GDS Holdings Limited Reports Third Quarter 2024 Results

Q: How long will it take to read this news story?

The story "GDS Holdings Limited Reports Third Quarter 2024 Results" has 4667 words across 124 sentences, which will take approximately 20 - 39 minutes for the average person to read.

Q: Which news outlet covered this story?

The story "GDS Holdings Limited Reports Third Quarter 2024 Results" was covered 1 weeks ago by GlobeNewswire, a news publisher based in China.

Q: How trustworthy is 'GlobeNewswire' news outlet?

GlobeNewswire is a fully independent (privately-owned) news outlet established in 1998 that covers mostly technology news. The outlet is headquartered in China and publishes an average of 34 news stories per day. It's most recent story was published 8 hours ago.

Q: What do people currently think of this news story?

The sentiment for this story is currently Neutral, indicating that people are not responding positively or negatively to this news.

Q: How do I report this news for inaccuracy?

You can report an inaccurate news publication to us via our contact page. Please also include the news #ID number and the URL to this story.<ul><li>News ID: #23696485</li><li>URL: https://beamstart.com/news/gds-holdings-limited-reports-third-17320177452030</li></ul>

GlobeNewswire 1w ago

GDS Holdings Limited Reports Third Quarter 2024 Results - GlobeNewswire

Quick Summary:

