GDS Holdings Stock Slumps After Q4 Revenue Miss; CEO Highlights AI Growth Potential

GDS Holdings Limited (NASDAQ:GDS) shares are trading lower after its reported fourth-quarter results.

Net revenue increased 9.1% year over year to CNY2.69 billion. In USD terms, net revenues of $368.6 million missed the consensus of $430.70 million. The revenue increase was mainly due to the ongoing ramp-up of the data centers.

Adjusted gross profit was CNY1.40 billion ($191.3 million), an increase of 11.8% Y/Y, and the margin was 51.9%, compared with 50.7% a year ago.

As of December-end, the total area committed and pre-committed increased by 1.8% Y/Y to 629,997 sqm, while the area utilized grew by 11.8% Y/Y to 453,094 sqm.

The utilization rate for the area in service was 73.8%, slightly down from 73.9% ...