GDS Holdings shares close 17% higher with narrower-than-expected loss, revenue beats Investing.com

SHANGHAI – GDS Holdings (NASDAQ:) Limited (NASDAQ:GDS; HKEX:9698), a major data center operator in China and Southeast Asia, saw its stock close 17% higher on Wednesday, after reporting better-than-expected second-quarter results.

The company posted a net loss of RMB 231.8 million ($31.9 million), or RMB 1.30 per share, in Q2, narrower than analysts’ estimates of a loss of RMB 1.82 per share. Revenue rose 14.3% year-on-year to RMB 2.83 billion ($388.9 million), beating the consensus forecast of RMB 2.79 billion.

GDS Holdings’ revenue growth was driven by continued expansion of its data center footprint and strong customer demand. Total leased and pre-leased floor space increased 18.7% year-on-year to 756,992 square meters as of June 30. The used area increased by 20.9% compared to the previous year, up to 462,673 square meters.

“Disciplined execution with a strong focus on our strategic objectives led to solid results in the second quarter,” said William Huang, president and CEO of GDS. He noted an improving trend in gross carryover for China operations, while other metrics remained flat.

The company’s international business saw significant growth, with revenue rising 690.2% year-on-year to RMB 255.5 million. GDS has secured major new customer orders in Johor, Malaysia, capitalizing on strong regional demand.

For the full year 2024, GDS reaffirmed its guidance for total revenue of RMB 11,340-11,760 million and adjusted EBITDA of RMB 4,950-5,150 million.

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