GDS Clocks 7.4% Growth In Q1 Revenues, Sees New Business Wins In Mainland China

  • GDS Holdings Limited GDS reported first-quarter FY23 net revenue growth of 7.4% year-on-year to $350.77 million, missing the consensus of $351.20 million.
  • Loss per ADS of $(0.39) missed the consensus loss of $(0.31).
  • Service revenue increased 7.4% Y/Y to $350.7 million.
  • Adjusted EBITDA rose 7.5% Y/Y to $164.5 million. Adjusted EBITDA margin (non-GAAP) was 46.9%.
  • GDS held $1.49 billion in cash at quarter end.
  • "For our mainland China business, we continue to prioritize faster backlog delivery and, at the same time, to win the new business which is strategic to us and has accelerated move-in schedule," said William Huang, Chair and CEO. 
  • "Our customers are talking much more positively and we are looking forward to a pick-up in the near future."
  • Outlook: GDS reiterated the FY23 outlook. Revenues are expected in the band of RMB9.94 billion – RMB10.32 billion.
  • Adjusted EBITDA is expected to be RMB4.43 billion – RMB4.60 billion. 
  • Price Action: GDS shares traded higher by 0.10% at $10.30 on the last check Thursday.
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