SHANGHAI – GDS Holdings (NASDAQ:) Limited (NASDAQ:GDS; HKEX:9698), a leading data center operator in China and Southeast Asia, saw its shares close up 17% on 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 the second quarter, lower than analysts’ estimates of a loss of RMB1.82 per share. Revenue rose 14.3% year-on-year to RMB2.83 billion ($388.9 million), beating the consensus forecast of RMB2.79 billion.
GDS Holdings’ revenue growth was driven by the continued expansion of its data center network and strong customer demand. Total committed and pre-committed area increased 18.7% year-on-year to 756,992 square meters as of June 30. Utilized area grew 20.9% year-on-year to 462,673 square meters.
“Disciplined execution, with a strong focus on our strategic objectives, drove the strong second quarter results,” said William Huang, president and CEO of GDS. He noted an improving trend in gross revenue from China operations, while other metrics remained stable.
The company’s international business experienced significant growth, with revenue up 690.2% year-on-year to RMB 255.5 million. GDS secured significant orders from new customers in Johor, Malaysia, taking advantage of strong regional demand.
For the full year 2024, GDS reaffirmed its guidance for total revenue of RMB 11.34-11.76 billion and adjusted EBITDA of RMB 4.95-5.15 billion.
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