GDS Holdings Limited (NASDAQ: GDS) reported Q1 EPS of ($0.25), $0.16 worse than the analyst estimate of ($0.09). Revenue for the quarter came in at $260.4 million versus the consensus estimate of $266.99 million.

First Quarter 2021 Financial Highlights

• Net revenue increased by 37.5% year-over-year (“Y-o-Y”) to RMB1,706.0 million (US$260.4 million) in the first quarter of 2021 (1Q2020: RMB1,240.4 million).
• Service revenue increased by 38.3% Y-o-Y to RMB1,704.5 million (US$260.2 million) in the first quarter of 2021 (1Q2020: RMB1,232.6 million).
• Net loss was RMB278.7 million (US$42.5 million) in the first quarter of 2021, compared with a net loss of RMB92.0 million in the first quarter of 2020.
• Adjusted EBITDA (non-GAAP) increased by 43.0% Y-o-Y to RMB817.9 million (US$124.8 million) in the first quarter of 2021 (1Q2020: RMB572.1 million). See “Non-GAAP Disclosure” and “Reconciliations of GAAP and non-GAAP results” elsewhere in this earnings release.
• Adjusted EBITDA margin (non-GAAP) increased to 47.9% in the first quarter of 2021 (1Q2020: 46.1%).

“We delivered another solid quarter as we continued to execute our strategy with excellence,” said Mr. William Huang, Chairman and Chief Executive Officer. “During the first quarter, we booked over 23,000 sqm in net additional area committed, continuing our strong sales momentum. We are confident of achieving our sales target for this year. On the supply side, we added more scarce and strategic resources in Tier 1 markets, maintaining our competitive advantage in an environment where there is an increasingly limited prime supply.”

“We continued our strong sales momentum with steady top-line growth, achieving a revenue increase of 37.5% and adjusted EBITDA growth of 43.0%,” commented Mr. Dan Newman, Chief Financial Officer. “Our adjusted EBITDA margin reached 47.9%, 1.8 percentage points higher compared with the first quarter of last year. Our solid financial position, as evidenced by our strong balance sheet, is set to support our future growth and propel us toward our long-term goals.”

For earnings history and earnings-related data on GDS Holdings Limited (GDS) click here.