SHANGHAI – GDS Holdings (NASDAQ:) Limited (NASDAQ:GDS; HKEX:9698), a leading data center operator in China and Southeast Asia, saw its stock close17% higher Wednesday after reporting better-than-expected second quarter results.
The company posted a net loss of RMB231.8 million ($31.9 million) or RMB1.30 per share in Q2, narrower than analyst estimates of a RMB1.82 per share loss. Revenue rose 14.3% YoY to RMB2.83 billion ($388.9 million), surpassing the consensus forecast of RMB2.79 billion.
GDS Holdings’ revenue growth was driven by continued expansion of its data center footprint and strong customer demand. Total area committed and pre-committed increased 18.7% YoY to 756,992 square meters as of June 30. Area utilized grew 20.9% YoY to 462,673 square meters.
“Disciplined execution, with strong focus on our strategic objectives, drove solid results in the second quarter,” said William Huang, Chairman and CEO of GDS. He noted an improving trend in gross move-in for China operations, while other metrics remained stable.
The company’s international business saw significant growth, with revenue surging 690.2% YoY to RMB255.5 million. GDS secured major new customer orders in Johor, Malaysia, capitalizing on strong regional demand.
For the full year 2024, GDS reaffirmed its guidance for total revenues of RMB11,340-11,760 million and adjusted EBITDA of RMB4,950-5,150 million.
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