GDS Stock Falls 5% After-hours on Wider Net Loss, Despite Strong Revenue
The stock of GDS Holdings Ltd. (Nasdaq: GDS) dipped nearly 5 percent Wednesday evening to $33.50 per American depositary share after the company reported lower-than-expected financial results for the fourth quarter.
In a statement after markets closed, the Shanghai-based developer and operator of data centers reported that its revenue jumped 64 percent year-over-year to $120.6 million in the three months through December. Its net loss, however, widened to $17.9 million, 5 percent more than reported for the same period of 2017. Loss per share was 2 cents.
For the full year, GDS reported revenue of $406.1 million, up 73 percent from 2017, and net loss of $62.6 million, 32 percent higher.
The chairman and chief executive officer of GDS, William Huang, called the year "outstanding" for the company, marked by "accelerated growth."
"Notably, we added over 80,000 sqm of net additional area committed, or over 180 MW of IT power capacity, for the year of 2018, double last year's achievements," Huang said. "We have further diversified our customer base, with new strategic names contributing over 30% to our new bookings in 2018. A key to our success in 2018 was our proven ability to expand capacity in key markets. We added 15 new data centers with a total capacity of around 100,000 sqm and ended the year with 35 data centers in our portfolio."
GDS said it expects to generate revenue in the range of 3.9 billion to 4.1 billion yuan this year, representing an increase of between 40 and 47 percent from 2018.
Huang concluded, "With multi-year growth from cloud and other technologies fueling demand, we see a compelling opportunity before us. Looking forward, we are well-positioned and confident in our ability to continue to deliver strong results and shareholder value."