GDS Holdings Reports Strong Financial Turnaround in 2024

GDS Holdings ( (GDS) ) has released its Q4 earnings. Here is a breakdown of the information GDS Holdings presented to its investors.

GDS Holdings Limited is a prominent developer and operator of high-performance data centers in China, known for its strategic locations and carrier-neutral facilities that cater to major telecommunications networks and cloud services. In its latest earnings report, GDS Holdings announced a significant financial turnaround, with a net income of RMB 3.3 billion for the full year 2024, compared to a net loss in 2023. The company’s net revenue increased by 5.5% year-over-year, reaching RMB 10.3 billion, while its adjusted EBITDA also saw a modest rise of 3.0% to RMB 4.9 billion.

Key highlights from the report include a 9.1% year-over-year increase in net revenue for the fourth quarter of 2024, amounting to RMB 2.7 billion, driven by the continued ramp-up of data centers. The company also reported a substantial reduction in net loss from continuing operations, which decreased to RMB 173.4 million in the fourth quarter from RMB 3.1 billion in the same period last year. Additionally, GDS Holdings successfully deconsolidated DayOne Data Centers, recognizing it as an equity investee, which contributed to a gain on deconsolidation of RMB 4.5 billion.

Operationally, GDS Holdings expanded its total area committed and pre-committed by 1.8% year-over-year to 629,997 square meters, with the area utilized increasing by 11.8% to 453,094 square meters. The company also maintained a stable utilization rate for its area in service at 73.8%. Despite these positive developments, the adjusted EBITDA margin slightly decreased to 47.2% for the full year, reflecting ongoing investments in growth and infrastructure.

Looking ahead, GDS Holdings is optimistic about its strategic and financial positioning, anticipating revenue growth between 9.4% and 12.3% for 2025. The company plans to capitalize on emerging opportunities in artificial intelligence and continue its disciplined approach to business strategy, including asset monetization and selective new commitments.