GDS Holdings Limited (NASDAQ:GDS) Q2 2020 Earnings Conference Call - Final Transcript

Aug 18, 2020 • 08:00 am ET

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GDS Holdings Limited (NASDAQ:GDS) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Hello, ladies and gentlemen. Thank you for standing by for GDS Holdings Limited Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session. 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.

Executive
Laura Chen

Thank you. Hello, everyone. Welcome to 2Q 2020 earnings conference call of GDS Holdings Limited. The company's results were issued via Newswire services earlier today and are posted online. A summary presentation, which we'll 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; Ms. Jamie Khoo, our COO, is also available to answer questions.

Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the U.S. 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 U.S. 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.

Executive
William Wei Huang

Thank you. Hello, everyone. This is William. Thank you for joining us on today's call. I'm pleased to report that we had another very strong quarter. We achieved record organic sales with over 26,000 square meter or 60 megawatt of new customer commitments. We stepped up our development activities. We now have 17 data centers under construction, our largest ever.

Area utilized increased by over 14,000 square meter, nearly double the moving for the prior quarter. We grew adjusted EBITDA by 48% year-on-year and our EBITDA margin crossed 47% for the first time.

The operating environment in China is now almost back to normal and despite the escalating tensions between China and the U.S., we see no adverse impacts on our business.

Turning to our sales achievement on Slide 4. In the first half of 2020, our organic sales totaled over 48,000 square meter. Our original target for the full year was 80,000 square meter organic. But we are clearly on-track for a higher number. And since then, I'm confident that we can deliver over 90,000 square meter organic in