GDS HOLDINGS LIMITEDUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) As of December 31, 2023 As of September 30, 2024 RMBRMBUS$ Assets Current assets Cash7,710,711 9,408,464 1,340,695 Accounts receivable, net of allowance for credit losses2,545,913 3,756,149 535,247 Value-added-tax ("VAT”) recoverable214,385 248,551 35,418 Prepaid expenses and other current assets512,644 882,448 125,748 Total current assets10,983,653 14,295,612 2,037,108 Non-current assets Property and equipment, net47,499,494 52,048,470 7,416,848 Prepaid land use rights, net22,388 21,927 3,125 Operating lease right-of-use assets5,436,288 5,332,954 759,940 Goodwill and intangible assets, net7,765,055 7,607,461 1,084,055 Other non-current assets2,739,812 3,035,849 432,604 Total non-current assets63,463,037 68,046,661 9,696,572 Total assets74,446,690 82,342,273 11,733,680 Liabilities, Mezzanine Equity and Equity Current liabilities Short-term borrowings and current portion of long-term borrowings2,833,953 6,034,303 859,881 Convertible bonds payable, current0 561 80 Accounts payable3,424,937 3,640,199 518,724 Accrued expenses and other payables1,318,336 1,533,221 218,482 Operating lease liabilities, current180,403 166,279 23,695 Finance lease and other financing obligations, current547,847 603,099 85,941 Total current liabilities8,305,476 11,977,662 1,706,803 Non-current liabilities Long-term borrowings, excluding current portion26,706,256 26,573,316 3,786,667 Convertible bonds payable, non-current8,434,766 8,356,467 1,190,787 Operating lease liabilities, non-current1,395,981 1,325,820 188,928 Finance lease and other financing obligations, non-current7,894,185 7,718,233 1,099,839 Other long-term liabilities1,586,223 1,597,397 227,627 Total non-current liabilities46,017,411 45,571,233 6,493,848 Total liabilities54,322,887 57,548,895 8,200,651 Mezzanine equity Redeemable preferred shares1,064,766 1,053,300 150,094 Redeemable non-controlling interests0 4,797,484 683,636 Total mezzanine equity1,064,766 5,850,784 833,730 GDS Holdings Limited shareholders' equity Ordinary shares516 527 75 Additional paid-in capital29,337,095 29,513,306 4,205,612 Accumulated other comprehensive loss(974,393)(661,437)(94,254) Accumulated deficit(9,469,758)(10,233,666)(1,458,286) Total GDS Holdings Limited shareholders' equity18,893,460 18,618,730 2,653,147 Non-controlling interests165,577 323,864 46,152 Total equity19,059,037 18,942,594 2,699,299 Total liabilities, mezzanine equity and equity74,446,690 82,342,273 11,733,680 GDS HOLDINGS LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")except for number of shares and per share data) Three months ended Nine months ended September 30, 2023June 30, 2024September 30, 2024 September 30, 2023September 30, 2024 RMBRMBRMBUS$ RMBRMBUS$ Net revenue Service revenue2,518,978 2,826,369 2,965,713 422,611 7,399,447 8,419,449 1,199,762 Equipment sales55 0 0 0 564 0 0 Total net revenue2,519,033 2,826,369 2,965,713 422,611 7,400,011 8,419,449 1,199,762 Cost of revenue(2,071,584)(2,188,544)(2,308,792)(329,000) (5,909,878)(6,551,029)(933,514)Gross profit447,449 637,825 656,921 93,611 1,490,133 1,868,420 266,248 Operating expenses Selling and marketing expenses(38,912)(26,516)(35,020)(4,990) (108,946)(95,164)(13,561) General and administrative expenses(317,326)(284,787)(293,022)(41,755) (876,349)(888,644)(126,631) Research and development expenses(10,529)(10,889)(8,628)(1,229) (25,359)(29,497)(4,203)Income from operations80,682 315,633 320,251 45,637 479,479 855,115 121,853 Other income (expenses): Net interest expenses(503,156)(505,231)(535,008)(76,238) (1,457,055)(1,543,715)(219,978) Foreign currency exchange gain (loss), net908 11,829 (32,500)(4,631) (1,114)(25,198)(3,591) Others, net21,680 5,876 6,140 875 67,716 18,250 2,601 Loss before income taxes(399,886)(171,893)(241,117)(34,357) (910,974)(695,548)(99,115)Income tax (expenses) benefits(20,945)(59,875)10,008 1,426 (209,775)(112,260)(15,997)Net loss(420,831)(231,768)(231,109)(32,931) (1,120,749)(807,808)(115,112)Net (income) loss attributable to non-controlling interests(350)(3,438)3,337 476 (3,350)(997)(142)Net loss attributable to redeemable non-controlling interests0 9,465 35,432 5,049 0 44,897 6,398 Net loss attributable to GDS Holdings Limited shareholders(421,181)(225,741)(192,340)(27,406) (1,124,099)(763,908)(108,856)Cumulative dividend on redeemable preferred shares(13,745)(13,477)(13,618)(1,941) (39,946)(40,553)(5,779)Net loss available to