GDS Holdings Limited Q1 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Business & Operational Highlights

  • Adjusted EBITDA grew nearly 50% year‑over‑year, reaching the company’s highest‑ever margin of just over 46% (compared to approx. 45.6% in Q4 2019).
  • Record organic sales: over 22,000 square meters (46 MW) of net add in Q1 2020.
  • Development pipeline increased substantially:
    • 110,000+ sqm (260 MW) under construction, nearly 70% pre‑committed.
    • 100,000+ sqm of additional developable capacity added to the pipeline.
  • Maintained “double zero”: zero COVID‑19 infections and zero service incidents.
  • Significant momentum from cloud customers, with China’s cloud market expected to grow 30% CAGR for the next 5 years.
  • Three 10+ MW orders secured in Q1 2020 — the first time in company history.
  • Strong customer diversification with large cloud and internet clients now present in multiple GDS data centers.

Financial Performance

  • Q1 2020 service revenue grew 6.3% quarter‑over‑quarter (QoQ).
  • Underlying Adjusted EBITDA grew 10.5% QoQ; margin reached 47.4% (vs. 45.6% in Q4 2019).
  • Move‑ins totaled 7,800 sqm, in line with expectations despite pandemic disruptions.
  • MSR per sqm declined 2.4% QoQ due mainly to:
    • Back‑end loaded move‑ins.

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Operator: Hello ladies and gentlemen. Thank you for standing by for GDS Holdings Limited's First Quarter 2020 Earnings Conference Call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question-and-answer session. Today’s conference call is being recorded. I will now turn the call over to your host, Ms. Laura Chen, Head of Investor Relations for the Company. Please go ahead, Laura. Laura Chen: Thank you. Hello, everyone. Welcome to 1Q20 earnings conference call of GDS Holdings Limited. The Company's results were issued via newswire services earlier today and are posted online. A summary presentation, which we refer to during this conference call, can be viewed and downloaded from our IR website at investors.gds-services.com. Leading today's call is Mr. William Huang, GDS's Founder, Chairman, and CEO, who will provide an overview of our business strategy and performance. Mr. Dan Newman, GDS's CFO, will then review the financial and operating results. Ms. Jamie Khoo, our COO, is also available to answer questions. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the Company's results may be materially different from the views expressed today. Further information regarding these and other risks and un

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