GDS Clocks 10% Topline Growth In Q4 Backed By Net New Bookings; Updates On International Expansion

  • GDS Holdings Ltd GDS reported fourth-quarter FY22 net revenue growth of 9.9% year-on-year to $348.6 million, beating the consensus of $343.5 million.
  • Service revenue increased 10% Y/Y to $348.6 million.
  • Margins: Adjusted gross margin contracted 160 bps to 50.9% as costs expanded 12.7% Y/Y.
  • Adjusted EBITDA rose 4.3% Y/Y to $155.3 million, and the margin contracted by 240 bps to 44.6%.
  • Loss per ADS of $(0.15) beat the consensus loss of $(0.35).
  • GDS held $1.25 billion in cash and equivalents and generated $131.6 million in operating cash flow.
  • "Despite the challenging operating environment in 2022, we continued to grow our business and extend our reach outside of China," said William Huang, Chair and CEO. "We added over 73,000 sqm of net new bookings, including a 25,000 sqm anchor customer commitment for our first project in South East Asia. Looking into 2023, we will continue to support our customers with our well-established presence in China while strengthening our platform through international expansion."
  • Outlook: GDS expects FY23 revenue from $1.441 billion - $1.496 billion (implying a Y/Y increase of 6.6% - 10.7%) versus the consensus of $1.490 billion.
  • Price Action: GDS shares traded higher by 3.21% at $16.09 on the last check Wednesday.
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