GDS Holdings Limited (NASDAQ:GDS) Q3 2018 Earnings Conference Call Transcript
Nov 13, 2018 • 08:00 am ET
Hello, ladies and gentlemen. Thank you for standing by for GDS Holdings Limited Third Quarter 2018 Conference Call. (Operator Instructions) Today's conference call is being recorded. I will now turn the call over to your host, Ms. Laura Chen, Head of Investor Relations for the Company. Please go ahead, Laura.
Thank you, Joanna. Hello, everyone, and welcome to 3Q '18 Earnings Conference Call of GDS Holdings Limited. The Company's (technical difficulty) earlier today and are posted online. A summary presentation, which we will refer to during this conference call, can be viewed and downloaded from our IR website at investors.gds-services.com. Leading today's call is Mr. William Huang, GDS Founder, Chairman and CEO, who will provide an overview of our business strategy and performance. Mr. Dan Newman, GDS CFO will then review the financial and operating results.
Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the Company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the Company's prospectus as filed with the US SEC. The Company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please also note that GDS earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. GDS press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures.
I will now turn the call over to GDS Founder, Chairman and CEO, William Huang. Please go ahead, William.
William Wei Huang
Thank you, Laura. Hello, everyone. This is William. Thank you for joining us on today's call. I'm very pleased to report another quarter of outstanding performance with significant progress across our business. Let's start. Starting with sales, which is the leading indicator of our future revenue and positive growth. In the third quarter, we signed up customers for nearly 19,000 square meters of net additional area committed. All of this is organic. All of this is in Tier 1 markets. With this addition, we stayed on track to double the new business we signed last year. And at the same time, we delivered to our customers around 14,000 square meters of additional revenue-generating space. The utilization rate moved up to 68%. This drove another quarter in which our adjusted EBITDA grew by well over 20% quarter-on-quarter and 100% year-on-year.
Backing this up, we started the construction of four new projects and brought another four into service on time and within budget. We kept the sales and the capacity growth synchronized. The pre-commitment rate for area under construction was 45% based on signed contracts with significant more in the construction -- in the constructing process. And always, we ensured that all of our projects are fully financed with sufficient equity and long-term project debt.