Service revenue increased 23.6% Y/Y to $343.8 million.
Margins: The adjusted gross margin contracted 330 bps to 50.7% as costs expanded 29.3% Y/Y.
The adjusted EBITDA rose 18.6% Y/Y to $158.6 million, and the margin contracted by 210 bps to 46%.
Loss per ADS of $(0.32) missed the consensus loss of $(0.30).
GDS held $1.4 billion in cash and equivalents and generated $241.7 million in operating cash flow.
"We delivered another solid quarter of results despite the impact from the COVID lockdown," Chair and CEO William Huang said. "Under the tempered market conditions, we added over 13,000 sqm of new bookings in the quarter. We continue to deepen our customer relationships and keep diversifying our customer base. Our strategic expansion into Southeast Asia is well underway with projects in Indonesia and Malaysia that position us to serve as a regional hub and meet local demand."
Outlook: GDS cut the FY22 revenue from $1.46 billion - $1.52 billion to $1.38 billion - $1.40 billion, versus the consensus of $1.39 billion to reflect macro uncertainties and COVID-19 impact.
Price Action: GDS shares traded higher by 0.12% at $26.01 in the premarket session on the last check Tuesday.
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