21Vianet Group, Inc. (NASDAQ:VNET) Q3 2019 Earnings Conference Call - Final Transcript
Nov 18, 2019 • 08:00 pm ET
Ladies and gentlemen, thank you and welcome to 21Vianet Group's Third Quarter 2019 Earnings Conference Call.
With us today are Mr. Alvin Wang, Chief Executive Officer and President; Ms. Sharon Liu, Chief Financial Officer; and Ms. Rene Jiang, Investor Relations Director of the Company.
I will now turn the call over to the first speaker today, Ms. Rene Jiang, IR Director of 21Vianet. Please go ahead, ma'am.
Hello, everyone. Welcome to our third quarter 2019 earnings call. Before we start, please note that this call may contain forward-looking statements, made pursuant to the Safe Harbor Provisions for the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations that involve known and unknown risks, uncertainties and other factors not under the management -- the company's control, which may cause actual results, performance or achievements of the company to be materially different from the results, performance or expectations implied by these forward-looking statements.
Forward-looking statements are expressly qualified in their entirety by the cautionary statement, risk factors and details of the company's filings with the SEC. 21Vianet undertakes no duty to revise or update any forward-looking statements for selected events or circumstances after the date of this conference call.
I will now turn the call over to Mr. Alvin Wang, CEO and President of 21Vianet.
Thank you Rene. Good morning and good evening everyone. Thank you for joining us on our earnings call today. In the third quarter of 2019, we grew our revenues to RMB981 million and adjusted EBITDA to RMB272.5 million. Both of which exceeded the high end of our previous guidance range.
Our adjusted EBITDA margin was 27.8% compared to 28.2% in the same period last year. This growth demonstrates both resilient customer demand and our progress in these three areas. Timely capture of the growing and changing market demand for IDC; continuous refinements of the product portfolio and the value propositions; prudent expansion of the capacity pipeline in anticipation of rising demands. First sparking [Phonetic] the current macro headwind, the domestic IDC market is growing rapidly as a result of ongoing demand for hosting and cloud computing. In line with these trends, recent industry surveys by the IDC Trend Research Center suggested that more than half of the companies surveyed, consider IDC services, a long-term investment priority, not subordinates proposed cost-control measures.
Some findings validates our own experience in IDC industry, as we have witnessed large scale Internet and Cloud and the projects and accelerating their expansion of cabinet capacity to better accommodate their surviving Internet data traffic and the cloud computing needs. Meanwhile, recognizing the need to digitalize their operations, traditional companies are also increasing their demand for scalable and customized IT solutions. To capture these growth trends and to attract more large scale clients, we have vastly leveraged, our industry leadership, technological know-how, domain activities and the brand equity.
Our partnership with Alibaba in October 2019, exemplifies our industry recognition and demonstrates our strong value proposition