GDS Holdings Limited Q2 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Business & Strategic Highlights

  • Record organic sales of over 26,000 sqm (60MW) in Q2, contributing to over 48,000 sqm in 1H20. This puts the company ahead of its original 80,000 sqm full‑year organic target. Management now expects over 90,000 sqm organic sales for FY20 (vs. ~70,000 sqm in FY19).
  • 17 data centers are currently under construction, the highest in company history.
  • Area utilized increased 14,336 sqm organically in Q2, nearly double Q1 levels (Q1 move‑in was ~7,000–8,000 sqm).
  • Adjusted EBITDA grew 48% year‑on‑year and surpassed a 47% margin for the first time.
  • Management sees no business impact from U.S.–China tensions and reports that China’s operating environment is “almost back to normal.”
  • Market demand remains strong, driven by digitalization trends, new technologies (5G, AI, blockchain, IoT), and government “new infrastructure” policies.

Customer Wins & Platform Expansion

  • Four new hyperscale orders signed in Q2.
  • New hyperscale anchor customer secured for a major Shanghai site acquired earlier in 2020.
  • Changshu campus (65,000 sqm capacity): 30,000 sqm memorandum signed with a leading cloud service provider; 6,000 sqm already committed.
  • Langfang cluster near Beijing: expanded from 1 data center (2019) to 8 in service or under construction, with 48,000+ sqm committed.

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Operator: Hello ladies and gentlemen. Thank you for standing by for GDS Holdings Limited's Second 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. Thank you. Laura Chen: Thank you. Hello, everyone. Welcome to the 2Q20 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 ot

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