billion for 2024.\nCash Balance: Decreased to RMB7.8 billion at the end of 3Q 2024.\nNet Debt to Adjusted EBITDA: 7.4 times at the end of 3Q 2024.\nSeries B Convertible Preferred Shares: $1 billion raised, expected to close by year-end.\nCapEx Guidance for FY 2024: Raised to RMB11 billion.\n\n\nWarning! GuruFocus has detected 10 Warning Signs with GDS.\n\nRelease Date: November 19, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nGDS Holdings Ltd (NASDAQ:GDS) achieved a revenue growth of 18% and adjusted EBITDA growth of 15% year on year, reflecting strong performance in challenging market conditions.\nThe company reported a significant increase in the move-in rate, with over 25,000 square meters of additional area utilized in 3Q 2024, driven by AI demand.\nGDS Holdings Ltd (NASDAQ:GDS) has a strong sales pipeline, with 431 megawatts of total customer commitment and a new contract with a leading global tech company.\nThe company is expanding internationally, entering new markets like Thailand, and has plans to develop a 120 megawatt data center campus in Chonburi province.\nGDS Holdings Ltd (NASDAQ:GDS) is pursuing a China REIT strategy to enhance liquidity, reduce leverage, and capture new sales opportunities, with plans to launch a C-REIT in the second half of 2025.\n\n Negative Points \n\nThe adjusted EBITDA margin for the China segment decreased by 1 percentage point year on year due to increased power tariffs.\nGDS Holdings Ltd (NASDAQ:GDS) reported a negative cash flow before financing of RMB293 million for the first nine months of 2024, although it expects to be positive by year-end.\nThe company anticipates a slight decline in MSR per square meter over the next year, which could impact revenue growth.\nGDS Holdings Ltd (NASDAQ:GDS) is facing higher CapEx requirements, revising its China CapEx guidance to RMB3 billion for 2024 due to increased move-in rates.\nThe company acknowledges the need for additional investment to capture AI demand in Tier 1 markets, which could strain financial resources if not managed carefully.\n\n Q & A Highlights \nQ: Regarding the China strategy, with strong demand and CapEx revision, is the increased CapEx a pull forward from future plans, and how does it relate to the REIT strategy? A: Wei Huang, CEO: We are maintaining our strategy to stabilize and grow organically in China, focusing on high-quality business. If we can efficiently recycle capital through the REIT strategy, we may invest more aggressively in the future.\nQ: Can you discuss the development of the Batam market and the type of demand expected there? A: Wei Huang, CEO: Batam is seen as a data center hub with strong interest from hyperscale customers globally. We have a robust pipeline from various countries.\nQ: What is the rationale for entering the Thailand market, and could it become a data center hub like Johor? A: Wei Huang, CEO: Thailand's growing economy and government support make it an attractive market. We are confident in the demand and see potential for Thailand to become a data center hub in Asia Pacific.\nQ: With the net area utilized growing but revenue growth lagging, what is the trend for unit pricing in China? A: Daniel Newman, CFO: The disparity is due to a lag in move-in and revenue recognition. We expect a 2% decline in MSR over the next year, aiming for a 10% revenue growth.\nQ: How should we think about new orders for the international business next year, and which markets are prioritized? A: Wei Huang, CEO: SIJORI remains a focus with a target of 200 megawatts in new sales next year. We are also exploring new markets like Japan and Europe to maintain long-term growth.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2484150073"}