GDS Holdings Limited Q4 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Business & Strategic Highlights

  • Revenue grew 19% year-on-year in 2022, showing solid resilience despite a challenging macro environment.
  • Adjusted EBITDA increased 15% year-on-year, supported by new customer wins and international expansion.
  • Significant new bookings: 74,000 sqm (178 MW) of net new bookings in 2022, all tied to organic development in China's Tier 1 markets.
  • Major wins included a 64 MW hyperscale project in Johor, highlighting success in international markets.
  • Entering 2023, the company expects demand recovery as customer sentiment improves and move-in schedules accelerate later in the year.
  • Sector tailwinds include growing AI-driven demand and tightening supply in China’s Tier 1 markets due to land and power constraints.

Operational Performance

  • 2022 net additional utilized area: 51,000 sqm (29,000 sqm from Tier 1 China; 22,000 sqm from B-O-T projects).
  • 2023 expectation: similar net add of ~50,000 sqm, although churn of 17,000 sqm from one Internet customer will be recorded in the first three quarters.
  • Backlog: 260,000 sqm, half move-in ready, improving revenue visibility with reduced CapEx needs.
  • 2023 delivery schedule heavily weighted toward the second half (85% of service capacity coming online after mid-year).

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Operator: Hello, ladies and gentlemen, thank you for standing by for GDS Holdings Limited's Fourth Quarter and Full Year 2022 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 the fourth quarter and full year 2022 earnings conference call of GDS Holdings Limited. The company's results were issued today via newswire services earlier today and are posted online. A summary presentation, which we will refer to during the 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 Founder, Chairman and CEO, who will provide an overview of our business strategy and performance. Mr. Dan Newman, GDS 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 U.S. 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. Fu

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