- GDS Holdings Ltd (NASDAQ:GDS) reported fourth-quarter FY21 revenue growth of 34.1% year-on-year to $343.3 million, beating the consensus of $338.7 million.
- Service revenue increased 34.3% Y/Y to $343 million.
- Margins: The adjusted gross margin contracted 100 bps to 52.5%.
- The adjusted EBITDA rose 35.5% Y/Y to $161.2 million, and the margin expanded by 50 bps to 47%.
- Loss per ADS of $(0.30) missed the consensus loss of $(0.18).
- GDS held $1.6 billion in cash and equivalents and generated $63.7 million in operating cash flow.
- Outlook: GDS saw FY22 revenue of $1.46 billion - $1.52 billion, below the consensus of $1.55 billion.
- "We achieved another year with outstanding performance across our business," said Chair and CEO William Huang. "Our strong sales momentum continued throughout 2021 with around 120,000 sqm of net additional area committed. We further strengthened our capacity in resource-scarce Tier 1 markets through both organic development and acquisitions."
- Price Action: GDS shares traded higher by 4.84% at $38.81 in the premarket on the last check Tuesday.