GDS Holdings Limited ordinary shareholders(434,926)(239,218)(205,958)(29,347) (1,164,045)(804,461)(114,635) Loss per ordinary share Basic and diluted(0.30)(0.16)(0.14)(0.02) (0.79)(0.55)(0.08) Weighted average number of ordinary share outstanding Basic and diluted1,468,336,869 1,470,013,200 1,476,130,132 1,476,130,132 1,467,583,364 1,472,056,703 1,472,056,703 GDS HOLDINGS LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) Three months ended Nine months ended September 30, 2023June 30, 2024September 30, 2024 September 30, 2023September 30, 2024 RMBRMBRMBUS$ RMBRMBUS$ Net loss(420,831)(231,768)(231,109)(32,931) (1,120,749)(807,808)(115,112)Foreign currency translation adjustments, net of nil tax20,261 (16,334)538,739 76,770 (242,792)466,380 66,459 Comprehensive (loss) income(400,570)(248,102)307,630 43,839 (1,363,541)(341,428)(48,653)Comprehensive income attributable to non-controlling interests(6)(2,323)(5,287)(753) (3,897)(7,707)(1,098)Comprehensive loss (income) attributable to redeemable non-controlling interests0 5,548 (107,365)(15,299) 0 (101,817)(14,509)Comprehensive (loss) income attributable to GDS Holdings Limited shareholders(400,576)(244,877)194,978 27,787 (1,367,438)(450,952)(64,260) GDS HOLDINGS LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) Three months ended Nine months ended September 30, 2023June 30, 2024September 30, 2024 September 30, 2023September 30, 2024 RMBRMBRMBUS$ RMBRMBUS$ Net loss(420,831)(231,768)(231,109)(32,931) (1,120,749)(807,808)(115,112)Depreciation and amortization886,142 874,168 911,274 129,856 2,603,610 2,642,181 376,508 Amortization of debt issuance cost and debt discount42,058 31,364 41,859 5,965 131,976 111,785 15,929 Share-based compensation expense107,957 75,682 61,194 8,720 255,851 213,522 30,427 Others11,356 (34,653)(73,811)(10,518) 15,788 (96,237)(13,714)Changes in operating assets and liabilities(116,236)(260,556)(67,893)(9,675) (770,609)(1,092,664)(155,703)Net cash provided by operating activities510,446 454,237 641,514 91,417 1,115,867 970,779 138,335 Purchase of property and equipment and land use rights(1,478,410)(1,960,947)(2,898,805)(413,077) (4,935,688)(6,454,859)(919,811)Payments related to acquisitions and investments(94,000)(70,791)0 0 (236,448)(70,791)(10,088)Net cash used in investing activities(1,572,410)(2,031,738)(2,898,805)(413,077) (5,172,136)(6,525,650)(929,899) Net proceeds from financing activities442,341 3,833,394 1,941,787 276,704 2,765,599 7,397,150 1,054,086 Net cash provided by financing activities442,341 3,833,394 1,941,787 276,704 2,765,599 7,397,150 1,054,086 Effect of exchange rate changes on cash and restricted cash(10,222)30,883 (28,109)(4,008) 149,597 (7,135)(1,016) Net (decrease) increase of cash and restricted cash(629,845)2,286,776 (343,613)(48,965) (1,141,073)1,835,144 261,506 Cash and restricted cash at beginning of period8,370,564 7,809,913 10,096,689 1,438,767 8,882,066 7,917,932 1,128,296 Reclassification as assets of disposal group classified as held for sale(324)0 0 0 (598)0 0 Cash and restricted cash at end of period7,740,395 10,096,689 9,753,076 1,389,802 7,740,395 9,753,076 1,389,802 GDS HOLDINGS LIMITEDRECONCILIATIONS OF GAAP AND NON-GAAP RESULTS(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")except for percentage data) Three months ended Nine months ended September 30, 2023June 30, 2024September 30, 2024 September 30, 2023September 30, 2024 RMBRMBRMBUS$ RMBRMBUS$ Gross profit447,449 637,825 656,921 93,611 1,490,133 1,868,420 266,248 Depreciation and amortization748,658 773,302 811,434 115,628 2,215,559 2,340,696 333,548 Operating lease cost relating to prepaid land use rights10,434 10,706 11,536 1,644 28,177 32,876 4,685 Accretion expenses for asset retirement costs1,708 1,690 1,730 247 5,165 4,908 699 Share-based compensation expenses39,005 27,934 20,678 2,947 87,401 74,936 10,678 Adjusted GP1,247,254 1,451,457 1,502,299 214,077 3,826,435 4,321,836 615,858 Adjusted GP margin49.5%51.4%50.7%50.7% 51.7%51.3%51.3% GDS HOLDINGS LIMITEDRECONCILIATIONS OF GAAP AND NON-GAAP RESULTS(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")except for percentage data) Three months ended Nine months ended September 30, 2023June 30, 2024September 30, 2024 September 30, 2023September 30, 2024 RMBRMBRMBUS$ RMBRMBUS$ Net loss(420,831)(231,768)(231,109)(32,931) (1,120,749)(807,808)(115,112)Net interest expenses503,156 505,231 535,008 76,238 1,457,055 1,543,715 219,978 Income tax expenses (benefits)20,945 59,875 (10,008)(1,426) 209,775 112,260 15,997 Depreciation and amortization886,142 874,168 911,274 129,856 2,603,610 2,642,181 376,508 Operating lease cost relating to prepaid land use rights27,211 27,316 27,602 3,933 80,760 82,521 11,759 Accretion expenses for asset retirement costs1,708 1,690 1,730 247 5,165 4,908 699 Share-based compensation expenses107,957 75,682 61,194 8,720 255,851 213,522 30,427 Adjusted EBITDA1,126,288 1,312,194 1,295,691 184,637 3,491,467 3,791,299 540,256 Adjusted EBITDA margin44.7%46.4%43.7%43.7% 47.2%45.0%45.0% GDS HOLDINGS LIMITEDSELECTED SEGMENT INFORMATION(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) Three months ended September 30, 2023 Three months ended June 30, 2024 Three months ended September 30, 2024 GDSHGDSIEliminationTotal GDSHGDSIEliminationTotal GDSHGDSIEliminationTotal RMBRMBRMBRMB RMBRMBRMBRMB RMBRMBRMBRMBUS$ Net revenue 2,470,125 49,328 (420)2,519,033 2,579,594 255,533 (8,758)2,826,369 2,619,578 363,209 (17,074)2,965,713 422,611 Net loss (309,236)(111,272)(323)(420,831) (172,845)(55,666)(3,257)(231,768) (152,146)(76,227)(2,736)(231,109)(32,931)Net interest expenses 468,951 34,205 0 503,156 450,271 57,043 (2,083)505,231 463,327 74,999 (3,318)535,008 76,238 Income tax expenses (benefits) 20,943 2 0 20,945 59,864 11 0 59,875 (347)(9,661)0 (10,008)(1,426)Depreciation and amortization 845,901 40,241 0 886,142 790,901 83,430 (163)874,168 803,535 107,903 (164)911,274 129,856 Operating lease cost relating to prepaid land use rights 26,907 304 0 27,211 27,603 (287)0 27,316 27,602 0 0 27,602 3,933 Accretion expenses for asset retirement costs 1,656 52 0 1,708 1,690 0 0 1,690 1,730 0 0 1,730 247 Share-based compensation expenses 107,957 0 0 107,957 75,682 0 0 75,682 61,194 0 0 61,194 8,720 Adjusted EBITDA 1,163,079 (36,468)(323)1,126,288 1,233,166 84,531 (5,503)1,312,194 1,204,895 97,014 (6,218)1,295,691 184,637 Net cash provided by (used in) operating activities 578,723 (68,277)0 510,446 599,443 (106,926)(38,280)454,237 639,878 1,636 0 641,514 91,417 Net cash (used in) provided by investing activities (1,355,859)(804,475)587,924 (1,572,410) 654,451 (1,146,380)(1,539,809)(2,031,738) (788,123)(2,110,682)0 (2,898,805)(413,077)-Purchase of property and equipment and land use rights (673,935)(804,475)0 (1,478,410) (852,847)(1,146,380)38,280 (1,960,947) (788,123)(2,110,682)0 (2,898,805)(413,077)-Payments related to acquisitions and investments (94,000)0 0 (94,000) (70,791)0 0 (70,791) 0 0 0 0 0 -GDSH investment in GDSI (587,924)0 587,924 0 1,578,089 0 (1,578,089)0 0 0 0 0 0 Net cash provided by (used in) financing activities 81,629 948,636 (587,924)442,341 (119,209)2,374,514 1,578,089 3,833,394 (392,325)2,334,112 0 1,941,787 276,704 GDS HOLDINGS LIMITEDSELECTED SEGMENT INFORMATION CONT’D(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) As of December 31, 2023As of September 30, 2024 RMBRMBUS$Property and equipment, net GDSH40,098,416 40,210,445 5,729,943 GDSI7,408,567 11,855,262 1,689,361 Elimination(7,489)(17,237)(2,456)Total47,499,494 52,048,470 7,416,848 Gross debt (Note) GDSH42,547,203 43,361,579 6,178,975 GDSI5,170,653 5,924,400 844,220 Elimination(1,300,849)0 0 Total46,417,007 49,285,979 7,023,195 Cash GDSH7,301,976 7,757,903 1,105,492 GDSI408,735 1,650,561 235,203 Total7,710,711 9,408,464 1,340,695 Note: Gross debt comprised of short-term and long-term borrowings, convertible bonds payable and finance lease and other financing obligations.

General and administrative expenses, excluding share-based compensation expenses of RMB31.0 million (US$4.4 million), depreciation and amortization expenses of RMB98.6 million (US$14.0 million) and operating lease cost relating to prepaid land use rights of RMB16.1 million (US$2.3 million), were RMB147.4 million (US$21.0 million) in the third quarter of 2024, a 32.4% increase over the same period last year of RMB111.3 million (excluding share-based compensation expenses of RMB53.3 million, depreciation and amortization expenses of RMB135.9 million and operating lease cost relating to prepaid land use rights of RMB16.8 million).

"The US$1 billion equity raise for GDSI will support our ambitious international expansion plans, further affirming the underlying value GDSI brings to our shareholders.” Third Quarter 2024 Financial Results Net revenue in the third quarter of 2024 was RMB2,965.7 million (US$422.6 million), a 17.7% increase over the same period last year of RMB2,519.0 million.