GDS Holdings Shares Are Trading Lower On Q1 Revenue Miss

GDS Holdings Ltd GDS reported first-quarter FY21 net revenue growth of 37.5% year-on-year to $260.4 million, missing the analyst consensus of $269.08 million.
Total area committed and pre-committed by customers rose 48.2% Y/Y to 425,277 sqm, while the area in service rose 44.6% Y/Y to 332,534 sqm.
Commitment rate for the area in service expanded 270 basis points to 94.6%, while the pre-commitment rate for the area under construction remained stable at 68.4%.
The area under construction was 161,611 sqm, and the area utilized by customers rose 47.9% Y/Y to 242,364 sqm.
The utilization rate for the area in service expanded 170 basis points to 72.9%.
Adjusted gross margin expanded 80 basis points to 54.4%.
Net loss rose 202.9% Y/Y to $278.7 million, translating to EPS loss of $(0.25), missing the analyst consensus of $(0.09).
Adjusted EBITDA rose 43.0% Y/Y to $124.8 million, and the margin expanded 180 basis points to 47.9%.
GDS held $2.3 billion in cash and equivalents and used $3.7 million in operating cash flow.
Guidance: GDS sees FY21 revenue outlook of RMB7.7 billion - RMB8 billion
Price action: GDS shares traded lower by 9.5% at $71.75 in the premarket session on the last check Thursday.

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