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Dec 31, 2024
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VNET Q4 2024 Earnings Report
VNET reported strong revenue growth in Q4 2024, driven by its wholesale IDC business, and returned to profitability with a net income of $0.47 million.
Key Takeaways
VNET Group delivered a solid Q4 2024, with total revenue increasing by 18.3% year-over-year to $307.8 million. The company's wholesale IDC business was the main growth driver, surging 125.4%. Net income improved significantly compared to the prior-year period's large loss. The company also secured several major capacity expansion agreements, positioning itself for future growth.
Total revenue increased 18.3% year-over-year to $307.8 million.
Wholesale IDC business revenue surged 125.4% to $91.1 million.
Net income improved to $0.47 million from a net loss of $332 million in Q4 2023.
Adjusted EBITDA rose 63.8% year-over-year to $98.8 million.
Revenue by Segment
Forward Guidance
VNET expects strong growth in 2025, driven by AI-driven demand for high-performance data centers. The company forecasts total revenue growth of 10% to 13% and adjusted EBITDA growth of 11% to 14%.
Positive Outlook
- Total net revenue expected to grow by 10% to 13% in 2025.
- Adjusted EBITDA projected to rise by 11% to 14%.
- AI-driven demand expected to drive further IDC growth.
- Strong new capacity commitments secured for future expansion.
- Company remains confident in the long-term growth of the China market.
Challenges Ahead
- Retail IDC segment showed a slight decline in revenue.
- Utilization rate of ramp-up wholesale capacity remains low at 34.0%.
- Net cash from operations declined compared to Q4 2023.
- Increased general and administrative expenses impacted margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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