GDS Holdings Ltd – ADR (NASDAQ:GDS), a leading developer and operator of high performance data centers in China and South East Asia, stock fell 1.14% (As on March 27, 11:07:09 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY 23. Service revenue in the fourth quarter of 2023 was RMB2,556.5 million (US$360.1 million), a 6.3% increase over the fourth quarter of 2022 of RMB2,404.0 million, and a 1.5% increase over the third quarter of 2023 of RMB2,519.0 million The increase was mainly due to full quarter revenue contribution from additional area utilized in the third quarter of 2023, and the contribution from 20,074 sqm of net additional area utilized in the fourth quarter of 2023, mainly related to the SH17 Phase 1, BJ7, LF13 Phase 1, LF15, HK1 Phase 1 and NTP1 data centers. Adjusted GP was RMB1,270.9 million (US$179.0 million) in the fourth quarter of 2023, a 3.8% increase over the fourth quarter of 2022 of RMB1,224.7 million. Net loss in the fourth quarter of 2023 was RMB3,164.6 million (US$445.7 million), compared with a net loss of RMB177.9 million in the fourth quarter of 2022 and a net loss of RMB420.8 million in the third quarter of 2023.

GDS in the fourth quarter of FY 23 has reported the adjusted earnings per share of ¥-2.16, beating the analysts’ estimates for the adjusted earnings per share of ¥-2.49. The company had reported the adjusted revenue growth of 6.3 percent to ¥2.56 billion in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of ¥2.58 billion. Adjusted EBITDA was RMB1,132.6 million (US$159.5 million) in the fourth quarter of 2023, a 5.7% increase over the fourth quarter of 2022 of RMB1,071.5 million. Adjusted EBITDA margin (non-GAAP) was 44.3% in the fourth quarter of 2023, compared with 44.6% in the fourth quarter of 2022, and 44.7% in the third quarter of 2023.

Moreover, area in service at the end of the fourth quarter of 2023 was 572,555 sqm, compared with 515,787 sqm at the end of the fourth quarter of 2022 and 554,210 sqm at the end of the third quarter of 2023, an increase of 11.0% Y-o-Y and 3.3% Q-o-Q. In the fourth quarter of 2023, LF15 and NTP2 data centers came into service.

For the full year of 2024, the Company expects its total revenues to be between RMB11,340 million to RMB11,760 million.