GDS 3Q 2020 Results: Revenue, Adj-EBITDA Up by 43%, 43.8%, Loss Magnified
The company's revenue has been fueled with 19 consecutive quarters of over 35% YoY growth.
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Alibaba's key cloud infrastructure provider, GDS holdings, presented its 3Q results. It lifted the net revenue by 43% to CNY 1524.7 million year-on-year (YoY), improving Adj-EBITDA to CNY 717.1 million, 48.3% higher than last years' figure. The net loss was CNY 204.6 million, aggravated from CNY 108.6 million a year ago.
Other critical operating indicators include total area committed and pre-committed, which climbed by 23,884 square meters (sqm) over the period to 357,344 sqm, an increase of 47.4% YoY. GDS's facilities' utilization rate had reached 75% as of 30 September 2020, from 69.6% of Q3 2019.
GDS's Hong Kong stock price is trading at HKD 91.05 per share, down 1.52% by the time of reporting.
As the critical vendor of Alibaba Cloud and Tencent Cloud, GDS's business has kept a runaway growth consistent with the two Chinese cloud titans' performances. Alibaba Cloud attributes revenue skyrocketing by 60% to rising demand from the Internet, finance and retail industries. Alternatively, Tencent enhanced its FinTech and Business Services department by 24.3% even though the pandemic's lingering effect dragged it.
Besides, IDC also published the Chinese Financial Cloud market size, showing a significant cloud deployment in China. It states the market hit USD 1.91 billion in 1H 2020, up 37.5% YOY.
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